Bottled Water in Serbia

PROSPECTS

Functional bottled water still recording dynamic growth

Functional bottled water is performing very dynamically in Serbia, with strong annual growth rates being seen for this product. This was the case throughout the review period, and the trend continued in 2019.

Carbonated will lose its position as the biggest category to still bottled water in 2020

Although it was the least dynamic product area in bottled water in 2019, carbonated bottled water was still the biggest category in off-trade volume terms, just ahead of still bottled water. The popularity of carbonated bottled water comes from its widespread usage as a mixer with white wine to make popular “špricer” (half white wine and half carbonated water or soda).

Lack of faith in tap water will continue to boost sales of bottled water

Despite repeated assurances about the high quality of tap water in the country as well as the increasing number of media reports stating that bottled water is in no way superior to tap water, many consumers will still persist in using bottled water. This is partly because they feel that tap water is too hard but also that they still have a perception that it can have adverse effects on the kidneys.

COMPETITIVE LANDSCAPE

Leading player Knjaz Milos acquired by PepsiCo/Karlovarske Mineralni Vody joint venture

The main news in 2019 was the sale by Mid Europa Partners of Knjaz Milos, the leading player in bottled water, to PepsiCo and Karlovarske Mineralni Vody. The deal was announced in June 2019 and was expected to be completed in the third quarter of the year, subject to approval by the relevant competition authorities.

Knjaz Milos places importance on social responsibility with environmental and school exercise campaigns

Knjaz Milos continued to be very active in terms of social responsibility in an attempt to connect with consumers and, in this way, improve its image. Some of the events and sponsorships it participated in included campaigns about the importance of environmental care and sustainability as well as working with schools through the “Pokrenimo našu decu” (“Let’s Get Our Children Active”) project, which offers various rewards to schools through a competition run in conjunction with the company’s Aqua Viva brand, the Ministry of Education, Science and Technology and the Council of PE Teachers of Serbia.

Coca-Cola’s recent Smartwater and Römerquelle launches still without notable shares

Coca-Cola launched two new products in Serbia – Smartwater in still bottled water and Römerquelle in carbonated bottled water – in 2018. Both of these new launches are available throughout the country thanks to the company’s strong distribution network.

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