In the magazine Expert of Ural an article about SUNFRUIT Company was issued

How can the market share be increased by a regional producer?

Juice market in Russia is one of the most intensively developing segments. Juice consumption for the year 2011 has not significantly changed and following the year results it will be about 21 liters per person. Conclusion that the market has a huge potential can be made due to the fact that in Europe this indication reaches 50 liters. But in this regard competition in Russia among juice and juice-containing beverages producers is enormously high. Several years ago share of the world industry giants Coca Cola and Pepsi that bought four juice producers in Russia was more than 90% of Russian juice market. Despite the fact that the highest indication at the market is still taken by transnational companies, regional companies managed to reduce this indication to 70%. Experts notice that for successful development of the Company besides expansion to new territories, winning new consumers’ loyalty and capacities increase and production optimizing it is also important to expand existing range of products offering consumer with new tastes and products. With competent combination and application of the best world practices, advanced technologies and management Russian producer will manage to achieve significant results and easily compete with the world corporations.

So, for instance, federal Company “SUNFRUIT” producer of natural juices, nectars and ice tea, the head-office and plant of which are located in Perm, has 20 regional sales offices in different cities and sells products in 60 subjects of Russia already. 10 years ago in the year 2001 the Company produced its first product - 100% juice Dario in liter package. At that time SUNFRUIT was located in a small production office where the head-office was located as well. At that moment the Company had just one packaging machine. SUNFRUIT products were supplied only to the Perm Territory and the nearest regions in geographical terms. Having won the consumers affection quite quickly the Company started intensively develop – new equipment was bought, personnel quantity grew, sales geography expanded. Gradually new products arouse that became popular among the average segment these are juices Krasavchik and Fruktovy ostrov oriented to the lower price segment.

Today playing at the same market with such huge companies as Coca Cola and Pepsi, SUNFRUIT increased its presence share to 5.1% (its own brands took 4.8%). For 11 years of work SUNFRUIT constantly grew sales volumes. Even in the periods of market volumes decrease the Company showed positive increase. At present such Companys brands as Dario, Krasavchik and Fruktovy ostrov won their consumer audience and the consumers loyalty to these brands constantly grows. Despite the total market fall by 1.5% in the year 2011 SUNFRUIT sales volumes grew by 11%. The Company successfully produces not only its own brands but also since the year 2006 realizes an offer on Private Label for range of the companies.

The Company plans to increase its presence share in Russia. To achieve such an ambitious aim is rather difficult especially if taken into account financial possibilities of the field leaders. To win this summit advanced product production technologies and business management, development of the professional team and balanced portfolio of trademarks and services are necessary.

Product quality is also an important factor for consumers. All the trademarks of SUNFRUIT Company are produced in accordance with GOST and come through multi-stage quality assessment system: from the raw materials obtainment moment to ready products inspection.

To go great guns it is important to observe consumer tendencies at the market. Thats why SUNFRUIT Company changed all its trademarks. In the year 2011 DARIO brand package was restyled. Name in Russian was changed to English and marking all natural was added. In May, 2012 newly-designed product DARIO Wellness a unique product made from superfruit for those who want to be in a great physical shape and in the harmony with the surrounding world appeared.

In the year 2011 package of Krasavchik juice was changed, brand repositioning took place. Krasavchik became more elegant and emotional that is emphasized with bow-tie logo at the package. Since January, 2012 consumers can enjoy taste banana-strawberry of Krasavchik brand. This nectar at once got popularity among kids and adults due to its natural taste of berries and ripe bananas.

Trademark Fruktovy ostrov was changed as well in November, 2012 SUNFRUIT Company issued newly-designed product Mix of Berries. This is high-quality product made of strawberries, raspberries and currant. This newly-designed product is a perfect source of vitamins.

Strategic plans of SUNFRUIT closely connected with production expansion due to new plant construction. Following the Companys estimates planned production capacity will be about 400-450 mln. liters per year.

Success at highly competitive market depends on many factors, - comments Director General of SUNFRUIT Company Igor Kolpakov, - work experience of our Company demonstrates that wining and expansion of the audience even under such difficult conditions can be realized. SUNFRUIT constantly improves product quality, offers newly-designed products, and optimizes production. We are more flexible in decision-making that allows us develop more quickly and intensively.

Expert of Ural, 25.06.2012


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