Soft Drinks in Azerbaijan
Euromonitor International's Soft Drinks in Azerbaijan 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: 134 | Publication date: Mar 2009
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Executive summary
Price increases, high demand, new brands and dynamic growth in soft drinks
The overall performance of soft drinks was characterised by strong total volume and value growth in 2008. Almost all categories received a strong inflow of new brands. Soft drinks experienced unit price increases, causing strong retail value growth. A huge price increase was recorded in fruit/vegetable juice, affecting imported and local brands, and creating the demand for the newly launched Jale brand by Qabala Meyva Emali Muessisasi, a subsidiary of the local giant, Gilan Holding MMC. The new brand has an economy positioning, though it is a high quality offering available in a variety of packaging. Carbonates and bottled water were driven by the constant inflow of brands and fierce competition. Energy drinks welcomed new brands, however Pfanner and Red Bull remained the biggest-selling brands, with the latter investing heavily in advertising campaigns. Pfanner Ice Tea, Lipton Ice Tea and Nestea Ice Tea remain the leading brands in RTD tea. Traditional kisel brands regained its popularity with brand names that are active in herbs and spices (Pripravich, Cykoria), helping to revive powder concentrates.
Substantial price increases in fruit/vegetable juice
At the end of the review period, fruit/vegetable juice experienced substantial price increases in terms of imported and local brands. Within this environment, the newly-launched local Jale brand turned out to be cheaper than other brands. Jale immediately adhered to the main trends in packaging, and won the consumers’ preference through taste, and heavy investment in advertising campaigns through TV, billboards and posters. In order to survive the high price increase environment, two local giants, SAF and Sonti brands, merged to create Azeri Fruit Co, aiming to enter the international market with the new Azeri Fruit brand.
Financially and structurally strong players create competitive environment
Local brands with high sales shares exist in the leading categories, such as cola carbonates, fruit/vegetable juice and bottled water. With continuous industry development, there has been a redistribution of shares among these local brands. Additionally, in these categories, locals compete with Russian, Turkish, Georgian, Ukrainian, German, Belarussian, and Moldovan brands. Throughout the year, the brands of small manufacturers appear and then quickly disappear, unable to sustain their offerings in the strong competitive environment, created by financially and structurally stronger competitors. RTD tea and coffee, concentrates and energy drinks lack the presence of local brands, and established imported brands dominate and new entries struggle to gain the acceptance of consumers.
Consolidation of existing distribution channels
By the end of the review period, the main distribution channels remained supermarkets discounters and independent small grocers. (Hypermarkets are not yet present in Azerbaijan.) The Sevimli Dad chain (“other” grocery retailers) also developed gradually. “Other” grocery retailers also includes small mobile refrigerators, mainly in parks, squares and streets, kiosks selling only carbonates, bottled water and fruit/vegetable juice in small packages and bottles. The role of forecourt retailers has gradually increased, however, the concept of purchasing soft drinks from petrol/gas/service stations is underdeveloped. Some bakeries, particularly newly opened ones, sell bottled water, Coca-Cola, Fanta, and Sprite. Bottled water was also distributed by direct selling, mainly through office delivery. Although supermarkets recorded a large increase in sales in most categories, independent small grocers continued to lead in terms of retail volume sales in 2008.
Volume and value sales to continue strong growth
Over the forecast period, soft drinks in Azerbaijan will continue to register strong total volume and value sales growth. Carbonates, concentrates, and energy drinks will record faster total volume growth compared to the review period. Carbonates will see faster volume growth, mainly due to non-cola carbonates, while energy drinks’ appeal will be driven by the concept of healthy living. The predicted growth of liquid concentrates is attributable to the influence of the Lipton brand. Powder concentrates will be influenced by the sales of kisel brands which have been popular at least since Soviet times. However, carbonates, bottled water, and fruit/vegetable juice will remain the leading categories and price sensitivity will continue to be essential in terms of brand choice.
