Hot Drinks in Croatia
Euromonitor International's Hot Drinks in Croatia 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: 15 | Publication date: Aug 2006
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- Get insight into trends in market performance
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Executive summary
Hot drinks perform positively over the review period
Tea and coffee showed increases in volume as well as in value sales over the review period. Traditionally, coffee is the most popular hot drink in Croatia. This was clearly visible over the review period, as coffee grew substantially more than tea and other hot drinks in both value and volume. Value sales outpaced volume between 2000 and 2005. This was due to the fact that instant coffee, cappuccino and decaffeinated coffee, which are more expensive then fresh ground coffee, increased greatly in terms of total coffee over the review period.
Tea volume sales increased on a more moderate pace. On-trade experienced greater growth rates in volume terms than off-trade during the 2000-2005 period. Like coffee, total value sales growth was greater than volume thanks to the introduction of new fruit tea combinations, which were more expensive than traditional varieties.
Other hot drinks also experienced positive sales during the review period, but growth was slower than other hot drinks categories. Although small, there was a noticeable increase in volume sales in each year of review period. However, other hot drinks are still seasonally sensitive, with biggest consumption in winter months.
Hot drinks still dominated by local players
Although there are no obstacles for multinational players to enter Croatia, hot drinks sales are dominated by local companies. In both coffee and tea, foreign brands account for only about a quarter of value sales. Other hot drinks is the only category where their share is slightly higher. Coffee and tea (albeit predominantly fruit tea) have a long tradition in the country and consumers predominantly chose familiar domestic brands. Domestic company Franck dd remained the leader in both coffee and tea sales.
Multinational players however are wining over consumers with new product formats. This was demonstrated by the introduction and immediate acceptance of 3-in-1 instant coffee products. Nestlé Adriatic doo, which was the first to launch the 3-in-1 Nescafé brand, is the leader in instant coffee. Nestlé also holds the leadership in other hot drinks were it recently overtook domestic Kras dd.
Supermarkets aim for dominance
In hot drinks, as in other packaged foods in Croatia, the share of supermarkets/hypermarkets was on the rise throughout the review period. The shift towards once-a-week shopping, wide product assortment, low prices and frequent promotional campaigns were all behind the growing popularity of this retail format. Despite its short history – the first supermarkets started appearing in 1999 – the channel held a respectable portion of hot drinks’ volume sales at the end of 2005.
The first private label coffee was introduced by Getro in 2000 and by 2005 all leading retail chains offered private label coffee, tea and in some cases other hot drinks.
Robust growth expected in the forecast period
All hot drinks categories are predicted to see positive growth during the forecast period with coffee showing the highest increase. During that time, coffee is expected to be influenced by the same trends that boosted sales over the review period including new products, new packaging and new flavours. In addition, new players to the industry are projected to help coffee’s fast development. Tea is also expected to benefit from product innovation and wider acceptance of different tea types. While over the review period tea sales experienced only average increases, the outlook for the forecast period is very positive. Other hot drinks are also predicted to see positive increases, though at more modest levels than the other hot drinks categories.
Table of contents
HOT DRINKS IN CROATIA : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. HOT DRINKS SALES
2.1 Market Performance
Table 1 Retail Sales of Hot Drinks by Sector: Volume 2000-2005
Table 2 Retail Sales of Hot Drinks by Sector: Value 2000-2005
Table 3 Retail Sales of Hot Drinks by Sector: % Volume Growth 2000-2005
Table 4 Retail Sales of Hot Drinks by Sector: % Value Growth 2000-2005
2.2 Competitive Environment
Table 5 Hot Drinks Company Shares by Retail Value 2001-2005
Table 6 Hot Drinks Brand Shares by Retail Value 2002-2005
2.3 Leading Company Profile: Cedevita doo
Summary 1 Cedevita doo: Operational Indicators 2005
2.4 Leading Company Profile: Franck dd
Summary 2 Franck dd: Operational Indicators 2005
2.5 New Product Launches
Summary 3 Major New Product Launches 2004-2005
2.6 Retail Distribution
Table 7 Retail Sales of Hot Drinks by Distribution Format: % Analysis 2000/2005
Table 8 Retail Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2005
2.7 Retailer Activity and Private Label Trends
2.8 Forecast Market Performance
Table 9 Forecast Retail Sales of Hot Drinks by Sector: Volume 2005-2010
Table 10 Forecast Retail Sales of Hot Drinks by Sector: Value 2005-2010
Table 11 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2005-2010
Table 12 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2005-2010
3. DEFINITIONS