Tea in Slovenia

PROSPECTS

Retail volume sales of tea to pick up during the forecast period

Consumer demand for tea in the retail channel stabilised in 2018 following several consecutive years of sales contractions despite the favourable image and strong standing of tea among local consumers. This is mainly connected to relatively high levels of market maturity within the category and tea’s general image as a seasonal product that is usually consumed during colder parts of the year, often as a remedy against illness.

Health and wellness set to continue dictating the pace of future growth

Fruit/herbal tea remains the largest tea category and volume growth was positive in 2018 after sales in the category contracted earlier in the review period. The most dynamic performance in tea during the year was seen in other tea and this was mainly as a result of the growing health and wellness trend as other tea is a category in which slimming tea features heavily.

As competition intensifies, new product developments set to increase

2018 witnessed the repackaging and refreshing of the entire line of Žito Food industry dd, the leading producer of tea in Slovenia, while other players introduced new flavours. However, new flavour innovation is not as frequent as it might be and this is mainly due to the traditional tea tastes of local consumers.

COMPETITIVE LANDSCAPE

High-stakes marketing investment undertaken by leading player Žito

1001 Cvet remained the most recognised and single best-selling tea brand in Slovenia in 2018. This brand is offered by the domestic producer Žito Food Industry dd and it managed to account for almost half of volume sales in the category in 2018.

Global tea brands scrambling to gain share

2018 saw the second largest tea producer in Slovenia, Teekanne GmbH & Co KG, some way behind the leading player Žito Food Industry in 2018, but well ahead of private label player Mercator in third position. The Teekanne brand competes directly with 1001 Cvet, undertaking similarly intense promotional activity and presenting itself as a globally renowned brand.

Private label player Mercator remains among the category’s top three players

Ranking in third place in 2l018 was Slovenia’s leading retailer, Poslovni Sistem Mercator dd. Mercator offers a wide and expanding range of private label tea which appeals primarily to price-conscious consumers.

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