Hot Drinks in Russia
Euromonitor International's Hot Drinks in Russia 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: 102 | Publication date: Jun 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
Hot drinks show dynamic value growth
In 2008, hot drinks enjoyed further progress. The tendency towards more quality and premium products (expensive tea varieties, gourmet coffee and souvenir packaging) reflects the situation on the hot drinks market, where value growth exceeded volume growth. The tea sector overall showed stagnation in volume terms due to its saturation, although an increasingly health conscious nation showed increasing interest in fruit/herbal and green tea. The hectic and busy lifestyles impacted sales in the coffee sector, especially in the on-trade. The other hot drinks sector continued its development due to improvements in the products’ distribution.
Continuous consumer shift towards quality and convenience
2008 was notable for consumers shifting towards quality and convenience in the hot drinks market. Companies expanded their brand portfolios with quality premium products. The tea sector was boosted by premium tea bag varieties. Instant coffee grew due to mixes like 3-in-1, 2-in-1 and cappuccino, which are quick and convenient to consume. Speciality coffee sales affected on-trade development. Hectic and busy consumer lifestyles led to consumer preferences for convenient quality products. Autumn 2008 was also notable due to the start of the financial crisis in Russia. Constant discussion of the crisis in the media all over the country put Russian consumers into a state of panic. This resulted in customers being more price conscious, even if their budget was not affected.
Local players continue cooperating with multinationals
A number of partnerships were arranged between local manufacturers and multinational companies in the hot drinks market. The majority of local players have their own packaging or manufacturing plants where they produce hot drinks products under licence or just package imported bulk. The number of such cooperations continues to grow, for example, recently, Grand CD OOO created the joint enterprise Santy together with Tata Tea Ltd. Multinationals, investing money into Russian manufacturing facilities, expanded the coverage of their brands, and this cooperation also helped to strengthen the local brands. When the banks’ restrictions on credit hit the market, this type of cooperation seemed like the only way for local players to survive and stay in the market.
Difficulties in distribution channels
Banks’ restrictions on credit put retailers in a difficult situation. Retailers are attempting to pass some of their obligations on to the suppliers, in the form of delays and even partial payment halts. Bankruptcies among regional distributors and trade networks is expected. Major reorientation towards the hypermarkets and discounter retail format are the current strategy of the leading retailers in Russia. The share of independent small retailers is declining.
Consequences of the global financial crisis
Russia is experiencing various consequences because of then credit crunch crisis. The hot drinks market will be affected through retail mostly. Retailers may reduce the purchasing amount because of the absence of free money resources. Decreasing consumer demand is not expected. Slight changes in purchasing trends may occur, like reorientation towards economy and medium-priced products, following the continuous premiumisation trend during 2007/2008. According to Euromonitor International estimates, the situation will become stable by 2010.
Table of contents
HOT DRINKS IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Hot drinks show dynamic value growth
Continuous consumer shift towards quality and convenience
Local players continue cooperating with multinationals
Difficulties in distribution channels
Consequences of the global financial crisis
KEY TRENDS AND DEVELOPMENTS
The credit crunch hits retailers
Russian hot drinks players courting international partners
Multinational coffee chains descend on Russia
Will history repeat itself in Russia?
Convenience of consumption continues to determine consumer choice
CITY KEY TRENDS AND DEVELOPMENTS
Moscow
St Petersburg
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 Retail Sales of Hot Drinks by City: Volume 2003-2008
Table 12 Retail Sales of Hot Drinks by City: Value 2003-2008
Table 13 Retail Sales of Hot Drinks by City: % Volume Growth 2003-2008
Table 14 Retail Sales of Hot Drinks by City: % Value Growth 2003-2008
Table 15 Foodservice Sales of Hot Drinks by City: Volume 2003-2008
Table 16 Foodservice Sales of Hot Drinks by City: % Volume Growth 2003-2008
Table 17 Total Sales of Hot Drinks by City: Total Volume 2003-2008
Table 18 Total Sales of Hot Drinks by City: % Total Volume Growth 2003-2008
Table 19 Hot Drinks Company Shares by Value 2004-2008
Table 20 Hot Drinks Brand Shares by Value 2005-2008
Table 21 Sales of Hot Drinks by Distribution Format: % Analysis 2003-2008
Table 22 Sales of Hot Drinks by Sector and Distribution Format: % Analysis 2008
Table 23 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Breakdown 2008-2013
Table 24 Forecast Retail Vs Foodservice Sales of Hot Drinks: % Volume Growth 2008-2013
Table 25 Forecast Retail Sales of Hot Drinks by Sector: Volume 2008-2013
Table 26 Forecast Retail Sales of Hot Drinks by Sector: Value 2008-2013
Table 27 Forecast Retail Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 28 Forecast Retail Sales of Hot Drinks by Sector: % Value Growth 2008-2013
