Reducing the solvency of the population leads to a decrease in the volume of the product in the package - Peter Brulev
According to Peter Brulev, almost all processors of dairy products pack a smaller amount of product in the usual classic packaging format.
‘Today, it is almost impossible to find “honest” packages of 0.5 and 1.0 liters of milk and dairy products on store shelves. Almost all processors pack a smaller volume of product in a visibly familiar classic packaging format. The decrease in the solvency of the population forces market players to reduce the volume of real product in the package in favor of a competitive price on the shelf in the store,’ shared his opinion the Executive Director of LLC Vostok with The DairyNews.
Petr Brulev said that when choosing a product, the consumer reacts primarily to the price factor. The price of a fermented dairy product in a 0.33 ml package is much lower than the price of a similar product in a 500 ml package. Therefore, this determines the buyer's inclination in favor of the product in a small package. However, this declination is not constant: if there is a promotion for a product in a smaller package, the consumer begins to analyze and compare how much he pays for the product and in which volume this product is sold, which makes the demand for the product wavelike.
Petr Brulev also noted that he could not note the decrease in the volume of packaging consumed by manufacturers. If we analyze the market during the first wave of the pandemic caused by coronavirus infection, we can see an increase in demand for products. At the moment, the situation has more or less stabilized, but there is no decrease in demand for packaging for dairy products.
The company LLC Vostok is engaged in the production of closures. The company's main product is a cover for cardboard laminated bags. In 2010, the company was organized as a division of VIA, a manufacturer of equipment for dairy plants. Now LLC Vostok is a separate business entity, which ranks third in Russia in the production and sale of caps for Pure pack.
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