SOFT DRINKS IN ROMANIA - ANALYSIS

Country Report | Dec 2022

EXECUTIVE SUMMARY Market Sizes

Soft drinks in 2022: The big picture Sales of Soft Drinks
Off-trade Volume - million litres - 2008-2027
In 2022, soft drinks continued to register a recovery in on-trade volume sales, after a
fall in sales was noted during the outbreak of COVID-19. However, volume growth was
dampened by rising energy prices, challenging manufacturers and consumers, with 4,112 Forecast
price sensitivity increasing amid inflation. In addition, the scheduling of the FIFA World 5,000
Cup in November, rather than summer, failed to bring the usual boost to soft drinks
sales. Despite this, soft drinks continued to grow, with on-trade registering a recovery
in the first full post-pandemic year of no restrictions. For off-trade sales, current value 4,000
sales rose in line with price increases; however, these higher prices discouraged some
consumers, with off-trade volume sales of carbonates struggling.
3,000
At the other end of the scale, reduced sugar energy drinks, functional bottled water,
sports drinks and 100% juice recorded positive off-trade volume growth, with rising
consumer interest in healthier types of soft drinks driving these sales. As such, despite 2,000
price sensitivity, consumers continued to seek higher quality and additional nutritional
benefits, choosing products that aligned with the growing health, wellness and
sustainability trends. 1,000

0
2008 2022 2027

2022 key trends

Premiumisation remained a key trend in 2022, with some Romanian consumers Sales Performance of Soft Drinks
searching for quality products with added functionality, innovative flavours or % Y-O-Y Off-trade Volume Growth 2008-2027
additional health benefits. The health and wellness trend continued to shape the
evolution of soft drinks, with players responding to the rising demand for healthier
options by offering reduced sugar drinks, while focusing on promoting natural organic
2.0% Forecast
ingredients and added benefits, such as vitamins and minerals. However, the rising 10%
health trend has put pressure on carbonates, with consumers migrating towards
options they perceive to be healthier. This saw carbonates losing ground to
alternatives, such as bottled water and juice, with 100% juice recording particularly 5%
positive off-trade volume growth.
Free from sugar options, organic products and those focused on natural ingredients
were among the most attractive soft drinks, becoming increasingly visible on shelves. 0%

2022 also saw numerous product developments aligned with the increasing interest in
sustainability. As such, some players launched recyclable packaging, while others -5%
focused on reducing the quantity of plastic used. Furthermore, some Romanian
consumers continued to gravitate towards natural products, aiming to shy away from
products with health risks. -10%
2008 2022 2027

Competitive landscape

The soft drinks landscape remained dominated by large international brands in 2022,
with these players continuing to implement aggressive marketing campaigns while
offering new product developments. For example, in 2022, Pepsi launched the “It
tastes very good, and that’s it” campaign, which was heavily advertised in the
country. In addition, leading players continued to launch flavour innovations and
redesigned packaging to align with consumers' current demands. For example, in
response to the health and wellness trend, Santal launched the DUO light range,
available in three innovative blends.

Coca-Cola HBC Romania SRL retained its top spot in 2022, benefiting from its leading
position in carbonates, juice and RTD tea while holding the second position in bottled
water. Romaqua Group SA is second, leading bottled water with Borsec, while
Quadrant-Amroq Beverages SA offers Pepsi to the landscape, holding the third-placed
position.

© Euromonitor Interna onal 2023 Page 1 of 4

 Sales of Soft Drinks by Category
Smaller brands are also gaining ground on the landscape, especially within categories Off-trade Volume - million litres - 2022 Growth Performance
with strong prospects for growth, such as 100% juice and functional bottled water.
Private label is also gaining more ground, attracting the rise of price-sensitive Bottled Water
2,299.8
consumers in the current economic context. Nevertheless, private label offerings have
also been diversifying their portfolios by including premium products, such as bio and Carbonates
1,369.2
organic offerings.
Concentrates
18.4
Juice
298.1
Retailing developments
RTD Coffee
0.7
RTD Tea
Romanians continued to buy the bulk of their soft drinks from chain grocery retailers. 97.7
These outlets have the most extensive product portfolios and are close to consumers’ Energy Drinks
homes. In response to the rising price points of 2022, these retailers focused on special 28.1
offers and discounts to counterbalance the impact of inflation and retain consumers. Sports Drinks
Some chain stores, such as Auchan, froze the prices for certain key products, including 0.6
various soft drinks, in a bid to retain loyal consumers. Asian Speciality Drinks
-
0% 5% 10%
E-commerce continued to have a dynamic evolution in 2022. During the outbreak of SOFT DRINKS 4,112.5 CURRENT % CAGR % CAGR
COVID-19, many consumers migrated to the online channel, which offered a safer form YEAR % 2017-2022 2022-2027
of retailing. Positive share has continued as a rising amount of consumers have become GROWTH
accustomed to the ease and convenience of the channel, especially when delivering
bulky or large quantities of soft drinks. The rising number of e-commerce retailers,
growing availability of soft drinks, and chained store-based retailers focusing on an
omnichannel approach are all factors aiding growth. Competitive Landscape

