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Market Research Report

Alcoholic Drinks in the Czech Republic

Published by	Euromonitor International
Published	January, 2010	Product code	115658
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Price	US $ 1900 PDF by E-mail (Single User License)

Introduction
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Alcoholic Drinks in the Czech Republic published by Euromonitor International in January, 2010. This report price starts from US $ 1900.

Introduction

Abstract

Euromonitor International' s Alcoholic Drinks in the Czech Republic market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.

Why buy this report

Get insight into trends in market performance
Pinpoint growth sectors and identify factors driving change
Identify market and brand leaders and understand the competitive environment

Product coverage

Beer; Cider/Perry; RTDs/High-Strength Premixes; Spirits; Wine

Executive summary

On-trade consumption drops under unstable economic situation

With the unstable financial situation and growing unemployment rate, Czech consumers were increasingly careful about spending and did not visit foodservice outlets as frequently in 2008 and 2009 as over the review period. Nevertheless, Czech consumers continued to love beer and did not give up their consumption of draught beer. Beer faced only a mere drop in on-trade sales, while there was a slight growth in off-trade volume sales in 2009. Wine benefited from the health & wellness trend, and there was a wide offer of wine of all categories (in terms of price, quality and type) on shelves. Wine exhibited positive results in 2009. Spirits suffered the most from the lower purchasing power of Czech consumers.

Traditional domestic spirits and stronger beer win while premium products lose

In the early years of the review period, alcoholic drinks' producers benefited from strong demand for premium brands. Consumers were less price-sensitive and sought high quality products. With the global economic downturn, premium brands began to lose. This was reflected in declining sales of, for example, whisk(e)y, brandy and cognac and imported premium lager. In spirits, Czech consumers preferred domestic traditional products such as ‘domestic rum' (positioned under rum-flavoured spirits because it is produced from potatoes and not from sugar cane), vodka, bitters, other liqueurs and Slivovice (plum brandy). In beer, on the contrary, consumers showed interest in stronger beer with higher alcohol content. This boosted sales of the more expensive 11 Plato degrees beer and motivated launches of new brands in this category.

Large companies and groups control alcoholic drinks

Large domestic and international companies and groups controlled sales of alcoholic drinks in the Czech Republic in 2009. They had a strong distribution network, were active in the introduction of new products and invested in promotion. In 2009, the top players retained their positions. The top five domestic players in alcoholic drinks remained Plzensky Prazdroj as, Pivovary Staropramen as, Budejovicky Budvar np, Starobrno as and Drinks Union. Within wine, Bohemia Sekt proved its leading share and within spirits Stock Plzen - Bozkov sro strengthened its leading position.

Multiple chains take majority of sales

Czech consumers preferred supermarkets/hypermarkets and discounters for the purchase of alcoholic drinks. Multiple chains offered a wide range of brands, and consumers in all financial levels could choose their desired wine, beer or spirits. Specialist stores were in the developing stage in the Czech Republic and were most successful in wine. These specialist stores were popular, on the one hand, among consumers with higher incomes and wine gourmets and, on the other, among consumers with average incomes for the purchase of wine as a gift and also for the purchase of draught wine from wooden barrels.

Great expectations for wine, positive outlook for spirits and stagnation for beer

Slight decline in beer consumption is expected by 2014. However, Czechs are expected to retain the world leading position in per capita beer consumption (156 litres per capita in 2009). Wine will benefit from the developing health & wellness trend in the country and will become more cultured. This will be reflected in the fact that value sales of wine are expected to increase at a healthy pace, due to shift to more premium products. An optimistic outlook is predicted for spirits. Slight growth in consumption of spirits - both on-trade and off-trade - is expected, with domestic traditional alcoholic drinks enjoying demand from domestic consumers.