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Sales growth in 2016

Hame can boast about a year-on-year increase in sales of 139 million Czech crowns in 2016. The entire group of this traditional Czech producer of non-perishable and refrigerated foods increased its revenues by 2.7% last year, with the net sales thus amounting to 5.231 billion CZK. Those are net sales net of bonuses and trade marketing. In 2016, Hame  continued in increasing of sales on its most important Czech market, where they rose by 5.1% year-on-year, of the key Hame’s markets Hungary grew, as well (7.8%), after the last year’s sharp drop due to the rouble exchange rate and the economic crisis even Russia has grown again (an increase of 1.2%) and the sales in Ukraine have recovered significantly (an increase of 112%). Revenues from the exports of Hame products have increased significantly in some other countries, such as Israel, Slovenia, Montenegro, China, Italy and Tunisia.

“I consider it a great success that we succeeded in further strengthening against the 2015 record, although that growth was, considering a higher comparative base, slightly less massive than the year before. We were very successful for example on the domestic market in the Czech Republic, where we grew by more than 5%, which is significantly more than the average growth of the entire Czech food market," commented on the financial results Martin Štrupl, Hame’s CEO. "I was also pleased by the results in foreign markets, we have for example been strongly growing in Hungary, Russia is rising again, Ukraine, we are doing well in Israel, as well as in the Balkans, Italy, our development has been promising in China and we are also successful in penetration to new export markets, such as Vietnam or Haiti," said Martin Strupl.

Hame’s Product Portfolio

The largest share in the 2016 Hame revenues had the non-perishable meat products, i.e. spreads, canned meat and ready meals. The trend from the previous years continued, and the range of refrigerated foods (chilled ready meals, spreads and baguettes) continued to grow as a whole.  

 

The 2016 sales of Hamé in the most important Czech market amounted to a total of 50%, the second half of the sales Hame stated in foreign markets. The second largest market for the Hame products after the domestic market was traditionally Slovakia (17% of sales), followed by the recovering Russia (10%), Hungary (9%) and Romania (almost 7%). In 2016, Hame's marketed its products in a total of 46 markets worldwide.

Panzani distribution taken over by Hungary and Chinese perspective

This year, Hame took over the distribution of the Panzani brand pasta products and ready-made sauces on the Hungarian market, thus even more strengthening its position in Central Europe, since Panzani products have been distributed in the Czech and Slovak Republics since 2015. Hame also managed to start business in China. Thanks to the listing of baby food products, ketchups, sauces and jams at the Alibaba -shops, the world's largest vendor of this type, Hame sales in that world's most populous country have multiplied. Hame will now seek to penetrate into other Chinese e-shops and significantly extend its presence even in regular business networks throughout China.

 

Hame invests 180 million in the production

In 2017 Hame prepares investments in the production in a total volume of CZK 180 million. The common denominator of the investments is strengthening of the automation of production in the plants, which will help Hame better cope with the sensible labour shortage in the labour market. This may include the introduction of an automated insertion of glass on two lines at the same time in the Uherske Hradiste plant, new fully automated lines for the production of fruit and vegetable products in plastic packaging in the South Moravian plant in Podivin, or launching a complete modernization of the Bzenec plant. In the Russian Hame plant, whose importance has yet been increasing, the investment will go to the expansion of production and the product range, too (e.g. ready sauces, baby food).

New products and marketing campaign in Russia

Hame developed several tempting product innovations for 2017. Those include a new product line Znojmia - vegetable mixes called “Under meat” (Pod masicko), which can be very quickly and easily used for cooking various meats. Hame now also offers fruit snacks Easy Fruit for schoolchildren in practical pouches, which have become popular with the Czech biathlon representatives. Not only vegetarians will appreciate the non-perishable quality vegetable spreads EasySandwich and the market gets even a refrigerated fish line of those light spreads, as well as new kinds of the legendary spread Majka. Directly for baking are developed new fruit fillings that do not run out even at high temperatures and are easily spreadable, people may use them alternately to traditional jams.

"In the spring in Russia we are going to conduct our biggest marketing campaign in the history. It focuses on the promotion of meat products, especially spreads and canned meat. The huge Russian market is in many ways different from the Czech and such a campaign must be planned differently than in the Czech Republic. We will use for it the entire marketing mix, including television and radio commercials, our communication will also focus on the online and Russian social networks. We are confident that this campaign will help us to further significantly increase the sales of our products in Russia," summarised Lenka Vanek, the Brand Marketing Director of Hame, who also pointed out that on the Russian market Hame is a long term leader in the segment of spreads.

Jaroslav Sklar, Hame’s chef, cooks from the new product – the “Under meat” (Pod masicko) vegetable mixture