Table of Contents
Soft Drinks in Russia - Industry Overview
EXECUTIVE SUMMARY
Proportion of average household expenditure spent on food and beverages continues to decline
International companies continue to lead soft drinks in Russia
Russians start to pay special attention to healthy soft drinks
Large international soft drinks companies continue to invest in Russia
Private label soft drinks are expected to be popular in Russian retail outlets
KEY TRENDS AND DEVELOPMENTS
The share of average household expenditure spent on food and beverages continues to decline
International companies remain the leading players in soft drinks in Russia
Russian consumers begin paying special attention to healthy soft drinks
Private label soft drinks are destined to become very popular in retail outlets
Large international companies continue to invest in soft drinks in Russia
CITY KEY TRENDS AND DEVELOPMENTS
Moscow
St Petersburg
MARKET DATA
Table 1 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2006-2011
Table 2 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2006-2011
Table 3 Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2006-2011
Table 4 Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2006-2011
Table 5 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: Volume 2011
Table 6 Off-trade vs On-trade Sales of Soft Drinks (as sold) by Category: % Volume 2011
Table 7 Off-trade vs On-trade Sales of Soft Drinks by Category: Value 2011
Table 8 Off-trade vs On-trade Sales of Soft Drinks by Category: % Value 2011
Table 9 Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2006-2011
Table 10 Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2006-2011
Table 11 Off-trade Sales of Soft Drinks by Category: Value 2006-2011
Table 12 Off-trade Sales of Soft Drinks by Category: % Value Growth 2006-2011
Table 13 Off-trade Sales of Soft Drinks (as sold) by City: Volume 2006-2011
Table 14 Off-trade Sales of Soft Drinks (as sold) by City: % Volume Growth 2006-2011
Table 15 Off-trade Sales of Soft Drinks (as sold) by City: Value 2006-2011
Table 16 Off-trade Sales of Soft Drinks (as sold) by City: % Value Growth 2006-2011
Table 17 Company Shares of Soft Drinks (RTD) by Total Volume 2007-2011
Table 18 Brand Shares of Soft Drinks (RTD) by Total Volume 2008-2011
Table 19 Company Shares of On-trade Soft Drinks (RTD) by Volume 2007-2011
Table 20 Brand Shares of On-trade Soft Drinks (RTD) by Volume 2008-2011
Table 21 Company Shares of Off-trade Soft Drinks (as sold) by Volume 2007-2011
Table 22 Brand Shares of Off-trade Soft Drinks (as sold) by Volume 2008-2011
Table 23 Company Shares of Off-trade Soft Drinks (RTD) by Volume 2007-2011
Table 24 Brand Shares of Off-trade Soft Drinks (RTD) by Volume 2008-2011
Table 25 Company Shares of Off-trade Soft Drinks by Value 2007-2011
Table 26 Brand Shares of Off-trade Soft Drinks by Value 2008-2011
Table 27 Penetration of Private Label (as sold) by Category by Volume 2006-2011
Table 28 Penetration of Private Label by Category by Value 2006-2011
Table 29 Off-trade Sales of Soft Drinks by Category and Distribution Format: % Analysis 2011
Table 30 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: Volume 2011-2016
Table 31 Forecast Off-trade vs On-trade Sales of Soft Drinks (as sold) by Channel: % Volume Growth 2011-2016
Table 32 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: Value 2011-2016
Table 33 Forecast Off-trade vs On-trade Sales of Soft Drinks by Channel: % Value Growth 2011-2016
Table 34 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: Volume 2011-2016
Table 35 Forecast Off-trade Sales of Soft Drinks (as sold) by Category: % Volume Growth 2011-2016
Table 36 Forecast Off-trade Sales of Soft Drinks by Category: Value 2011-2016
Table 37 Forecast Off-trade Sales of Soft Drinks by Category: % Value Growth 2011-2016
Table 38 Forecast Off-trade Sales of Soft Drinks (as sold) by City: Volume 2011-2016
Table 39 Forecast Off-trade Sales of Soft Drinks (as sold) by City: % Volume Growth 2011-2016
Table 40 Forecast Off-trade Sales of Soft Drinks (as sold) by City: Value 2011-2016
Table 41 Forecast Off-trade Sales of Soft Drinks (as sold) by City: % Value Growth 2011-2016
APPENDIX
Fountain Sales in Russia
TRENDS
Soft drinks fountain sales increased by 5% in volume in Russia during 2011. This increase was mainly the result of economic recovery. As a result, fountain sales of soft drinks recorded similar growth to overall on-trade volume sales of soft drinks. However, fountain sales accounted for only 3% of total on-trade volume sales of soft drinks in Russia during 2011.
