Magazine: Old brands with new messages

Carbonated soft drink sales have been declining steadily for a decade. Last year 31 percent less was sold than in the peak year of 2003; compared with 2012 sales were down 12 percent. Éva Buru, head of communications with Coca-Cola Hungary told our magazine that being one of the oldest soft drink category also means that the appearance of each new innovative soft drink has a negative influence on carbonated soft drink sales and their popularity. During the years of recession people also switched to cheaper substitute categories. Still, the company expects the decline coming to a halt this year. Eszter Beraki, brand manager with Maspex Olympos Kft. reckons that last year’s serious sales decline also had to do with the introduction of the public health product fee (NETA), which was incorporated into the consumer price. She added that consumers are getting more health conscious and tend to buy mineral water instead. László Nagy, the CEO of KUNSÁG-SZESZ Zrt. opined that demand is the greatest for the cheapest products. The company is present in the first-price category. One of last year’s interesting developments was the decrease in the market share of private label products among carbonated soft drinks. Manufacturers opined that the reason behind this was the growing number of branded products becoming available at this price level. Adrienn Horváth, marketing manager of BUSZESZ Zrt. told Trade magazin that coke, orange and ginger are their most popular flavours, and lemonade was their main newcomer in the last two years. She also spoke about the shift in size towards larger bottles. Among retail channels discounters are pushing forward. Tibor Pécskövi, managing director of Márka Soft Drink Kft. informed us that last year promotions and price reductions became even more important than they had been before. Zoltán Herjeczki, director of sales and marketing at Fonyódi Mineral Water Kft. believes that the contraction of the carbonated soft drink market won’t stop. In his view low-calorie, healthier products will become dominant in the future. Márta Barnáné Vitárius, commercial director of Szentkirályi Mineral Water Kft. explained that premium category buyers are less price-sensitive, therefore it is worth innovating in this segment. As regards other segments, she shares the view that mineral water-based products will continue their conquest. ‘Share a Coke’ was massively successful campaign from the market leader. Their Coca-Cole Zero campaign also contributed to their spectacular market share growth last year and this growth continues. BUSZESZ has always been a fervent innovator as it is well indicated by their putting the all-natural WATT Natura on the market and their being one of the first to start using stevia. In 2014 they focus on the QUEEN carbonated soft drink line, renewing it in terms of both packaging and flavours. Apenta became one of the major soft drink brands in the last few years. Sugar-free Apenta DUO and Apenta Vitamixx with added vitamin were their last two innovations and both of them did well in stores. This year they add three new exotic flavour combinations (orange-mango, tropical mix, tonic-lime) to their portfolio. Szentkirályi is an innovative company that promotes healthy lifestyle and develops products with reduced energy content, substituting sugar with sucralose and manufacturing sugar-free soft drinks. Szentkirályi’s Elixis carbonated soft drink is made with 31 different herb extracts and the company’s intention is to make this product Hungary’s national soft drink. At the end of March their wild raspberry lemonade appeared in shops. Last year Márka managed to builds its own nationwide distribution channel, so now they can reach channels that used to be inaccessible for them in former years. Selling directly makes it possible to reach consumers easily with their new products. This spring three new 2-litre soft drinks and two 1.5-litre versions were added to their portfolio. Fonyódi Mineral Water plans to come out with new flavoured mineral water products and ice teas this year. In 2013 volume sales of their 1.5- and 0.5-litre products stagnated but the 0.75- and 1-litre products improved their market positions