An increasing number of Poles wish to follow healthier diets, and are therefore turning to healthier product categories within soft drinks, such as bottled water or fruit/vegetable juice. In response, leading manufacturers are adjusting their portfolios accordingly and launching healthier variants of their standard products, particularly those lacking a healthy image, for example by replacing sugar with stevia. Domestic manufacturers are strong Local producers hold strong positions in soft drinks in Poland, with Maspex Sp zoo, Zywiec Zdroj and FoodCare being ranked within the top five in terms of off-trade value sales in 2012.
Polish-based manufacturers are proving to be tough competitors as they gradually expand their investment in research and development, and being able to win consumer attention by offering high-quality products at affordable prices. In addition, they regularly invest in promotional activities, being a must in the highly competitive soft drinks environment. Discounters, the ever-growing distribution channel Discounters is becoming an increasingly important distribution channel for soft drinks in Poland, reflecting the growing interest in private label offerings.
Rising confidence in the quality of such products, as well as increasing availability due to the rapid expansion of the leading chains, such as Biedronka, is positively affecting sales of private label soft drinks. This in turn encourages more consumers to do their daily/weekly shopping at discounters, which are popping up across the whole country, including in large, medium-sized and small cities. Future growth prospects remain optimistic Soft drinks is expected to continue to develop over the forecast period with sales being fuelled by new product development in all price segments.
More attention will be paid to health benefits alongside the growing importance of the health and wellness trend. More stevia-based formulations are highly probable. Manufacturers will also continue to invest heavily in their mass media presence in an attempt to win over consumers and thus gain a competitive advantage. http://www. euromonitor. com/soft-drinks-in-poland/report France Good performance despite the economic downturn Since the onset of the economic downturn, sugary and artificially sweetened beverages underwent an increase in excise tax and an increase in VAT on sweetened beverages in the on-trade channel.
Despite this, the soft drinks industry continued to perform well with total volume growth of 2% and off-trade value sales of 4%, which corresponded to the performance of the review period. Increased taxes for sweetened beverages On 1 January 2012, two new taxes came into effect. One on soft beverages with added sugar, including carbonates, fruit juice with added sugar and flavoured milk drinks, and the other, to considerable disbelief, on artificially sweetened soft beverages. The new budget law increased the excise tax to EUR7. 7 per hectolitre on soft drinks with added sugar and added artificial sweeteners.
The French government also increased VAT from 5. 5% to 7% for sweetened beverages designed for instant consumption in the on-trade channel. Internationals sustain their lead in soft drinks In 2012, international companies took advantage of various public events in order to improve their brand image. The energy drinks manufacturer Red Bull emphasised its slogan, gives you wings by sponsoring Felix Baumgartners stratospheric free-fall, while Coca-Cola supported the Olympic Games in London. As a result, Coca-Cola experienced increased value sales in 2012 and continued to be among the leaders in soft drinks.
The on-trade channel is a source of innovation Although the off-trade channel represents the majority of volume and value sales of soft drinks, manufacturers focused their innovation in the on-trade. Due to the developing health and wellness trend and on-the-go-consumption, manufacturers introduced new healthy products in small sizes so that they could be sold in the on-trade channel, particularly in vending machines. Coca-Cola, for example, launched its stevia-based Nestea brand in vending before relaunching the range in store-based retailing channels.
Nemeco also expanded its range of individual smoothies under the Nu brand. Increasing demand for natural and safe beverages With French consumers becoming more health and wellness conscious, they are likely to prefer natural healthy beverages, such as 100% juices and bottled water. Moreover, consumers are likely to avoid consuming soft drinks that contain artificial sweeteners, such as aspartame, as its impact on the health is unclear. As a result, soft drinks manufacturers are expected to change the formula of their best-selling products through the use of stevia instead of aspartame.
http://www.euromonitor. com/soft-drinks-in-france/report Size & Growth Poland Polands consumption of soft drinks has increased by a staggering 145% in the last decade. Population exceeding 38 million Unlike many countries in Western Europe, where the soft drink sales last year (2002) were badly hit by poor summer weather, the Polish soft drink sector was boosted by an exceptionally long and hot summer. Still drinks registered the greatest percentage increase nearly 20% up on the previous year Soft drinks in Poland witnessed an upward trend in 2012 in terms of both off-trade value and volume terms.
New product developments in all price segments, including cheaper brands and private label, helped induce demand and increase the frequency of consumption. Rising availability also positively affected sales. The soft drinks market consists of retail sale of bottled water, carbonates, concentrates, functional drinks, juices, RTD tea and coffee, and other soft drinks. However, the total market volume for soft drinks market excludes powder concentrates, which are included in the market value. The market is valued according to retail selling price (RSP) and includes any applicable taxes.
