To be in the trend. Brand Rating 2019 ©Forbes Russia

Beautiful packaging is not the only success indicator in bringing the product to market. What brands have become noticeable on store shelves for the year and why.

A successful brand is not only beautiful packaging and contents, but also good sales. “The packaging design is good when it sells more than the competitors products standing nearby on the shelf, at relatively the same price,”- Andrei Gornov, Director General of the Getbrand Agency, said.

The brand-winner of our new list, Nemoloko, confirms these words and continues the healthy nutrition strategy set last year. This is the first Russian-made product in the category of vegetable milk, promoted to the market by one of the largest producers of juices, Sady Pridonya. The brand focuses on the difference between animal and vegetable milk. The sales of vegetable milk at the end of 2018 amounted to 20,000 tons. The main company spent millions of Euros to promote the brand, the market also helped.

Nowadays the share of vegetable milk is not more than 1% of the sales volume of all milk in the Russian market, but this product is a promising one. According to Nielsen, sales of Russia’s largest retailers are growing at three-digit rates: in 2018, plus 154% in kind, while consumption of traditional pasteurized milk decreased by 1.1%. The consumption of functional dairy drinks for healthy nutrition is growing. “Sales of functional drinks are growing at 28% in kind per year. The trend of product functionality is still at the starting point of development, but the market already feels it and is trying to get adapted to it, ”-  Elena Samokhina, the new product launch Manager at “Nielsen Russia”, says. The Company Agrocomplex (named in honour of Tkachev) focused on the new trend by products launching. This enterprise is a  large  producer of dairy products (No. 178 in our ranking of the largest private companies in Russia): Vita-Complex, a brand of dairy functional drinks for women, owned by Agrocomplex, took the tenth line of the rating. “Modern dairy products – glazed curd bars, granulated cottage cheese, yoghurts, including functional drinks – show steady growth. Therefore, we decided to develop a range of functional dairy drinks, ” Vilena Yalaltdinova, the Head of the Agrocomplex brand management group, says. However, getting into the trend is not the only key to success.

Another dairy functional brand Octa (No. 8) has entered the market with packaging that has won several prizes at the World competitions. “When our products were located on the shelves, we realized that the packaging did not display the meaning of the product. It was necessary to add flavor to the label. As a result, the packaging had to be changed, ”says Octa co-owner Andrey Reduto. According to Vladimir Zholobov, Z & G Branding Agency Director, a member of the Association of Branding Russian Companies (ABKR), a customer doesn’t want design, but simple and clear packaging. “Sometimes you have to adjust to the target audience that buys the product,” the expert says.

Our list is a demonstration of original ideas and approaches, income is not a key indicator. Therefore, it hits brands with different revenue indicators. According to Elena Samokhina, the success of a brand on the market is still a synergy of several factors. “Packaging should fulfill three functions: make the product noticeable, make you want to buy it and match the brand image,” says Samokhina. “And the aesthetic side of the issue is subjective.”

How we counted

By the end of 2017, according to the calculations of the “First Patent Company”, 56,030 trademarks and service marks had been registered in Russia, 46,600 of which were addressed to Russian applicants. It is difficult to evaluate all new brands, so we made a long list by studying the presentations of new products created by Russian branding specialists and available on the Russian market on marketing websites. We chose only brands of packaged goods that went on sale no earlier than January 2017. The main condition for getting into the long list is: the brand exists for at least a year.

Experts traditionally evaluated separately the concept and identity of each brand on a scale from 0 to 5 points. Grades were summed, the average score was displayed. The expert was not allowed to vote for the brand created in his agency. The indicated revenue for 2018 is the data of the companies-brand owners or the Forbes rating based on the sales data in natural terms.

Voting participants: Alexey Andreev, Depot WPF managing partner; Oleg Beriev, “Mildberry” President; Andrei Gornov, CEO of Getbrand; Ilya Lazuchenkov, managing partner of the “Plenum” Branding Agency;  Vladimir Lifanov from “Supermatics” (all experts are from Moscow); Vladimir Zholobov from Z & G. Branding (Ekaterinburg), as well as Anton Bulavinov, Marketing and communications Director of  “Invitro”. Forbes thanks Ekaterina Voskoboinikova for assistance (Association of Branding Companies of Russia, ABCR).

