Case study: Iglo

Frozen foods giant Iglo has made a concerted push into Russia in the past few years and seems to be reaping the benefits. In its annual report last year the company reported sales growth of 69 per cent in Russia thanks to “distribution gains and continued media support levels”.

iglo-russia-2013-460

In other words, the company has steadily grown the network of retailers stocking its product across the 17 million sq km country and has invested heavily in marketing to raise brand awareness. European managing director Achim Eichenlaub says the company has helped to grow the frozen foods category in Russia and is one of its biggest advertisers.

“The market is growing between 10 and 15 per cent a year and is the fifth biggest frozen foods market in Europe. It’s also a relatively unconsolidated market: the number one player has less than a 5 per cent market share and there is no dominating brand. That makes it an attractive market to enter,” he says.

Iglo has introduced processed food products not seen in Russia before such as fish fingers, the flagship product of its Birds Eye brand in the UK. Eichenlaub says that while the reaction to such products has been positive, the company is also working hard to tailor its food to Russian tastes.

“We’re creating ready meal solutions. For example, we have tested frozen pasta products, which are proving popular. There are plenty of foreign restaurants in Moscow and Italian cuisine is gaining momentum.”

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