Hot Drinks in Bulgaria
Euromonitor International's Hot Drinks in Bulgaria 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.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data
Tables: 63 | Publication date: Mar 2010
Why buy this report
- 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
After a very positive five years, hot drinks volume growth turns to decline
The good results that characterised the development of hot drinks over the review period finally came to a halt in 2009, when volume sales recorded a decline. Indeed, this was the worst performance for hot drinks since the inaugural research period of 1997/1998. The economic crisis is to blame for the discouraging performance – coffee and other hot drinks suffered most, while tea also recorded a marginal decline in total volume terms, however its rate of decline was weaker because of the very well developed and mature state of the category overall.
Economic crisis leaves a profound mark on consumer behaviour and the performance of hot drinks
The economic crisis, with increasing job losses and employment insecurity, has been to the disadvantage of the hot drinks category. With the loss of many jobs since the beginning of 2009, and news of an additional slowdown in the country’s economy in the first months of 2010, consumers preferred to cut back on going out, purchase fewer non-essential items and trade down. Naturally, premium brands were most affected by this trend – while in 2008 premiumisation and trading up to mid- and high-priced coffee and imported tea were key, in 2009 exactly the opposite trend held true.
Demand for cheaper products favours multinational and economy brands
The leading multinational companies suffered a slight decline in their shares but still managed to remain in the leading positions, with a significant share difference between themselves and local producers. The economic crisis favoured those companies that were able to offer good value and low prices. The multinational companies coped particularly well since they focused on below-the-line activities and reduced prices and offered bundled pack promotions. Additionally, emerging economy and standard brands that were very dynamic in terms of distribution and below-the-line activities managed to increase their shares, as was the case with Elite (Fort Koffiebranderij OOD) and Tchibo (Tchibo GmbH).
The off-trade channel grows in importance as the economy slows down
Off-trade continues to be the leading channel in terms of volume sales and generates more than two-thirds of the market revenue. In the context of an economic slowdown, this channel has increased in importance, despite the overall market decline, as it performed better than the on-trade channel, registering a smaller decline. This is the logical outcome of changing consumer lifestyles; as consumers opted to go out less, bars and restaurants bore significant losses.
Volume growth expected to return in the forecast period as the economy starts to recover
Volume sales are expected to return to growth in 2010 as the economy gradually starts to recover and consumers regain their spending habits. However, the forecast period volume growth rates will be significantly lower than those of the review period, which indicates that consumers will continue to look for the best possible price on the market, and that the importance of the reduced price and value-added promotions will continue. The leading companies, Nestlé Bulgaria AD, Kraft Foods Bulgaria AD and Fort Koffiebranderij OOD, as well as aggressive new entrants such as Tchibo GmbH, are expected to top the share rankings and continue to introduce the most innovative or best-priced products on the market.
Table of contents
HOT DRINKS IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
After a very positive five years, hot drinks volume growth turns to decline
Economic crisis leaves a profound mark on consumer behaviour and the performance of hot drinks
Demand for cheaper products favours multinational and economy brands
The off-trade channel grows in importance as the economy slows down
Volume growth expected to return in the forecast period as the economy starts to recover
KEY TRENDS AND DEVELOPMENTS
Economic downturn slows down hot drinks growth and affects all categories
Globalisation and Westernisation of coffee- and tea-drinking habits creates diversity in on-trade outlets
Manufacturers tailor product features to suit changing demographic factors and evolving lifestyles
Macroeconomic factors impact the expansion pace of the modern retail trade
Innovative strategies bound to strengthen market leaders’ positions
MARKET DATA
Table 1 Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2004-2009
Table 2 Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2004-2009
Table 3 Retail Sales of Hot Drinks by Sector: Volume 2004-2009
Table 4 Retail Sales of Hot Drinks by Sector: Value 2004-2009
Table 5 Retail Sales of Hot Drinks by Sector: % Volume Growth 2004-2009
Table 6 Retail Sales of Hot Drinks by Sector: % Value Growth 2004-2009
Table 7 Foodservice Sales of Hot Drinks by Sector: Volume 2004-2009
Table 8 Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2004-2009
Table 9 Total Sales of Hot Drinks by Sector: Total Volume 2004-2009
Table 10 Total Sales of Hot Drinks by Sector: % Total Volume Growth 2004-2009
Table 11 Hot Drinks Company Shares by Value 2005-2009
Table 12 Hot Drinks Brand Shares by Value 2006-2009
Table 13 Sales of Hot Drinks by Distribution Format: % Analysis 2004-2009
Table 14 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2009
Table 15 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2009-2014
Table 16 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2009-2014
Table 17 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2009-2014
Table 18 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2009-2014
Table 19 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2009-2014
Table 20 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2009-2014
APPENDIX
Published Data Comparisons
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - BULGARIA
BALKAM AD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Balkam AD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Balkam AD: Competitive Position 2009
BALKAM AD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Balkam AD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Balkam AD: Competitive Position 2009
BIOPROGRAMMA OOD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Bioprogramma OOD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Bioprogramma OOD: Competitive Position 2009
BIOSET OOD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Bioset OOD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Bioset OOD: Competitive Position 2009
MERCURY AD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Mercury AD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Mercury AD: Competitive Position 2009
COFFEE IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 21 Coffee Machine Sales: 2002-2007
Table 22 Instant Coffee by Speciality Type 2004-2008
Table 23 Retail Sales of Coffee by Type: Volume 2004-2009
Table 24 Retail Sales of Coffee by Type: Value 2004-2009
Table 25 Retail Sales of Coffee by Type: % Volume Growth 2004-2009
Table 26 Retail Sales of Coffee by Type: % Value Growth 2004-2009
Table 27 Standard Vs Coffee Pods 2004-2009
Table 28 Coffee Company Shares 2005-2009
Table 29 Coffee Brand Shares 2006-2009
Table 30 Forecast Standard Vs Coffee Pods 2009-2014
TEA IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 31 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2009
Table 32 Other Tea by Type: % Off-trade Volume 2005-2008
Table 33 Retail Sales of Tea by Subsector: Volume 2004-2009
Table 34 Retail Sales of Tea by Subsector: Value 2004-2009
Table 35 Retail Sales of Tea by Subsector: % Volume Growth 2004-2009
Table 36 Retail Sales of Tea by Subsector: % Value Growth 2004-2009
Table 37 Tea Company Shares 2005-2009
Table 38 Tea Brand Shares 2006-2009
Table 39 Forecast Retail Sales of Tea by Subsector: Volume 2009-2014
Table 40 Forecast Retail Sales of Tea by Subsector: Value 2009-2014
Table 41 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2009-2014
Table 42 Forecast Retail Sales of Tea by Subsector: % Value Growth 2009-2014
OTHER HOT DRINKS IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Retail Sales of Other Hot Drinks by Subsector: Volume 2004-2009
Table 44 Retail Sales of Other Hot Drinks by Subsector: Value 2004-2009
Table 45 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2004-2009
Table 46 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2004-2009
Table 47 Other Hot Drinks Company Shares 2005-2009
Table 48 Other Hot Drinks Brand Shares 2006-2009
Table 49 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2009-2014
Table 50 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2009-2014
Table 51 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2009-2014
Table 52 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2009-2014