Table of contents
SOFT DRINKS IN AZERBAIJAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Price increases, high demand, new brands and dynamic growth in soft drinks
Substantial price increases in fruit/vegetable juice
Financially and structurally strong players create competitive environment
Consolidation of existing distribution channels
Volume and value sales to continue strong growth
FOUNTAIN SALES
Trends
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2003-2008
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2003-2008
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2003-2008
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2003-2008
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2008
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2008
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2008
Table 9 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2003-2008
Table 10 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2003-2008
Table 11 Off-trade Sales of Soft Drinks by Sector: Value 2003-2008
Table 12 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2003-2008
Table 13 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2004-2008
Table 14 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2005-2008
Table 15 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2004-2008
Table 16 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2005-2008
Table 17 Company Shares of Off-trade Soft Drinks by Value 2004-2008
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2005-2008
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2008
Table 20 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2008-2013
Table 21 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2008-2013
Table 22 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2008-2013
Table 23 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2008-2013
Table 24 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2008-2013
Table 25 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2008-2013
Table 26 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2008-2013
Table 27 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2008-2013
APPENDIX
Table 28 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2003-2008
Table 29 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2003-2008
Table 30 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2004-2008
Table 31 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2005-2008
Table 32 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2004-2008
Table 33 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2005-2008
Table 34 Company Shares of Concentrates (RTD) by Off-trade Volume 2004-2008
Table 35 Brand Shares of Concentrates (RTD) by Off-trade Volume 2005-2008
Table 36 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2008-2013
Table 37 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
CARBONATES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 38 Off-trade Sales of Carbonates by Subsector: Volume 2003-2008
Table 39 Off-trade Sales of Carbonates by Subsector: Value 2003-2008
Table 40 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2003-2008
Table 41 Off-trade Sales of Carbonates by Subsector: % Value Growth 2003-2008
Table 42 On-trade vs Off-trade Sales of Carbonates: Volume 2003-2008
Table 43 On-trade vs Off-trade Sales of Carbonates: Value 2003-2008
Table 44 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2003-2008
Table 45 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2003-2008
Table 46 Company Shares of Carbonates by Off-trade Volume 2004-2008
Table 47 Brand Shares of Carbonates by Off-trade Volume 2005-2008
Table 48 Company Shares of Carbonates by Off-trade Value 2004-2008
Table 49 Brand Shares of Carbonates by Off-trade Value 2005-2008
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2008-2013
Table 51 Forecast Off-trade Sales of Carbonates by Subsector: Value 2008-2013
Table 52 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2008-2013
Table 53 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2008-2013
Table 54 Low Calorie Carbonates by Subsector, total volume 2003 - 2008
FRUIT/VEGETABLE JUICE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 55 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2003-2008
Table 56 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2003-2008
Table 57 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2003-2008
Table 58 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2003-2008
Table 59 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2004-2008
Table 60 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2005-2008
Table 61 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2004-2008
Table 62 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2005-2008
Table 63 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2008-2013
Table 64 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2008-2013
Table 65 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2008-2013
Table 66 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2008-2013
BOTTLED WATER
Headlines
Trends
Competitive Landscape
Prospects
SECTOR APPENDIX
