Spirits in Croatia

PROSPECTS

Growth driven by the desire for premium products

Spirits in Croatia are now in full recovery from the devastating impact of the economic downturn in 2009. It can be said that almost a decade was lost and the current sales are nowhere near the pre-recession levels.

New products of the moment to drive growth

With spirits being a fusion of many different categories, trends come and go, with some categories recording fast growth and others in decline. The current trend is towards mixes.

A bit of “retro” helps domestic traditional brands

Over the review period, traditional other spirits like rakija, domestic rum or domestic brandy were seen as categories on their way out. However, recent “retro” trends have given a bit of a boost to what had previously been seen as hopelessly obsolete forms of spirits, which were described as drinks for pensioners and the rural population.

COMPETITIVE LANDSCAPE

Outlook for Badel 1862 dd is stable

In the previous edition of this report, the troubled spirits leader was on the verge of solving its decade-long quest for a new owner, although it was still unclear whether the solution with Meteor dd would be a permanent one. The biggest puzzle was the possible reaction of and legal action by some interested parties.

Multinationals on the winning side

While the domestic leader struggled with its financial problems, the few multinationals active in Croatian spirits took advantage of the situation and attracted a section of the consumer base. New entrants to spirits are attracted to multinational brands by skilful promotions (given advertising is prohibited).

Minor private label presence, but it is not giving up

Brand loyalty is high in spirits, and it makes things hard for economy no-name brands and private label. The only retailer trying its luck with private label in spirits is the discounter Lidl Hrvatska doo kd.

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