Barilla, the prominent Italian pasta manufacturer, has officially notified retailers of an impending price hike on imported pasta products, set to take effect on March 1, 2025. According to reports from the Russian publication Kommersant, the company communicated to retailers about price increases ranging between 15% to 30% for 26 pasta varieties.
This decision follows the devaluation of the Russian ruble and the introduction of new customs duties, increasing by 10%, on imported goods. The price hikes will significantly impact gluten-free options, with products like spaghetti, fusilli, and penne rigate seeing increases of 30%. Other popular types—including lasagna, tagliatelle, fettuccine, and farfalle—are set for 20% increases, and many sauces will rise 15%. This increase disproportionately affects the imported product line, which accounts for approximately 20% of Barilla's offerings in Russia, as reported.
The rise reflects broader economic pressures within the food market. Dmitry Leonov, the Vice Chairman of the Association "Rusprodsoyuz," noted the overall increase of production costs due to various factors, including surging raw material prices. For perspective, the wholesale cost of premium flour has escalated by nearly 16% year-on-year, driven by substantial increases in the cost of third-grade wheat, which has surged by 35.3% to reach 18,000 rubles per ton.
It’s important to note, though, there have been no price adjustments announced for Barilla's domestically produced pasta products, pointing to the targeted nature of this price increase primarily affecting imported lines. This development arrives at a time when Barilla's Russian operations have performed well; recorded revenues stood at 12.9 billion rubles with 1.4 billion rubles of net profit, as we learned from various financial disclosures.
Barilla maintains about 10% of the market share for pasta products within Russia, according to reports by the Institute for Entrepreneurship and Economy Development. Interestingly, the share of imported goods like those from Barilla has been gradually declining over the years due to the emergence and strengthening of local manufacturers who have expanded their production capabilities significantly.
Retail sources confirm these price adjustments and suggest consumers may need to search for alternatives as well. Reports indicate other significant players within the market, like the "Molvest" holding, also announced price increases for their dairy products effective March 15, citing similar pressures related to raw material costs.
This anticipated price increase by Barilla shines light on the interconnected nature of global economics and local pricing strategies. While comprising only part of Barilla’s extensive product lines, the rise highlights challenges both for traditional imports and the shifting dynamics of food retail within Russia.
Overall, the food product sector continues to grapple with the dual pressures of rising cost of production and fluctuational currency values, leading to waves of price adjustments across various food categories.