Fruit juice brands are changing residence

Standing in front of the shelf the consumer compares the price of 1 litre of fruit juice and 1.5 litres of mineral water – this is the reason why the category of fruit drinks, nectars and fruit juices was the biggest loser last year. Because in terms of average prices fruit juice is the most expensive non-alcoholic thirst quencher, and consumers started economising as a result of the economic crisis.

According to Katalin Zarándy, the marketing director of SIÓ-ECKES Kft. another important factor contributed to the downturn: in most retail units fruit juices are displayed peripherally, not taking into consideration their market share.

Bálint Jencs, the marketing director of Rauch Hungária Kft. is of the opinion that a part of customers is actively seeking for products in promotion and there is a strong price competition on the market. Data by Nielsen shows that the share of private labels and larger than 1-litre packaging units grew.

Ágnes Chvojka, the junior brand manager of Maspex Olympos Kft. opines that in the carton segment larger than 1-litre packaging units are mostly lower fruit content, cheaper products – now wonder their popularity grows. The same is true for fruit drinks in PET bottles, 1.5-litre products’ sales have been growing for years. The increase in the market share of 100-percent fruit content juices is not surprising, because those who buy these products are loyal to their brands and have a great purchasing power that is not affected by the recession. Traditional and quality brands like SIÓ and Hohes C were the winners of the past period. This March SIÓ Prémium PET came out with a 100-percent filtered Apple juice and a 40-percent Apricot juice.

Rauch’s Happy Day brand offers the widest selection of flavours in the premium fruit juice category. Last autumn Rauch added 100-percent Red Multivitamin and 40-percent Apricot to its product selection. Maspex Olympos’ number one strategic product is Kubu children’s juices. Kubu represents the super-premium category, therefore the crisis had a negative effect on sales. However, thanks to its popularity among children and parents it will be able to keep its buyers with adequate brand activity.

Éda Pogány, communications director of Coca-Cola Hungary told that Cappy Ice Fruit drinks and higher fruit content Cappy products were managed separately, as their target groups were very different. They have different ATL communication strategies and they are placed at different places in stores. Examining flavour varieties we can see that the Hungarian market is undergoing a ‘globalisation’ process, as mixed flavours continue to climb in popularity. PET is increasingly successful in packaging, many fruit juices are changing residence from carton boxes to PET bottles, but carton boxes are still leading. Bálint Jencs told that Rauch puts its 100-percent and high fruit content juices into carton boxes to protect them from light.

Cappy’s introduction of 1-litre PET bottles by Coca-Cola Hungary at the end of 2007 was a great innovation among high fruit content products. Éda Pogány told that peer and filtered orange were introduced last June and now the product is available in 1-litre PET bottles in 8 versions.

Gramex2000 Kft. uses PET bottles exclusively to package (mostly private label) fruit juices; they manufacture nearly 300 products. Managing director János Gréczi informed us that the company installed an aseptic PET line and now they can put everything, from ice tea to 100-percent fruit juices, into PET bottles. Their novelty is BIO POWER energy drink, which is made from organic fruit juice.

SIÓ-ECKES considers consumer-friendly characteristics to be PET packaging’s biggest advantage. Katalin Zarándy told that SIÓ VitaTigris Fruit Purée’s
go-pack solution is also based on similar considerations. Maspex Olympos Kft. tries to capitalise on the opportunities of the PET segment: in March 2009 small-bottle Kubu products came out in 0.33-litre PET bottles.

BUSZESZ Zrt., a new player on the fruit juice market, also counts on the strengthening of the PET segment, so their new 12-percent fruit drink will be available in 0.33-litre PET bottles which were designed especially for children. Deputy-CEO Zoltán Fodor is a firm believer in innovation. He told that 0.5-,1.5- and 2-litre versions will also appear in PET bottles. The product family will be called Minimax and will be distributed by CO-OP Hungary in two varieties, ACE and Redmulti. Early this year market leader SIÓ-ECKES appeared in a new category, introducing its SIÓ Fruit Syrup product range. Rauch will expand its Nativa product range in the first half of the year. These tea drinks are made with adding real fruit juice and are available in three flavours in 0.5-litre and 1.5-litre packaging.

Maspex Olympos focuses on its strong brands this year. Kubu children’s drink will hit the shops in banana-strawberry flavour with a 100-percent fruit content. In the Olympos fruit drink range they will release the Apple-Peer-Grape flavour.