1. Nemoloko

Owner: Pridonya Gardens
Launch: November 2017
Revenue: 2 billion rubles

Following the trend of the brand portfolio expanding, the producer of packaged juices Sady Pridonya decided to bring to the market a drink in a new category for Russian manufacturers, an alternative to dairy products. “The manufacturer came close to change the food culture in our country because dairy products are significant in the diet of Russians,” says Dmitry Stryukov, the Director of strategic planning and marketing for the DDVB Agency that performed the branding. Sady Pridonya invested more than € 20 million in technology development, production line launch and branding. Starting work on the new product, the company has studied its foreign analogues and set the task to create a product that differs from them. At the moment there are five types of oat milk, one kind of buckwheat milk, oat cream and two types of oatmeal desserts in assortment.

2. Bahroma

Owner: Shin-line
Launch: December 2017
Revenue: 427.5 million rubles

Ice cream “Bahroma” was launched by Shin-Line at the end of 2017. Shin-Line is one of the world’s largest ice cream producers in Kazakhstan, which has been operating since 1995. The Bahroma brand was developed to expand the market with grand plans “to conquer” Russia and Europe. The Depot WPF Agency, that created the concept and identity, had the task of making a bright cross-cultural packaging. Before starting to develop the concept, the Agency has organized focus groups in Russia, Kazakhstan and China. As a result, the name “Bakhroma” was chosen, because it is clear to everyone both in Europe and in Asia. For each type of ice cream branding specialists drew its special pattern. The brand entered the Russian market through the Auchan retailer.

3. MachoGaspacho

Owner: Ochakovo
Launch: June 2017
Revenue: 8 million rubles

Ochakovo has launched a new product type for Russia – the nourishing MachoGaspacho juice, which consists of 100% vegetable puree. The purpose of the manufacturer (producer of mainly beer and low alcohol drinks) is to attract a new audience of a healthy lifestyle and proper nutrition fans. The first steps to create a new category of products were made even at the launch of the Houdini brand (Goodini). Now there are just three types of juice: pumpkin juice “From Valencia”, tomato juice“From Andalusia” and beet juice“From Seville”. The development of a new brand was entrusted to the DDVB Agency, which decided to attract customers with a bright packaging styled as a slate. The product was presented by TV presenter Julia Vysotskaya in her cooking studio.

4. Waters. Durso

Owner: Abrau-Durso
Launch: April 2017
Revenue: 30 million rubles

The Russian wine house “Abrau-Durso”, which produces champagne, sparkling and still wines, entered the new market in 2017, starting to produce bottled water. There are three types of artesian drinking water in assortment: carbonated, non-carbonated and with grape champagne flavor. The manufacturer’ purpose is to attract a new audience of a healthy lifestyle followers. “Grape water can be an alternative for those who love the taste of sparkling wine, but cannot afford it for various reasons,” says Olga Firstova, the “Abrau-Durso” PR Director. Since  launching, this product is being offered in hotels and restaurants of Abrau-Durso and Krasnodar Region. it is planned to bring the brand to the federal level in January 2019.

5. Socrassol

Owner: Riviera
Launch: October 2017
Revenue: 1.3 million rubles

A new brand of soft drinks “Sokrassol” with an unusual composition was launched by Moscow region’ manufacturer “Riviera”. The company produces an alternative to beer – a drink from a blend of vegetable and fruit juices, pickle and spices. The Agency Mildberry, that was inventing a packaging, had the task to create a wow-effect for a young audience – the product had to attract attention. The result was a bright can design in the pop art style. The drink is sold only in Moscow hypermarkets “Globus”, Selgros, “Your Home”, as well as in the HoReCa segment: Ginza Project, Mybox, “Teremok” restaurants. In 2019 the company plans to bring its product to St. Petersburg, and then to other large cities in Russia.

6. Olenevodka

Owner: Premium Spirits
Launch: March 2017
Revenue: 100 million rubles

The Olenevodka vodka is a brand of the St. Petersburg Company “Premium Spirits”. The Company appeared on the market in 2011. There are eight alcohol brands in the company’s portfolio today. In 2017 the manufacturer decided to focus on the beneficial properties of the product and to produce vodka with a traditional ingredient for the peoples of the North – moss. There are two products in the line yet – “Olenevodka Yagelnaya” and “Olenevodka with northern berries”. Marketers have built a new brand concept on the appeal to the nature of the North, the motives of the northern ethnics and folk crafts. “Light humor makes the product kind, memorable and soulful,” Andrei Nadvorsky, the Creative Director of the Runway Branding Agency, that was engaged in brand development, says.

7. ALIBI

Owner: Alibi Craft Beer
Launch: December 2017
Revenue: 20 million rubles

Four friends from Yekaterinburg presented on the market a new brand of craft beer Alibi. The RA Agency Voskhod, which worked out the concept, offered the image of three friends and their dog corgi for the “newborn” brand of beer. Each label on six types of products in the line is made in the form of an illustrated poster with a specific plot – the adventure of heroes. According to co-owner of the brand Pavel Petrov, the target audience consists of men who want to relax, take a break from office work and become themselves. Beer is made from European and American raw materials. The product is sold in Lenta retailer of the Urals Federal District and through distributors, but the brand owners are negotiating with Pyaterochka and Perekrestok retailers.

