Carbonates in Norway

PROSPECTS

Stronger performance driven by demand for low calorie cola carbonates and reduced sugar variants

Carbonates in Norway experienced a recovery in 2019, driven by demand for reduced sugar carbonates, with low calorie cola carbonates in particular recording one of the stronger performances in both volume and current value terms. Interest in reduced sugar carbonates is continuing to gain momentum in Norway, as players look to reformulate well-known variants to address concerns over sugar intake in line with the health and wellness trend.

Further development for non-cola carbonates in terms of reduced sugar but premium mixers perform well in line with craft spirits trend

Product innovation remains a key factor in the development of non-cola carbonates, with the latter lagging somewhat behind cola carbonates in terms of offering reduced sugar variants. Ginger ale and tonic water/other bitters on the other hand, remained strong performers in terms of off-trade volume and value sales in 2019, supported by an increasing trend to pair premium mixers with craft spirits in the country.

Limited selection of low calorie carbonates restricts growth through on-trade

With the exception of ginger ale, on-trade sales of carbonates recorded a weaker performance compared to off-trade in volume terms in 2019. This is likely to be linked to the limited production selection of sugar-free carbonates in cafés and restaurants compared to grocery retailers including convenience stores, which also tend to generate trial purchases through their novelty value.

COMPETITIVE LANDSCAPE

Coca-Cola feels pressures due to dominance of cola carbonates, although expansion through low calorie format offers a boost to sales

Carbonates remained a consolidated competitive landscape in 2019, led by Coca-Cola European Partners Norge AS, although the player lost some share as it retains a dominant presence in regular cola carbonates, which continued to suffer due to an ongoing consumer shift towards reduced sugar or low calorie variants, and non-cola carbonates such as lemonade/lime brands Sprite and Fanta Lemon. Therefore, the player is placing a stronger focus on innovation by launching new sugar-free products to address local consumers’ changing demands; in addition to improving the flavour of Fanta Appelsin No Sugar Added by increasing its fruit juice content, the player relaunched Fanta Shokata no sugar (Elderflower & Lemon).

Ringnes expands portfolio to gain consumers attention in intense competitive environment

Ringnes AS retained its second position in overall carbonates in 2019, due to its leadership of low calorie cola carbonates and non-cola carbonates. While still recording positive growth in 2019, the player’s Pepsi Max, positioned in low calorie cola carbonates, continued to face strong competition from Coca-Cola Zero Sugar (Coca-Cola Without Sugar (Uten Sukker)).

Discounters and internet retailing offer consumers more attractive prices

Modern grocery retailers strengthened its position as the leading distribution channel for carbonates in 2019, supported by discounters consolidating its overall dominance. This channel generates substantial volume sales throughout the year with attractive price campaigns, particularly on low calorie cola carbonates, including large bottles and multi-packs for take-home consumption, while convenience stores and forecourt retailers are more popular for offering consumers on-the-go formats which demand a significantly higher unit price.

Files are delivered directly into your account within a few minutes of purchase.