Juice in Russia

PROSPECTS

Juice returns to negative volume growth in 2019 due to poor performance of nectars

In volume terms the juice category saw a return to growth in 2018 – representing the first positive performance for five years – but declined again in 2019. The main reason for this was the continuing decline of nectars, which is the largest category in juice.

Increasing offer of “breakfast” juices to fit consumers’ increasingly active lifestyles.

Active lifestyles as well as on-the-go consumption continued to drive the positive development of FF nectars in 2019. In 2017 Sady Pridonya OAO NPG launched Easy Smuzi and enjoyed double-digit growth in 2018 and 2019.

Juice threatened on sugar tax and VAT fronts

As part of the implementation of the strategy to strengthen public health in Russia, the juice category faces two threats: the introduction of a sugar tax, as well as the removal of juice from the baby food category, and thus increasing the VAT rate from 10% to 18%. Now for fruit juices with sugar for baby food, a reduced VAT rate of 10% is applied.

COMPETITIVE LANDSCAPE

Multon ZAO maintains lead, expands product range

Multon ZAO (Coca-Cola Hellenic Bottling Co SA) continued to lead the juice category in 2019, and indeed improved its value share slightly. The company bet on reconstituted 100% Juice with its Dobry brand, and juice drinks with the Moya Semya brand.

Sady Pridonya benefits from strong distribution and familiarity among consumers

Sady Pridonya OAO NPG continued to hold the leading position among domestic players in the category. Well established distribution and good brand awareness underpin this manufacturer’s strong position, and contributed to a slight share gain in 2019.

Low awareness and high prices constrain organic products’ potential

Organic juice and nectars remain niche and highly fragmented. The main barrier to the development of organic juice and nectars in Russia remains high prices, coupled with low awareness regarding organic products among consumers.

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