Market shrinking as a result of rise in the price of materials

The FMCG market has shrunk by 3 percent in terms of value and 7 percent in terms of quantity in the past 12 months. Demand has shifted from premium products, towards drinks with a lower fruit content. High fruit prices in 2007 had the biggest impact on premium juices. Demand for some flavours like orange has shrunk as a result of higher price. Sales of peach and apple flavours have stabilised. Price promotions in this segment have been very successful in the short run. The segment of fruit drinks has expanded. This is where classic SIÓ products are positioned. The segment of refreshing fruit drinks is producing gradual expansion, like SIÓ fresh&fruit. Apart from the introduction of SIÓ VitaTigris fruit puree, no major innovations have appeared. We believe that this product allows children to discover that healthy things can be delicious.