Table 42 Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2006-2011
Table 43 Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2006-2011
Table 44 Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2006-2011
Table 45 Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2006-2011
Table 46 Forecast Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2011-2016
Table 47 Forecast Sales of Soft Drinks by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2011-2016
Table 48 Forecast Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: Volume 2011-2016
Table 49 Forecast Sales of Carbonates by Fountain On-trade through C-Store vs Other Fountain On-trade: % Volume Growth 2011-2016
DEFINITIONS
SOURCE
Summary 1 Research Sources
Soft Drinks in Russia - Company Profiles
Deka OAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Deka OAO: Competitive Position 2011
Karachinsky Istochnik OOO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Karachinsky Istochnik OOO: Competitive Position 2011
Lebedyansky OAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Lebedyansky OAO: Competitive Position 2011
Multon ZAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 11 Multon ZAO: Competitive Position 2011
Narzan OAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 14 Narzan OAO: Competitive Position 2010
Nidan Soki OAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Nidan Soki OAO: Competitive Position 2010
Visma ZAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 20 Visma ZAO: Competitive Position 2011
Wimm-Bill-Dann Produkty Pitania OAO in Soft Drinks (Russia)
STRATEGIC DIRECTION
KEY FACTS
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 22 Wimm-Bill-Dann Produkty Pitania OAO: Competitive Position 2011
Bottled Water in Russia - Category Analysis
HEADLINES
TRENDS
Russia is a country with an abundance of fresh water which is potable and can be used for drinking. In spite of the presence of large amounts of industrial waste in the country, the concentration of the residues of this waste in the drinking water remains very low due to the country’s vast water resources. However, more often than not, Russian consumers are open to suggestions that the quality of the country’s tap water does not correspond to expectations in terms of quality standards. Thus, bottled water has become a regular purchase and an indispensible item for many Russian consumers.
COMPETITIVE LANDSCAPE
Bottled water in Russia remains under the control of the leading multinational companies. PepsiCo Holdings OOO took first position in the category in 2011 with its famous Aqua Minerale brand, which accounted for 14% of total retail volume sales in bottled water in 2011. Following in second position was Coca-Cola Refreshments ZAO with its international brand Bonaqua achieving a 9% retail volume share. Local bottled water manufacturer Karachinsky Istochnik OOO ranked third in 2011 with a 5% volume share.
PROSPECTS
In terms of bottled water per capita in Russia, it is evident that there is still significant growth potential in the category as the 31 litres per capita consumption in Russia during 2011 is only half the equivalent consumption in more developed countries. Furthermore, bottled water in Russia is expected to continue benefitting from the generally increasing interest in the health and wellness trend, which is set to lead to many consumers switching from carbonates, RTD tea and concentrates to healthier soft drinks categories such as bottled water. Meanwhile, growth in bottled water is set be compromised by lower consumer purchasing power. The rapidly developing categories of flavoured bottled water and functional bottled water will remain the major drivers of volume sales of bottled water in Russia during the forecast period.
