Soft Drinks in the Czech Republic
Euromonitor International's Soft Drinks in the Czech Republic 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: 147 | Publication date: Jun 2006
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Executive summary
General slowdown in demand
Czech soft drinks is very competitive with a strong presence of key international players and some established local players. Some soft drinks experienced their lowest growth of the review period in 2005, including carbonates and bottled water, despite massive promotions and advertising campaigns. Meanwhile, liquid concentrates continued to decline.
The total volume of soft drinks in 2005 grew below the rate seen in 2004. Czech soft drinks as a whole is approaching saturation and consumption per capita has now reached the level of developed European countries such as Germany and Austria. Czech per capita soft drink consumption reached 222 litres per head in 2005, which is nearly double the level of Polish consumption, for example.
Structural change in demand for healthier products
There is a clear long-term trend of consumers switching to healthier products. This is benefiting fruit/vegetable juice and bottled water with healthy additives, such as vitamins, digestive components, minerals and herbs. This trend can also be seen in the growth of low calorie brand extensions across soft drinks.
Consumers increasingly prefer soft drinks marketed as vitamin- or mineral-enriched or as free from artificial colours and synthetic additives and preserving agents. In 2004, a new guideline was issued by the Ministry of Health: Nr 275/2004 Sb About Requirements on Quality and Health Criteria for Bottled Water and its Treatment. This guideline is fully compatible with EU legislation and came into power in May 2004. However, most producers applied for exceptions until June 2005.
Since July 2005, consumers were able to obtain more information about soft drinks due to new rules strictly followed by all producers concerning product classification, obligatory label information and rules for water treatment, inspection and content requirements. New guidelines distinguish four types of bottled water: bottled natural mineral water, bottled spring water, bottled water for infants and bottled potable water. Confusing past descriptions were dropped, as were sales of identical products under different brand names. The number of inspections of the Health Ministry and Hygiene Authority in production facilities and in sales sites doubled to ensure that producers and distributors strictly follow the new regulations.
Leading daily newspaper Mlada Fronta Dnes published data revealing the sugar content of soft drinks in June 2005 as a guide for health-oriented consumers. The published data was a surprise for most consumers, who compared sugar content across soft drinks for the first time. The study shows that some products traditionally considered healthy, such as fruit/vegetable juice and RTD tea, have sugar content as high as cola carbonates and lemonade/lime.
Private label takes larger share
The popularity of private label in Czech Republic is growing, particularly in bottled water, fruit/vegetable juice and concentrates, although some private label products did not meet the customers' quality expectations, which resulted in a slight loss of interest in 2005. Private label is present in practically all supermarkets/hypermarkets in concentrates, carbonates, bottled water and fruit/vegetable juice.
The leaders in private label soft drinks are hypermarkets Ahold with Hypernova and Albert, Tesco, Billa and discounters such as Lidl, Penny Market and Plus. The only exception is hypermarket chain Globus, which has not yet introduced private label. Globus is number six according to sales turnover in 2004 among hypermarket owners.
Private label enables consumers with a lower income to regularly buy reasonable quality soft drinks at significantly lower prices. In some soft drinks, such as bottled water, fruit/vegetable juice and concentrates, the price of private label products is 50-70% lower than the price of premium or mid-priced brands. In comparison to Western European countries with a private label penetration of 20%, the private label share in Czech Republic was only 9-21% across soft drinks in 2005. In the future, private label in Czech Republic will gradually advance towards Western European share levels, however.
New flavours catch the fancy of demanding customers
Growing competition in increasingly saturated soft drinks requires all major players to come up with product innovations in terms of flavour and pack types and size in order to keep consumer attention. Exotic flavours such as cactus, mango, herbs, and berry mixes were used to gain share in the midst of slowing sales.
Innovation in packaging led to the comeback of glass bottles into the on-trade, with these having a premium image. Meanwhile, travellers and sportsmen opt for 500ml plastic bottles, which are offered by the leading brands of sports drinks and RTD tea. RTD coffee is packed in convenient plastic bottles with a simple closing cap for drivers drinking while driving.
