Carbonates in the Czech Republic

PROSPECTS

Cola carbonates lead sales, however volume growth is hindered by the weather

Sales of carbonates are driven by cola carbonates in the Czech Republic, while volume sales of non-cola carbonates are decreasing. Cola carbonates benefits from having much stronger promotion and advertising throughout the country, where well-established players such as Coca-Cola and Pepsi, have the finances to push their soft drinks with substantial marketing campaigns.

The rising health and wellness trend is a threat to the growth of carbonates

There was a decline in growth for carbonates over the review period, for both off-trade volume and off-trade value sales. However, in 2018 and 2019, growth has recovered, with 2019 posting substantial levels of current value growth.

As promotions and discounts threaten growth, players turn their attention to on-trade sales

Consumers’ shopping habits shifted over the review period, with discounters becoming a more attractive channel. This redirected volume sales of carbonates to these fast-developing discount chains, reducing the significance of independent convenience stores.

COMPETITIVE LANDSCAPE

The consolidation of the landscape makes it hard for smaller players to break through 

The Czech carbonates landscape is relatively consolidated, with the leaders Coca-Cola HBC Czech Republic, Karlovarské Minerální Vody as and Kofola as accounting for more than three-quarters of off-trade value sales in 2019. Coca-Cola HBC Cesko a Slovensko, retained its lead in 2019, benefiting from globally established carbonates, Coca-Cola, Fanta and Sprite.

Cola carbonate multinationals focus on sugar-free ranges, adding new products to their line ups

Low calorie cola carbonates are the main driver of sales within cola carbonates. With the rise of the health and wellness trend, and consumers concerns around sugar, both multinational players, Coca-Cola and Pepsi, have put great focus on their low calorie variants in 2019 – in both promotion and adding new products to their ranges.

Premium products were increasingly in demand in 2019, while private label lost shares

Leading energy drink player Red Bull entered carbonates in 2019, with the successful launch of its premium organic carbonates line, Organics by Red Bull. The range features four flavours; bitter lemon, simply cola, ginger and tonic water.

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