Published by Canadean, this Quarterly Beverage Tracker report provides a detailed analysis of the latest developments in the Slovenia beverage market
Introduction and Landscape
Why was the report written?
In the current climate of economic uncertainty and market volatility companies need to know about more than just data. This report provides a complete overview of all commercial beverage consumption trends, latest market developments and an economic mood indicator
What is the current market landscape and what is changing?
Soft drinks witnessed one of the highest drops for a number of years compared with previous third quarter periods; the hot summer only really minimized the impact of the difficult economic climate on packaged water.
What are the key drivers behind recent market changes?
Consumers have significantly cutback due to tight household budgets and uncertainty about the future. Higher VAT rates, and falling GDP have led to a difficult situation.
What makes this report unique and essential to read?
Designed for clients who want to understand the latest trends in the Slovenia beverage industry and want more detail and analysis on this data. Canadean's Slovenia Quarterly Beverage Tracker report is ideal for benchmarking total market vs retail audit data and is an essential tool for keeping up-to-date with the latest industry and market developments
Key Features and Benefits
- Readers are provided with a summary snap shot table showing category growth in Q32013 vs Q32012, together with 2012 actual volumes, 2013 forecast volumes and projected growth
- An economic mood indicator, completed by Canadean's local consultant, examines (on a scale of one to five) whether confidence levels in the industry are better or worse than the previous quarter, whether net prices are rising or falling and how Private Label products have performed versus the rest of the market. Selected retail pricing data is given for the most recent quarter and the previous four quarters, enabling analysis of price movements.
- Key highlights of the last quarter's commercial beverage performance are identified and the key market drivers examined
- Volumes for Q32013 vs Q32012, full year 2012, moving annual totals (MAT) and 2013 forecasts are provided for each individual beverage category, together with supporting text on quarterly performance and forecast assumptions. More granular data is provided for the Carbonates category, with data split by regular vs low calorie, and by key flavours. Significant activity in the soft drinks industry is covered including recent new product introductions (detailing flavour, pack type, pack size, retail price and selected pack shots) and the latest industry news.
- Focus on Functional Soft Drinks and Healthy Innovation
Key Market Issues
- Beer consumers are not only becoming less loyal to local brands and switching to Private Label products, but are also consuming less.
- There were 114,669 people unemployed at the end of September 2013; 8.8% more than in September 2012. UMAR (October 2013) expects there will be an average of 120,600 people unemployed during 2013 as the weak economic situation continues.
- In Q2-13, GDP contracted by 1.7% compared to Q2-12. Domestic demand continued to have a negative impact; although the rate of decline was lower than the last couple of quarters.
- On 1 July 2013 higher VAT rates were introduced. The standard VAT rate increased from 20% to 22% and the lower rate from 8.5% to 9.5%. The government expects this measure will generate an additional 250 m for the budget.
- Consumers are also becoming more health conscious, driven by publicity about obesity, which is influencing consumption of beverages with added sugar and alcoholic drinks.
- Between August and September 2013, the consumer confidence indicator registered a modest improvement and reached the level recorded at the beginning of the year. The key driver behind the improvement in confidence was consumers feeling more optimistic about being able to save over the next 12 months.
- After the cool end to June, temperatures started to improve in the summer. In the first half of July temperatures neared 30C, although there were also frequent storms. In the second half of the month there was a second heat wave with temperatures reaching above 35C.
- In terms of flavours, cola carbonates made gains due to the good performance of multinational brands. Coca-Cola sales were driven by its promotional campaign, which saw the Coca-Cola logo swapped for people's names and descriptions on the bottle labels.
- Sports drinks was the only soft drinks category to achieve growth. The spectacular rate was fuelled by the entrance of Fruc (see QBT2-13). Which was supported by intensive marketing, including advertising. Fruc capitalized on EuroBasket 2013 as Fructal was one of the sponsors. The new sports drink was also sold at the championship
- Hot tea maintained its positive trend mainly due to being compared to Q3-12 which saw a decline in consumption and marketing activities at the beginning of the year. However, Quarter 3 is a low season for the category as this is not a beverage that is usually drunk during hot weather.