CATEGORY DATA
Institutional bottled water Sales
Carbonates in Russia - Category Analysis
HEADLINES
TRENDS
During 2011, Russia’s producers of carbonates increased production significantly and filled their warehouses with products during the spring season. However, the weather during summer 2011 failed to meet expectations, which led to slow growth in carbonates consumption in Russia. Total volume sales of carbonates increased by only 2% during 2011, with the main cause of this low growth the disappointing weather as average temperatures remained lower several degrees below anticipated levels, while the number of rainy days was double expectations. Lower levels of advertising also led to declines and slowdowns in certain carbonates categories, notably other non-cola carbonates.
COMPETITIVE LANDSCAPE
Carbonates in Russia is a highly competitive category and 58% of total volume sales in the category are controlled by international companies. Carbonates in Russia is dominated by two global producers, the Coca-Cola Co and PepsiCo. Coca-Cola accounted for 36% of off-trade volume sales in carbonates in Russia in 2011, while PepsiCo was ranked second with a 22% retail volume share. The most popular carbonates brands in Russia include Coca-Cola, Pepsi, Fanta, Sprite and 7-Up.
PROSPECTS
Carbonates in Russia is rapidly reaching its saturation point, which was the main reason for the moderate total volume growth of 2% recorded in 2011. This comparatively minor increase was mainly a response to the substantial volume growth which carbonates experienced in 2010, the result of the recovery of the Russian economy and rising consumer income levels as well as the abnormally long and hot summer which Russia enjoyed during 2010. According to growth projections, carbonates is set to record steady total volume over the forecast period, increasing at CAGR of 4%.
CATEGORY DATA
Table 65 Low Calorie carbonates by Category
Table 66 Off-trade Sales of Carbonates by Category: Volume 2006-2011
Table 67 Off-trade Sales of Carbonates by Category: Value 2006-2011
Table 68 Off-trade Sales of Carbonates by Category: % Volume Growth 2006-2011
Table 69 Off-trade Sales of Carbonates by Category: % Value Growth 2006-2011
Table 70 On-trade vs Off-trade Sales of Carbonates: Volume 2006-2011
Table 71 On-trade vs Off-trade Sales of Carbonates: Value 2006-2011
Table 72 On-trade vs Off-trade Sales of Carbonates: % Volume Growth 2006-2011
Table 73 On-trade vs Off-trade Sales of Carbonates: % Value Growth 2006-2011
Table 74 Off-trade Sales of Low Calorie Cola Carbonates by Category: % Volume Breakdown 2006-2011
Table 75 Leading Flavours for Cola Carbonates: % Volume Breakdown 2006-2011
Table 76 Leading Flavours for Non-cola Carbonates: % Volume Breakdown 2006-2011
Table 77 Company Shares of Carbonates by Off-trade Volume 2007-2011
Table 78 Brand Shares of Carbonates by Off-trade Volume 2008-2011
Table 79 Company Shares of Carbonates by Off-trade Value 2007-2011
Table 80 Brand Shares of Carbonates by Off-trade Value 2008-2011
Table 81 Forecast Off-trade Sales of Carbonates by Category: Volume 2011-2016
Table 82 Forecast Off-trade Sales of Carbonates by Category: Value 2011-2016
Table 83 Forecast Off-trade Sales of Carbonates by Category: % Volume Growth 2011-2016
Table 84 Forecast Off-trade Sales of Carbonates by Category: % Value Growth 2011-2016
Concentrates in Russia - Category Analysis
HEADLINES
TRENDS
Concentrates has not shown any significant volume growth in Russia for a decade, and per capita consumption of concentrates remains low in Russia. The average Russian consumer places little trust in concentrates, mainly due to lingering doubts about the health properties of concentrates, a category of products which do not exactly respond to the modern health and wellness trend, which is becoming increasingly popular in Russia. Concentrates are often highly artificial products and usually contain large quantities of sugar and colourings. Concentrates were rather popular between 1990 and 1995 and the leading brands were well supported by strong promotional activities. As the early years of the post-Soviet era is now viewed as being among the hardest of times for Russian consumers, concentrates are now associated with past hardships. Usually, concentrates are purchased by low-income consumers or those with little interest in their health.
