The soft drinks sector in Greece seems to be healthy, and the investment mobility, which has been escalating in the last three years, confirms it.
Even if the deals concern a small part of the approximately 400 million euros that the “bubble” market adds up to in total, i.e. as much as Coca-Cola 3E has left “free”, the undisputed leader of the sector with a total share that exceeds 60 %.
It is indicative that after the good performance of 2023 – despite the inflationary shock but also the significant revaluations made by the companies –, the soft drinks market continues to move at an upward pace this year as well.
During the summer, thanks to increased tourist traffic, total sales in volume registered an increase of close to 10%, according to industry executives.
At the same time, however, the competition has turned red, with the all-day HoReCa market developing into a “war zone”, while there are no shortage of “skirmishes” on supermarket shelves as well.
The shares
Finding Pepsi on a restaurant menu “it’s a treasure hunt,” stated a few days ago Inga Dengel, the general manager of PepsiCo Hellas, reflecting the reality, namely the extremely small market share of the multinational in the “cold” served market (approximately 5% is estimated for Pepsi Cola’s share in hotels, restaurants and cafes), but at the same time also “the great growth opportunity in HoReCa”although “red friends are big enough”, as she herself admitted.
PepsiCo’s come back to the Greek market, which in a three-year period (2013-2016) had closed two of its factories in our country (in Oinofyta and Loutraki), now includes the return of 60% of the production of its soft drinks back to the homeland.
But not through its own production unit, since there is no such possibility in its planning at this stage, but through partners, such as NU Aqua.
Partnerships
The company in question headed by Dimitris Babakos, which bought the closed PepsiCo factory in Loutraki in 2021, from December will produce the soft drinks of the multinational in PET packaging, while already last year EPSA, which has passed into the control of the investment fund SMERemediumCap, led by Nikos Karamouzis, took over the boxed production of HBI. Both agreements have a three-year term. In fact, regarding the agreement with EPSA, whose shares are not developing as the new ownership would expect, information suggests that it may also be extended to the production of Pepsi Cola and 7Up in cans.
Of course, cooperation with another bottler cannot be ruled out, but without considering acquisitions in the soft drinks sector, which is not ruled out in the snacks sector where PepsiCo Hellas, through Tasty products, makes 2/3 of its turnover, holding leading position in the Greek market.
Last year the consolidated turnover of PepsiCo Hellas amounted to 238.289 million euros (+18.45% compared to 2022), with net results before taxes amounting to 2.624 million euros from 5.739 million euros, which were in the 2022 fiscal year , also due to the income of 6.093 million euros from the sale of the factory in Loutraki.
Investment plan
Chitos ABEE, known among other things for the Zagori brand, which “runs” in the 8th month of 2024 with +20% in value and +18% in volume, signed a financing program of 21 million euros with the Recovery and Resilience Fund and the Bank Piraeus, as it aims to implement an investment plan of more than 25 million euros, with an emphasis on improving production efficiency and digital transformation.
At the same time, Ziria EPE, a 100% subsidiary of Chitos, implements an investment of 3 million euros in its production facilities in Corinth, increasing the capacity of the Green Beverages Group, in order to meet the needs of the period of high demand.
The completion of the investment plan is expected to lead to increased operating profitability from the end of 2025, while for this year it is estimated that the turnover will be over 115 million euros.
Exports
However, during last year’s financial year, the first after the integration of Green Cola Hellas and Green Cola Operations, the company’s pre-tax results remained loss-making, however the loss was limited to 2.7 million euros compared to 4.2 million euros last year 2022, while revenues amounted to 98.2 million euros, increased by 24% compared to 2022.
In addition to the domestic market, the company focuses on strengthening its export orientation, with particular emphasis on the Middle East and European markets.
It is noted that the staff of Chitos ABEE increased to 477 people, from 417 a year ago.
New player with an investment plan of 100 million euros
Competition for tea shares is intensifying
“Building” shares in the HoReCa market is also the goal of the Continental Bottling Industry, known under the Vikos brand, which invests in a flexible commercial policy.
The Ioannito-based business of the Sepeta family, which is closing a decade in the soft drinks market, having leading shares in bottled water, is now dynamically entering the tea category as well, while rapidly implementing its investment plan of 100 million euros.
“70% of the disbursement of the contract amount from the Recovery Fund has already been completed and, based on the original plan, the completion of the investments concerning, among other things, the expansion of building infrastructure, logistics areas and the creation of new jobs, will be 2026” noted the vice president of the company, Konstantinos Sepetas.
In terms of economic figures, the Continental Bottling Industry, leaving behind 2022 where there was a squeeze on profits due to high energy and transport costs, in 2023 recorded an increase in revenue to 118 million euros (+12.34%), pre-tax profits 13, 6 million euros, while also increasing the number of its employees to 552 (+8%).
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