A fight, but not a windmill fight!

2022 was characterised by both dynamic growth and gradual restructuring in the market of carbonated soft drinks.

András Palkó
marketing director
Coca-Cola HBC
Magyarország

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

“In the first half of the year we saw major sales growth in basically every category where our company’s products are present. Sales were exceptionally good in the HoReCa sector. Sales in the last season were better than ever before in the history of Coca-Cola HBC Magyarország.”

In the second half of 2022 external factors such as extending the scope of the public health product tax (NETA) and skyrocketing ingredient and energy prices brought a slowdown in the market. As a reaction to this, shoppers gradually changed their buying habits and started purchasing cheaper, private label and large-sized products more often.

A new look

This year Coca-Cola Magyarország concentrates on low-calorie and low-sugar, and no calorie and no sugar products the most. They began the year with the limited edition Coca-Cola Movement zero product, which was launched to Hungarian shops at the same time as the world debut. In the first quarter new zero products hit the shops under the Fanta brand too, replacing the classic elderflower and grape flavours. In early 2023 the Kinley brand is undergoing complete renewal, with a new look, new recipe and new flavours. The company added a new flavour to the portfolio of natural mineral water based soft drinks, with Naturaqua Emotion Blueberry-Pomegranate. As part of the company’s World Without Waste strategy, from January 2023 Coca-Cola Magyarország is using attached caps on carbonated soft drink bottles.

A rearrangement has started

Forced price increases

Peter Schenk
marketing director
Szentkirályi Magyarország

Peter Schenk, marketing director of Szentkirályi Magyarország:

“High inflation and the new NETA rules had the biggest influence on the market in 2022. Manufacturers were forced to increase product prices, due to the rapidly growing ingredient and energy costs.”

The marketing director added that there are more and more health-conscious consumers, thanks to which the category of functional mineral waters is growing. Under the Theodora brand, Szentkirályi Magyarország will roll out a new product that combines the traditional values of this mineral water with a modern, innovative packaging. In the soft drink category their main new innovation is the soft and fruity tasting Pink tonic.

Rising ingredient and raw material prices

Every raw material and ingredient needed in soft drink production became more expensive in the last year, e.g. sugar, concentrates, carbon dioxide. Packaging material prices also jumped, together with energy prices and transportation costs.

Márton Vecsei
senior brand manager
HELL ENERGY

Márton Vecsei, senior brand manager of HELL ENERGY Magyarország Kft.:

“This year strong pricing had a fundamental influence on the market, the negative effects of which could only be compensated for by brands making very good or very special offers to consumers.”

With the launch of XIXO Tutti Fruity, HELL ENERGY Magyarország Kft. took a big step forward in the market competition in 2022. The XIXO Orange and Lemon flavours were updated, and in December the company rolled out XIXO Tutti Fruity Apple.

The rise of a health-conscious consumer group brings about an increase in the demand for functional mineral waters

Adaptation is the key to success

Adrienn Horváth
marketing and HR director
Márka Üdítőgyártó

Adrienn Horváth, marketing and HR director of Márka Üdítőgyártó Kft.:

“2022 brought new challenges for everyone. Rapid reaction, intervention, flexibility and a team of dedicated professionals formed the basis of the company’s change management, which brought positive results.”

Despite the economic hardships, the 50-year-old Márka brand managed to become stronger in 2022. In the private label segment the company’s positions weakened a little among flavoured waters, but they were able to make up for this with the good performance of branded products, realising higher volume and value sales growth. The company started to make Gyöngy soft drinks trendy again, and Mirror flavoured waters became really popular in 2022.

Last year discount supermarkets saw their market positions improve further, plus the HoReCa channel – where sales had declined heavily during the pandemic – was back on its feet again. Single serve products also performed better, so it is likely that 2023 will bring a boost in this impulse channel. While volume sales of multi-serve soft drinks dropped, sales of small-sized products augmented by 14% – in part because sales increased in the service station and tobacco shop channels.

Graphic designs and messages

Maspex Olympos Kft.’s Apenta Light soft drinks are made with 0% added sugar, for those consumers who don’t want to make compromises when it comes to calories and pleasant taste.

Patrícia Peres
brand manager
Maspex Olympos

Patrícia Peres, brand manager of Maspex Olympos Kft.:

“From Apenta carbonated soft drinks the raspberry flavour is the most popular, followed by orange and grape.”

Apenta Vitamixx is a brand that many consumers like in the flavoured water segment. Special flavour combinations are available, with added vitamins. Apenta+ products are still 750ml functional drinks.

Vilmos Várkonyi
group brand manager
Maspex Olympos

Vilmos Várkonyi, the company’s group brand manager:

“Topjoy carbonated soft drinks can be found in shops in 330ml size, in cactus, mango, watermelon and strawberry flavours. The products are free from artificial sweetener and preservatives.”

As consumption habits are changing, private labels and cheap products are pushing forward in the carbonated soft drink category. Orbico Hungary Kft.’s Jana Zero mint-lime drink is made without sugar or sweeteners.

Anikó Mochnács
category manager
Orbico Hungary

Anikó Mochnács, category manager of Orbico Hungary Kft.:

“Part of Jana products are sold in 100% recycled plastic bottles. In addition to using recycled plastic, we have also reduced the bottle weight of several products.”

The negative effects of price increases may be offset by brands with effective offers or unique innovations

Functionality enters the spotlight

Consumers are happy to try new soft drink flavours. Cola is the undisputed king, followed by classic flavours such as orange, lemon, tonic and ginger. In the category of flavoured mineral waters functionality and healthiness are becoming more important.

János Hajdu
key account manager
In-Food 2000

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

“Shoppers are getting to like flavoured, healthy and functional drinks more, and this has boosted sales in the category.”

From In-Food 2000 Kft.’s drink brands the Vöslauer Balance range is one of the flagships of the Hungarian flavoured water market. The company’s Almdudler brand – characterised by special ingredients and a taste like no other soft drink – had a superb year in 2022. Since March 2020 all Vöslauer products have been available in rePET bottles. In 2023 four new products will hit the shops in three categories.

Premium products

Szabolcs Simon
director for strategy and analytics
Simon Gyümölcs

Companies are prompted to mainly produce packaging innovations for sustainability

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