COMPETITIVE LANDSCAPE
Russky Produkt OAO remained the leading powder concentrates company in Russia during 2011 in volume terms with a 21% volume share, although its 12% value share positioned it in second position in value terms. The ongoing popularity of traditional Russian drinks such as kvass and kisiel—which have remained popular for some time now—have helped Russky Produkt to build a maintain a substantial volume share in concentrates. As concentrates saw no substantial changes during 2011, the value and volume shares of the leading players remained unchanged throughout the year. Unlike the leading players in bottled water, fruit/vegetable juice and carbonates, Russky Produkt OAO does not invest in promotional activities as it is feels these would be impossible to justify from a financial perspective.
PROSPECTS
Concentrates is a category which is highly susceptible to fluctuations in the economic fortunes of Russia generally, with economic crisis or recovery set to remain the main determinant of success for the category during the forecast period. Concentrates in Russia is, however, currently very stable and the category fulfils the demands of Russian consumers, although concentrates remain rather unpopular in Russia. Concentrates is set to increase in off-trade RTD volume at a CAGR of 5% over the forecast period. At the same time, the leading manufacturers in the category are not expected to offer any new products with greater added value features.
CATEGORY DATA
Concentrates Conversions
Table 85 Concentrates Conversion Factors for Ready-to-Drink (RTD) Format
Table 86 Off-trade Sales of Concentrates (as sold) by Category: Volume 2006-2011
Table 87 Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2006-2011
Table 88 Off-trade Sales of Concentrates (RTD) by Category: Volume 2006-2011
Table 89 Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2006-2011
Table 90 Off-trade Sales of Concentrates by Category: Value 2006-2011
Table 91 Off-trade Sales of Concentrates by Category: % Value Growth 2006-2011
Table 92 Leading Flavours for Liquid Concentrates: % Volume Breakdown 2006-2011
Table 93 Leading Flavours for Powder Concentrates: % Volume Breakdown 2006-2011
Table 94 Company Shares of Liquid Concentrates (as sold) by Off-trade Volume 2007-2011
Table 95 Brand Shares of Liquid Concentrates (as sold) by Off-trade Volume 2008-2011
Table 96 Company Shares of Powder Concentrates (as sold) by Off-trade Volume 2007-2011
Table 97 Brand Shares of Powder Concentrates (as sold) by Off-trade Volume 2008-2011
Table 98 Company Shares of Concentrates (RTD) by Off-trade Volume 2007-2011
Table 99 Brand Shares of Concentrates (RTD) by Off-trade Volume 2008-2011
Table 100 Company Shares of Concentrates by Off-trade Value 2007-2011
Table 101 Brand Shares of Concentrates by Off-trade Value 2008-2011
Table 102 Forecast Off-trade Sales of Concentrates (as sold) by Category: Volume 2011-2016
Table 103 Forecast Off-trade Sales of Concentrates (as sold) by Category: % Volume Growth 2011-2016
Table 104 Forecast Off-trade Sales of Concentrates (RTD) by Category: Volume 2011-2016
Table 105 Forecast Off-trade Sales of Concentrates (RTD) by Category: % Volume Growth 2011-2016
Table 106 Forecast Off-trade Sales of Concentrates by Category: Value 2011-2016
Table 107 Forecast Off-trade Sales of Concentrates by Category: % Value Growth 2011-2016
Fruit/Vegetable Juice in Russia - Category Analysis
HEADLINES
TRENDS
Fruit/vegetable juice in Russia increased in total volume by 3% and in total value by 12% during 2011. The prevailing trends differed in each of the categories which comprise fruit/vegetable in Russia during 2011. For example, 100% juice—the fruit/vegetable juice category with the highest average retail selling price—declined by 8% in volume, while nectars (25-99% juice)—a category of much more affordable products for Russian consumers—registered strong growth in volume terms during the year. Overall growth in fruit/vegetable juice remains less impressive than during 2010, mainly because the Russian summer was rather disappointing in 2011 as average temperature levels were several degrees lower than average with double the average number of rainy days. Another reason for the slower growth during 2011 was the rising price of the raw ingredients for the production of juice, which affected the retail selling price of fruit/vegetable juice on retail shelves.
