Soft Drinks in Slovakia
Euromonitor International's Soft Drinks in Slovakia 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: 144 | Publication date: Jul 2006
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Executive summary
Healthy volume and value growth is driven by increasing consumer purchasing power
The Slovak soft drinks market experienced healthy volume and value growth in 2005. Volume sales increased by 5% and current value sales by 4%. Both volume and value growth were driven by the largest sectors, carbonates, fruit/vegetable juice and bottled water, all of which performed steadily. This was mainly a result of the growing Slovak economy, with increasing purchasing power of consumers. Functional drinks was the most dynamic sector, rising by 7% in both volume and current value terms. In terms of general trends, a slow shift to a healthier lifestyle affected the soft drinks market, with functional, sugar-free wellness products becoming more popular.
Price has a major influence on purchasing decisions, hence the success of private label products
Price sensitiveness of Slovak consumers was the main issue influencing soft drinks during the review period. Brand loyalty was generally very low, the only exception being bottled water because of its local character. Slovak consumers reacted very quickly to various discounts and promotions. High-quality premium brands accounted for only small volume shares, as price was the main factor influencing purchasing decisions of most consumers. The success of private label products was also based on this fact. Private label was present in all price segments during the review period, offering products with prices that were sometimes beyond the scope of ordinary manufacturers. Private label products were particularly successful in fruit/vegetable juice, because the quality offered was comparable with branded products.
Supermarkets/hypermarkets increases in popularity with good offers, lower prices, accessibility and extended services
Supermarkets/hypermarkets were the fastest growing distribution channel during 2005. Independent food stores, were still losing retail volume shares at the end of the review period, but managed to stay the number one in retailing despite the fact that supermarkets/hypermarkets continued to expand. Large formats were popular because of good offers, lower prices, easy accessibility by car and extended services. When present in a region, supermarkets/hypermarkets was preferred by all social groups of consumers – families, elderly people and students. During the review period, the number of supermarkets/hypermarkets was highest in the region of Bratislava and decreased towards the east of Slovakia. However, as chains look for new opportunities, less economically developed regions will also be targeted.
Other distribution channels were of minor importance. Before the entry of the hard discounter Lidl to the Slovak soft drinks market, there were claims that it would rapidly gain volume shares and destroy the competition. However, 2005 showed that Lidl is only able to offer extremely low prices based on quality. As this does not fulfil the needs of Slovak consumers, the volume share of Lidl did not reach the expectations.
Carbonates retains leading value shares due to massive investment
Carbonates recorded the highest value sales of soft drinks in Slovakia during the review period. Manufacturers of carbonates were still able to win consumers, despite health and wellness trends becoming more and more popular. The leading players were Coca-Cola Beverages Slovakia sro, Kofola as and Pepsi-Cola SR sro and Walmark Napoje SR. Each of these companies invested huge amounts of money in marketing campaigns, and their advertising budgets were amongst the highest in the Slovak economy. Bottled water was the second largest value sector, supported by the trend for healthy lifestyle.
Multinational and domestic companies compete by means of extensive marketing campaigns
The Slovak soft drinks market was divided among multinational and domestic companies during the review period. Coca-Cola Beverages Slovakia sro was the best example of a multinational company dominating a newly emerged sector. Thanks to its name and extensive marketing campaigns, it led carbonates throughout the review period. In the second half of the review period, it had as a strong competitor Kofola as, which used similar marketing strategies based on popularity with the Slovak population. Although Kofola's share are still lover than the ones of Coca Cola, but are rising. Coca Cola itself considers Kofola to be the most important competitor in the Slovak and Czech market. The forecast period promises an interesting fight for the lead of carbonates between Coca-Cola Beverages Slovakia sro and Kofola as.
In bottled water, the situation was totally different, with domestic companies being the most important players with only Coca Cola company managing to have a place under the first three in value and volume terms. Stredoslovenske Zriedla as Budis, and Mineralne Vody as Presov were the companies able to connect tradition with modern marketing strategies, leading to success. The only important foreign company active in bottled water during the review period was the Czech-based Karlovarske mineralni vody as.
The fight for primacy was tough in fruit/vegetable juice, as Slovakia is already part of a regional soft drinks market encompassing V4 countries (Slovakia, the Czech Republic and Poland). The main player during the review period was the Polish-based Walmark Nápoje SR, followed by the Coca-Cola Beverages Slovakia sro and Rauch sro.
