• One of the most affordable bakery products at the national level, the pretzel has reached sales of 1 billion lei. The phenomenon is due to price increases and network expansion.
For more and more Romanians, in the last 10-15 years, bagels and pastries have become daily points of reference for breakfast or lunch. For this reason, the number of these units has increased significantly both in large cities and in small and medium-sized ones. According to the estimates of Ziarului Financiar, at the national level, there are several thousand such establishments, this market being estimated at at least 1 billion lei.
Analyst data suggests that approximately 500 million pretzels are sold annually in Romania, which means 25-30 pretzels per person per year, at an average price of 2 lei. However, these businesses are not limited to pretzels, they also offer pies, pies, sandwiches, pizza or coffee, products with prices higher than 2 lei.
These foods are anyway seen by Romanians as cheaper alternatives for breakfast or lunch, which makes many prominent businesses have daily queues, regardless of the time, sometimes with more than 20-30 people waiting in line. Thus, relying on large volumes and relatively low prices, the common bakery product, the pretzel, reached sales of 1 billion lei.
The pretzel – a popular product
Compared to the last decade, when a pretzel was four times cheaper, a pretzel now costs 2 lei. However, it remains one of the cheapest food products, in the context where a breakfast in the city, including coffee, can reach 50-80 lei per person.
This business model has allowed the pretzel market to reach the 1 billion lei mark in sales faster than other food sectors such as pasta or breakfast cereals, according to data from research company ZF Euromonitor. The mentioned markets are dominated by big brands, both local and international. In the pretzel market, the names are exclusively local.
The networks Gigi, Matei, Petru and Luca - the four big players in this sector - have businesses that exceed 750 million lei with 250 subsidiaries. In the shadow of these giants, many other businesses developed and ended up owning 5-10 or even 15 units. Sara Pretzel, Crosta, Patisseria Tineretului and Simigeria Ioan are just a few examples of an extremely dynamic and fragmented market.
Article source: ZF: The cheapest food product, the "everyday" pretzel, reaches sales of 1 billion lei. Recipe? Expensive and expansion.
Article written by Gabriela Dan, Editor of Arta Albă
Read on White Art and: Palm oil: behind the scenes of a controversial ingredient
