Spirits in Croatia

PRE-COVID-19 PERFORMANCE

New research cites spirits as a top tipple in Croatia, with gin boosted by new seasonal recipes

Spirits seemed to be the most dynamic alcoholic drinks category in 2019, as the increased disposable income in the year created a wave of curiosity from consumers who were seeking products with a story behind them. In research conducted by magazine Ja trgovac and the Hendal agency in September 2019, it was noted that more than half of Croatian adults of legal drinking age consume strong alcoholic beverages, with a third of them consuming strong alcoholic drinks several times a month.

Retro trend gives boost to “old-fashioned” and traditional spirits such as rakija

Regional and traditional spirits such as rakija had seen a period of rejection by consumers, as trends turned away from “old-fashioned” drinks which were associated with the older pensioner population and rural communities, and towards more modern concepts. However, retro trends have started to inspire interest in rakija again, with new varieties appearing and local distilleries focusing on innovation, in both flavours and designs.

Badel 1862 dd maintains place thanks to new management, but Mast-Jägermeister AG is the most active player

Badel 1862 dd continued to lead spirits in 2019, thanks to the success of its Badel brand. The player has reached calmer financial waters after its ordeals over the past decade and the new owner, Meteor Grupa dd, appointed a new management and set up a course which should keep the company’s success stable.

2020 AND BEYOND

COVID-19 impact

On-trade volume sales of spirits are expected to fall by 34% in 2020 in light of the impact of COVID-19. This compares to an expected 3% rise forecast for 2020 during research conducted in May 2019, i.

Affected products within spirits

Spirits has a certain resilience to COVID-10, because the category mostly relies on domestic consumers, unlike beer and wine which are more directly supported by inbound tourism. As spirits are typically sociable drinks, the category was seriously impacted by the closure of on-trade channels.

Recovery and opportunities

Thanks to the popularity of spirits in Croatia, plus the fact the category transferred so easily to the off-trade channels, it is expected that the segment will continue to be fairly robust and make a good recovery. Trends seen for mixed drinks and cocktails, such as those with gin in particular, are expected to continue, thus inspiring further innovation and new product developments in this area.

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