Carbonates in the Czech Republic

2021 DEVELOPMENTS

Consumers shift to low calorie/reduced sugar options in carbonates

Low calorie cola carbonates continued to post strong growth in retail volume terms in 2021. The category is benefiting from an expanding base of consumers that are looking to reduce their sugar intake due to rising health concerns.

Home entertainment trend supports sales of cola carbonates

Continuing on from the trend seen in 2020, cola carbonates continued to perform better than non-cola carbonates in 2021. Cola carbonates remain popular among teenagers in particular and all three of the top producers, which includes local player Kofola as well as multinational giants PepsiCo and Coca Cola, remained active in offering in-store promotions in 2021.

Gin and tonic trend puts the fizz in tonic water/other bitters

Overall retail volume sales of non-cola carbonates declined in 2021; however, within the category tonic water/other bitters continued to see steady growth. A key driver of this growth was the ongoing trend towards consuming gin with tonic in the Czech Republic, with the opening of gin bars across the country and the rise of a gin-drinking culture all having a positive influence on sales.

PROSPECTS AND OPPORTUNITIES

Players expected to focus on healthier options with new flavour varieties

Interesting brand extensions are expected to support a further increase in demand for low calorie carbonates over the forecast period. In zero sugar cola carbonates, consumers appreciate flavours such as citrus and mango and as such companies are expected to focus more on developing interesting flavours such as these.

Premiumisation expected in non-cola carbonates as players look for growth opportunities

In non-cola carbonates, premium products and unusual flavour brand extensions are expected to perform well over the forecast period. For example, Kofola surprised consumers with its new Targa Florio brand of orange carbonates in 2021, which attracted attention with its premium packaging design, fresh citrus flavours, Sicilian fruit origin and a fruit juice content of over 10%.

Economic pressures could benefit private label

Private label could be the big winner in carbonates in the early part of the forecast period with more households likely to be forced to economise. Despite this, branded products will likely retain a stronghold over the category, with many consumers remaining loyal to their favourite brands.