Table of Contents

Packaged Food in Slovenia – Industry Overview

EXECUTIVE SUMMARY
Healthy value growth continues in packaged food in Slovenia during 2011
Health and wellness and greater convenience remain the major trends
The predominance of domestic producers is set to continue
The popularity of one-stop-shopping continues to build
The future of packaged food in Slovenia remains positive

FOODSERVICE – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

IMPULSE AND INDULGENCE PRODUCTS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

NUTRITION/STAPLES – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

MEAL SOLUTIONS – KEY TRENDS AND DEVELOPMENTS
Headlines
Trends
Competitive Landscape
Prospects
Category Data

MARKET DATA

SOURCES
Summary 1 Research Sources

Packaged Food in Slovenia – Company Profiles
Incom doo in Packaged Food (Slovenia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING
Summary 4 Incom doo: Competitive Position 2010

Ljubljanske Mlekarne dd in Packaged Food (Slovenia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION
Summary 7 Ljubljanske Mlekarne dd: Production Statistics 2010

COMPETITIVE POSITIONING
Summary 8 Ljubljanske mlekarne dd: Competitive Position 2010

Perutnina Ptuj dd in Packaged Food (Slovenia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION
Summary 11 Perutnina Ptuj dd: Production Statistics 2010

COMPETITIVE POSITIONING
Summary 12 Perutnina Ptuj dd: Competitive Position 2010

Vigros doo in Packaged Food (Slovenia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Žito dd in Packaged Food (Slovenia)

STRATEGIC DIRECTION

KEY FACTS

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING
Summary 17 Žito dd: Competitive Position 2010

Baby Food in Slovenia – Category Analysis

HEADLINES

TRENDS
A steady birth rate and new product launches have been the main drivers of baby food in 2011. According to the Slovenian statistics office, the country’s birth rate increased over the last few years and is now stable. This has naturally had a positive impact on sales of baby food. Producers have also been active in terms of developing new products. In particular, products with additional benefits have been in demand.

COMPETITIVE LANDSCAPE
The leading player in baby food in 2010 was Podravka doo with a value share of 35%, thanks primarily to its very popular Cokolešnik, Cokolino and Lino brands of dried baby food. Ranked second was Royal Numico NV with a value share of 11%, very closely followed by Fructal dd. Royal Numico’s brand Milupa Aptamil was the leading brand in milk formula, while Fructal’s Frutek was the leading brand in prepared baby food and other baby food.

PROSPECTS
Over the forecast period the prime influence on baby food is expected to be the health and wellness trend. Because of increasing health awareness, Slovenian consumers will only want the best and the healthiest products for their children. This means that demand for products with additional benefits will grow, resulting in stronger sales of products with added vitamins, calcium or other benefits. Products targeted at children with special needs are also expected to see growth in demand.

CATEGORY DATA

Baked Goods in Slovenia – Category Analysis

HEADLINES

TRENDS
The health and wellness trend is having a major impact on packaged food in general in Slovenia and baked goods is no exception to this. Due to increasing health awareness in Slovenia, numerous consumers are now attempting to live healthier lives, a situation which translates into higher demand for healthy food. Slovenians are increasingly turning to better nutrition and healthier food, mainly in an attempt to control their calorie intake. The health and wellness trend is also the principle reason for the expectation that bread substitutes will register the fastest growth in baked goods during 2011 and the negative growth expected in bread. Furthermore, due to the ongoing grip of the health and wellness trend, demand for wholegrain baked goods is also increasing among Slovenian consumers. Another important factor impacting upon baked goods is ongoing price increases. As the average unit price of baked goods increases, rapidly rising value sales are being balanced out by lower growth and declines in volume sales.

COMPETITIVE LANDSCAPE
Artisanal bakeries remained in first position in baked goods in Slovenia during 2010, accounting for 72% of total baked goods retail value sales. Following second position was Žito dd with a 6% value share, while private label followed in third position, accounting for 4% of total baked goods retail value sales. The main reason for the dominance of artisanal bakeries lies in the traditional consumer preference for fresh unpackaged products, which are also regarded as being healthier. Žito dd was able to generate the second largest value share in baked goods by virtue of its popular brands such as Grajske Pekarne, Zmajckov butik and Žito, while private label benefited mostly from its reputation for offering high quality baked goods at significantly lower prices.

PROSPECTS
The prevalent trends in baked goods in Slovenia during 2010 and the first half of 2011 are expected to continue having a strong influence on the category throughout the forecast period. Primarily, the health and wellness trend is likely to become even stronger, which will result in increased demand for healthier products containing fewer calories. This is good news for bread substitutes, which is set to continue to record the strongest growth in baked goods, although the news is expected to be less favourable for bread as consumption of bread will continue to decline. The commodity prices of cereals and other raw materials are also expected to continue increasing over the forecast period, which will result in higher unit prices for baked goods.

