Soft Drinks in Bulgaria
Euromonitor International's Soft 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: 135 | Publication date: Jun 2006
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Executive summary
Positive performance for soft drinks is supported by stable macroeconomic conditions
Soft drinks in Bulgaria showed an upward trend throughout the 2000-2005 review period. Total volume sales (both on-trade and off-trade) grew by 6% in 2005 resulting in substantial per capita increase since the beginning of the review period. Growth in current value terms was slightly stronger than that in value. This development was aided by the further development of the on-trade channel in Bulgaria, as well as by the strong performances of bottled water, fruit/vegetable juice, RTD tea and functional drinks. Stable macroeconomic conditions, rising disposable incomes, the availability of a wider variety of products and stronger competition in the main sectors mean soft drinks in Bulgaria is expected to continue its positive progression over the forecast period.
Rising consumption prompts Coca-Cola to strengthen its position in bottled water
Bottled water was the main contributor to the positive development of soft drinks overall during the review period. Off-trade volume sales of bottled water products reached 333 million litres in 2005, approximately double the figure recorded in 2000. The increase in current value terms was more modest, mainly because of the relatively low price of bottled water products, but off-trade sales nonetheless reached Leva92 million in 2005. This impressive performance came primarily at the expense of carbonates, which remained the largest soft drinks sector in current value sales terms in 2005. Growing institutional demand, competitive pricing and the deteriorating quality of tap water all supported the progression of bottled water during the review period. Moreover, the sector witnessed heightened activity in 2005 in the form of new product launches, packaging and design changes and the entry of new players. In response to the sector's growing potential, leading carbonates player Coca-Cola HBC Bulgaria AD strengthened its position within bottled water in June 2005 by acquiring competitor Bottling Co Mineral Water Bankia Ltd. This was certainly the most notable acquisition witnessed within soft drinks in 2005.
Marginal development for carbonates, though low calorie cola carbonates shows potential
Though 2005 saw carbonates remain the largest soft drinks sector overall in terms of current value sales, it was only the second largest in terms of off-trade volume sales, with bottled water surpassing it in this regard for the first time in 2003. Carbonates showed a sluggish performance over the review period, failing to benefit from the positive development of soft drinks as a whole. It also remained very competitive; though larger companies Coca-Cola and Agrima AD accounted for the highest shares in volume and value terms, also present were a myriad of smaller producers offering low priced products. Low calorie cola carbonates showed the most dynamic performance within the sector in 2005, as both Coca-Cola and Agrima sought to exploit its potential and develop volume sales beyond their comparatively low level.
RTD tea is most dynamic as the popularity of Nestea skyrockets in 2005
RTD tea remained one of the smallest sectors within soft drinks in Bulgaria in 2005, accounting for just 1% of total market volume and current value sales. Together with functional drinks however, it was also one of the most promising areas. Off-trade volume sales grew at a staggering CAGR of 70% during the review period, though volume growth was somewhat slower in 2005 at 46%. Current value sales also grew strongly, boosted by the higher price of RTD tea products as compared to those in other sectors such as carbonates and bottled water. The excellent performance of RTD tea was mainly attributable to the phenomenal success of Nestea, the popularity of which skyrocketed in 2005 to see the brand account for 70% of off-trade volume sales. Nestea's launch in 2004 was supported by intensive marketing activities, and this helped it to decimate the value and volume shares of competitor Pfanner to become the leading RTD tea brand in Bulgaria in 2005. Moreover, the novelty value of RTD tea products encouraged an increasing number of consumers to substitute them for carbonates and fruit/vegetable juice products during the review period.
Decline of concentrates is solely due to the poor performance of liquid concentrates
Concentrates was the only soft drinks sector to show a decline in volume and current value sales terms in 2005. This was solely due to the poor performance of liquid concentrates, as powder concentrates maintained its positive development. Although liquid concentrates only accounted for some 20% of concentrates current value sales in 2005, its negative development affected the sector as a whole. Its decline was mainly attributable to a lack of innovation and marketing activities, which promoted consumers to show little interest in liquid concentrates products, which did enjoy a certain level of popularity prior to the review period.