Promising forecast performance, boosted by increased purchasing power and greater demand for premium products
The soft drinks market in Slovakia will grow in both volume and value terms during the forecast period. The largest sectors in volume and value terms, namely carbonates, fruit/vegetable juice and bottled water, will record stable volume and value growth. Functional drinks is expected to record very dynamic volume and value growth. Demand will be boosted by increased purchasing power of Slovak consumers, as well as by very low inflation.
Consumers will still prefer cheaper products, but demand will gradually shift to higher-quality and higher-price products, thus creating entry possibilities for new foreign players in the premium segment. As Slovak consumers start to expect more value from soft drinks, functional drinks will gain popularity. A frequently mentioned concept is that of aqua plus in bottled water.
Table of contents
SOFT DRINKS IN SLOVAKIA : MARKET INSIGHT
EXECUTIVE SUMMARY
TOTAL SOFT DRINKS SALES
Market Performance
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2000-2005
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2000-2005
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2000-2005
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2000-2005
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Sector: % Volume 2005
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Sector: Value 2005
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Sector: % Value 2005
Table 9 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2005-2010
Table 10 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2005-2010
Table 11 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2005-2010
Table 12 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2005-2010
OFF-TRADE SOFT DRINKS SALES
Market Performance
Table 13 Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2000-2005
Table 14 Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2000-2005
Table 15 Off-trade Sales of Soft Drinks by Sector: Value 2000-2005
Table 16 Off-trade Sales of Soft Drinks by Sector: % Value Growth 2000-2005
Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2002-2005
Table 19 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2001-2005
Table 20 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2002-2005
Table 21 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 22 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
Off-trade Distribution
Table 23 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
Retailer Activity and Private Label Trends
Table 24 Penetration of Private Label (as sold) by Sector by Volume 2001-2005
Table 25 Penetration of Private Label by Sector by Value 2001-2005
Forecast Market Performance
Table 26 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 27 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 28 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 29 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
APPENDIX
Concentrates Conversions and Additional Data
Table 30 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 31 Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2000-2005
Table 32 Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2000-2005
Table 33 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2001-2005
Table 34 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2002-2005
Table 35 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2001-2005
Table 36 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2002-2005
Table 37 Company Shares of Concentrates (RTD) by Off-trade Volume 2001-2005
Table 38 Brand Shares of Concentrates (RTD) by Off-trade Volume 2002-2005
Table 39 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: Volume 2005-2010
Table 40 Forecast Off-trade Sales of Concentrates (RTD) by Subsector: % Volume Growth 2005-2010
Institutional Sales of Bottled Water
Table 41 Sales of Bottled Water to Institutional Channels 2000-2005
DEFINITIONS
LOCAL COMPANY PROFILES - SLOVAKIA
KOFOLA AS - SOFT DRINKS - SLOVAKIA
KOFOLA AS
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Kofola as: Operational Indicators 2004
PRODUCTION CAPACITY
Summary 2 Summary - Kofola as: Production Statistics 2004
LINEA SLOVENSKO SRO - SOFT DRINKS - SLOVAKIA
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - Linea Slovensko sro: Operational Indicators 2004
PRODUCTION CAPACITY
MASPEX - WALMARK SRO - SOFT DRINKS - SLOVAKIA
MASPEX – WALMARK SRO
COMPANY BACKGROUND
RECENT NEWS
PRODUCTION CAPACITY
Summary 4 Summary - Maspex – Walmark sro: Production Statistics 2004
STREDOSLOVENSKE ZRIEDLA AS BUDIS - SOFT DRINKS - SLOVAKIA
COMPANY BACKGROUND
RECENT NEWS
PRODUCTION CAPACITY
Summary 5 Summary - Stredoslovenske Zriedla as Budis: Production Statistics 2004
CARBONATES IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Demand for carbonates is boosted by growing economy and increased purchasing power
Top players compete by means of core products and new innovations