CATEGORY DATA

Table 61 Sales of Baked Goods by Category: Volume 2006-2011

Table 64 Sales of Baked Goods by Category: % Value Growth 2006-2011

Table 65 Packaged/Industrial Cakes: Single Portion vs Multi-pack % Breakdown by Type 2006-2011

Table 67 Baked Goods Brand Shares 2007-2010

Table 68 Sales of Baked Goods by Distribution Format: % Analysis 2006-2011

Table 71 Forecast Sales of Baked Goods by Category: % Volume Growth 2011-2016

Table 72 Forecast Sales of Baked Goods by Category: % Value Growth 2011-2016

Biscuits in Slovenia – Category Analysis

HEADLINES

TRENDS
The health and wellness trend is expected to continue having a strong impact on biscuits in Slovenia during 2011, leading to savoury biscuits registering a better performance than sweet biscuits. Although salty food cannot be considered to constitute the healthiest packaged food products, salty savoury biscuits are nevertheless still perceived as representing a healthier option than sweet products which contain a lot of sugar. The ongoing rise of the health and wellness trend in Slovenia is leading to increased demand for low-sugar, low-calorie and wholegrain bakery products, which is set to lead to falling volume sales in biscuits during 2011. The other major trend that is having a strong influence on biscuits in Slovenia is the ongoing increases in unit prices, which is contributing to the declining demand for biscuits and helps explain the negative volume growth expected in 2011.

COMPETITIVE LANDSCAPE
Private label accounted for 27% of total biscuits retail value sales in 2010. Due the unstable economic situation in Slovenia, which stems from the global financial crisis, many Slovenian consumers have become very price-sensitive and now appreciate the products which carry lowest prices. This is the main reason for private label products accounting for the biggest share of value sales of biscuits during 2010. The quality of private label biscuits is by now acceptable for the majority of Slovenian consumers, while unit prices are significantly lower than branded products, which continues to attract significant numbers of Slovenian consumers. The leading branded producer in biscuits in Slovenia during 2010 was Krašcommerce doo with a value share of 11%, a position it achieved through its popular brands such as Albert, Domacica and Kraš. Following very closely behind in third position in 2010 was multinational Bahlsen GmbH & Co KG, also with a value share of 11%.

PROSPECTS
During the forecast period, biscuits in Slovenia is expected to remain under the influence of the same two trends which have already had a great deal of influence during 2010 and the first half of 2011. The first of these trends is the health and wellness trend, which will is likely to lead to overall consumption of biscuits falling continuously over the forecast period. Due to the ongoing rise of health awareness in Slovenia, demand for salty and sweet biscuits will continue to diminish. Another trend which is set to continue having an influence over biscuits is constantly increasing unit prices, which will also contribute towards lower consumption. Meanwhile, this trend will be positive for the producers of private label biscuits as they will be able to attract even more price-sensitive consumers.

CATEGORY DATA

Breakfast Cereals in Slovenia – Category Analysis
HEADLINES
TRENDS
The ongoing health and wellness trend continues having a generally positive impact on packaged food in Slovenia, with the very positive impact on breakfast cereals during 2010 and the first half of 2011 particularly noteworthy. As health and wellness awareness continues to grow, Slovenian consumers are attempting to lead healthier lifestyles, a situation which also means consuming healthier and lighter food with fewer calories. Breakfast cereals in Slovenia continues to benefit from this trend as breakfast cereals are widely regarded as very nutritious products which offer a simple option for the preparation of a healthy meal. Furthermore, breakfast is considered to be the most important meal of the day and breakfast cereals represent the perfect option for health conscious Slovenians. Another factor behind the strong growth anticipated in breakfast cereals in Slovenia during 2011 is the convenience offered by breakfast cereals. Breakfast cereals are generally very easy and quick to prepare, which makes them even more attractive to Slovenian consumers.

COMPETITIVE LANDSCAPE
Private label held the leading position in breakfast cereals in Slovenia during 2010, accounting for 29% of total breakfast cereal retail sales. This situation arose mainly because private label products are becoming increasingly popular among Slovenia’s price-sensitive consumers. Private label breakfast cereals offer reasonable quality at significantly lower retail selling prices, which makes them very attractive for the majority of Slovenian consumers. The second ranked player in breakfast cereals in Slovenia during 2010 was multinational player Nestlé, which held a 24% value share, mainly through its internationally popular brands such as Cini Minis, Chocapic and Nesquik.

