Carbonates in Hungary

PROSPECTS

Carbonates impacted by concerns over sugar content

Carbonates continued to be shaped by growing consumer concerns regarding sugar. Brands adapted by introducing zero variants, which often replaced the existing light versions.

On-trade surpasses off-trade growth with positive outlook for forecast period

In 2018, on-trade volume growth of carbonates surpassed off-trade growth, which was a major improvement after years of a weaker performance. Carbonates remained the most popular on-trade soft drink, and the all-pervasive advertising and presence of Coca-Cola products continued to determine the competitive scene.

On-trade consumers slow to shift towards healthier options

There is a significant difference in off-trade and on-trade trends in carbonates. Although the proportion of soft drinks with reduced sugar content is increasing considerably through off-trade, new variants are infrequently introduced on-trade, where the preference of consumers hardly changes.

COMPETITIVE LANDSCAPE

Leaders remain stable through intensive marketing strategies

Coca-Cola HBC Hungary retained leadership of soft drinks in Hungary in off-trade value terms by the innovative, omnipresent, assertive above-the-line and below-the-line marketing of its well-known premium carbonates. Coca-Cola aims to prevent potential loss of health-conscious consumers by expanding its portfolio with partially-sweetened and sugar-free variants.

Distribution of carbonates remains concentrated

Distribution of carbonates remained highly concentrated. While hypermarkets lost some ground, it continued to hold the highest off-trade volume share.

Local companies and brand activity intensify

While local companies are not aiming for dominance, they offer intensifying competition. Domestic players are the most successful in the economy segment with carbonates brands such as Queen by Buszesz Zrt and by producing a large volume of private label products, leading to increased off-trade sales, as a large share of consumers remained price sensitive.

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