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  • Portugal soft drinks rising stars
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24th October 2001

Portugal soft drinks rising stars

A real revolution is taking place in the Portuguese soft drinks market and its impact would be even more dramatic if retail outlets woke up to the full facts, according to a new retailer briefing from specialist consultants Zenith International.

Soft drinks are indeed continuing to grow, but the report shows that the main increases are no longer coming from the largest categories of fruit carbonates or cola, lemon-lime or 100% juice. Four new rising star segments now make up 20% of total Portuguese soft drinks retail value and are shooting ahead by over 50% a year. Collectively they accounted for all the growth in soft drinks between December 1999 and May 2001.

"The beauty for retailers is that this success has been achieved largely by just eight brands, which are relatively premium priced and offer better than average margins," Zenith Chairman Richard Hall elaborates. "These rising star brands are in the overall soft drinks top 35, but amazingly are not stocked by a majority of retailers. This makes it very easy to respond in shelf displays."

The report provides detailed recommendations for retailers of different sizes across the four rising star segments:

Iced tea, led by Lipton Ice Tea, has undoubtedly been the biggest success of the last ten years, with retail sales soaring another 30% in 2000 to 66 million euros.

Functional juice drinks, consisting of juice drinks with added benefits such as extra vitamins, calcium and fibre, sometimes with milk, have rocketed to 6% of soft drinks retail value in two years, but have no dedicated shelf space as a cohesive group. The leading brands are Santàl Plus, Santàl Active Drink, Compal Vital, Compal Plus and Oasis MultiActivo.

Chilled juice drinks were transformed overnight by the launch of Sunny Delight in June 2000 and have already shot up to a 3% value share.

Energy drinks are dominated by Red Bull and are beginning to emerge as a major new contender.

"Not to stock these brands is simply to pour money down the drain", concludes Richard Hall. "The rising stars just need the space they deserve. It's not exactly rocket science to take advantage."

The 2001 Retailer Briefing on Portugal Soft Drinks Rising Stars costs €50 and may be obtained from Zenith International on tel +44 (0)1225 327900, fax +44 (0)1225 327901 or e-mail info@zenithinternational.com.

Notes for Editors

1. For further information, please contact:

Richard Hall or Jason Holway, Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901
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