MOSCOW’S MARKET OF MUESLI
The research of company “I & A”
Some people call muesli ‘bird feed,’ but in fact, this product was invented for lovers of wholesome food that is easy to make.
Being essentially breakfast food, muesli also makes a good midday meal. Once regarded as “girly” food, muesli now commands a much wider audience among male consumers and kids, who can make muesli themselves. Now that healthy living is in vogue among the more affluent community groups in major cities, men have come to appreciate muesli as a healthy, flavorful food requiring very little cooking time and effort.
Vitamins, amino acids, protein, fat, minerals… muesli has it all. Most of these vital nutrients are embedded in muesli’s core ingredient, cereals: wheat, rye, oat or barley grains or flakes or, occasionally, bran. The health properties of cereals remain intact as they are either not processed at all, or treated with infrared irradiation for better dissolution. Flakes, grains and especially bran are rich in fiber, which boosts intestinal performance and helps purge the body of harmful substances. In addition to cereals, muesli may include any or all of the following ingredients: fruits, berries, different nuts, chocolate, honey, sugar, etc. According to market insiders, good muesli must contain at least 30% of fruit.
Most muesli suppliers in Moscow carry diverse varieties of the product. Muesli may come plain or toasted (crunchy); the former are healthier, but the latter taste better.
The market research team of I&A studied Moscow’s muesli market in July and August 2002 by auditing retail outlets and interviewing muesli producers.
Various estimates put the number of muesli vendors in Moscow between 20 and 25. In our own retail audit, we have identified 20 producers: 9 from Western Europe (one each from the Netherlands, Switzerland and Sweden; 2 from the UK, represented by their respective local importers; 4 from Germany), 1 from Belarus and 10 domestic.
Muesli was first introduced to the Russian market in the early 90s by Brueggen, Cerealia Foods and Doctor August Oetker Nuringsmittel. The market kept growing until crippled by the 1998 crisis, which affected all import-dominated markets, but gave a boost to domestic production, in this case, of muesli.
Some of the leading domestic players in the cereals segment are Bystrov, Morsby and Caravan Product. Having launched its muesli production earlier this year, Bystrov has been rapidly gaining market ground due to its well-known brand and top quality. Bystrov products are in the premium sector on par with imports.
Morsby markets an extensive range of products in unusual packaging, jars.
Industry watchers praise Caravan Product muesli for its quality. Caravan Product is the only company offering what it calls ‘Sports Muesli,’ or muesli with enhanced health value.
Germany’s SchneeKoppe specializes exclusively in diabetic muesli.
The muesli market seems to have a lot of mileage left, both in terms of production volume and diversity. There are relatively few brands on the market, which indicates high dynamics and solid potential. Analysts say that the branding effort in the muesli segment is usually limited to securing a retail presence.
The companies mentioned above market 12 brands through Moscow’s retail outlets. Some producers purvey two brands each, while three others have no brands at all, marketing a generic product named ‘muesli.’
Of all retail outlet formats, the most extensive selection of muesli brands is offered by supermarkets; with most muesli vendors, western-standard supermarkets are the preferred retail outlet.
As for the retail presence of producers themselves in Moscow, Nestle supplies the largest number of outlets by far. Second place is shared by Bystrov and Brueggen.
If we tie company ratings to the type of outlets it sells through, we will find that the majority of grocery stores carry Bystrov and Nestle; Soviet-style self-serve stores carry Nestle and Brueggen; western-style supermarkets carry a higher percentage of Nestle products; and Manhattan products are best represented at grocery markets.
Only three producers in Moscow supply all of the above-named retail outlets: Nestle, C. Hahne Muhlenwerke and Elicom.
This indicates that producers’ policy does not necessarily call for the widest retail presence in all sorts of outlets. Retail presence in certain types of outlets is, in most cases, dictated by the company’s chosen sales policy.
The selection of muesli types and flavors will depend on the retail format. Supermarkets usually feature the widest selection, ranging up to 44% of all muesli varieties available on the market, followed by Soviet-style self-serve stores with 28%. Regular stores carry no more than 20% of all muesli varieties, and grocery markets only carry 8%.
Muesli comes in the plain and crunchy (toasted) varieties. Applying this criterion to Moscow’s market, we find that 71% of muesli on the market are plain, and 29% are crunchy. Ten of the companies reviewed supply only plain muesli; and 3 offer crunchy muesli only.
Certeals Ltd. offers two kinds of crunchy muesli under the Belso’s trademark, and two kinds of Premier Gold plain muesli. Quaker Trading Ltd. also markets two kinds each of plain and crunchy muesli, but all under the same brand. The other companies marketing both plain and crunchy muesli offer unequal number of varieties of each kind.
