The biggest players on the domestic soft drinks market, Coca-Cola and QAB, Pepsi's bottler, have expanded their portfolios on the non-carbonated drinks market, which boasts four times higher growth than the carbonated soft drinks or mineral water markets. The market of soft drinks is estimated to be worth over 500 million euros.
The market share of non-carbonated soft drinks accounts for 9% in the overall market of soft drinks (not including alcohol) and ranks third in terms of volume, after carbonated soft drinks and water, according to Coca-Cola.
On the other hand, QAB representatives say, quoting a survey by Canadean, that sales of non-carbonated drinks will go up by 18-20% this year, compared with the only 3-4% growth rate of the carbonated drinks and mineral water segments.
On Monday, Coca-Cola launched a new range, Cappy Ice Fruit, while the Pepsi bottler decided to re-launch the Prigat Activ brand. Both product launches are the result of the significant production-related investments the two companies made. Coca-Cola invested 17 million euros, while QAB invested around 14.5 million euros.
Cappy Ice Fruit, the new Coca-Cola product range, was launched in the context where the market of non-carbonated drinks increased by 56% this May compared with the similar period of last year, according to company data, which quoted an MEMRB report of May 2006.
"At present, consumers tend to focus on the premium product category. Cappy Ice Fruit is thus launched at the right time," stated Nicoleta Enache, Senior Brand Manager of Non-carbonated Beverages for Coca-Cola Romania, Bulgaria and Moldova. She also said that from 2001 to 2005, Cappy sales had been advancing each year, by 37% annually.
The Cappy range is part of the international portfolio of Coca-Cola, with the brand belonging to Minute Maid company, which in 1960 became a Coca-Cola unit.
Prigat is QAB's own brand and is not part of the international portfolio of PepsiCo.
The Coca-Cola and Pepsi bottlers have made another almost simultaneous strategic move this year on the ice-tea market, which accounts for around 1% of the domestic soft drinks market.
The two companies launched green tea variants of Nestea and Lipton teas in a bid to expand their portfolio.
On the segment of carbonated beverages in Romania, PepsiCo International registered growth of around 25% in the first quarter sales of cola-type soft drinks, topping the quantitative sales of its main rival by 2% and reaching a market share of 42%, according to a survey done by the Canadean market research firm, quoted by PepsiCo.
Coca-Cola HBC Romania last year posted turnover worth 1.017 billion RON (280.7 million euros) up 15% year-on-year. In 2005,QAB posted turnover worth 128 million euros, up 48% from 2004.
Non-carbonated beverages market
Boasts four times higher growth than the carbonated beverages or mineral water markets
Accounts for 9 percent in the overall market of soft drinks
Ranks third in terms of volume, after carbonated drinks and water
Sales of non-carbonated drinks are expected to increase by 18-20% this year, compared with growth by only 3-4% on the segment of carbonated beverages and mineral water.
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