Smaller companies keep pace with low-price and private label products
Price wars are a fundamental part of the competitive strategy
Success of traditional Vinea is based on good taste
Coca-Cola Beverages Slovakia sro in the lead with extensive marketing campaigns
Plagiarism is a problem for premium producers
Forecast performance
Table 42 Off-trade Sales of Carbonates by Subsector: Volume 2000-2005
Table 43 Off-trade Sales of Carbonates by Subsector: Value 2000-2005
Table 44 Off-trade Sales of Carbonates by Subsector: % Volume Growth 2000-2005
Table 45 Off-trade Sales of Carbonates by Subsector: % Value Growth 2000-2005
Table 46 Company Shares of Carbonates by Off-trade Volume 2001-2005
Table 47 Brand Shares of Carbonates by Off-trade Volume 2002-2005
Table 48 Company Shares of Carbonates by Off-trade Value 2001-2005
Table 49 Brand Shares of Carbonates by Off-trade Value 2002-2005
Summary 6 Summary - Carbonates: New Product Launches 2004-2005
Table 50 Forecast Off-trade Sales of Carbonates by Subsector: Volume 2005-2010
Table 51 Forecast Off-trade Sales of Carbonates by Subsector: Value 2005-2010
Table 52 Forecast Off-trade Sales of Carbonates by Subsector: % Volume Growth 2005-2010
Table 53 Forecast Off-trade Sales of Carbonates by Subsector: % Value Growth 2005-2010
LOW-CALORIE CARBONATES
Low-calorie carbonates has good potential due to wellness trends
Coca-Cola Beverages Slovakia sro leads with successful marketing and innovation
Table 54 Low-calorie Carbonates % Breakdown by Subsector by Off-trade Volume 2002-2005
CARBONATES DISTRIBUTION
Central stores lead to a change in distribution
Good relationships with retail chains is crucial for producers
Table 55 On-trade vs Off-trade Sales of Carbonates: Volume 2000-2005
Table 56 On-trade vs Off-trade Sales of Carbonates: Value 2000-2005
Table 57 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2000-2005
Table 58 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2000-2005
FRUIT/VEGETABLE JUICE IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Healthy volume and value growth, driven by increase in private label and intense competition
Private label benefits from price sensitivity of Slovak consumers
Consumers respond to innovation and promotions
Changing perception of fruit/vegetable juice leads to introduction of new flavours
Foreign companies dominate, with further consolidation expected
Secondary placing increases purchase of unbranded products
Forecast performance
Table 59 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2000-2005
Table 60 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2000-2005
Table 61 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2000-2005
Table 62 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2000-2005
Table 63 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2001-2005
Table 64 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2002-2005
Table 65 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2001-2005
Table 66 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2002-2005
Summary 7 Summary - Fruit/Vegetable Juice: New Product Launches 2004-2005
Table 67 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2005-2010
Table 68 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2005-2010
Table 69 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2005-2010
Table 70 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2005-2010
CHILLED VS NON-CHILLED FRUIT/VEGETABLE JUICE
Minimum demand for high-quality, but high-price, chilled fruit/vegetable juice
Growing demand for chilled fruit/vegetable juice as consumer purchasing power increases
Table 71 Chilled vs Non-chilled Fruit/Vegetable Juice by Off-trade Volume 2002-2005
FLAVOURS
Success of orange and apple flavour is based on consumer preference
Successful flavour experiments
Table 72 Leading Flavours for 100% Juice: %Volume Breakdown 2003-2005
Table 73 Leading Flavours for Nectars (25-99% Juice): %Volume Breakdown 2003-2005
Table 74 Leading Flavours for Juice Drinks (up to 24% Juice): %Volume Breakdown 2003-2005
SMOOTHIES
BOTTLED WATER IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Stable volume growth led by intensive marketing campaigns and claims of added value
Price is a critical success determinant
Dynamics of bottled water is controlled by new types
Slovak companies dominate with quality and experience
Entrenched producers retain their positions with innovations
Forecast performance
Table 75 Off-trade Sales of Bottled Water: Volume 2000-2005
Table 76 Off-trade Sales of Bottled Water: Value 2000-2005
Table 77 Off-trade Sales of Bottled Water: % Volume Growth 2000-2005
Table 78 Off-trade Sales of Bottled Water: % Value Growth 2000-2005
Table 79 Company Shares of Bottled Water by Off-trade Volume 2001-2005
Table 80 Brand Shares of Bottled Water by Off-trade Volume 2002-2005
Table 81 Company Shares of Bottled Water by Off-trade Value 2001-2005
Table 82 Brand Shares of Bottled Water by Off-trade Value 2002-2005
Summary 8 Summary - Bottled Water: New Product Launches 2004-2005
