Soft Drinks in Slovenia
Euromonitor International's Soft Drinks in Slovenia 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: 28 | Publication date: Sep 2006
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Executive summary
Low volume growth as market reaches maturity
The Slovene soft drinks market reached maturity and recorded relatively low volume growth during the review period. A soft drink is a relatively simple product, and Slovene soft drinks producers compete by means of constant product launches. These include new flavours and product types, changes in product packaging, and offers that target specific, small consumer groups. Low-priced soft drinks increased in importance during the review period and, together with private label soft drinks, increasingly competed with strong brands.
Factors influencing soft drinks consumption in Slovenia are purchasing power, health awareness and weather. Of these, weather is by far the strongest factor. Soft drinks are typically a seasonal product and are very much affected by weather.
Off-trade strong in volume sales, but on-trade dominates value sales due to higher mark up
Most Slovene soft drinks are sold through off-trade. In 2005, off-trade generated 77% of the total market volume. Despite this, on-trade accounted for the largest part of value sales, 53% in 2005. This is due to the fact that mark-ups of on-trade establishments are much higher than those of off-trade. Also, Slovenians typically spend a lot of their free time in bars, restaurants and cafés.
Concentrates and sports drinks are mostly sold through off-trade, while energy drinks are predominantly purchased in on-trade establishments. Red Bull was the strongest representative of functional drinks in both volume and value terms during the review period. Red Bull is mostly sold in night clubs and bars, since it is used as a mixer with alcoholic drinks.
Consolidation of producers and retail chains has a strong influence on the market
Slovene soft drinks witnessed heavy consolidation during the review period. From 2003, there were many takeovers and joint ventures. In 2005, the market was mainly controlled by two big Slovene players, Pivovarna Laško dd and Droga Kolinska dd. As well as producers of soft drinks joining together, retail chains also consolidated. Slovene’s biggest supermarket chain, Mercator dd, bought many small independent food stores across Slovenia, as well as some supermarkets/hypermarkets and discounters. In 2005, Mercator dd and other big supermarkets/hypermarkets, Tush dd and Interspar, together dominated off-trade volume sales of soft drinks, and were therefore able to develop a negotiating strength that had a very strong influence on the market.
Increasing power of supermarkets/hypermarkets leads to lower prices and increase in private label
The negotiating power of supermarkets/hypermarkets increased during the review period. This allowed supermarkets/hypermarkets to dictate pricing policy, and keep prices relatively low. Supermarkets/hypermarkets also had the power to dictate brand and shelf exposure. In order to survive, many domestic soft drinks companies produced private label products for supermarkets/hypermarkets, alongside their own brands. Many consumers tended to buy these products because of their lower prices.
During the review period, it also became more popular to buy in supermarkets/hypermarkets. The trend was for the entire family to go to supermarkets/hypermarkets on Saturday or Sunday, and spend time together whilst shopping. Consequently, supermarkets/hypermarkets became more fashionable and sophisticated.
After 1st of January 2006, supermarkets/hypermarkets and independent food stores will no longer be able to open on Sundays.
Manufacturers rely on increased health awareness and desire for novelties to boost volume and value sales
Throughout the review period, Slovene soft drinks witnessed trends in consumers’ wishes, such as increased health awareness, openness and demand for novelties, and an increased desire for drinks that retained or boosted people’s energy. As consumers changed their attitudes and became more health-oriented, new brands emerged and the market became saturated with many soft drinks varieties. These factors resulted in a decrease in the consumption of carbonates, and an increase in the consumption of fruit/vegetable juice, functional drinks and bottled water.
The saturated and mature nature of Slovene soft drinks means that companies rely greatly on advertising campaigns and launches of new products, flavours and packages. During the review period, soft drinks manufacturers attempted to boost volume and value sales and increase their market shares by widening their product portfolios, not only with new products, but also with new flavours of bottled water and fruit/vegetable/juice.
Table of contents
SOFT DRINKS IN SLOVENIA : MARKET INSIGHT
1. EXECUTIVE SUMMARY
2. TOTAL SOFT DRINKS SALES
2.1 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
3. OFF-TRADE SOFT DRINKS SALES
3.1 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
3.2 Competitive Environment
Table 17 Company Shares of Off-trade Soft Drinks by Value 2001-2005
Table 18 Brand Shares of Off-trade Soft Drinks by Value 2002-2005
3.3 Leading Company Profile – Pivovarna Union dd
Summary 1 Pivovarna Union dd: Operational Indicators 2004
Summary 2 Pivovarna Union dd: Production Statistics 2004
3.4 Leading Company Profile – Fructal dd
Summary 3 Fructal dd: Operational Indicators 2004
Summary 4 Fructal dd: Production Statistics 2004
3.5 New Product Launches
Summary 5 Major New Product Launches 2004-2005
3.6 Off-Trade Distribution
Table 19 Off-trade Sales of Soft Drinks by Sector and Distribution Format: % Analysis 2005
3.7 Retailer Activity and Private Label Trends
3.8 Forecast Market Performance
Table 20 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: Volume 2005-2010
Table 21 Forecast Off-trade Sales of Soft Drinks (as sold) by Sector: % Volume Growth 2005-2010
Table 22 Forecast Off-trade Sales of Soft Drinks by Sector: Value 2005-2010
Table 23 Forecast Off-trade Sales of Soft Drinks by Sector: % Value Growth 2005-2010
4. DEFINITIONS