We also classified muesli by ingredients and fillings. The most common kind of muesli comes with a mix of cereals: wheat, oats or corn plus raisins and/or nuts. Fourteen of the 20 companies reviewed market this kind of muesli under brand names like Traditional, Classic, Classique, Breakfast or Dessert. Muesli may also come with a variety of fruits: multi-fruit, tropical, mango, papaya and others (produced by 16 companies) or berries: wild berries, strawberries, cherries, etc. Some muesli are formulated with more unusual flavors, such as apple and cinnamon, apricot and caraway seeds, strawberries and yogurt, etc. Some companies make chocolate muesli, and one makes plain muesli with wheat or other cereals without sugar or fillings. We separated crunchy and honey-toasted muesli with different flavorings from the rest (these two types are, in fact, both ‘crunchy,’ i.e. toasted in oil or honey).
Most or all retail outlets carry honey muesli. The second most widespread variety is common muesli, then muesli with unusual flavors, and, finally, berry muesli. Assuming that retailers flexibly react to changing consumer tastes, we may infer that these kinds of muesli sell the best at the moment. On the other hand, these are also the muesli kinds produced by the majority of the companies reviewed, and they come in the widest selection of flavors.
According to this classification, this is, approximately, what Moscow’s retail outlets look like in terms of various companies’ presence: the largest selection of regular muesli types available are Caravan Product; Morsby supplies the largest selection of fruit and berry muesli; Bishop has cornered the ‘unusual flavor’ niche; and Brueggen supplies most of the chocolate muesli carried by Moscow’s retailers. Brueggen, Doctor August Oetker Nuringsmittel and C. Hahne Muhlenwerke supply two kinds of crunchy muesli each; Certeals Ltd., Doctor August Oetker Nuringsmittel, Quaker Trading Ltd., C. Hahne Muhlenwerke and Cerealia Foods supply one kind each of honey-flavored muesli.
Some companies market a surprisingly limited selection of flavors. Malder Naturvoeding only markets berry muesli; Chernomortsev offers exclusively fruit muesli. Three companies market only two muesli varieties each: Nestle offers regular and fruit (tropical) muesli; Bishop offer regular (classic, with nuts and raisins) and ‘special’ flavors (blueberry or strawberry with cream); Bircher Benner markets regular (nuts and raisins) and fruit muesli. Soyuzkrupprom is the only producer offering unflavored, unfilled muesli.
As we can see, companies may be rated differently depending on their retail presence, the types of retail outlets, or their product range. This is a consequence of their different marketing and sales policies. Nestle, for instance, has the widest retail presence in Moscow in both quantitative and qualitative sense despite having only two muesli flavors in its portfolio. Morsby boasts the broadest spectrum of flavors, from regular to crunchy muesli. Caravan Product also produces an extensive range of muesli varieties, but avoids toasted muesli as a matter of policy.
There isn’t much diversity to packaging in terms of either shape or weight. In fact, there are only three kinds: a box, a bag, and a jar.
Some companies, including Cerealia Foods and Caravan Product, package in both boxes and bags. As we have already mentioned, Morsby packages its muesli in plastic jars. All international producers present on the market sell their muesli in colorful, attractive cardboard boxes.
Notably, domestic producers also try to package their muesli in cardboard boxes despite their higher cost.
A box of muesli usually contains 350, 375, 400, 450 or 500 g of the product (375 g seems to be the preferred packaging option with producers); bags contain 150, 375, 380, 400, 900 g or 1 kg (380 and 400 g seem to be more widespread than the rest). Caravan Product markets the smallest packaging size: 150 g. The largest muesli packaging size on record – 1 kg – comes from Brueggen and Elicom. Morsby packages its products in 500 g and 750 g containers.
The prices of premium muesli are quite a bit higher than those of their more ‘egalitarian’ counterparts. The cheapest muesli retail for between Rbl 13.50 and 16.00; the most expensive kinds sell for between Rbl 159.00 and 164.80 a pack. The price also depends on packaging type and weight.
The products of SchneeKoppe, the only producer marketing muesli in 750 g boxes, retail for between Rbl 105.30 and 110.20. The products of Doctor August Oetker Nuringsmittel (Dr. Oetker Vitalis brand), the only producer marketing its muesli in 500 g boxes, retail for between Rbl 58.20 and 62.00 a pack. A 450 g box of Quaker muesli costs from Rbl 61.00 to 63.50.
Nestle, Bishop and Caravan Product retail their muesli in 350 g boxes for between Rbl 50.00 and 67.20 a box.
