Carbonates in Slovenia

PROSPECTS

Carbonates growth is driven by an increase in tourism and disposal incomes

Despite ongoing negative publicity in regards to the levels of sugar in carbonates, carbonates registered both positive volume and current value growth in 2019. Positive economic indicators, growing employment and heightened disposable income, are key drivers behind this growth.

A high level of marketing and promotion supports value sales of carbonates

Carbonates growth is highly dependent on marketing support, with high-levels of promotional activity seen by the two main offerings in the landscape, Cockta and Coca-Cola. Both players have all-round yearly presence in media, which makes them highly visible and desirable.

Despite positive economic growth, carbonates is under intense pressure from the rising health and wellness trend

The rising interest in health and wellness sees consumers becoming more conscious of their food and drink options, particularly when it comes to calorie content, ingredients, fats and sugar. With the health and wellness trend rising, manufacturers are expected to increase their marketing efforts and launch new products with healthier positioning; with a lower sugar content or sugar-free.

COMPETITIVE LANDSCAPE

Coca-Cola remains the clear leader in carbonates and cola-carbonates, benefiting from its established offerings

Carbonates remained generally consolidated in 2019, with three manufacturers commanding the majority of both value and volume sales. Coca-Cola HBC Slovenija retained its lead in the landscape, benefiting from an active marketing strategy that ran throughout the year, including print advertising, television adverts and outdoor billboards.

Private label increases due to lower price points and growing consumer recognition

There was pressure on prices during the review period, where an increasing amount of sales were due to promotional offers. This led producers to cut costs rather than increase prices, which didn’t rise in 2019.

On-trade will continue to outperform the off-trade across the forecast period

The on-trade continued to outperform the off-trade in terms of carbonates value sales growth in 2019, largely as a result of the higher prices in the on-trade. Furthermore, increasing tourism in Slovenia helped support sales in the on-trade establishments, where consumers are more inclined to treat themselves.

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