Carbonates in Slovakia

2020 IMPACT

Closure of the on-trade and its knock-on effects reduces overall consumption

The onset of the COVID-19 pandemic at the start of 2020 forced the leading carbonates players to reduce their marketing budgets. Faced with losses, companies including Coca Cola stopped paying for expensive TV commercials.

Launch of Arfi-Cola contributes to off-trade volume growth

In 2020 St Nicolaus Trade, a major alcoholic drinks manufacturer in Slovakia, launched Arfi-Cola. The company is well-positioned in the on-trade, which is its main key channel for its sales, but the new brand was also available in the off-trade throughout the year.

Non-alcoholic beers takes volume from carbonates

Flavoured non-alcoholic beers was a significant threat to carbonates throughout 2020, due to the leading brands’ strong distribution in both the off-trade and on-trade, as well as their being perceived as healthier. Flavoured non-alcoholic beers is lower in sugar than carbonates, and some, such as those produced by Birell Pomelo Grep, even contain added vitamins.

RECOVERY AND OPPORTUNITIES

Continued bulk buying to support increasing sales of multipacks

Following the trends brought about by the first phase of the COVID-19 pandemic, it is likely that consumers will continue to make as few visits to supermarkets as possible throughout the forecast period, and so will continue to look for larger pack sizes (particularly multipacks). In relation to this, comprehensive marketing efforts by leading carbonates brands - and promotional activities in retail stores - are expected to fend off a possible surge in demand for private label carbonates in 2021.

Lower prices to test consumers’ loyalty to their favourite carbonates brands

The economic uncertainty created by the COVID-19 pandemic will make Slovak consumers increasingly price-sensitive when purchasing non-essential items. Much stronger competition on prices is expected to emerge between flavoured bottled water, carbonates and other non-alcoholic drinks, as these are all sold for similar prices.

Carbonates producers and retailers to increase focus on recyclable packaging

In January 2023 PET bottles and metal cans will become part of a recycling initiative, similar to those introduced in Austria, where a deposit is returned to consumers for returning their empty bottles. This initiative will happen through a network of vending machines.