COMPETITIVE LANDSCAPE
The level of competition is extremely high in fruit/vegetable juice in Russia. Following a flurry of acquisitions during the review period, the largest local fruit/vegetable juice producers now belong to PepsiCo Inc and The Coca-Cola Company, through its regional subsidiary Coca-Cola Hellenic Bottling Co SA. This means that these two global giants now exercise considerable control over fruit/vegetable juice in Russia and therefore largely determine the development of various trends. The total volume shares of PepsiCo and Coca-Cola in fruit/vegetable juice in Russia was 79% in 2011. PepsiCo and The Coca-Cola Company have an even higher chance to gain even larger volume shares during the forecast period as such large companies have better opportunities to reduce costs, attract funding and survive during adverse financial periods. During 2011, the leading players in fruit/vegetable juice at national level were Lebedyansky ZAO with a 29% volume share; Wimm-Bill-Dann Produkty Pitania OOO with a 21% volume share; Multon ZAO with an 18% in volume share; and Nidan Soki OAO with an 11% volume share.
PROSPECTS
Fruit/vegetable juice Russia recorded only modest total volume growth in 2011, rising by 3%, while total value growth was higher at 12%. The prevailing trends in 2011 varied between different fruit/vegetable juice categories. 100% juice, which carries the highest retail selling price in fruit/vegetable juice in Russia, declined in volume during 2011, while nectars (25-99% juice)—which is a category of products which are more affordable to Russian consumers—registered strong volume growth during 2011. Fruit/vegetable juice is expected to increase in total volume at a CAGR of 5% over the forecast period.
CATEGORY DATA
Table 108 Off-trade Sales of Fruit/Vegetable Juice by Category: Volume 2006-2011
Table 109 Off-trade Sales of Fruit/Vegetable Juice by Category: Value 2006-2011
Table 110 Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2006-2011
Table 111 Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth 2006-2011
Table 112 Leading Flavours for 100% Juice: % Volume Breakdown 2006-2011
Table 113 Leading Flavours for Juice Drinks (up to 24% Juice): % Volume Breakdown 2006-2011
Table 114 Leading Flavours for Nectars (25-99% Juice): % Volume Breakdown 2006-2011
Table 115 % Share of Smoothies in 100% Juice and Nectars (25-99% Juice): Off-trade Value 2010
Table 116 Chilled Vs Ambient Not From Concentrate 100% Juice: % Volume Analysis 2006-2011
Table 117 Chilled Vs Ambient Reconstituted 100% Juice: % Volume Analysis 2006-2011
Table 118 Company Shares of Fruit/Vegetable Juice by Off-trade Volume 2007-2011
Table 119 Brand Shares of Fruit/Vegetable Juice by Off-trade Volume 2008-2011
Table 120 Company Shares of Fruit/Vegetable Juice by Off-trade Value 2007-2011
Table 121 Brand Shares of Fruit/Vegetable Juice by Off-trade Value 2008-2011
Table 122 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Volume 2011-2016
Table 123 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: Value 2011-2016
Table 124 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Volume Growth 2011-2016
Table 125 Forecast Off-trade Sales of Fruit/Vegetable Juice by Category: % Value Growth 2011-2016
RTD Coffee in Russia - Category Analysis
HEADLINES
TRENDS
Only a limited range of brands of RTD coffee remain available in Russia. RTD coffee remains a niche product category in Russia as the vast majority of Russian consumers have not yet discovered the benefits of RTD coffee. Furthermore, poor advertising support and low penetration in key distribution channels also contribute to the low awareness of RTD coffee in Russia. As total volume sales of RTD coffee remain highly dependent on purchases from a very small but loyal consumer base, sales continued to contract in 2011 as the consumer base for RTD coffee in Russia shrank further. The growing popularity of takeaway coffee and energy drinks is seriously hampering the further development of RTD coffee in Russia.