Molina is far ahead of the others, retailing its muesli for between Rbl 159.00 and 164.00 per 375 g box. The bottom line is that the consumer may expect to pay anything from Rbl 35.00 to 164.00 for a box of muesli of whatever size.
Bagged muesli is normally more affordable, retailing for Rbl 11.00–75.00 a pack, depending on weight. The cheapest bagged muesli on record comes in 400 g bags from Soyuzkrupprom. This very plain sugar-free muesli without any fillings retails for Rbl 13.50–19.20 a pack. Our auditors have found out that Lux-Versiya is the only producer offering muesli in 500 g bags for Rbl 35.00–38.00. A 1 kg bag of Bircher Benner muesli costs between Rbl 43.00 and 48.00; Brueggen, Rbl 74.00–75.00. One kg of Elicom muesli retails for Rbl 35.20–39.00; a 900 g bag of Caravan Product muesli retails for Rbl 34.30–38.00.
Overall, foreign-made muesli usually cost more than domestic ones due to their higher quality, brand notoriety and longer presence on the Russian market, but there are exceptions to this rule. Having reviewed a very limited number of companies, we believe we should draw more specific price comparisons between individual international and Russian companies. For instance, Nestle, which has been known to the Russian consumer for years and enjoys the widest retail presence, has a moderate price level, an average of Rbl 50.00–58.00 per 375 g box. On the other hand, Bishop, a Russian company, retails its muesli in 350 g boxes for Rbl 62.00–67.00 each.
By way of conclusion, we should note that two Russian muesli products seem to have the best market prospects. Due to its brand notoriety, savvy marketing and sales policy, Bystrov, a new entrant in Russia’s muesli niche, is already widely represented in Moscow’s retail outlets, and its average price of between Rbl 55.00 and 65.00 leaves Nestle behind.
Boasting superior quality and a highly diversified product range, Caravan Product also appears to be a market leader in the making.
Industry watchers predict that Russia’s muesli market will keep growing for many years to come. New companies, brands, flavors and recipes are on their way. Now that the Russian consumer has grown accustomed to this ‘outlandish’ product, he will be getting increasingly picky about the quality. As before, the main consumers of muesli are well-to-do people who take their health very seriously and apply very high standards to the food they eat. With this in mind, we expect Russian producers to make sure their products meet or exceed the level of their western counterparts.
Gyuzel Sultanova, Anastasia Kiseleva
The research of company “I & A”
Some people call muesli ‘bird feed,’ but in fact, this product was invented for lovers of wholesome food that is easy to make.
Being essentially breakfast food, muesli also makes a good midday meal. Once regarded as “girly” food, muesli now commands a much wider audience among male consumers and kids, who can make muesli themselves. Now that healthy living is in vogue among the more affluent community groups in major cities, men have come to appreciate muesli as a healthy, flavorful food requiring very little cooking time and effort.
Vitamins, amino acids, protein, fat, minerals… muesli has it all. Most of these vital nutrients are embedded in muesli’s core ingredient, cereals: wheat, rye, oat or barley grains or flakes or, occasionally, bran. The health properties of cereals remain intact as they are either not processed at all, or treated with infrared irradiation for better dissolution. Flakes, grains and especially bran are rich in fiber, which boosts intestinal performance and helps purge the body of harmful substances. In addition to cereals, muesli may include any or all of the following ingredients: fruits, berries, different nuts, chocolate, honey, sugar, etc. According to market insiders, good muesli must contain at least 30% of fruit.
Most muesli suppliers in Moscow carry diverse varieties of the product. Muesli may come plain or toasted (crunchy); the former are healthier, but the latter taste better.
The market research team of I&A studied Moscow’s muesli market in July and August 2002 by auditing retail outlets and interviewing muesli producers.
Various estimates put the number of muesli vendors in Moscow between 20 and 25. In our own retail audit, we have identified 20 producers: 9 from Western Europe (one each from the Netherlands, Switzerland and Sweden; 2 from the UK, represented by their respective local importers; 4 from Germany), 1 from Belarus and 10 domestic.
Muesli was first introduced to the Russian market in the early 90s by Brueggen, Cerealia Foods and Doctor August Oetker Nuringsmittel. The market kept growing until crippled by the 1998 crisis, which affected all import-dominated markets, but gave a boost to domestic production, in this case, of muesli.
Some of the leading domestic players in the cereals segment are Bystrov, Morsby and Caravan Product. Having launched its muesli production earlier this year, Bystrov has been rapidly gaining market ground due to its well-known brand and top quality. Bystrov products are in the premium sector on par with imports.
Morsby markets an extensive range of products in unusual packaging, jars.
