Coca-Cola HBC Romania, the leader in the local soft drinks market, experienced a sales volume decline of over 10% in the first quarter of 2024. This decline affected both carbonated and non-carbonated beverages, according to the company's recent financial report.
Factors Affecting Decline:
Introduction of Sugar Tax in January 2024: An additional tax on high-sugar drinks contributed to a decrease in demand.
VAT Increase in January 2023: A general increase in VAT also impacted consumer purchasing power.
Implementation of Deposit Return System in November 2023: A new system requiring the return of packaging likely generated additional costs and influenced buying habits.
Energy and Coffee Categories Show Growth:
Despite the overall decline, the energy drink and coffee categories saw significant growth, with volumes increasing by 17% and 14-16%, respectively.
Regional and Global Performance:
At a regional level (emerging markets), Coca-Cola HBC saw a 3.2% volume increase in Q1.
Globally, the company reported a 1.9% increase in volume and a 1% increase in net sales.
Conclusion:
While Coca-Cola HBC Romania faces challenges in the local market, the company's strategic category focus and global performance offer a more optimistic outlook in the medium and long term.
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