Table of contents
SOFT DRINKS IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
TOTAL SOFT DRINKS SALES
Market Performance
Table 1 Tax on Packaging in Leva/Kg 2004-2011
Table 2 Consumption of Soft Drinks by Packaging 1997/2004
Table 3 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 9 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 10 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 13 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 14 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
OFF-TRADE SOFT DRINKS SALES
Market Performance
Table 15 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 16 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 17 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 18 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 19 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2001-2005
Table 20 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2002-2005
Table 21 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2001-2005
Table 22 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2002-2005
Table 23 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 24 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
Off-Trade Distribution
Table 25 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 26 Penetration of Private Label (as sold) by Sector by Volume 2001-2005
Table 27 Penetration of Private Label by Sector by Value 2001-2005
Forecast Market Performance
Table 28 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 29 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 30 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 31 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
APPENDIX
Concentrates Conversions and Additional Data
Table 32 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 33 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2000-2005
Table 34 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2000-2005
Table 35 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2001-2005
Table 36 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2002-2005
Table 37 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2001-2005
Table 38 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2002-2005
Table 39 Company Shares of Concentrates (RTD) by Off-trade Volume 2001-2005
Table 40 Brand Shares of Concentrates (RTD) by Off-trade Volume 2002-2005
Table 41 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2005-2010
Table 42 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2005-2010
Institutional Sales of Bottled Water
Table 43 Sales of Bottled Water to Institutional Channels 2004-2005
DEFINITIONS
LOCAL COMPANY PROFILES - BULGARIA
AGRIMA AD - SOFT DRINKS - BULGARIA
COMPANY BACKGROUND
Summary 1 Summary - Agrima AD: Production Statistics 2005
BBB GROUP - SOFT DRINKS - BULGARIA
COMPANY REVIEW
Summary 2 Summary - Lines Holding: Production Statistics 2004
COCA-COLA HBC BULGARIA AD - SOFT DRINKS - BULGARIA
COMPANY BACKGROUND
Summary 3 Summary - Coca-Cola HBC Bulgaria AD Operational Indicators 2003
DEVIN AD - SOFT DRINKS - BULGARIA
COMPANY BACKGROUND
Summary 4 Summary - Devin AD: Production Statistics 2004
NOVA TRADE OOD - SOFT DRINKS - BULGARIA
COMPANY BACKGROUND
Summary 5 Summary - Nova Trade EOOD: Production Statistics 2005
CARBONATES IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Increasing maturity impedes the development of carbonates in 2005
Coca-Cola Light dominates in low calorie cola carbonates
Traditional popularity of lemonade/lime products in Bulgaria endures
Coca-Cola dominates as Agrima struggles to improve its position
Low prices are the main competitive advantage of domestic producers
Forecast performance
Table 44 Off-trade Sales of Carbonates by Subsector: Volume 2000-2005
Table 45 Off-trade Sales of Carbonates by Subsector: Value 2000-2005
Table 46 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2000-2005
Table 47 Off-trade Sales of Carbonates by Subsector: % Value Growth 2000-2005
Table 48 Company Shares of Carbonates by Off-trade Volume 2001-2005
Table 49 Brand Shares of Carbonates by Off-trade Volume 2002-2005
Table 50 Company Shares of Carbonates by Off-trade Value 2001-2005
Table 51 Brand Shares of Carbonates by Off-trade Value 2002-2005
Summary 6 Summary - Carbonates: New Product Launches 2004-2005
Table 52 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2005-2010
Table 53 Forecast Off-trade Sales of Carbonates by Subsector: Value 2005-2010
Table 54 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2005-2010
Table 55 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2005-2010
LOW-CALORIE CARBONATES
Table 56 Low-calorie Carbonates % Breakdown by Subsector by Off-trade Volume 2002-2005
CARBONATES DISTRIBUTION
Consumers remain distrustful of local brands from fountain dispensers
Table 57 On-trade vs Off-trade Sales of Carbonates: Volume 2000-2005
Table 58 On-trade vs Off-trade Sales of Carbonates: Value 2000-2005
Table 59 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2000-2005
Table 60 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2000-2005
FRUIT/VEGETABLE JUICE IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Steady development of fruit/vegetable juice continues in 2005
Low prices and increasing competition benefit juice drinks (up to 24% juice)
Rapid development of Coca-Cola's Cappy causes concern for competitors
Cappy prompts a revolution in packaging for fruit/vegetable juice brands
Forecast performance
Table 61 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2000-2005
Table 62 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2000-2005
Table 63 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2000-2005
Table 64 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2000-2005
Table 65 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2001-2005
Table 66 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2002-2005
