Carbonates in Slovenia

PROSPECTS

Carbonates grows in spite of negative publicity

Despite ongoing negative publicity with regard to the consumption of carbonates due to their high sugar content, the category registered both positive volume and current value growth in 2018 thanks to manufacturers’ heavy investment in marketing. Their marketing activities were largely targeted at younger consumers, who are typically not particularly concerned about health issues.

Competition intensifies and limits unit price growth

As a result of falling consumer demand and the preventative tactics of major players, competition intensified significantly over the review period. Pressure on prices continued due to an increasing amount of sales being accounted for by promotional offers, which led producers to cut costs rather than increase prices, which rose only marginally, below the rate of inflation, in 2018.

On-trade expected to continue to outperform the off-trade in terms of value growth

The on-trade continued to outperform the off-trade in terms of carbonates value sales growth in 2018, largely as a result of the former’s substantially higher unit prices. Furthermore, increasing tourism in Slovenia helped support sales in on-trade establishments.

COMPETITIVE LANDSCAPE

Coca-Cola remains the clear leader in carbonates

Carbonates remained a generally consolidated category in 2018, with three manufacturers commanding the majority of both value and volume sales. Coca-Cola HBC Slovenija remained the clear leader, accounting for almost half of the category’s off-trade value sales.

Local cola brand Cockta benefits from strong consumer loyalty

As the second largest carbonates producer in Slovenia, the regional fmcg giant Atlantic Grupa ranked second in 2018, commanding nearly a third of off-trade value sales. Atlantic Grupa is a well-established company which offers a range of very well-known brands, including its Cockta cola carbonate, which is produced locally.

Multinationals dominate carbonates in Slovenia

In 2018, carbonates in Slovenia was completely dominated by foreign manufacturers as the last domestic company, Radenska, has been sold to Kofola. Furthermore, private label products also fall under the domain of foreign owners.

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