Innovation in flavour and packaging shapes and sizes is driving sales increases in both the on-trade and off-trade. The on-trade has established leaders but is also a target for the further penetration of new companies such as Kofola and Maspex – Walmark.
Supermarkets/hypermarkets main distribution channel for big names
The share of supermarkets/hypermarkets grew again in off-trade volume sales of soft drinks in 2005, to account for 61% of all soft drinks. Due to tough competition, however, some key players exited. Julius Meinl sold its supermarkets/hypermarkets chain to Ahold in September 2005. Carrefour announced its decision to exit at approximately the same time but has not yet revealed its time plan or potential purchasers.
The share of chained supermarkets/hypermarkets in 2005 grew, with about 22 new sales sites commissioned in more remote places beyond the main town centres. The leading hypermarket chain is Macro, which is solely wholesale. Among retailers, Ahold leads, followed by Schwarz Group (Kaufland, Lidl), Rewe Group (Penny, Billa), Tesco, Globus, Tengelman (Plus, OBI), Carrefour and Spar.
Lidl, Plus and Penny Market are present in fast-expanding discounters. The share of this distribution channel reached 18% in soft drinks 2005 and it continues to grow rapidly. Discounters focuses on private label and thus boosted private label sales. Discounters opened 18 new sales sites outside of main centres in 2005.
Independent food stores lost share during the review period and dropped to 10% of off-trade volume in 2005. Independent food stores is under twofold pressure. The channel cannot compete with the variety of products on offer in supermarkets/hypermarkets and the latter channel's generally lower price level in most soft drinks. Meanwhile, discounters offer significantly lower prices for all soft drinks. Independent food stores is currently trying to defend its position by forming co-operative companies and centralising purchasing and logistics.
Convenience stores had a off-trade volume share of 5% in overall soft drinks in 2005, with a focus mainly on sports and energy drinks, RTD tea and coffee and fruit/vegetable juice. Within this, petrol station convenience stores are expanding rapidly across the country. These offer premium soft drinks at higher prices and have loyal consumers among regular travellers, such as truck drivers and business travellers. The share of convenience stores slightly declined in 2005 over the previous year due to the relatively high unit prices and a strong competition from the independent foods stores, which opening hours get longer and longer.
The vending machines of Coca-Cola and General Bottlers (PepsiCo) are popular in many public places and are also present in larger companies, schools and sport facilities. Both companies offer developed logistics support and a variety of soft drinks to suit consumer demand. The share of vending was 3% in 2005 in terms of off-trade volume.
The share of vending declined in 2005 over the previous year due to again higher unit prices.
Table of contents
SOFT DRINKS IN THE CZECH REPUBLIC : 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
Leading Company Profile: Karlovarske Mineralni Vody as
Table 23 KMV Operational Indicators 2004-2005
Table 24 Karlovarske Mineralni Vody as: Production Statistics 2004
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 2000-2005
DEFINITIONS
LOCAL COMPANY PROFILES - CZECH REPUBLIC
KOFOLA AS - SOFT DRINKS - CZECH REPUBLIC
COMPANY BACKGROUND
RECENT NEWS
Summary 1 Summary - Kofola as: Operational Indicators 2005
PRODUCTION CAPACITY
Summary 2 Summary - Kofola as: Production Statistics 2005
LINEA NIVNICE AS - SOFT DRINKS - CZECH REPUBLIC
COMPANY BACKGROUND
RECENT NEWS
Summary 3 Summary - Linea Nivnice as: Operational Indicators 2004
PRODUCTION CAPACITY
Summary 4 Summary - Linea Nivnice as: Production Statistics 2004
PODEBRADKA AS - SOFT DRINKS - CZECH REPUBLIC
COMPANY BACKGROUND
RECENT NEWS
Summary 5 Summary - Podebradka sro: Operational Indicators 2004
PRODUCTION CAPACITY
Summary 6 Summary - Podebradka sro: Production Statistics 2004
CARBONATES IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Growth formed by strong players