Any currency conversions used in the creation of this report have been calculated using constant 2012 annual average exchange rates. The Polish soft drinks market had total revenues of $8. 2bn in 2012, representing a compound annual growth rate (CAGR) of 4. 4% between 2008 and 2012. Market consumption volumes increased with a CAGR of 4. 9% between 2008 and 2012, to reach a total of 8. 5 billion liters in 2012. The performance of the market is forecast to follow the similar pattern with an anticipated CARC of 4. 4% for the five-year period 2012 2017, which is expected to drive the market to a value of $10.
2bn by the end of 2017. France The market for soft drinks in France increased at a compound annual growth rate of 1. 4% between 2004 and 2009 The bottled water category led the soft drinks market in France, accounting for a share of 32. 7% The leading players in the French soft drinks market are Nestle S. A. , and Groupe Danone The soft drinks market consists of retail sale of bottled water, carbonates, concentrates, functional drinks, juices, RTD tea and coffee, and other soft drinks. However, the total market volume for soft drinks market excludes powder concentrates, which are included in the market value.
The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using constant 2012 annual average exchange rates. The French soft drinks market had total revenues of $15. 6bn in 2012, representing a compound annual growth rate (CAGR) of 2. 6% between 2008 and 2012. Market consumption volumes increased with a CAGR of 0. 8% between 2008 and 2012, to reach a total of 14. 6 billion liters in 2012. The performance of the market is forecast to follow the similar pattern with an anticipated CARC of 2.
7% for the five-year period 2012 2017, which is expected to drive the market to a value of $17. 8bn by the end of 2017. Standard cola sales proved the most lucrative for the French carbonated soft drinks market in 2009, generating total revenues of $2. 1 billion, equivalent to 44. 3% of the markets overall value According to Xerfi, the soft drink segment is to grow by 6% in France this year, dominated by large brands such as Coca-cola and Orangina with less than 10% of the market made up of private label brands. While the fruit juice segment, which is growing, at 1.
5% this year, is dominated by private label brands, which make up 60% of the market. Regulations Poland In Poland VAT rates range from a basic rate of 22% to specific rates of 3% for non-agricultural products and 0% for books. The VAT regulations (in force from 1 May 2004 and amended in June 2005) generally reflect the guidelines provided by EU regulations France The French soft drinks industry has been hit by the governments introduction of a tax on sugar-sweetened drinks, according to market research firm Canadean, with consumers trading down to cheaper, lower-sugar beverages.
The tax affects both drinks with added sugars and drinks with artificial sweeteners. It came into force in January 2012. The tax was levied by the Presidents Socialist government to combat Frances rising obesity epidemic. (Concentrates were not subjected to this new tax).
Manufacturers focused on introducing new healthy juices, such as super fruit juices and / or juices with less sugar content. http://www. beveragedaily. com/Markets/Soft-drinks-stall-in-France-as-consumers-trade-down-Canadean.
Market Competition Poland Domestic companies Maspex, FoodCare and Agros Nova led fruit/vegetable juice sales in retail value terms in Poland in 2012. Based near Cracow in southern Poland, Maspex led the category with a 37% retail value share in 2012 due to the widespread popularity of its Tymbark and Kubus brands. FoodCare rapidly acquired second position with a 14% retail value share due to the outstanding sales of its Frugo brand. Agros Nova, with a 13% value share in 2012 is famous for its Fortuna brand.
The year 2012 was marked by the successful return of the well-known soft drink Frugo. The Frugo juice drinks (up to 24% juice) brand, being extremely popular in the late nineties, was withdrawn from the country at the beginning of the century. In 2011 FoodCare bought the rights for the brand and reintroduced the product in the same year. Massive marketing campaigns, supported by high brand awareness, contributed to the immediate Frugo success in 2012. Frugos return was the main factor behind the increased sales of all fruit/vegetable juice in Poland in 2012. France
In 2012, Orangina Schweppes continued to dominate fruit/vegetable juice in France, accounting for a total volume sales share of 18%. The company benefited from the high popularity of its Oasis, Pulco and Pampryl brands which are positioned on ambient shelves. The company also focused on developing chilled juices in order to attract new consumers. Comprised of not from concentrate 100% juices and smoothies, the chilled category is more expensive than ambient juices. Consequently, according to trade press, chilled juices attracted only 35% of French consumers, mainly high income demographics.
In 2012, Orangina Schweppes introduced Oasis Ptit dej douceur, Pulco Plaisir Frais and Pampryl Merveilles in chilled juices drinks. As Oasis Ptit dej contains 30% of fruit juices and Pampryl 40% of mashed fruits, their retail prices are lower than chilled juices. Consumer Capacity Poland While Poles are very price-oriented, according to the latest research, other factors are starting to play a big role for Polish consumers. With the increase in the number of so-called middle class, features such as high quality or brand recognition are becoming more and more important.
According to the results of a recent survey, Polish people believe that branded goods are of a better quality, availability and are safer. They also perceive branded products as being more expensive, but on the other hand, the high price is compensated by the return option in case the goods bought do not meet customer expectations. France French consumers are very conscious of the nutritional content of their drinks but at the same time, emotion is also a big part of the purchasing act.