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.
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Tables: 59 | Publication date: Jul 2007
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
Good growth supported by consumers trading up
In 2006, hot drinks continued to grow sales. While volume sales of tea and “other” hot drinks suffered a mild decline in 2006, coffee supported good volume and current value growth. Coffee is the most traditional hot drink in Bulgaria. Both the on- and off-trade channels contributed to the volume development of coffee. Despite a favourable tax policy for tea and coffee, the current value increase was quite significant and in percentage terms, exceeded volume growth. The healthy value increase came as a result of consumer demand for expensive instant coffee and imported tea, the launch of high quality products such as espresso and mocha coffee blends and added value offers.
Economy brands dominate but premium brands gain importance
The low purchasing power of the population is to the advantage of economy brands in coffee and tea. Generally, economy brands are also tailored to suit local tastes, with strong distribution and/or media exposure. In 2006, leading domestic brands included Kraft’s Nova Brasilia and Fort Koffiebranderij’s Elite. However, both suffered a slight decline in shares, while mid- and high-priced brands such as Kraft’s Jacobs, Nestlé’s Nescafé and Lavazza gained share. Expected improvements in disposable incomes, good product quality and the growing sophistication of consumers’ tastes should aid their further growth in the forecast period. The on-trade will retain an important role in encouraging the consumption of more expensive brands and inducing consumers to trade-up.
Coffee companies dominate
Multinational coffee companies largely dominate hot drinks. The top three coffee companies together dominate while the largest tea player ranked eight in 2006. Since “other” hot drinks is purchased less frequently, the largest companies have much lower shares in overall sales. Multinationals in coffee benefited from strong marketing know-how, with an emphasis on brand building in different price bands. They also possess full on-trade distribution and invest heavily in consumer research, advertising and promotion.
New players to support growth
During the forecast period, coffee is expected to see continued good growth, while tea and “other” hot drinks are expected to perform better in comparison to the decline seen during the review period. Consumers will benefit from the entry of new players and brands, with many new entrants expected in the first years of Bulgaria’s accession to the EU. The largest companies in coffee, tea and “other” hot drinks are expected to place a strong emphasis on brand building and pricing in order to remain competitive.
Table of contents
HOT DRINKS IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Good growth supported by consumers trading up
Economy brands dominate but premium brands gain importance
Coffee companies dominate
New players to support growth
KEY TRENDS AND DEVELOPMENTS
Import amendments benefit tea and coffee importers
Chained on-trade coffee shops to grow in number
Specialist retailers lose share
Private label trends
Low pricing strategies vs higher margin alternatives
MARKET DATA
Table 1 Sales of Hot Drinks by Sector: Volume 2001-2006
Table 2 Sales of Hot Drinks by Sector: Value 2001-2006
Table 3 Sales of Hot Drinks by Sector: % Volume Growth 2001-2006
Table 4 Sales of Hot Drinks by Sector: % Value Growth 2001-2006
Table 5 Hot Drinks Company Shares by Value 2002-2006
Table 6 Hot Drinks Brand Shares by Value 2003-2006
Table 7 Sales of Hot Drinks by Distribution Format: % Analysis 2001/2006
Table 8 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2006
Table 9 Forecast Sales of Hot Drinks by Sector: Volume 2006-2011
Table 10 Forecast Sales of Hot Drinks by Sector: Value 2006-2011
Table 11 Forecast Sales of Hot Drinks by Sector: % Volume Growth 2006-2011
Table 12 Forecast Sales of Hot Drinks by Sector: % Value Growth 2006-2011
APPENDIX
Production/Imports/Exports Data
Table 13 Production/Imports/Exports/Apparent Consumption of Hot Drinks by Sector 2004-2006
Published Data Comparisons
DEFINITIONS
LOCAL COMPANY PROFILES - BULGARIA
BALKAM AD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Balkam AD: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 2 Balkam AD: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 3 Balkam AD: Competitive Position 2006
BIOPROGRAMMA OOD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Bioprogramma OOD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Bioprogramma OOD: Competitive Position 2006
FORT KOFFIEBRANDERIJ OOD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Fort Koffiebranderij OOD: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Fort Koffiebranderij OOD: Competitive Position 2006
MERCURY SD - HOT DRINKS - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Mercury SD: Key Facts
Summary 9 Mercury SD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Mercury SD: Competitive Position 2006
COFFEE IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Sales of Coffee by Type: Volume 2001-2006
Table 15 Sales of Coffee by Type: Value 2001-2006
Table 16 Sales of Coffee by Type: % Volume Growth 2001-2006
Table 17 Sales of Coffee by Type: % Value Growth 2001-2006
Table 18 Standard Vs Coffee Pods 2004-2006
Table 19 Instant Coffee by Speciality Type: Off-trade Volume 2004-2006
Table 20 Instant Coffee by Speciality Type: Off-trade Value 2004-2006
Table 21 Coffee Company Shares 2002-2006
Table 22 Coffee Brand Shares 2003-2006
Table 23 Foodservice Sales of Coffee by Distribution Format 2001/2006
Table 24 Forecast Sales of Coffee by Type: Volume 2006-2011
Table 25 Forecast Sales of Coffee by Type: Value 2006-2011
Table 26 Forecast Sales of Coffee by Type: % Volume Growth 2006-2011
Table 27 Forecast Sales of Coffee by Type: % Value Growth 2006-2011
TEA IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 28 Sales of Tea by Subsector: Volume 2001-2006
Table 29 Sales of Tea by Subsector: Value 2001-2006
Table 30 Sales of Tea by Subsector: % Volume Growth 2001-2006
Table 31 Sales of Tea by Subsector: % Value Growth 2001-2006
Table 32 Fruit/Herbal Tea by Type: % Off-trade Volume
Table 33 Other Tea by Type: % Off-trade Volume
Table 34 Tea Company Shares 2002-2006
Table 35 Tea Brand Shares 2003-2006
Table 36 Forecast Sales of Tea by Subsector: Volume 2006-2011
Table 37 Forecast Sales of Tea by Subsector: Value 2006-2011
Table 38 Forecast Sales of Tea by Subsector: % Volume Growth 2006-2011
Table 39 Forecast Sales of Tea by Subsector: % Value Growth 2006-2011
OTHER HOT DRINKS IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
SECTOR DATA
Table 40 Sales of Other Hot Drinks by Subsector: Volume 2001-2006
Table 41 Sales of Other Hot Drinks by Subsector: Value 2001-2006
Table 42 Sales of Other Hot Drinks by Subsector: % Volume Growth 2001-2006
Table 43 Sales of Other Hot Drinks by Subsector: % Value Growth 2001-2006
Table 44 Other Hot Drinks Company Shares 2002-2006
Table 45 Other Hot Drinks Brand Shares 2003-2006
Table 46 Forecast Sales of Other Hot Drinks by Subsector: Volume 2006-2011
Table 47 Forecast Sales of Other Hot Drinks by Subsector: Value 2006-2011
Table 48 Forecast Sales of Other Hot Drinks by Subsector: % Volume Growth 2006-2011
Table 49 Forecast Sales of Other Hot Drinks by Subsector: % Value Growth 2006-2011