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Snacks, functional food and coffee
Black bread - that is so yesterday. In Russia, these days, it is coffee chains with their western range of snacks, cakes and pastries that are shaping the market of tomorrow.
Go West: this motto describes the development of the Russian bakery market perfectly. Whether croissants, ciabatta bread or small fruit tarts - western bakery and confectionery products have become part of everyday life for Russia's avantgarde. Coffee chains, such as "Shokoladnitsa" (200 shops in Moscow and St. Petersburg), "Koffee House" (140 shops), "Gloria Bean's Coffee" (200 shops), are making coffee popular in this country of tea-drinkers. They are also helping western snacks, cakes and pastries become established in a country that traditionally eats a lot of black bread (app. 100 kg a year per person).
The fact that chains have already begun opening shops in the Russian regions is evidence that this trend has a future. The Coffee Bean chain now has outlets in 9 major cities on the other side of the Urals, such as Kazan - and is aiming for further growth. In the high-price segment of the coffee chains, a coffee costs around EUR 2.00 (many times higher in Moscow!), while a croissant will set you back roughly EUR 1.20 and a sandwich EUR 2.00: prices at western level.
Even in the major supermarkets, wealthier consumers are turning to western bread specialities: bread with nuts, wholemeal bread as well as cheese and herb baguettes are new and extremely popular additions to the newly established exclusive bakery sections of large supermarkets. These breads are sold in slices of 100g and cost up to EUR 10.00 per kilo.
Drinking coffee in a coffee shop, eating new bread and confectionary specialties every day meanwhile remains a luxury that very few can afford at present. Yet these trends point the way ahead: Russians love to experiment and give themselves a treat. Exclusive cakes, pastries and snacks are popular little gifts to take when visiting friends and relatives - something people do a lot in Russia.
Coffee shops conquer Russia. Pastry, snacks and fresh coffee promise good margins.
