Hot Drinks in Latvia
Euromonitor International's Hot Drinks in Latvia 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: 61 | Publication date: Mar 2009
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
Volume sales of hot drinks decline in 2008
Although sales of other hot drinks grew in 2008, volume sales of coffee and tea, the two main categories within hot drinks, slightly decreased. Growing prices, caused by rising inflation in the country and high retail mark-ups, negatively affected sales in volume terms. Nevertheless, value sales continued to rise due to the gradual premiumisation of hot drinks as consumers increasingly prefer quality to quantity, which boosted the popularity of premium brands. High inflation rates also positively impacted market value growth.
Strengthening health trend causes preferences to change
In tea, consumers’ aspirations to lead a healthier lifestyle led to the increasing popularity of fruit/herbal tea, green and white tea which are healthy and, in addition, are also often recommended by dietologysts for purifying organism and making diet more effective. While tea offerings were constantly diversified to meet the changing preferences of consumers, the range of coffee products was unaffected by the health trend and remained more or less the same. As a result, volume sales of coffee suffered.
Competition is intensifying
Although only a few new players entered hot drinks in Latvia, competition continued to intensify in 2008. As volume sales gradually declined, manufacturers made new efforts to save their current market shares. Producers invested in broad advertising campaigns, launched new brands and offered discounts to try to maintain their current customers and attract new ones.
Supermarkets/hypermarkets remains the main distribution channel
The supermarkets/hypermarkets channel is popular with Latvian consumers for several reasons. Firstly, it offers a wide range of products for time-constrained consumers who prefer to shop just one a week and buy everything they need at one time. The availability of parking at hypermarkets, which typically have several large parking areas nearby, also appeals to consumers. For these reasons, supermarkets/hypermarkets continued to be the primary channel for hot drinks sales in Latvia. Among other important trends in distribution was the growing popularity of internet retailing and coffee machines which are considered a form of vending. These machines are available in the majority of offices, schools, universities, trains and other public places and offer all the popular types of coffee, hot chocolate, cocoa and sometimes even several types of tea. Vending had a significant positive impact on the off-trade sales growth of hot drinks.
Volume sales are expected to continue to decrease
Both coffee and tea are expected to continue to see declining volume sales in the forecast period. The strengthening health trend and market saturation will result in fewer potential customers and renewed efforts by manufacturers to introduce new product lines and tastes to save their existing customers and stave off sales stagnation. Nevertheless, hot drinks remains a traditional part of Latvian life, and as such, the value sales of hot drinks are still expected to grow slightly, also as a result of inflation.
Table of contents
HOT DRINKS IN LATVIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Volume sales of hot drinks decline in 2008
Strengthening health trend causes preferences to change
Competition is intensifying
Supermarkets/hypermarkets remains the main distribution channel
Volume sales are expected to continue to decrease
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
DC HOLDING AS
Strategic Direction
Key Facts
Summary 2 DC Holding AS: Key Facts
Summary 3 DC Holding AS: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 4 DC Holding AS: Competitive Position 2008
MELNA KAFIJA SIA
Strategic Direction
Key Facts
Summary 5 Melna Kafija SIA: Key Facts
Summary 6 Melna Kafija SIA: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 7 Melna Kafija SIA : Competitive Position 2008