The two largest players on the soft drinks market, Coca-Cola and Pepsi, will target niche segments, after carbonated drinks registered a slower sales growth rate.
Coca-Cola HBC Romania, the largest player on the soft drinks market, will tap into the segment of sports drinks (non-carbonated drinks with a higher salt content). The company will launch Coca-Cola's international brand Powerade on the market in the coming days. Calin Dragan, general manager of Coca-Cola HBC Romania, believes there could be a significant increase in the sales of sports drinks over summer.
PepsiCo tapped into this segment on the local market in 2006 with Gatorade, which targets active individuals, and is promoted in sports clubs and gyms.
Sports drinks are part of a niche segment on the Romanian market, whilst the greatest challenge faced by players is to strengthen this category on the soft drinks market.
"The sports drinks segment is developing, after it registered an accelerated growth rate. In Europe, the average growth rate stands at over 40%, higher than that of the other soft drinks," said representatives of Coca-Cola HBC Romania.
According to data from research company Canadean, this segment in Romania saw a significant increase in 2006, from 0.05 million units in the previous year to 0.33 million units at the end of 2006. The dynamics can be linked with Pepsi's entry onto this segment. Last year, the sports drinks market was estimated at 0.37 million units (0.5-litre bottles), according to the same source. In terms of value, the market could amount to less than half a million euros, based on shelf prices.
Coca-Cola entered another niche segment last year with Nescafe Express (cold, ready-to-drink coffee) through a partnership with Nestle. Towards the end of 2007, however, Greek-based Coca-Cola Hellenic announced it had sealed a partnership with Italian coffee producer illy in order to enter the ready-to-drink coffee segment. Following this international collaboration, Coca-Cola HBC Romania relinquished the distribution of Nescafe Express at the start of the year, with the product set to enter the portfolio of Nestle Romania.
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