Table 29 Forecast Foodservice Sales of Hot Drinks by Sector: Volume 2008-2013
Table 30 Forecast Foodservice Sales of Hot Drinks by Sector: % Volume Growth 2008-2013
Table 31 Forecast Total Sales of Hot Drinks by Sector: Total Volume 2008-2013
Table 32 Forecast Total Sales of Hot Drinks by Sector: % Total Volume Growth 2008-2013
Table 33 Forecast Retail Sales of Hot Drinks by City: Volume 2008-2013
Table 34 Forecast Retail Sales of Hot Drinks by City: Value 2008-2013
Table 35 Forecast Retail Sales of Hot Drinks by City: % Volume Growth 2008-2013
Table 36 Forecast Retail Sales of Hot Drinks by City: % Value Growth 2008-2013
Table 37 Forecast Foodservice Sales of Hot Drinks by City: Volume 2008-2013
Table 38 Forecast Foodservice Sales of Hot Drinks by City: % Volume Growth 2008-2013
Table 39 Forecast Total Sales of Hot Drinks by City: Total Volume 2008-2013
Table 40 Forecast Total Sales of Hot Drinks by City: % Total Volume Growth 2008-2013
APPENDIX
Published Data Comparisons
Production/Import/Export Data
Table 41 Imports of Hot Drinks by Sector 2000-2007
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - RUSSIA
AHMAD TEA FABRIKA OOO - HOT DRINKS - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ahmad Tea Fabrika OOO: Key Facts
Summary 3 Ahmad Tea Fabrika OOO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Ahmad Tea Fabrika OOO: Competitive Position 2008
GRAND CD OOO
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Grand CD OOO: Key Facts
Summary 6 Grand CD OOO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Grand CD OOO: Competitive Position 2008
MAI KOMPANYA OAO
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Mai Kompanya OAO: Key Facts
Summary 9 Mai Kompanya OAO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Mai Kompanya OAO: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 11 Mai Kompanya OAO: Competitive Position 2008
MONTANA COFFEE OOO
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Montana Coffee OOO: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 Montana Coffee OOO: Competitive Position 2008
MOSKOVSKAYA CHAYNAYA FABRIKA OOO
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Moskovskaya Chaynaya Fabrika OOO: Key Facts
Summary 15 Moskovskaya Chaynaya Fabrika OOO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 16 Moskovskaya Chaynaya Fabrika OOO: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 17 Moskovskaya Chaynaya Fabrika OOO: Competitive Position 2008
MOSKOVSKAYA KOFEINYA NA PAYAKH ZAO
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Moskovskaya Kofeinya na Payakh ZAO: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 19 Moskovskaya Kofeinya na Payakh ZAO: Competitive Position 2008
ORIMI TRADE OOO
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Orimi Trade OOO: Key Facts
Summary 21 Orimi Trade OOO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Orimi Trade OOO: Competitive Position 2008
RUSSKY PRODUKT OAO
STRATEGIC DIRECTION
KEY FACTS
Summary 23 Russky Produkt OAO: Key Facts
Summary 24 Russky Produkt OAO: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 25 Russky Produkt OAO: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 26 Russky Produkt OAO: Competitive Position 2008
COFFEE IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Coffee Machine Sales: 2002-2007
Table 43 Instant Coffee by Speciality Type 2004-2008
Table 44 Retail Sales of Coffee by Type: Volume 2003-2008
Table 45 Retail Sales of Coffee by Type: Value 2003-2008
Table 46 Retail Sales of Coffee by Type: % Volume Growth 2003-2008
Table 47 Retail Sales of Coffee by Type: % Value Growth 2003-2008
Table 48 Standard Vs Coffee Pods 2004-2008
Table 49 Coffee Company Shares 2004-2008
Table 50 Coffee Brand Shares 2005-2008
Table 51 Forecast Retail Sales of Coffee by Type: Volume 2008-2013
Table 52 Forecast Retail Sales of Coffee by Type: Value 2008-2013
Table 53 Forecast Retail Sales of Coffee by Type: % Volume Growth 2008-2013
Table 54 Forecast Retail Sales of Coffee by Type: % Value Growth 2008-2013
TEA IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 55 Retail Sales of Tea by Subsector: Volume 2003-2008
Table 56 Retail Sales of Tea by Subsector: Value 2003-2008
Table 57 Retail Sales of Tea by Subsector: % Volume Growth 2003-2008
Table 58 Retail Sales of Tea by Subsector: % Value Growth 2003-2008
Table 59 Fruit/Herbal Tea by Type: % Off-trade Volume 2005-2007
Table 60 Other Tea by Type: % Off-trade Volume 2005-2007
Table 61 Tea Company Shares 2004-2008
Table 62 Tea Brand Shares 2005-2008
Table 63 Forecast Retail Sales of Tea by Subsector: Volume 2008-2013
Table 64 Forecast Retail Sales of Tea by Subsector: Value 2008-2013
Table 65 Forecast Retail Sales of Tea by Subsector: % Volume Growth 2008-2013
Table 66 Forecast Retail Sales of Tea by Subsector: % Value Growth 2008-2013
OTHER HOT DRINKS IN RUSSIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 67 Retail Sales of Other Hot Drinks by Subsector: Volume 2003-2008
Table 68 Retail Sales of Other Hot Drinks by Subsector: Value 2003-2008
Table 69 Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2003-2008
Table 70 Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2003-2008
Table 71 Other Hot Drinks Company Shares 2004-2008
Table 72 Other Hot Drinks Brand Shares 2005-2008
Table 73 Forecast Retail Sales of Other Hot Drinks by Subsector: Volume 2008-2013
Table 74 Forecast Retail Sales of Other Hot Drinks by Subsector: Value 2008-2013
Table 75 Forecast Retail Sales of Other Hot Drinks by Subsector: % Volume Growth 2008-2013
Table 76 Forecast Retail Sales of Other Hot Drinks by Subsector: % Value Growth 2008-2013