8. Octa

Owner: Go Foods
Launch: March 2017
Revenue: 10.3 million rubles

The idea to create a drink that replaces a full meal came to friends Andrei Reduto and Mikhail Maximov in 2016. Maksimov, that time working as a chemist in the research and development department of Wimm-Bill-Dann Company, came up with the first version of the drink, and in March 2017 the product entered the market. “For almost a year we were testing, refining and listening to feedback. As a result, we realized that we did a lot of things wrong, ” Andrei Reduto says. In 2017, the product packaging was absolutely changed. Branding specialists proposed a design: bottles with infographics showing the drink ingredients. The products are sold in the “Azbuka Vkusa”, “Fresh Market 77”, Billa, “Miratorg”, “Tabris”retailers, as well as in fitness centers and coffee houses. In 2019, the brand owners plan to deliver this product to the Karoussel hypermarket retailer.

9. Pasteroni

Owner: Extra-M
Launch: March 2017
Revenue: 0.5 billion rubles

The Italian pasta brand for the middle and upper price segments appeared on store shelves in the summer 2017. By order of “Extra-M”, the manufacturer of the product, the packaging had to be bright in order to stand out on store shelves and compete with Italian and pseudo-Italian brands. The target audience of Pasteroni –  working married women of 25–44 years old with an income of up to 65,000 rubles. “The chosen concept is fully consistent with the task – to bring a new brand of Italian pasta to the market. The bright yellow color of Pasteroni, the foodstyle zones in the Italian flag colours, illustrations and handwritten font groups emphasized the individual character of the brand and made it stand out on the shelves, ” Andrei Nadvorsky, the Creative Director of Runaway Branding, says.

10. Vita-Complex

Owner: Agrocomplex
Launch: May 2017
Revenue: 74 million rubles

New fermented milk drink for women appeared in the assortment of “Agrocomplex” (named in honour of Tkachev) in 2017. At first, it was produced as a drink with classic flavor, and then they supplemented it with four fruit and berries flavors. There are pictures of fruit and berries and a list of vitamins and trace elements that one bottle contains on the label.  The most popular flavor, according to the company, became “Pomegranate-strawberry”. Since May 2017, nearly 546,000 bottles have been sold. This product is sold only in Krasnodar Region. “Modern dairy products, including functional drinks, have steady growth. That is why it was decided to develop a range of functional dairy drinks, ” the manager says.

New fermented milk drink for women appeared in the assortment of “Agrocomplex” (named in honour of Tkachev) in 2017. At first, it was produced as a drink with classic flavor, and then they supplemented it with four fruit and berries flavors. There are pictures of fruit and berries and a list of vitamins and trace elements that one bottle contains on the label.  The most popular flavor, according to the company, became “Pomegranate-strawberry”. Since May 2017, nearly 546,000 bottles have been sold. This product is sold only in Krasnodar Region. “Modern dairy products, including functional drinks, have steady growth. That is why it was decided to develop a range of functional dairy drinks, ” the manager says.

The article is co-authored with Anastasia Karpova, Valeria Borodina, Anna Kasyan and Anastasia Mitkevich.

PS: Russian law permits the registration of a foreign company trademark, regardless of the state registration, moreover, the fact of registration of the trademark does not entail tax registration.

Our expert group is ready to provide a range of services to assist and represent your interests in Russia. Contact us.

0

Related Posts

Russian business culture & style of negotiation. Part 2 of 3

Read the beginning of the article    Russian people “lives under the sign of the heart” Much deeper into the understanding of the Russian character and style of communication came Russian philosophers and writers – I. A. Ilyin, N. O. Lossky, N. A. Berdyaev, G. P. Fedotov, F. M. Dostoevsky, L. N. Tolstoy, A. I. […]

Read more

The business mission of BRB Ramo in Jakarta

Business negotiations on the territory of another country is always a unique experience that allows you to test your competence, professional and communication skills. The most valuable thing is the ability to convey meaning to the entrepreneur and convince him of the need to change the usual business processes for more effective work not only […]

Read more

Franchise: basic concepts and types of franchises, terms of cooperation

Many entrepreneurs who are looking for an opportunity to start a business from scratch with minimal investment have heard about the franchise. At first glance, cooperation in the format of franchising seems simple. But it has its own nuances and is associated with certain risks. To really make money on the franchise, you need to […]

Read more