Cola carbonates fails to find answer to decline
Mixers decline continues
Moderate growth due to saturation
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 7 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
CARBONATES DISTRIBUTION
Table 56 On-trade vs Off-trade Sales of Carbonates: Volume 2000-2005
Table 57 On-trade vs Off-trade Sales of Carbonates: Value 2000-2005
Table 58 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2000-2005
Table 59 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2000-2005
FRUIT/VEGETABLE JUICE IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Dynamic and sound growth
Shift in consumer preferences makes fruit/vegetable juice more competitive
Producers invest heavily in product promotions
New flavours and new additions extend variety
Private label on the move
Strong growth prospects across fruit/vegetable juice
Table 60 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2000-2005
Table 61 Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2000-2005
Table 62 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2000-2005
Table 63 Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2000-2005
Table 64 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2001-2005
Table 65 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2002-2005
Table 66 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2001-2005
Table 67 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2002-2005
Summary 8 Summary - Fruit/Vegetable Juice: New Product Launches 2004-2005
Table 68 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Volume 2005-2010
Table 69 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: Value 2005-2010
Table 70 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Volume Growth 2005-2010
Table 71 Forecast Off-trade Sales of Fruit/Vegetable Juice by Subsector: % Value Growth 2005-2010
CHILLED VS NON-CHILLED FRUIT/VEGETABLE JUICE
Table 72 Chilled vs Non-chilled Fruit/Vegetable Juice by Off-trade Volume 2002-2005
FLAVOURS
Table 73 Leading Flavours for 100% Juice: %Volume Breakdown 2003-2005
Table 74 Leading Flavours for Nectars (25-99% Juice): %Volume Breakdown 2003-2005
Table 75 Leading Flavours for Juice Drinks (up to 24% Juice): %Volume Breakdown 2003-2005
SMOOTHIES
Table 76 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2005
BOTTLED WATER IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Bottled water consumption close to saturation point
Sales dominated by five key producers
Dynamic growth of flavoured bottled water
Private label faces challenge of new regulations
Modest forecast period growth with structural changes
Table 77 Off-trade Sales of Bottled Water: Volume 2000-2005
Table 78 Off-trade Sales of Bottled Water: Value 2000-2005
Table 79 Off-trade Sales of Bottled Water: % Volume Growth 2000-2005
Table 80 Off-trade Sales of Bottled Water: % Value Growth 2000-2005
Table 81 Company Shares of Bottled Water by Off-trade Volume 2001-2005
Table 82 Brand Shares of Bottled Water by Off-trade Volume 2002-2005
Table 83 Company Shares of Bottled Water by Off-trade Value 2001-2005
Table 84 Brand Shares of Bottled Water by Off-trade Value 2002-2005
Summary 9 Summary - Bottled Water: New Product Launches 2004-2005
Table 85 Forecast Off-trade Sales of Bottled Water: Volume 2005-2010
Table 86 Forecast Off-trade Sales of Bottled Water: Value 2005-2010
Table 87 Forecast Off-trade Sales of Bottled Water: % Volume Growth 2005-2010
Table 88 Forecast Off-trade Sales of Bottled Water: % Value Growth 2005-2010
FUNCTIONAL DRINKS IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Good sales results across functional drinks
Petrol stations important sales channel for energy drinks
Sports drinks dynamic with strong brands
Pinelli and Red Bull lead energy drinks
Rising star of Tecfood increases competition
Good prospects for functional drinks with growing popularity
Table 89 Off-trade Sales of Functional Drinks by Subsector: Volume 2000-2005
Table 90 Off-trade Sales of Functional Drinks by Subsector: Value 2000-2005
Table 91 Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2000-2005
