Hot Drinks in Slovenia

COVID-19 impact on hot drinks

The impact of COVID-19 on hot drinks is reflected predominantly in the temporary closures and reduced capacities of foodservice establishments. In addition, Slovenian consumers have increasingly been adopting a more conscious approach to consumption that promotes health, which has led to a growing emphasis on the functional characteristics of products.

COVID-19 country impact

The Slovenian government closed all restaurants and bars on 16 March, followed, two days later, by the suspension of all passenger bus and train travel with Italy, as well as calling a halt to air travel and shutting the smaller border posts with Austria and Croatia, with the larger ones remaining open, but with strict regulations in place: a negative coronavirus test less than three days old or agreeing to a health check.

Company response

The three hot drinks product areas are all characterised by a clear leader, and the competitive landscape has not seen major changes in 2020. As the biggest product area, coffee tends to see the highest investments in new product development, marketing and promotion.

Retailing shift

The e-commerce channel has seen the highest increase in value share during the pandemic in 2020. Large retailers such as Tuš and Spar Slovenia reported an exponential increase in sales through their e-commerce channels.

Foodservice vs retail split

The pandemic resulted in the mandatory closing of on-trade establishments for two months, and limitations to their operations in the subsequent months. This resulted in a major shift of consumption of hot drinks from the on-trade to the off-trade channel.

What next for hot drinks?

The lockdown in 2020 limited household consumption following the closures of on-trade establishments. The decline in consumption can be mostly attributed to the rising unemployment rate, resulting in a decline in consumer disposable incomes and decreased consumer confidence.

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