Carbonates in Switzerland

PROSPECTS

High sugar content continues to adversely impact carbonates

The amount of sugar and calorie content of beverages have become key factors in consumers’ purchasing decisions, leading them to buy more sugar-free and zero-sugar beverages rather than their regular counterparts. However, despite a small increase in volume sales of “diet” variants, this was not enough in 2018 to offset the falling sales of regular variants and thus carbonates as a whole.

Non-cola carbonates trying to remain relevant

Non-cola carbonates remained a mature category in 2018, albeit benefiting from a crossover with alcoholic drinks. The performance of non-cola carbonates is heavily influenced by sales of spirits in Switzerland.

Functionality and botanical ingredients provide growth opportunities

With consumers demanding new products, Swiss companies are launching carbonates with functional properties, new flavours and more natural ingredients. Flavour innovation has led to the addition of herbal or botanical ingredients to familiar flavours so as to appeal to consumers concerned about sugar content, with these ingredients providing a natural sweetness.

COMPETITIVE LANDSCAPE

Coca-Cola maintains its leading position

Despite the decline of cola carbonates in Switzerland, Coca-Cola maintained its leading position in the category in 2018, and thus also in carbonates as a whole. While its regular cola offering continued to lead sales, the company’s most dynamic brands included Coca-Cola Zero Sugar and Coca-Cola Light, profiting from a consumer shift towards reduced-sugar variants.

Private label players offer discounts to maintain growth

As international and domestic manufacturers account for the majority of carbonates sales, private label has struggled to gain ground in this highly competitive environment. To keep up with brand manufacturers, retailers are offering heavy seasonal discounts on their private label carbonates, targeting both younger generations and lower-income households.

Traditional brands remain popular

When it comes to reputation, traditional Swiss brands remain popular among younger generations, profiting from a strong image and affordable prices. Rivella maintained second position in carbonates overall in 2018, further growing its value and volume share, while Ramseier recorded steady volume growth.

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