Concentrates in the Netherlands

PROSPECTS

Reduced sugar products contribute to growth

The extraordinarily hot summer was the major reason for the strong growth of concentrates in off-trade volume and current value growth in 2018. The same performance was seen by liquid concentrates, as there are no sales of powder concentrates in the Netherlands.

Brands targeted towards children suffer from the move away from sugar

Consumers are now more aware than ever before that liquid concentrates also contain a lot of sugar, and this is a critical issue, especially for products that are aimed at children. Liquid concentrates targeted towards babies and young children, mainly the Roosvicee brand and private label, therefore saw further value sales declines in 2019.

More entrants stimulate growth but lead to stronger competition

Compared with the early years of the review period, there were more major players in concentrates at the end of the review period, due to new entrants such as Riedel Drankenindustrie, PepsiCo and Vrumona. These players have very deep pockets and seem to be ambitious when it comes to achieving substantial shares in this category.

COMPETITIVE LANDSCAPE

HJ Heinz struggles to maintain growth

HJ Heinz remained the leading player in liquid concentrates in off-trade value terms in 2019, although its share was eroded. The company owns two of the major brands in the category: Karvan Cevitam and Roosvicee.

Brand takeovers could stimulate growth in the future

In April 2019, major soft drinks company Vrumona, daughter company of Heineken, announced it had acquired liquid concentrates company MerkGoed. This meant that Vrumona added two concentrates brands to its portfolio: Ranja and Limeau.

Private label loses further share due to new launches

Private label lost value share in concentrates throughout the review period. Sales were hampered by new launches such as Van de Boom from Riedel Drankenindustrie, and the large number of price promotions from Karvan Cevitam, for example.

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