Bogutti: Adapting Global Trends

Friday, 26 January, 2024 Food From Poland 42/2024
In a rapidly evolving confectionery market, Karol Pilacinski, Export Director at Bogutti, discusses how the company is adapting to global trends with a focus on health-conscious products and innovative flavors.
What trends are currently noticeable on the global confectionery market? How does Bogutti’s offer fit into them?

Several trends can be observed on the market, which have a huge impact on producers’ actions. It is worth starting with the issue of growing consumer awareness. Customers are paying more attention to the composition of the product, i.e. whether it contains vitamins, protein, magnesium, fibre. Above all, consumers expect a healthy product that provides them with additional benefits. Another issue is packaging. It should be optimally adapted to the product, e.g. keep it fresh longer and be made of suitable raw mate-rials. This forces manufacturers to work towards the introduction of biodegradable materials.

Consumers are also looking for constant innovation. They like to experiment and explore new flavours. This forces producers to seek innovation and continuously develop their offers and introduce flavours on an in-out basis.

The Bogutti Company is not passive to these trends. Currently, the focus is on the development of a line of sugar-free cookies such as Free and Weeksy (also without palm oil) and the unique La Gustosa Free line (cookies with no added sugar cream).

Research shows that consumers are becoming more aware, with more and more of them reading the label before buying a product. Does this also apply to the confectionery category? Is this a worldwide trend?

We are definitely seeing increasing awareness among consumers. This is especially true for consumers in developed countries, where food expenses do not represent a significant value in the household budget. This group of consumers is willing to incur additional costs to purchase better-quality products. Trends such as clean labelling, limiting sugar, hydrogenated fats or cheaper substitutes (e.g. cocoa instead of chocolate) are worth mentioning.

Private labels have recently become very important on the Polish market. Can such trends also be seen on the global market?

The current market situation and the policies of retail chains favour the development of private labels. More and more goods need to be found on the shelves and, as a result, the chains are beginning to reduce the number of competing brands. This leaves room for global brands, which have large sales support budgets. The place of brands with less recognition is being replaced by private labels. This allows chains to offer better prices and limits the power of producers. The trend is evident both in Poland and Western Europe where retail chains have a lot of power in the market.

Manufacturers are facing many difficulties, i.e. raw material price increases, rising labour, energy and packaging costs. How does Bogutti address the problem of increasing costs and possible price increases?

Producers are under enormous cost pressure all the time. Recently, we have been facing record cocoa prices, which is reflected in the price of chocolate. This situation affects every producer and the question of price adjustments is at the category level. This makes it easier to negotiate prices. At the same time, as a company, we are constantly looking for opportunities to introduce savings by optimising production operations or seeking sources of supply of raw materials and materials at more attractive prices.

Despite rising food prices and inflation, and the growing importance of private labels, are premium sweets popular? How important is product quality to consumers?

Recent years have brought enormous change and turbulence. Each such period results in a stratification of society in terms of in-come. There is a growing number of affluent consumers at the expense of the middle class. For such people, the price of food prod-ucts is not important. They are guided in their purchasing choices by the brand, package design, recipe, taste and prevailing trends, etc. This market segment will certainly continue to grow.

What plans does Bogutti have for further business development? What will be the key challenge for the company in 2024?

Bogutti has been growing steadily for more than 10 years. In the last period, we have significantly increased the turnover generat-ed. Bogutti products now reach the farthest corners of the world. We are currently focusing on expanding our offer with new catego-ries, which will allow us to use our existing distribution channels.

The key challenge seems to be the right combination of customers’ price expectations and the volatile business environment. Cus-tomers are pushing hard to stabilise prices at a low level and at the same time there is no stabilisation on the supply side.

The latest additions to your portfolio.

We are planning a dynamic expansion of our offer for 2024. Products from new categories will be added to our portfolio. These will include fingers and wafer rolls.

Thank you.
Joanna Kowalska

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