Carbonates in Spain

PROSPECTS

Positive economic climate unable to reverse the category’s decline

Despite the ongoing economic recovery and its positive effects on consumer confidence, carbonates remained on a downward trajectory in 2018 in both off-trade current value and volume terms. The shift from soft drinks perceived as unhealthy towards more natural and healthy options will continue to hinder the performance of carbonates over the forecast period.

Concerns about sugar

Sales of carbonates in the off-trade continued to struggle in 2018, hampered by the health and wellness trend in Spain. This resulted in a shift towards soft drinks perceived as healthier and more natural, including bottled water, sports drinks and RTD tea.

On-trade sales of some carbonates supported by the positive performance of spirits

In 2018, some carbonates continued to perform well in the on-trade thanks to the positive effects of the economic recovery on consumer spending. Rising disposable incomes and consumer confidence resulted in more Spaniards increasingly visiting bars and restaurants.

COMPETITIVE LANDSCAPE

Cía Servicios de Bebidas Refrescantes continues to dominate sales

Sales of carbonates in Spain continued to be largely dominated by international manufacturers in 2018, with Cía Servicios de Bebidas Refrescantes, Cía de Bebidas Pepsico and Schweppes together accounting for a huge off-trade value share. The retailer Mercadona was the leading domestic player through its Hacendado private label.

Schweppes benefits from demand for gin mixers

Schweppes has been one of the main beneficiaries of current lifestyle trends. Its flagship Schweppes brand in tonic water/other bitters performed well in 2018 thanks to strong demand for mixers as a result of the current gin and tonic trend among younger consumers, largely benefiting from its strong presence in the on-trade channel in Spain.

Private label continues to gain share

Although carbonates is a highly competitive category, with international brands accounting for the vast majority of sales in Spain, private label continued to gain share in 2018. To keep up with brand manufacturers, private label players also sought to tap into rising demand for reduced-sugar products and invested heavily in offering light carbonates in 2-litre formats, targeting both younger generations and lower-income households.

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