Sweet Biscuits, Snack Bars and Fruit Snacks in Slovenia

PROSPECTS

Healthy performance predicted across the category

Sweet biscuits, snack bars and fruit snacks experienced a longer period of volume contraction over the review period, coming to a halt and reversing this trend in 2017 and continuing in 2018. Value growth was maintained during this period, although the category is now experiencing stalling growth rates in unit prices.

New product development to intensify with growing competition

Given the overall performance trend, new product launches in late 2017 and 2018 are highly likely to succeed in the short term, especially since producers enjoy a well-developed distribution network and substantial marketing budgets supporting their brands. Standard and economy sweet biscuits, snack bars and fruit snacks are positioned for better results stemming from the highly sensitive nature of Slovenian consumers that prioritises value/price ratios above brand loyalty.

Private label holds substantial value share

Producers of sweet biscuits, snack bars and fruit snacks have displayed obvious caution by avoiding price hikes for their respective products above the inflation line, not only to upset the volume demand balance but also to remain competitive within this landscape. Private label from leading retailers remained particularly influential in 2018 where Mercator, Spar and Engrotuš held significant value share.

COMPETITIVE LANDSCAPE

Private label owner leads category

Poslovni Sistem Mercator, as the largest retailer and private label owner, retained its leadership of the highly fragmented category in 2018. The company attained its leadership due to a very wide portfolio of products within sweet biscuits, snack bars and fruit snacks combined with a long-established presence for its private label products that have managed to win the trust of local consumers in addition to a widespread outlet network.

Marketing activity from two largest international companies

The second and third ranked producers, Krašcommerce and Bahlsen, respectively, have been able to maintain their positions and value share with marginal difference between them. Both house a plethora of recognisable brands such as Domacica, Leibniz and Hit that lead sweet biscuits.

Mass economy brands set the terms for smaller producers

The largest producers of sweet biscuits, snack bars and fruit snacks products that have been most active in terms of new product introduction and at the same time invested substantial resources into marketing, which is mostly visible as advertising in television commercials. Building a strong brand image and focusing on high- quality ingredients was in the domain of premium brand owners, while the mass economy brands placed their stake into good-quality products with less appealing packaging and less support in terms of marketing activity, betting on lower price points to appeal to price-conscious consumers in Slovenia.

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