How do you assess the current economic situation in the beverage market? Which categories are growing and which are declining?
The last year, or even the last few years, has been a big challenge for the entire food sector. The pandemic, the war in Ukraine, history-high inflation, rising raw material and production prices, or disrupted supply chains have forced the need to review and change business strategies. In turn, growing uncertainty and worrying about the future caused the public mood to become less conducive to consumption. All this resulted in a decline in sales volume in ten of the 15 key categories in the food market.
There is some optimism, however, about the economic situation in the beverage market. In 2022, we observe positive dynamics and an increase of almost 2% year-to-date. This result is mainly due to two categories – carbonated beverages and energy drinks. It is worth mentioning that the former in particular is picking up after the effects of the so-called sugar tax, which is after all a tax on beverages.
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Jesteśmy silnie zakorzenioną i uwielbianą przez konsumentów w Polsce marką – mówi Natalia Stroe, dyrektor generalna Polski i krajów bałtyckich w Coca-Cola Poland Services.
From today’s perspective, how has the sugar tax affected your business?
The so-called sugar tax, which is in force in Poland from 2021, is the highest in Europe and the second highest in the world of this type of charge for beverage producers. That is why we, collectively as the entire beverage industry, have repeatedly called for a change of approach, open dialogue with entrepreneurs and, above all, time for the industry to prepare for such a major tax change. Both the legislative process and the very premise of the sugar levy, which discriminates against one product category, have raised and continue to raise our concerns. I would like to remind you that low-calorie sugar-free beverages are also subject to the tax, even though they are, after all, the only alternative to beverages sweetened with sugar.
Introducing the tax at such a surprisingly fast pace meant that we had to prepare a new business plan for 2021 in a very short timeframe. We aimed to adapt to the new conditions and take appropriate steps, both in the area of market activities and cooperation with business partners, in such a way that consumers were least affected by the changes. Although the so-called sugar tax has caused the category to shrink by 16% overall, Coca-Cola has seen a record-high increase in share in the category in 2021. This proves how well established and loved by consumers we are as a brand in Poland.