Industry watchers praise Caravan Product muesli for its quality. Caravan Product is the only company offering what it calls ‘Sports Muesli,’ or muesli with enhanced health value.
Germany’s SchneeKoppe specializes exclusively in diabetic muesli.
The muesli market seems to have a lot of mileage left, both in terms of production volume and diversity. There are relatively few brands on the market, which indicates high dynamics and solid potential. Analysts say that the branding effort in the muesli segment is usually limited to securing a retail presence.
The companies mentioned above market 12 brands through Moscow’s retail outlets. Some producers purvey two brands each, while three others have no brands at all, marketing a generic product named ‘muesli.’
Of all retail outlet formats, the most extensive selection of muesli brands is offered by supermarkets; with most muesli vendors, western-standard supermarkets are the preferred retail outlet.
As for the retail presence of producers themselves in Moscow, Nestle supplies the largest number of outlets by far. Second place is shared by Bystrov and Brueggen.
If we tie company ratings to the type of outlets it sells through, we will find that the majority of grocery stores carry Bystrov and Nestle; Soviet-style self-serve stores carry Nestle and Brueggen; western-style supermarkets carry a higher percentage of Nestle products; and Manhattan products are best represented at grocery markets.
Only three producers in Moscow supply all of the above-named retail outlets: Nestle, C. Hahne Muhlenwerke and Elicom.
This indicates that producers’ policy does not necessarily call for the widest retail presence in all sorts of outlets. Retail presence in certain types of outlets is, in most cases, dictated by the company’s chosen sales policy.
The selection of muesli types and flavors will depend on the retail format. Supermarkets usually feature the widest selection, ranging up to 44% of all muesli varieties available on the market, followed by Soviet-style self-serve stores with 28%. Regular stores carry no more than 20% of all muesli varieties, and grocery markets only carry 8%.
Muesli comes in the plain and crunchy (toasted) varieties. Applying this criterion to Moscow’s market, we find that 71% of muesli on the market are plain, and 29% are crunchy. Ten of the companies reviewed supply only plain muesli; and 3 offer crunchy muesli only.
Certeals Ltd. offers two kinds of crunchy muesli under the Belso’s trademark, and two kinds of Premier Gold plain muesli. Quaker Trading Ltd. also markets two kinds each of plain and crunchy muesli, but all under the same brand. The other companies marketing both plain and crunchy muesli offer unequal number of varieties of each kind.
We also classified muesli by ingredients and fillings. The most common kind of muesli comes with a mix of cereals: wheat, oats or corn plus raisins and/or nuts. Fourteen of the 20 companies reviewed market this kind of muesli under brand names like Traditional, Classic, Classique, Breakfast or Dessert. Muesli may also come with a variety of fruits: multi-fruit, tropical, mango, papaya and others (produced by 16 companies) or berries: wild berries, strawberries, cherries, etc. Some muesli are formulated with more unusual flavors, such as apple and cinnamon, apricot and caraway seeds, strawberries and yogurt, etc. Some companies make chocolate muesli, and one makes plain muesli with wheat or other cereals without sugar or fillings. We separated crunchy and honey-toasted muesli with different flavorings from the rest (these two types are, in fact, both ‘crunchy,’ i.e. toasted in oil or honey).
Most or all retail outlets carry honey muesli. The second most widespread variety is common muesli, then muesli with unusual flavors, and, finally, berry muesli. Assuming that retailers flexibly react to changing consumer tastes, we may infer that these kinds of muesli sell the best at the moment. On the other hand, these are also the muesli kinds produced by the majority of the companies reviewed, and they come in the widest selection of flavors.
According to this classification, this is, approximately, what Moscow’s retail outlets look like in terms of various companies’ presence: the largest selection of regular muesli types available are Caravan Product; Morsby supplies the largest selection of fruit and berry muesli; Bishop has cornered the ‘unusual flavor’ niche; and Brueggen supplies most of the chocolate muesli carried by Moscow’s retailers. Brueggen, Doctor August Oetker Nuringsmittel and C. Hahne Muhlenwerke supply two kinds of crunchy muesli each; Certeals Ltd., Doctor August Oetker Nuringsmittel, Quaker Trading Ltd., C. Hahne Muhlenwerke and Cerealia Foods supply one kind each of honey-flavored muesli.
Some companies market a surprisingly limited selection of flavors. Malder Naturvoeding only markets berry muesli; Chernomortsev offers exclusively fruit muesli. Three companies market only two muesli varieties each: Nestle offers regular and fruit (tropical) muesli; Bishop offer regular (classic, with nuts and raisins) and ‘special’ flavors (blueberry or strawberry with cream); Bircher Benner markets regular (nuts and raisins) and fruit muesli. Soyuzkrupprom is the only producer offering unflavored, unfilled muesli.
