Carbonates in North Macedonia

PROSPECTS

Gradual shift away from cola carbonates in particular due to increasing health concerns

Carbonates in North Macedonia recorded a marginally stronger performance in 2019, driven by the more popular category of non-cola carbonates. There have been many published articles and other media reports in the country that have discussed the harmful effects of overconsuming carbonates on human health, with their high sugar content of greatest concern.

Preference for non-cola carbonates and further investment set to support higher sales

Non-cola carbonates remained the more popular category in terms of off-trade volume sales in 2019, offering a lower unit price compared to cola carbonates, and benefitting from a stronger preference for orange carbonates and lemonade/lime amongst local consumers. It continued to record higher growth than its cola counterpart in 2019, a trend that its predicted to continue into the forecast period.

Low overall sales for on-trade although non-cola carbonates records stronger performance through this channel

On-trade volume sales of carbonates remained smaller in size compared to the off-trade channel although the growth rate was similar for both in 2019, with a stronger performance recorded by lemonade/lime, orange carbonates and tonic water/other bitters, with the latter being popular as mixers for spirits. However, when dining out, many local consumers are showing a shift towards naturally low calorie soft drinks such as bottled water, while juice and RTD tea offer more appetising alternatives, supported by the increasing significance of the health and wellness trend.

COMPETITIVE LANDSCAPE

Local players dominate benefitting from producing global brands under licence

Carbonates in North Macedonia continued to be dominated by local players such as Pivara Skopje, Kozuvchanka doo and Prilepska Pivarnica, as they are responsible for the local production under licence and distribution of global brands for The Coca-Cola Co, Sinalco International GmbH & Co KG and PepsiCo Inc respectively. Due to the wide portfolio of The Coca-Cola Co, which covers the category with well-known brands such as Coca-Cola, Fanta, Schweppes and Sprite, Pivara Skopje retained its convincing lead of carbonates in both off-trade volume and value terms in 2019.

Prilepska Pivarnica looks to support sales of its local brand

Continuing to record a steady but undynamic performance towards the end of the review period, Prilepska Pivarnica attempted to improve sales of its own non-cola carbonates brand Prilepska Gazoza, by organising a competition to win a Fiat 500 car as the main prize. Customers had to collect five caps from any of the brand’s products and send them into the company.

40th anniversary celebrations for Pepsi include huge prize draw

June 2019 saw Prilepska Pivarnica celebrate the 40th anniversary of Pepsi’s presence in the country and its highly successful partnership with PepsiCo Inc, with the global player being a strong contributor to the domestic economy. As part of its celebrations, the local producer organised a competition with impressive prizes.

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