COMPETITIVE LANDSCAPE
The previous leading brand in RTD coffee in Russia, Nescafé Xpress from Nestlé Russia OOO, was withdrawn from Russia during the review period. The main reason for this was that the Nescafé Xpress brand suffered from very low volume sales. The multinational packaged food and soft drinks giant Nestlé regards RTD coffee in Russia as a category which lacks sufficient growth potential, at least in the short term.
PROSPECTS
RTD coffee is expected to decline in total volume at a CAGR of -4% over the forecast period, while constant value sales are expected to decline at a CAGR of -1%. However, this is set to represent a major improvement from the heave declines recorded in the category during the review period as new players are expected to enter RTD coffee, positioning their products as a healthy alternative to energy drinks.
CATEGORY DATA
Table 126 Off-trade Sales of RTD Coffee: Volume 2006-2011
Table 127 Off-trade Sales of RTD Coffee: Value 2006-2011
Table 128 Off-trade Sales of RTD Coffee: % Volume Growth 2006-2011
Table 129 Off-trade Sales of RTD Coffee: % Value Growth 2006-2011
Table 130 Company Shares of RTD Coffee by Off-trade Volume 2007-2011
Table 131 Brand Shares of RTD Coffee by Off-trade Volume 2008-2011
Table 132 Leading Flavours for RTD Coffee: % Volume Breakdown 2006-2011
Table 133 Company Shares of RTD Coffee by Off-trade Value 2007-2011
Table 134 Brand Shares of RTD Coffee by Off-trade Value 2008-2011
Table 135 Forecast Off-trade Sales of RTD Coffee: Volume 2011-2016
Table 136 Forecast Off-trade Sales of RTD Coffee: Value 2011-2016
Table 137 Forecast Off-trade Sales of RTD Coffee: % Volume Growth 2011-2016
Table 138 Forecast Off-trade Sales of RTD Coffee: % Value Growth 2011-2016
RTD Tea in Russia - Category Analysis
HEADLINES
TRENDS
RTD tea in Russia increased in volume by 3% in total volume in 2011, rising to 248 million litres, while current value sales increased by 18% to RUB13.8 billion. RTD tea is no longer a novelty for Russian consumers. Local and international companies now offer a wide variety of RTD tea brands in Russia. Growth in demand for RTD tea in Russia is being influenced by similar factors to other soft drinks categories such as bottled water, fruit/vegetable juice and carbonates. These factors include the attractive and affordable unit price, the refreshment offered by RTD during Russia’s hot summer season and the health and wellness trend. Hot tea in Russia is influenced by completely different factors to RTD tea as hot tea is a traditional Russian drink and tea in hot drinks is already a completely saturated category with a much wider variety of products at a variety of unit price levels. However, volume sales of RTD tea remain much greater than volume sales of RTD coffee due to the clear positioning strategies of RTD tea manufacturers, which have led to RTD tea occupying a niche as a healthy alternative to other soft drinks such as carbonates.
COMPETITIVE LANDSCAPE
Coca-Cola Refreshments ZAO and PepsiCo Holdings OOO continued to occupy the leading positions in RTD tea in Russia during 2011. The combined volume shares of these two global soft drinks giants accounted for 73% of total volume sales in RTD tea during 2011. The Nestea brand, which currently belongs to Coca-Cola Refreshments, accounted for 43% of total RTD tea retail volume sales in 2011, while the Lipton brand from PepsiCo Holdings accounted for a further 42%.
