OREANDA-NEWS. On 29 August 2008 was announced, that PAVA is one of the youngest grain processing enterprises in Russia, it is almost 9 years old. Since its establishment, the company’s management clearly monitors the tendencies of the market and strives not only to work in keeping with them but also goes for anticipating them. As it has been stated earlier, one of the priority lines of PAVA’s business activity is promotion of consumer-size products.

By experts’ estimates of the largest grain processor of Siberia and the Far East, the market of consumer size products is changing very rapidly. First of all, peculiarities of food products consumption depend on the population’s income.

In early and mid-90s of the XX century, in the environment of deficit and small wages, people made purchases rarely, but in big lots, trying to create stocks of goods at home.

As income grew, the necessity to make long term stocks including food gradually declined. “This process began from the European part of Russia. People’s welfare grew there in the first place. Millers observed the market need to produce flour in packages 1 and 2 kg”, commented Angela Kiseleva, OJSC PAVA Commercial Director. “Even speaking about today’s situation, sales of PAVA and Altay-Batyushka consumer-size flour are bigger in those regions where incomes are high”.

As for PAVA’s geography of sales, the leaders in the volume of consumption are regions of the European part of Russia, then Urals, Siberian regions, and the Eastern part of the country is the last in this rating.

In the market conditions of the population’s growing welfare, there’s a significant increase in demand for even more expensive flour which simplifies food preparation – pancake flour, buckwheat flour and other flour mixes. At present, almost 90% of this flour sells in the European part of the country. Moreover, today, consumers of large cities are beginning to prefer half-finished products such as dough to packed flour.

“Judging by the volume of regional shipments we can see the growth of population’s income in the Ural and Siberian regions; here, sales of consumer-size products increase”, says Angela Kiseleva. “Taking into account all factors together, our company is actively establishing partnership with small and medium manufacturers in the central part of Russia. Results of the new strategy of promoting consumer-size goods can already be seen in the Ural, Siberian and Eastern regions. There, we are part of local and federal retail networks. Consequently I think, in the nearest future volumes of small-packaged flour consumption will rise sharply in those regions where they are insignificant today”, concluded Commercial Director of OJSC PAVA.