Concentrates in Switzerland

PROSPECTS

Concentrate manufacturers target older consumers

Initially focusing on families with children, concentrate manufacturers are now seeking to broaden their horizons and reach older consumer groups. They are doing this by moving away from traditional flavours such as mint and raspberry towards more sophisticated and adult-focused offerings, generally with a premium positioning and higher margins.

Opportunity to embrace out-of-home consumption

Concentrates remained extremely small in comparison with other soft drinks categories in 2018, with there being a few reasons for this. Soft drinks are mainly associated with out-of-home or on-the-go consumption.

Hemp a potential disruptor

In Switzerland, hemp has become an attractive ingredient with which beverage players are innovating. Already available in powder concentrates, there remains further room for growth in the wider category.

COMPETITIVE LANDSCAPE

SodaStream and PepsiCo: A promising acquisition

PepsiCo’s current business strategy is focused on brand diversification, with its latest acquisition being the Israeli manufacturer SodaStream, the leading player in concentrates. Although SodaStream already benefits from strong brand recognition in Switzerland, it could profit further from the resources of a giant parent company, potentially expanding its portfolio.

Private label sales remain steady

In Switzerland, private label remained the overall leader in concentrates in 2018, benefiting from an established presence in the health and wellness and organic categories. The share of private label players in both powder and liquid concentrates could grow further if they continue to expand their product ranges through partnerships with local farmers.

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