Institutional Bottled Water Sales
Table 67 Sales of Bottled Water to Institutional Channel 2003-2008
Sector Data
Table 68 Off-trade Sales of Bottled Water: Volume 2003-2008
Table 69 Off-trade Sales of Bottled Water: Value 2003-2008
Table 70 Off-trade Sales of Bottled Water: % Volume Growth 2003-2008
Table 71 Off-trade Sales of Bottled Water: % Value Growth 2003-2008
Table 72 Company Shares of Bottled Water by Off-trade Volume 2004-2008
Table 73 Brand Shares of Bottled Water by Off-trade Volume 2005-2008
Table 74 Company Shares of Bottled Water by Off-trade Value 2004-2008
Table 75 Brand Shares of Bottled Water by Off-trade Value 2005-2008
Table 76 Forecast Off-trade Sales of Bottled Water: Volume 2008-2013
Table 77 Forecast Off-trade Sales of Bottled Water: Value 2008-2013
Table 78 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2008-2013
Table 79 Forecast Off-trade Sales of Bottled Water: % Value Growth 2008-2013
FUNCTIONAL DRINKS
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 80 Off-trade Sales of Functional Drinks by Subsector: Volume 2003-2008
Table 81 Off-trade Sales of Functional Drinks by Subsector: Value 2003-2008
Table 82 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2003-2008
Table 83 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2003-2008
Table 84 Company Shares of Functional Drinks by Off-trade Volume 2004-2008
Table 85 Brand Shares of Functional Drinks by Off-trade Volume 2005-2008
Table 86 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2008-2013
Table 87 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2008-2013
Table 88 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2008-2013
Table 89 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2008-2013
CONCENTRATES
Headlines
Trends
Competitive Landscape
Prospects
SECTOR APPENDIX
Concentrates Conversions
Table 90 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Sector Data
Table 91 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2003-2008
Table 92 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2003-2008
Table 93 Off-trade Sales of Concentrates by Subsector: Value 2003-2008
Table 94 Off-trade Sales of Concentrates by Subsector: % Value Growth 2003-2008
Table 95 Company Shares of Concentrates by Off-trade Value 2004-2008
Table 96 Brand Shares of Concentrates by Off-trade Value 2005-2008
Table 97 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2008-2013
Table 98 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2008-2013
Table 99 Forecast Off-trade Sales of Concentrates by Subsector: Value 2008-2013
Table 100 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2008-2013
RTD TEA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 101 Off-trade Sales of RTD Tea by Subsector: Volume 2004-2008
Table 102 Off-trade Sales of RTD Tea by Subsector: Value 2004-2008
Table 103 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2004-2008
Table 104 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2004-2008
Table 105 Company Shares of RTD Tea by Off-trade Volume 2004-2008
Table 106 Brand Shares of RTD Tea by Off-trade Volume 2005-2008
Table 107 Company Shares of RTD Tea by Off-trade Value 2004-2008
Table 108 Brand Shares of RTD Tea by Off-trade Value 2005-2008
Table 109 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2008-2013
Table 110 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2008-2013
Table 111 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2008-2013
Table 112 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2008-2013
RTD COFFEE
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 113 Off-trade Sales of RTD Coffee: Volume 2005-2008
Table 114 Off-trade Sales of RTD Coffee: Value 2005-2008
Table 115 Off-trade Sales of RTD Coffee: % Volume Growth 2005-2008
Table 116 Off-trade Sales of RTD Coffee: % Value Growth 2005-2008
Table 117 Company Shares of RTD Coffee by Off-trade Volume 2005-2008
Table 118 Brand Shares of RTD Coffee by Off-trade Volume 2005-2008
Table 119 Company Shares of RTD Coffee by Off-trade Value 2005-2008
Table 120 Brand Shares of RTD Coffee by Off-trade Value 2005-2008
Table 121 Forecast Off-trade Sales of RTD Coffee: Volume 2008-2013
Table 122 Forecast Off-trade Sales of RTD Coffee: Value 2008-2013
Table 123 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2008-2013
Table 124 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2008-2013
AYSU GIDA SENAYE LTD MMC
Strategic Direction
Key Facts
Summary 2 Aysu Gida Senaye Ltd MMC: Key Facts
Summary 3 Aysu Gida Senaye Ltd MMC: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 4 Aysu Gida Senaye Ltd MMC: Competitive Position 2008
AZNAR ASC
Strategic Direction
Key Facts
Summary 5 AzNar ASC: Key Facts
Company Background
Production
Competitive Positioning
Summary 6 AzNar ASC: Competitive Position 2008
QABALA MEYVA EMALI MUESSISASI
Strategic Direction
Key Facts
Summary 7 Qabala Meyva Emali Muessisasi: Key Facts
Summary 8 Qabala Meyva Emali Muessisasi: Operational Indicators
Company Background
Production
Summary 9 Qabala Meyva Emali Muessisasi: Production Statistics 2007
Competitive Positioning
Summary 10 Qabala Meyva Emali Muessisasi: Competitive Position 2008