Carbonates in Bulgaria

PROSPECTS

Legacy brands and nostalgia trend help sustain demand for cola carbonates

Unlike in most European markets, in Bulgaria carbonates posted positive off-trade volume and current value growth in 2018. This performance can be attributed to the ongoing popularity of cola carbonates among older consumers with deeply-rooted habits and tastes.

Demographic trends shape flavour development in carbonates

The population in Bulgaria is ageing more quickly than the European average. Urban adult consumers with stronger purchasing power have become an important target group for carbonates manufacturers thanks to their desire to socialise and the stable economic climate, which has fostered the popularity of so-called adult soft drinks.

Health and wellness trend to transform carbonates

Carbonates is traditionally perceived as an unhealthy soft drinks category and a “no go zone” for dieters and health-concerned parents. The strong position of carbonates among Bulgarians has not allowed the health and wellness trend to undermine their popularity.

COMPETITIVE LANDSCAPE

Coca-Cola HBC focuses on next generation products

In 2018, the leading player in carbonates, Coca-Cola HBC Bulgaria, launched an innovative brand extension called Coca-Cola Green, using the tagline “The Green Side of Cola”. This product uses green coffee beans and stevia as a sugar substitute.

PepsiCo’s “back to the future” marketing

With shrinking volume sales and increasing competition from the leading player Coca-Cola, PepsiCo focused on boosting consumers’ emotional connection to its brands by reintroducing old pack designs, with this helping to bring back memories among older generations and drive new interest among younger ones. In Bulgaria, the iconic Pepsi brand is associated with indulgent Western lifestyles and pop culture.

Low price is not enough

Breathing new life into the category and making it healthier will be the main challenge for carbonates manufacturers over the forecast period. Domestic players compete mainly on price and hence do not tend to focus on innovation.

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