PROSPECTS
RTD tea increased in volume by 3% in 2011 and it is predicted that higher growth rates will be recorded during the forecast period as RTD tea is set to increase in total volume at a CAGR of 5%. Local companies will attempt to capture volume share at the expense of Coca-Cola Refreshments ZAO and PepsiCo Holdings OOO. Although Coca-Cola’s Nestea brand and PepsiCo’s Lipton brand have significant loyal consumer bases, the target audience for these brands remain willing to try new RTD tea products and brands at more affordable prices.
CATEGORY DATA
Table 139 Off-trade Sales of RTD Tea by Category: Volume 2006-2011
Table 140 Off-trade Sales of RTD Tea by Category: Value 2006-2011
Table 141 Off-trade Sales of RTD Tea by Category: % Volume Growth 2006-2011
Table 142 Off-trade Sales of RTD Tea by Category: % Value Growth 2006-2011
Table 143 Leading Flavours for RTD Tea: % Volume Breakdown 2006-2011
Table 144 Company Shares of RTD Tea by Off-trade Volume 2007-2011
Table 145 Brand Shares of RTD Tea by Off-trade Volume 2008-2011
Table 146 Company Shares of RTD Tea by Off-trade Value 2007-2011
Table 147 Brand Shares of RTD Tea by Off-trade Value 2008-2011
Table 148 Forecast Off-trade Sales of RTD Tea by Category: Volume 2011-2016
Table 149 Forecast Off-trade Sales of RTD Tea by Category: Value 2011-2016
Table 150 Forecast Off-trade Sales of RTD Tea by Category: % Volume Growth 2011-2016
Table 151 Forecast Off-trade Sales of RTD Tea by Category: % Value Growth 2011-2016
Sports and Energy Drinks in Russia - Category Analysis
HEADLINES
TRENDS
Volume sales of sports and energy drinks continued to grow rapidly during 2011 as value sales also continued to increase in a continuation of trends which began in 2009. Sports and energy drinks increases by 24% in total volume and by 18% in total value during 2011.
COMPETITIVE LANDSCAPE
South Beach Beverage Co Inc—a company owned at GBO by PepsiCo—occupied the leading position in sports and energy drinks in Russia in 2011 with a 25% volume share. Following in second position was Red Bull GmbH with a 19% volume share, while Coca-Cola Refreshments ZAO was third with 17%. All of these companies were able to maintain sales growth due to their large numbers of loyal consumers and their strong experience in terms of promoting their brands.
PROSPECTS
Sports and energy drinks in Russia is expected to continue registering strong as the products within the category are set to become more affordable to average Russian consumers during the forecast period. Demand patterns in Russia are set to become similar to the demand patterns in Western European countries, with a much wider assortment of functional drinks on offer. The evolution of demand for products which enhance healthy lifestyles will also help sports drinks to maintain positive growth during the forecast period.
CATEGORY DATA
Table 152 Off-trade Sales of Sports and Energy Drinks by Category: Volume 2006-2011
Table 153 Off-trade Sales of Sports and Energy Drinks by Category: Value 2006-2011
Table 154 Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth 2006-2011
Table 155 Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth 2006-2011
Table 156 Leading Flavours for Sports and Energy Drinks: % Volume Breakdown 2006-2011
Table 157 Company Shares of Sports and Energy Drinks by Off-trade Volume 2007-2011
Table 158 Brand Shares of Sports and Energy Drinks by Off-trade Volume 2008-2011
Table 159 Company Shares of Sports and Energy Drinks by Off-trade Value 2007-2011
Table 160 Brand Shares of Sports and Energy Drinks by Off-trade Value 2008-2011
Table 161 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Volume 2011-2016
Table 162 Forecast Off-trade Sales of Sports and Energy Drinks by Category: Value 2011-2016
Table 163 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Volume Growth 2011-2016
Table 164 Forecast Off-trade Sales of Sports and Energy Drinks by Category: % Value Growth 2011-2016