Table 92 Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2000-2005
Table 93 Company Shares of Functional Drinks by Off-trade Volume 2001-2005
Table 94 Brand Shares of Functional Drinks by Off-trade Volume 2002-2005
Table 95 Company Shares of Functional Drinks by Off-trade Value 2001-2005
Table 96 Brand Shares of Functional Drinks by Off-trade Value 2002-2005
Summary 10 Summary - Functional Drinks: New Product Launches 2004-2005
Table 97 Forecast Off-trade Sales of Functional Drinks by Subsector: Volume 2005-2010
Table 98 Forecast Off-trade Sales of Functional Drinks by Subsector: Value 2005-2010
Table 99 Forecast Off-trade Sales of Functional Drinks by Subsector: % Volume Growth 2005-2010
Table 100 Forecast Off-trade Sales of Functional Drinks by Subsector: % Value Growth 2005-2010
CONCENTRATES IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Powder concentrates grows while liquid concentrates declines
Powder concentrates controlled by Tang
Private label enters liquid concentrates
Local producers active in introducing new liquid concentrates
Fair development as liquid concentrates recovers towards end of forecast period
Table 101 Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2000-2005
Table 102 Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2000-2005
Table 103 Off-trade Sales of Concentrates by Subsector: Value 2000-2005
Table 104 Off-trade Sales of Concentrates by Subsector: % Value Growth 2000-2005
Table 105 Company Shares of Concentrates by Off-trade Value 2001-2005
Table 106 Brand Shares of Concentrates by Off-trade Value 2002-2005
Summary 11 Summary - Concentrates: New Product Launches 2005
Table 107 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: Volume 2005-2010
Table 108 Forecast Off-trade Sales of Concentrates (as sold) by Subsector: % Volume Growth 2005-2010
Table 109 Forecast Off-trade Sales of Concentrates by Subsector: Value 2005-2010
Table 110 Forecast Off-trade Sales of Concentrates by Subsector: % Value Growth 2005-2010
RTD TEA IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Good growth continues
High sugar content criticised in media
Foreign companies have significant shares
Local companies extending portfolios
Solid expansion with stable long-term growth
Table 111 Off-trade Sales of RTD Tea by Subsector: Volume 2000-2005
Table 112 Off-trade Sales of RTD Tea by Subsector: Value 2000-2005
Table 113 Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2000-2005
Table 114 Off-trade Sales of RTD Tea by Subsector: % Value Growth 2000-2005
Table 115 Company Shares of RTD Tea by Off-trade Volume 2001-2005
Table 116 Brand Shares of RTD Tea by Off-trade Volume 2002-2005
Table 117 Company Shares of RTD Tea by Off-trade Value 2001-2005
Table 118 Brand Shares of RTD Tea by Off-trade Value 2002-2005
Summary 12 Summary - RTD Tea: New Product Launches 2004-2005
Table 119 Forecast Off-trade Sales of RTD Tea by Subsector: Volume 2005-2010
Table 120 Forecast Off-trade Sales of RTD Tea by Subsector: Value 2005-2010
Table 121 Forecast Off-trade Sales of RTD Tea by Subsector: % Volume Growth 2005-2010
Table 122 Forecast Off-trade Sales of RTD Tea by Subsector: % Value Growth 2005-2010
RTD COFFEE IN THE CZECH REPUBLIC
SECTOR PERFORMANCE
2005 headlines
Strong increase of small sales
Few leaders control this niche
Solid growth forecast with signs of slowdown
Table 123 Off-trade Sales of RTD Coffee: Volume 2000-2005
Table 124 Off-trade Sales of RTD Coffee: Value 2000-2005
Table 125 Off-trade Sales of RTD Coffee: % Volume Growth 2000-2005
Table 126 Off-trade Sales of RTD Coffee: % Value Growth 2000-2005
Table 127 Company Shares of RTD Coffee by Off-trade Volume 2001-2005
Table 128 Brand Shares of RTD Coffee by Off-trade Volume 2002-2005
Table 129 Company Shares of RTD Coffee by Off-trade Value 2001-2005
Table 130 Brand Shares of RTD Coffee by Off-trade Value 2002-2005
Summary 13 Summary - RTD Coffee: New Product Launches 2005
Table 131 Forecast Off-trade Sales of RTD Coffee: Volume 2005-2010
Table 132 Forecast Off-trade Sales of RTD Coffee: Value 2005-2010
Table 133 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2005-2010
Table 134 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2005-2010