Table 67 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2001-2005
Table 68 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2002-2005
Summary 7 Summary - Fruit/Vegetable Juice: New Product Launches 2004-2005
Table 69 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2005-2010
Table 70 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2005-2010
Table 71 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2005-2010
Table 72 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2005-2010
CHILLED VS NON-CHILLED FRUIT/VEGETABLE JUICE
Table 73 Chilled vs Non-chilled Fruit/Vegetable Juice by Off-trade Volume 2002-2005
FLAVOURS
Table 74 Leading Flavours for 100% Juice: %Volume Breakdown 2003-2005
Table 75 Leading Flavours for Nectars (25-99% Juice): %Volume Breakdown 2003-2005
Table 76 Leading Flavours for Juice Drinks (up to 24% Juice): %Volume Breakdown 2003-2005
Table 77 Leading Flavours for Fruit-flavoured Drinks (No Juice Content): %Volume Breakdown 2003-2005
SMOOTHIES
Table 78 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2005
BOTTLED WATER IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Bottled water shows the most impressive development within soft drinks overall
Availabilty of larger packaging formats boosts volume sales growth in bottled water
Spring water performs well, but demand for carbonated bottled water products declines
Domestic players lead in a highly competitive environment
Coca-Cola strengthens its position in bottled water with the most notable acquisition of 2005
Forecast performance
Table 79 Off-trade Sales of Bottled Water: Volume 2000-2005
Table 80 Off-trade Sales of Bottled Water: Value 2000-2005
Table 81 Off-trade Sales of Bottled Water: % Volume Growth 2000-2005
Table 82 Off-trade Sales of Bottled Water: % Value Growth 2000-2005
Table 83 Company Shares of Bottled Water by Off-trade Volume 2001-2005
Table 84 Brand Shares of Bottled Water by Off-trade Volume 2002-2005
Table 85 Company Shares of Bottled Water by Off-trade Value 2001-2005
Table 86 Brand Shares of Bottled Water by Off-trade Value 2002-2005
Summary 8 Summary - Bottled Water: New Product Launches 2004-2005
Table 87 Forecast Off-trade Sales of Bottled Water: Volume 2005-2010
Table 88 Forecast Off-trade Sales of Bottled Water: Value 2005-2010
Table 89 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2005-2010
Table 90 Forecast Off-trade Sales of Bottled Water: % Value Growth 2005-2010
FUNCTIONAL DRINKS IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Functional drinks makes quite an impact in Bulgarian soft drinks
Energy drinks dominates due to widespread appeal of products
On-trade channel accounts for the bulk of functional drinks volume sales
Forecast performance
Table 91 Off-trade Sales of Functional Drinks by Subsector: Volume 2000-2005
Table 92 Off-trade Sales of Functional Drinks by Subsector: Value 2000-2005
Table 93 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2000-2005
Table 94 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2000-2005
Table 95 Company Shares of Functional Drinks by Off-trade Volume 2001-2005
Table 96 Brand Shares of Functional Drinks by Off-trade Volume 2002-2005
Table 97 Company Shares of Functional Drinks by Off-trade Value 2001-2005
Table 98 Brand Shares of Functional Drinks by Off-trade Value 2002-2005
Summary 9 Summary - Functional Drinks: New Product Launches 2005
Table 99 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2005-2010
Table 100 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2005-2010
Table 101 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2005-2010
Table 102 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2005-2010
CONCENTRATES IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Dramatic decline of concentrates continues in 2005
Powder concentrates benefits from the marketing activities of leading player Kraft Foods
High level of maturity and outdated image inhibits demand for liquid concentrates products
Forecast performance
Table 103 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2000-2005
Table 104 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2000-2005
Table 105 Off-trade Sales of Concentrates by Subsector: Value 2000-2005
Table 106 Off-trade Sales of Concentrates by Subsector: % Value Growth 2000-2005
Table 107 Company Shares of Concentrates by Off-trade Value 2001-2005
Table 108 Brand Shares of Concentrates by Off-trade Value 2002-2005
Summary 10 Summary - Concentrates: New Product Launches 2004
Table 109 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2005-2010
Table 110 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2005-2010
Table 111 Forecast Off-trade Sales of Concentrates by Subsector: Value 2005-2010
Table 112 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2005-2010
RTD TEA IN BULGARIA
SECTOR PERFORMANCE
2005 headlines
Entry of more domestic players brings unit prices down in 2005
Remarkable success of Nestea boosts development of RTD tea overall
Forecast performance
Table 113 Off-trade Sales of RTD Tea by Subsector: Volume 2000-2005
Table 114 Off-trade Sales of RTD Tea by Subsector: Value 2000-2005
Table 115 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2000-2005
Table 116 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2000-2005
Table 117 Company Shares of RTD Tea by Off-trade Volume 2001-2005
Table 118 Brand Shares of RTD Tea by Off-trade Volume 2002-2005
Table 119 Company Shares of RTD Tea by Off-trade Value 2001-2005
Table 120 Brand Shares of RTD Tea by Off-trade Value 2002-2005
Summary 11 Summary - RTD Tea: New Product Launches 2004-2005
Table 121 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2005-2010
Table 122 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2005-2010
Table 123 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2005-2010
Table 124 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2005-2010
RTD COFFEE IN BULGARIA
SECTOR PERFORMANCE