Company Shares of Soft Drinks

% Share (NBO) - Off-trade Volume - 2022
Foodservice vs retail split
Coca-Cola HBC Romania SR... 22.2%
Romaqua Group SA 17.0%
Foodservice sales outperformed off-trade sales in 2022, given the large room for
recovery the on-trade had following the decline in sales during COVID-19. In 2022, Quadrant-Amroq Beverages... 7.2%
consumers started to go out during the day and evenings more, feeling more confident Carpathian Springs SA 4.6%
and comfortable to socialise. However, although Romanians regained their pre-
Rio Bucovina SRL 3.4%
pandemic habits of going out, on-trade recovery was slowed by inflation, which saw
consumers paying closer attention to their outgoings. European Drinks SA 3.1%
Perla Harghitei SA 2.7%
Apemin Tusnad SA 2.2%
What next for soft drinks? Apemin Zizin SA 2.0%
Carrefour Romania SA 1.8%
Lidl Discount SRL 1.6%
Across the early forecast period, inflation will remain a key issue impacting the soft
drinks landscape. To remain attractive to consumers in 2023, retailers and producers Tymbark-Maspex Romania S... 1.5%
may reduce profit margins to maintain appealing price points. In addition, the
Kaufland Romania SCS 1.0%
Government has amended the fiscal code, which will be implemented in 2023. As such,
VAT will increase from 9% to 19% for non-alcoholic drinks with added sugar, Azuga Waters SRL 0.9%
sweeteners, and flavours. Furthermore, the VAT rate for Horeca outlets will also BDG Import SRL 0.6%
increase from 5% to 9%. This will lead to higher unit prices for soft drinks, which are
higher in the on-trade. In addition, from October 2022, consumers had to pay a RON0.5 Carlsrom Beverages Co SR... 0.6%
deposit for every bottled drink they purchased, which was added to the shelf price and Merlins Beverages SRL 0.5%
distinctly marked on the receipts.
Izvorul Moieciu Natura S... 0.5%
Other Private Label 4.3%

In response to the growing health trend, players will focus on natural ingredients, low Others 22.5%
sugar and added functional benefits. The rising interest in eco-credentials will see
manufacturers focus on recyclable packaging and sustainable production practices.
Finally, premiumisation is expected to advance, with consumers willing to spend more
for value-added products and premium brands, especially those that offer unique
positions and innovative flavours.

APPENDIX

Fountain sales in Romania

The 2022 strong recovery of the foodservice sector had a positive implication on the
evolution of fountain sales. 2022 was the first full year that COVID-19 restrictions had
been lifted , and this lead to consumers going out more often, driving up the
demand for fountain sales.
However, growth in fountain sales was limited by the rampant inflation, which made
some consumers reduce their spending within the on-trade.

DISCLAIMER

© Euromonitor Interna onal 2023 Page 2 of 4

Forecast closing date: 31 October 2022 Brand Shares of Soft Drinks
% Share (LBN) - Off-trade Volume - 2022
Report closing date: 14 December 2022
Borsec 13.9%
Analysis and data in this report give full consideration to consumer behaviour and
market performance in 2022 and beyond as of the dates above. For the very latest Coca-Cola 7.0%
insight on this industry and consumer behaviour, at both global and national level, Aqua Carpatica 4.6%
readers can access strategic analysis and updates on www.euromonitor.com and via the
Passport system, where new content is being added on a systematic basis. Dorna 4.5%
Fanta 3.1%
SOURCES Bucovina 2.7%
Pepsi 2.7%
Sources used during the research included the following:
Perla Harghitei 2.6%
Summary 1 Research Sources Zizin 2.0%
Official Sources National Instittute of Statistics of Romania Frutti 1.9%
Na tiona l Sta tis tics Ins titute
Carrefour Discount 1.7%
Roma nia n Minis try of Fina nce, The
Sprite 1.6%
Sta tis ta
Apa 1.5%
The Roma nia n Minis try of Fina nce
Cappy 1.3%
Trade Associations Apemin As s ocia tion
As s ocia tion of Soft Drinks Indus tries Giusto 1.1%
Interna tiona l Bottled Wa ter As s ocia tion Aquatique 1.1%
Interna tiona l Federa tion of Fruit Juice Producers Tymbark 1.1%
UNESDA & CISDA Fuze Tea 1.1%
Trade Press Adeva rul
Other Private Label 4.3%
a lephnews
Others 40.3%
a s ocia tia s ocia lincuba tor.org
Bevera ge Net 5-Year Trend
Increasing share Decreasing share No change
Bevera ge World
bis trita bus ines s .ro
bizbra s ov.ro
Brexit RO
Bus ines s Ma ga zin
Bus ines s Review
Bus ines s Sta nda rd
Bus ines s Week
Ca pita l
Ca pita l Monthly
Ca rbona tes
cecca rbus ines s ma ga zine.ro
Cotidia nul
Da ily Bus ines s
doingbus ines s .ro
Dorna
dzs us z
economica .net
Energy Drinks Europe
Food & Ba r
Forbes
Forbes .ro
Ga ndul
globa lma na ger.ro
hotnews .ro
Iqa ds .ro
Juice a s s oc
Loca l Wa ter
Ma ga zinul Progres iv
Ma rket Size
mes a ger24.ro
mobile-news .ro
Modern Buyer
Modernbuyer.ro
ms news .ro
Obs erva tornews
Obs erva torul PH
Optimos group
Pa renting

© Euromonitor Interna onal 2023 Page 3 of 4

 Official Sources National Instittute of Statistics of Romania
Pia ta
prnews wire.com
profit.ro
Protv
Ra dio Infinit
Reta il & FMCG
reta il.ro
reta il-fmgc.ro
Revis ta Pia ta
Revis ta Progres iv
roa liment.ro
Roma nia Libera
s choenherr.eu
s ma rk.ro
Sma rt Fina ncia l
Soft Drinks Interna tiona l
Still wa ter
Stirile ProTV
s uca roma .ro
trends hrb.ro
wa ll.s treet.ro
Wa ll-Street
zia re.com
Zia rul Fina ncia r

Source: Euromonitor Interna tiona l

© Euromonitor Interna onal 2023 Page 4 of 4