Carbonated Soft Drinks in Europe August 2013

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MARKET RESEARCH

1. CARBONATED SOFT DRINKS IN EUROPE AUGUST 2013

Value:

The European carbonated soft drinks market grew by 2.3% in 2012 to reach a value of $69,223.5 million.

Volume :

The European carbonated soft drinks market grew by 2.2% in 2012 to reach a volume of 57,990.2 million liters.

Market Segmentation (products) in value :

Standard cola : 37%

Diet cola : 14%

Fruit-flavored carbonates : 36%

Mixers : 4%

Other : 9%

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Market Share :

- TCCC : 51% (Coke, Sprite, Fanta, Scheweppes, Pwerade, Dr Pepper, Lilt, Oasis, Nestea, Kia Ora)

- PepsiCo : 15% (Pepsi, Seven Up, Aquafina, Tropicana, Gatorade)

- Suntory : 4% (Lucozade, Ribena)

- Britvic Plc : 2% (Club Orange, Ballygowan, MiWadi, Energise, C&C, Robinson)

- Others : 28%

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Market distribution

Supermarkets / hypermarkets : 41%

On-trade : 27%

Independent retailers : 11%

Vending Machine : 15,2%

Other : 15,2%

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Market Value Forecast :

+2,6% every year until 2017

2012 : € 53,845.3

2017 : € 61,174.9

Same in Volume : +2,3% every year until 2017

2012 : million liters 57,990.2

2017 : million liters 64,921.1

Five Forces Analysys

Rivalry is affected by continuing concentration of market share by the top four key players.

New entrants to the market face significant obstacles, such as strong brand loyalty and significant fixed costs. Therefore the threat from new entrants is weak.

! The threat from substitutes is, therefore, only moderate.

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Buyer power (moderate)

Driven by 3 main variables : Buyer(off-trade) Independence, Buyer Size, Financial muscle

# It is not uncommon for manufacturers to supply retailers directly.

# The bottlers are licensed to convert purchased raw materials into soft drinks, packaged with the manufacturers' branding, and distribute them within a particular...