As we can see, companies may be rated differently depending on their retail presence, the types of retail outlets, or their product range. This is a consequence of their different marketing and sales policies. Nestle, for instance, has the widest retail presence in Moscow in both quantitative and qualitative sense despite having only two muesli flavors in its portfolio. Morsby boasts the broadest spectrum of flavors, from regular to crunchy muesli. Caravan Product also produces an extensive range of muesli varieties, but avoids toasted muesli as a matter of policy.
There isn’t much diversity to packaging in terms of either shape or weight. In fact, there are only three kinds: a box, a bag, and a jar.
Some companies, including Cerealia Foods and Caravan Product, package in both boxes and bags. As we have already mentioned, Morsby packages its muesli in plastic jars. All international producers present on the market sell their muesli in colorful, attractive cardboard boxes.
Notably, domestic producers also try to package their muesli in cardboard boxes despite their higher cost.
A box of muesli usually contains 350, 375, 400, 450 or 500 g of the product (375 g seems to be the preferred packaging option with producers); bags contain 150, 375, 380, 400, 900 g or 1 kg (380 and 400 g seem to be more widespread than the rest). Caravan Product markets the smallest packaging size: 150 g. The largest muesli packaging size on record – 1 kg – comes from Brueggen and Elicom. Morsby packages its products in 500 g and 750 g containers.
The prices of premium muesli are quite a bit higher than those of their more ‘egalitarian’ counterparts. The cheapest muesli retail for between Rbl 13.50 and 16.00; the most expensive kinds sell for between Rbl 159.00 and 164.80 a pack. The price also depends on packaging type and weight.
The products of SchneeKoppe, the only producer marketing muesli in 750 g boxes, retail for between Rbl 105.30 and 110.20. The products of Doctor August Oetker Nuringsmittel (Dr. Oetker Vitalis brand), the only producer marketing its muesli in 500 g boxes, retail for between Rbl 58.20 and 62.00 a pack. A 450 g box of Quaker muesli costs from Rbl 61.00 to 63.50.
Nestle, Bishop and Caravan Product retail their muesli in 350 g boxes for between Rbl 50.00 and 67.20 a box.
Molina is far ahead of the others, retailing its muesli for between Rbl 159.00 and 164.00 per 375 g box. The bottom line is that the consumer may expect to pay anything from Rbl 35.00 to 164.00 for a box of muesli of whatever size.
Bagged muesli is normally more affordable, retailing for Rbl 11.00–75.00 a pack, depending on weight. The cheapest bagged muesli on record comes in 400 g bags from Soyuzkrupprom. This very plain sugar-free muesli without any fillings retails for Rbl 13.50–19.20 a pack. Our auditors have found out that Lux-Versiya is the only producer offering muesli in 500 g bags for Rbl 35.00–38.00. A 1 kg bag of Bircher Benner muesli costs between Rbl 43.00 and 48.00; Brueggen, Rbl 74.00–75.00. One kg of Elicom muesli retails for Rbl 35.20–39.00; a 900 g bag of Caravan Product muesli retails for Rbl 34.30–38.00.
Overall, foreign-made muesli usually cost more than domestic ones due to their higher quality, brand notoriety and longer presence on the Russian market, but there are exceptions to this rule. Having reviewed a very limited number of companies, we believe we should draw more specific price comparisons between individual international and Russian companies. For instance, Nestle, which has been known to the Russian consumer for years and enjoys the widest retail presence, has a moderate price level, an average of Rbl 50.00–58.00 per 375 g box. On the other hand, Bishop, a Russian company, retails its muesli in 350 g boxes for Rbl 62.00–67.00 each.
By way of conclusion, we should note that two Russian muesli products seem to have the best market prospects. Due to its brand notoriety, savvy marketing and sales policy, Bystrov, a new entrant in Russia’s muesli niche, is already widely represented in Moscow’s retail outlets, and its average price of between Rbl 55.00 and 65.00 leaves Nestle behind.
Boasting superior quality and a highly diversified product range, Caravan Product also appears to be a market leader in the making.
Industry watchers predict that Russia’s muesli market will keep growing for many years to come. New companies, brands, flavors and recipes are on their way. Now that the Russian consumer has grown accustomed to this ‘outlandish’ product, he will be getting increasingly picky about the quality. As before, the main consumers of muesli are well-to-do people who take their health very seriously and apply very high standards to the food they eat. With this in mind, we expect Russian producers to make sure their products meet or exceed the level of their western counterparts.
Gyuzel Sultanova, Anastasia Kiseleva