Boston, MA -- (ReleaseWire) -- 06/20/2014 -- Carbonates suffered a decline in total volume and registered an increase in total value terms in 2013. The main reason for this was that towards the end of the review period the category suffered from price erosion and in 2012 and 2013 major players, such as Coca-Cola, began to increase prices in order to restore their profit margins. The summer of 2013 was a particularly warm one despite the chilly spring. This is likely to have had a positive effect on carbonates in 2013 and help to limit the loss in volume which otherwise would have been even more severe.
The leading company in carbonates was Coca-Cola Enterprises as the company maintained its leadership in carbonates and even managed to expand its off-trade value share by one percentage point in 2013. Its longstanding presence both worldwide and in the Netherlands is one reason for its leading position. A second important factor is the strong customer loyalty its products enjoy. It also benefits from its wide on-trade and off-trade distribution network in carbonates, offering well-established brands, such as Coca-Cola, Sprite and Fanta. Furthermore, Coca-Cola is one of the most prominent promoters in carbonates, actively marketing and advertising its products.
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The expectation for the forecast period is that there will be a further minor decline in off-trade volume sales, although sales are likely to pick up towards the end of the period. No trends are anticipated over the forecast period that will encourage consumption of carbonates to increase. Off-trade value sales, on the other hand, are likely to register an increase over the forecast period in terms of constant 2013 prices. Off-trade average unit prices are expected to continue to register a steady increase in terms of constant 2013 prices and this will lead to a further increase in value sales. The main players are anticipated to look to recover the increased costs of ingredients and they will also try to launch added-value products to further improve profitability.
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