2 | Market structure, trends
and developments
The beer market in Slovakia is stagnating. In 2010 Slovak
brewers produced approximately 3.1 million hectolitres
of beer, which is slightly less than in the previous year.
Consumption is also decreasing; from 4.4 million
hectolitres in 2006 to 3.6 million hectolitres in 2010.
Average annual consumption per capita also decreased
(from 94 litres in 2002 to 78.5 in 2010).
As in most eastern European countries, foreign companies
have entered the Slovak beer market. Most of the large
breweries in Slovakia are now owned by multinational
brewing concerns. The two largest brewing companies,
together holding a market share of 73%, (one company
45% and the other 28%), are part of two of the biggest
multinational brewing concerns. These foreign companies
made large investments in modernising the Slovak
breweries, resulting in high productivity (annual production
amounts to more than 1,600 hectolitres per employee).
Exports
In 2010 153,000 hectolitres of Slovak beer was exported,
the main export markets being Poland, Canada and
the USA.
Imports
Approximately 18% of the beer sold in Slovakia is
imported. In 2010, 650,000 hectolitres of beer was
imported, the main import markets being the Czech
Republic, Poland and Austria.
Consumption patterns
Consumption per capita has decreased from 82.4 litres
in 2007 to 78.5 litres in 2010. Of the beer consumed,
the major proportion is purchased in the retail sector.
The market shares of both on- and off-trade channels
are relatively stable.
Consumers tend to look for price promotions on brands
that are bought regularly, as a result of the fnancial
downturn. In the off-trade, packaging in PET bottles is
growing at the expense of glass bottles. Consumers are
more focused on convenience. In the on-trade, consumers
seek added value and specialties, e.g. tank beer
(introduced by key market players) – providing exceptional
quality and unique image (“beer direct from the brewery”).
Market penetration is dropping among males (females are
stable, but from a low base). Consumers are becoming
more loyal to the main brands. As a result of the fnancial
crisis, consumers visit pubs less frequently.
Expenditures
In 2010, breweries spent more on utilities due to price
infation. They spent relatively less on transportation,
equipment and marketing due to better terms negotiated
with the transport sector, less purchase of equipment due
to the crises and less marketing because of the lower beer
volumes sold.
Taxation
VAT increased on 1
st
January 2011.The government has
the intention to increase beer excise tax but this did not
pass in the Slovak Parliament.
Distribution and retail
Logistics providers are experiencing a recovery after the
crisis. The brewing sector is encountering cost pressures
related to oil price increases. Retailers continue with
centralization of their supply chain. Nowadays they have
their own distribution and logistics centres.
Brewing sector and market structure
Brewing sector and market structure
The total beer market in Slovakia continued to decline
in 2011 (-7.4%), which means a slight improvement
compared to declines in previous years. Shares of the
multinationals were more or less stable with some short-
term changes. The beer market is polarizing (consumers
are shifting from mainstream to either the economy or
premium sectors). Furthermore, sales of other alcoholic
beverages (wine and spirits) are increasing at the expense
of beer.
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Sources : The Brewers of Europe Beer Statistics 2010 edition
Beer in 2008 Beer in 2009 Beer in 2010
Off-trade sales
60%
60%
60%
On-trade sales
40%
40%
40%
The Contribution made by Beer to the European Economy
210