If the lemons are sour…just use them to make lemonade!

Nielsen data reveal that fruit juice value sales grew by 11.2% in January-November 2022, but volume sales decreased by 6.6%. The like-for-like sales drop was even bigger in the last three months: volume sales plunged 17.4% and value sales only increased by 7.4%.

Anna Kisházi
marketig manager
Sió-Eckes

Anna Kisházi, marketing manager of Sió-Eckes Kft.:

“Macroeconomic factors affect the fruit juice segment the same way as any other category. In spite of the growing inflation, the category continues to produce positive numbers, so we can be optimistic about the future.”

János Hajdu
key account manager
In-Food 2000

János Hajdu, key account manager of In-Food 2000 Kft.:

“Because of the war, ingredient and packaging material prices have grown like never before, and the fact that motor fuels have become more expensive had a negative influence on our shipping costs.” Plus in June the public health product tax (NETA) rules changed: there is now a HUF 23/litre extra cost for producers on fruit juices with a fruit content below 50%.

Health is in focus

Sales of Sió-Eckes’ strategic brands are growing above the market average, in part thanks to the successful premium product innovations: Sió and Hohes C chilled fruit juices, 100% fruit content juices and Hohes C Supershots. In addition to this, sales of low-sugar and no added sugar Sió Light products also perform well, just like Vitatigris products that target children. This portfolio underwent a renewal recently. In 2023 Sió-Eckes will keep building its Sió on-the-go portfolio, the Hohes C brand will continue to focus on health, and the company will conquer exciting new segments too.

Sales of Coca-Cola HBC Magyarország’s Cappy brand developed above the market average last year, with value sales growing by 15.8% and volume sales increasing by 0.9%.

András Palkó
marketing director
Coca-Cola HBC
Magyarország

András Palkó, marketing director of Coca-Cola HBC Magyarország:

“In 2022 two new products came out under the Cappy brand, which contain essential vitamins and minerals. Cappy Immunerő combines orange, peach and carrot, with added vitamins C and B12 and zinc, for a stronger immune system. Cappy Belső Erő offers the harmonic taste of orange and mango, plus vitamin D, to support the bones and muscles. We welcomed the summer with a new elder-containing product in the Cappy Lemonade range.”

Transforming market, changing consumption habits

As prices are rising, people are spending less on fruit juices. In the category it is still the fruit drink segment that has the biggest share, growing above the market average.

Szabolcs Simon
managing director for strategy and analytics
Simon Gyümölcs

Szabolcs Simon, managing director for strategy and analytics at Simon Gyümölcs:

“Because of the transportation problems caused by the war, the significance of Hungarian products and food safety will grow in 2023.”

Melinda Kun
brand manager
Rauch Hungária

Melinda Kun, brand manager of Rauch Hungária Kft.:

“Market players are reacting differently in the present situation; some of them are changing product recipes for lower fruit content, while others are reducing the size of their product portfolios.” In 2022 sales of Rauch Juice Bar chilled products augmented by 15.4%, value sales of Hey-ho were up 16.7% and Yippy value sales soared 30.6% – in a period when the market average was only +11.2%. HoReCa partners really like the company’s Bag in Box juices. Happy Days Immune Range products are now available in four flavours. This spring will bring the debut of two new exciting Hey-ho flavours, dragon fruit and lemon-lime.

Portfolio renewal

Fanny Móricz
brand manager
Szentkirályi Magyarország

For Szentkirályi Magyarország the main sales channel for fruit juice is HoReCa. Last year the company replaced the Tropicana brand with the Toma Prémium product range.

Fanny Móricz, brand manager of Szentkirályi Magyarország:

“In 2023 our 1-litre Toma portfolio will undergo complete renewal. We are also adding the peach flavour to the assortment, because it is very popular in Hungary. The 1-litre products will move from Tetra Pak to PET bottle packaging, which will be part of the deposit return scheme.”

Katalin Sarkadi
head of marketing
Funky Forest

Katalin Sarkadi, head of marketing at Funky Forest:

“Feedback from retailer partners has revealed that there are now fewer impulse purchases, and the basket composition is changing. HoReCa partners reported lower sales, plus many of them had to close temporarily or for good.” Market players are experimenting with special flavours, and the popularity of the large bottle format is growing.

While the share of products with higher fruit content has increased in the past, consumers have recently started to trade down

New seasonal products

In 2022 the Topjoy brand of Maspex Olympos Kft. was able to increase sales in every segment it is present in, strengthening its market share despite that the company had to increase prices a couple of times, because of the rising ingredient and energy costs.

Vilmos Várkonyi
group brand manager
Maspex Olympos

Vilmos Várkonyi, group brand manager of Maspex Olympos Kft.: “Every year we roll out exciting new flavours in our small-bottle product portfolio. Last year Extra Cool and Extra Sweet – kiwi and cranberry-vanilla – hit the shops. More new flavours will follow this spring. Back in the spring of 2022 we launched 0.4-litre Topjoy Lemonade fruit drinks, mainly in the wholesale channel. Our 100% apple, orange and multivitamin juices are also available in 0.3-litre PET bottle packaging.” Among children’s drinks category leader Kubu could increase its market share.

In 2022 the 0.5-litre Márka Fruitica fruit drinks of Márka Üdítőgyártó Kft. improved their sales performance by 45%, whiles sales of the company’s 1.5-litre products stood still. Márka fruit drinks have a strong presence in the shops of Hungarian-owned retail chains and in wholesale.

Adrienn Horváth, marketing director of Márka Üdítőgyártó Kft:

“Márka is now focusing on optimising operations and production. Plus we also plan to expand our existing distribution networks, and we would like to win stronger positions in export markets.”

The gap between the prices of A-brands and private label products has been closing

High fruit content and less sugar

András Palkó told our magazine: the most popular products in the market are those that are considered to be healthy, for instance they have very high fruit content and some kind of added functionality. Recently consumer demand has increased for zero calorie, no sugar and light variants.

In 2022 sales of In-Food 2000 Kft.’s Pfanner fruit juices grew by single-digit numbers in both value and volume. János Hajdú told that the company treats Pfanner as a “love brand”. Last year the packaging of 1-litre products was revamped. In 2022 probably the most exciting products were 2-litre Morning Boost and Vitamin Reload. The key account manager told that in the next period they will introduce limited edition flavours and formats to the market, launching exotic new flavours and vitamin-enriched products.

A progressive strategy

Manufacturer brands continue to dominate in the fruit juice market

Guest writer:
Zsófia Horváth
junior analytic insights associate
NielsenIQ

 In this period shoppers bought more than 200 million litres of fruit juice – volume sales were down 6%. Half of sales were realised by stores with a floor space between 401 and 2,500m².

Manufacturer brands strengthened their positions further: their market share was 67%. Sales of these products grew by 16%, while the sales growth was only 2% for private label fruit juices. On-the-go fruit juices continued their success story, as products smaller than 0.75 litre saw their value sales rise by double-digit numbers. Classic flavours such as apple, orange and peach were the most popular. //

A cikk a Trade magazin 2023.2-3. számában olvasható