Table 83 Forecast Off-trade Sales of Bottled Water: Volume 2005-2010
Table 84 Forecast Off-trade Sales of Bottled Water: Value 2005-2010
Table 85 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2005-2010
Table 86 Forecast Off-trade Sales of Bottled Water: % Value Growth 2005-2010
FUNCTIONAL DRINKS IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Healthy volume and value growth mirrors worldwide trend for functional drinks
New launches of alcohol killers target younger generation
Newcomers compete with niche products
High margins allow considerable investment in marketing
Forecast performance
Table 87 Off-trade Sales of Functional Drinks by Subsector: Volume 2000-2005
Table 88 Off-trade Sales of Functional Drinks by Subsector: Value 2000-2005
Table 89 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2000-2005
Table 90 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2000-2005
Table 91 Company Shares of Functional Drinks by Off-trade Volume 2001-2005
Table 92 Brand Shares of Functional Drinks by Off-trade Volume 2002-2005
Table 93 Company Shares of Functional Drinks by Off-trade Value 2001-2005
Table 94 Brand Shares of Functional Drinks by Off-trade Value 2002-2005
Summary 9 Summary - Functional Drinks: New Product Launches 2004-2005
Table 95 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2005-2010
Table 96 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2005-2010
Table 97 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2005-2010
Table 98 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2005-2010
CONCENTRATES IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Volume and value stagnation as producers concentrate on sectors with higher margins
Flavour experiments unsuccessful as Slovak consumers prefer traditional flavours
EU entry brings about confusing changes in legislation
Strong competition between retail chains lowers margins and limits marketing expenditure
Forecast performance
Table 99 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2000-2005
Table 100 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2000-2005
Table 101 Off-trade Sales of Concentrates by Subsector: Value 2000-2005
Table 102 Off-trade Sales of Concentrates by Subsector: % Value Growth 2000-2005
Table 103 Company Shares of Concentrates by Off-trade Value 2001-2005
Table 104 Brand Shares of Concentrates by Off-trade Value 2002-2005
Summary 10 Summary - Concentrates: New Product Launches 2004-2005
Table 105 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2005-2010
Table 106 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2005-2010
Table 107 Forecast Off-trade Sales of Concentrates by Subsector: Value 2005-2010
Table 108 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2005-2010
RTD TEA IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Healthy performance as private label and discounts make products available to all social groups
Foreign companies dominate by means of quality
Limited consumer purchasing power benefits low-price products
Innovations limited to taste and packaging
Forecast performance
Table 109 Off-trade Sales of RTD Tea by Subsector: Volume 2000-2005
Table 110 Off-trade Sales of RTD Tea by Subsector: Value 2000-2005
Table 111 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2000-2005
Table 112 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2000-2005
Table 113 Company Shares of RTD Tea by Off-trade Volume 2001-2005
Table 114 Brand Shares of RTD Tea by Off-trade Volume 2002-2005
Table 115 Company Shares of RTD Tea by Off-trade Value 2001-2005
Table 116 Brand Shares of RTD Tea by Off-trade Value 2002-2005
Summary 11 Summary - RTD Tea: New Product Launches 2004-2005
Table 117 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2005-2010
Table 118 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2005-2010
Table 119 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2005-2010
Table 120 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2005-2010
RTD COFFEE IN SLOVAKIA
SECTOR PERFORMANCE
2005 headlines
Rising demand thanks to dynamic lifestyle of target groups
Forecast performance
Table 121 Off-trade Sales of RTD Coffee: Volume 2000-2005
Table 122 Off-trade Sales of RTD Coffee: Value 2000-2005
Table 123 Off-trade Sales of RTD Coffee: % Volume Growth 2000-2005
Table 124 Off-trade Sales of RTD Coffee: % Value Growth 2000-2005
Table 125 Company Shares of RTD Coffee by Off-trade Volume 2001-2005
Table 126 Brand Shares of RTD Coffee by Off-trade Volume 2002-2005
Table 127 Company Shares of RTD Coffee by Off-trade Value 2001-2005
Table 128 Brand Shares of RTD Coffee by Off-trade Value 2002-2005
Summary 12 Summary - RTD Coffee: New Product Launches 2004-2005
Table 129 Forecast Off-trade Sales of RTD Coffee: Volume 2005-2010
Table 130 Forecast Off-trade Sales of RTD Coffee: Value 2005-2010
Table 131 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2005-2010
Table 132 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2005-2010