Topic > Local Flavors Heat Up Developing Meal Solutions…

Developing markets have been a major source of growth in the global meal solutions market over the past decade. According to Euromonitor International data, the Eastern European market accounted for 31% of global sales growth (in terms of the value of the fixed US dollar exchange rate) in the refrigerated processed foods segment during the period 1998-2007. Meanwhile, the Asia-Pacific region accounted for 35% of dried processed food sales growth over the same period. Much of this growth has been driven by indigenous companies that have exploited national and regional variations in taste to build strong brands. While the increasing Westernization of tastes and increased private label competition now pose a significant threat to growth, these manufacturers are responding with value-added offerings and increasingly diversified product portfolios. Pelmeni Dominates Frozen Processed Food Segment in RussiaIn Russia, for example, local operators accounted for the largest share of the total current value of frozen processed food sales, with no multinationals ranked in the top 10. This is partly due to fact that leading companies such as Kachestvennye Produkty and its rivals Ravioli and Darya have adapted their offerings to the local culinary culture, producing products based on traditional Russian dishes such as pelmeni ('pockets' of dough or dough filled with meat, vegetables and other ingredients) . Trade sources estimate that pelmeni account for more than half of frozen processed food sales in Russian urban markets. Numerous regional companies also play an important role in this market. For example, in Yekaterinburg (the fifth largest city in Russia, with a population of 1.3 million), sales of pelmeni are dominated by one local producer, Yekaterinburgsky Myasokombinat, which offers 19 varieties positioned across the spectrum of prices, from cheap to premium. Congee is King in China Similarly, in the Chinese market, mixed congee (a type of rice porridge that is consumed in many Asian countries for breakfast or dinner) is the leading product type in the canned/preserved ready meals segment. Not surprisingly, mixed congee sales in China are dominated by indigenous companies such as Hangzhou Wahaha Group, Xiamen Yinlu Food Co and Yangzhou Xinxin Food Co. All of these companies benefit from strong and extensive distribution networks that extend into China's vast rural hinterland , as well as strong familiarity with the brand. Indigenous players fill local niches in Latin America Elsewhere, many Latin American packaged food makers have launched products to fill meal-solution niches that have been overlooked by their larger multinational rivals. For example, Venezuelan company Industrias Iberia has launched a new line of bouillon cubes with flavors associated with indigenous dishes and which are not offered by competing multinational brands such as Maggi and Knorr.