Hot Drinks in Azerbaijan

Euromonitor International's Hot Drinks in Azerbaijan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

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Tables: 65  |  Publication date: Mar 2009
Cost: 
GBP400.00

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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
  • Identify market and brand leaders and understand the competitive environment

Product coverage

Coffee; Other hot drinks; Tea

Executive summary

Wide inflow of new brands and packaging innovations

Volume growth of hot drinks in Azerbaijan slowed down in 2008. Value growth outpaced volume growth in all sectors, largely due to continuous price increases. There was also a wide flow of new brands and packaging innovations. Loose black standard tea remained the most popular type of tea, as Azeri consumers prefer tea that has been brewed. Black standard tea bags were popular mainly in urban locations, largely due to busier lifestyles. Demand for higher-quality and more premium coffee increased. Chocolate-based flavoured powder drinks encountered a wide inflow of new brands across all price segments. Non-chocolate-based flavoured powder drinks continued to develop, mainly in Strawberry and Banana flavours.

Healthy living standards boost the popularity of fruit/herbal tea

At the end of the review period, healthy living standards influenced the preference of Azeri consumers and encouraged them to drink more fruit/herbal tea. Specially combined fruit flavours, such as Lemon with Honey, Peach with Mango, Camomile, Jasmine, Ginger, Rosehip and Rosemary, met with growing popularity and demand, thanks to their perceived wellness and energy-boosting properties. In 2008, Lipton introduced a new pyramid-shaped tea bag with increased fruit content.

Competition among the main players intensifies

The wide inflow of new brands at the end of review period intensified the competition between existing hot drinks players. The two main domestic players, Sun-Tea Azerbaijan ATSC and Beta Tea Group of Companies, managed to sustain and increase their value shares by introducing innovative packaging, new fruit/herbal tea flavours and new combinations of existing flavours. By contrast, some international brands, including Pickwick, Dilmah, Demand and Café Bohemia, lost value shares to existing competitors and newcomers.

Supermarkets/hypermarkets increases its importance as a distribution channel

Independent small grocers remained the leading distribution channel for hot drinks in 2008. However, the volume share of supermarkets/hypermarkets continued to increase, thanks to a widening of the product assortment. Almost all new brands were introduced in supermarkets/hypermarkets, especially premium products and chocolate-based flavoured powder drinks. As their popularity increased, the new products then also became available in independent small groceries. The Sevimli Dad chain of retailers, categorised as other grocery retailers, increased its volume share in 2008. By contrast, outdoor markets (included within non-grocery retailers) witnessed a declining volume share.

Slower but healthy volume growth expected during the forecast period

Volume growth of hot drinks is forecast to remain healthy during 2008-2013. Although overall volume growth will be slower in comparison with the review period, some categories will see faster volume growth. In tea, in the foodservice channel, forecast growth is expected to outperform the historic period, benefiting from a growing number, traditional tea houses, chaykhanas. In coffee, instant coffee will continue to increase its volume share. In other hot drinks, chocolate-based flavoured powder drinks will post the most dynamic volume growth and will continue to increase the assortment of brands, mainly through supermarkets/hypermarkets.

Table of contents

HOT DRINKS IN AZERBAIJAN : MARKET INSIGHT

EXECUTIVE SUMMARY

Wide inflow of new brands and packaging innovations

Healthy living standards boost the popularity of fruit/herbal tea

Competition among the main players intensifies

Supermarkets/hypermarkets increases its importance as a distribution channel

Slower but healthy volume growth expected during the forecast period

MARKET DATA

Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2003-2008

Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2003-2008

Table 3 Retail Sales of Hot Drinks by Sector: Volume 2003-2008

Table 4 Retail Sales of Hot Drinks by Sector: Value 2003-2008

Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2003-2008

Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2003-2008

Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2003-2008

Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2003-2008

Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2003-2008

Table 11 Hot Drinks Company Shares by Value 2004-2008

Table 12 Hot Drinks Brand Shares by Value 2005-2008

Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008

Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008

Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013

Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013

Table 17 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013

Table 18 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013

Table 19 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 20 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013

Table 21 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013

Table 22 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013

Table 23 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013

Table 24 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

COFFEE

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 25 Retail Sales of Coffee by Type: Volume 2003-2008

Table 26 Retail Sales of Coffee by Type: Value 2003-2008

Table 27 Retail Sales of Coffee by Type: % Volume Growth 2003-2008

Table 28 Retail Sales of Coffee by Type: % Value Growth 2003-2008

Table 29 Coffee Company Shares 2004-2008

Table 30 Coffee Brand Shares 2005-2008

Table 31 Forecast Retail Sales of Coffee by Type: Volume 2008-2013

Table 32 Forecast Retail Sales of Coffee by Type: Value 2008-2013

Table 33 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013

Table 34 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013

TEA

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 35 Retail Sales of Tea by Subsector: Volume 2003-2008

Table 36 Retail Sales of Tea by Subsector: Value 2003-2008

Table 37 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008

Table 38 Retail Sales of Tea by Subsector: % Value Growth 2003-2008

Table 39 Tea Company Shares 2004-2008

Table 40 Tea Brand Shares 2005-2008

Table 41 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013

Table 42 Forecast Retail Sales of Tea by Subsector: Value 2008-2013

Table 43 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013

Table 44 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013

OTHER HOT DRINKS

Headlines

Trends

Competitive Landscape

Prospects

Sector Data

Table 45 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008

Table 46 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008

Table 47 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008

Table 48 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008

Table 49 Other Hot Drinks Company Shares 2004-2008

Table 50 Other Hot Drinks Brand Shares 2005-2008

Table 51 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013

Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013

Table 53 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013

Table 54 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013

BETA TEA GROUP OF COMPANIES

Strategic Direction

Key Facts

Summary 2 Beta Tea Group of Companies: Key Facts

Summary 3 Beta Tea Group of Companies: Operational Indicators

Company Background

Production

Summary 4 Beta Tea Group of Companies: Production Statistics 2007

Competitive Positioning

Summary 5 Beta Tea Group of Companies: Competitive Position 2008

CAHAN TEA LTD

Strategic Direction

Key Facts

Summary 6 Cahan Tea Ltd: Key Facts

Summary 7 Cahan Tea Ltd: Operational Indicators

Company Background

Production

Competitive Positioning

SUN-TEA AZERBAIJAN ATSC

Strategic Direction

Key Facts

Summary 8 Sun-Tea Azerbaijan ATSC: Key Facts

Summary 9 Sun-Tea Azerbaijan ATSC: Operational Indicators

Company Background

Production

Summary 10 Sun-Tea Azerbaijan ATSC: Production Statistics 2007

Competitive Positioning

Summary 11 Sun-Tea Azerbaijan ATSC: Competitive Position 2008