PROSPECTS
It is expected that the health and wellness trend will continue to have a major impact on breakfast cereals in Slovenia throughout the forecast period. As health awareness among Slovenian consumers is expected to increase during the forecast period, demand for healthier food with added health and wellness functionality is expected to increase. Due to this, products fortified with added vitamins and fibre containing fewer calories will prosper and will remain the principle focus of the country’s breakfast cereal producers. Another important consideration will be the ongoing rise of the convenience trend, which will see increased demand for products which can be prepared as quickly and as simply as possible.

CATEGORY DATA

Canned/Preserved Food in Slovenia – Category Analysis

HEADLINES

TRENDS
The two most important trends that influenced canned/preserved food in Slovenia in 2011 were increasing consumer price-sensitivity and convenience. As a result of the impact of the global financial crisis, consumers lost confidence over the later years of the review period and looked to reduce their expenditure, including on food. As a result of this trend, private label products and cheaper branded options saw an increase in demand.

COMPETITIVE LANDSCAPE
ETA remained the leading player in canned/preserved food in Slovenia in 2010, in accounting for a retail value sales share of 31%. This was entirely driven by its highly popular Natureta brand. Meanwhile, private label ranked second, on a retail value sales share of 27%. Private label products remained popular among consumers, due to offering good value-for-money. Private label products were priced significantly lower than competing branded products, yet were of good quality.

PROSPECTS
Convenience and increasing demand for lower-priced products are expected to be the two main trends influencing canned/preserved food over the forecast period. As a result, products that can be easily and quickly prepared and consumed are likely to see increased demand among consumers. It is also expected that private label will see a further increase in its share of retail value sales, due to the on-going high price-sensitivity of consumers.

CATEGORY DATA

Table 103 Forecast Sales of Canned/Preserved Food by Category: Value 2011-2016

Table 104 Forecast Sales of Canned/Preserved Food by Category: % Volume Growth 2011-2016

Cheese in Slovenia – Category Analysis

HEADLINES

TRENDS
Due to a strong tradition for producing and consuming cheese in Slovenia, the category has continued to perform well in 2011. For the same reasons there are many domestic producers of cheese and because of this Slovenian consumers tend to buy cheese produced domestically.

COMPETITIVE LANDSCAPE
The leading player in cheese in Slovenia in 2010 was domestic producer Ljubljanske Mlekarne with a value share of 34%, thanks primarily to its popular brands such as Ljubljanske Mlekarne, Jošt and Lašcan. Ranked second was another domestic player, Pomurske Mlekarne, with a share of 18%, followed by Agroind Vipava 1864 dd with a share of 8%.

PROSPECTS
Over the forecast period the category is expected to be strongly influenced by the health and wellness trend which will result in increased demand for products with additional benefits. Another significant trend could well be higher demand for convenience as consumers’ lives are becoming busier and busier. With this in mind, it is likely that producers will pay more attention to developing new products which tap into these trends.

CATEGORY DATA

Chilled Processed Food in Slovenia – Category Analysis

HEADLINES

TRENDS
Chilled processed food benefited from the health and wellness trend in 2011. Over the review period, Slovenian consumers increasingly looked to live more healthy lifestyles, which included consuming healthier and fresher foods. This led to increased demand for chilled processed food, which is generally considered to be a healthier option than frozen processed food or canned/preserved food. Increased demand was also seen for products that can be quickly and easily prepared. As a result of this, prepared salads and chilled processed meat both saw strong performance over the review period and are expected to do so again in 2011.

COMPETITIVE LANDSCAPE
Perutnina Ptuj remained the leading player in chilled processed food in Slovenia in 2010, in accounting for a retail value sales share of 7%. This performance was achieved entirely as a result of the performance seen by its highly popular Perutnina Ptuj brand. Private labels saw an incremental gain in retail value sales share in each year of the review period and, in 2010, it accounted for a 2% share of retail value sales.

PROSPECTS
The health and wellness trend is expected to remain the main driver of demand for chilled processed food over the forecast period. As health awareness increases among consumers in Slovenia, demand for natural and fresh products will grow, as will demand for low-fat products. The global financial crisis severely impacted Slovenia, which resulted in consumers becoming highly price-sensitive, which is expected to remain unchanged over the forecast period. This is likely to ensure continued demand for economy and private label products over the forecast period.

CATEGORY DATA

Chocolate Confectionery in Slovenia – Category Analysis

HEADLINES

TRENDS
Chocolate confectionery in Slovenia was notable during 2011 for the strong trend of many players introducing new products. Domestic producers in particular made significant attempts to increase their value shares by launching new products, backing these launches with strong marketing activities. This led to the entire category benefiting, although it should be noted that multinational producers remained dominant.

COMPETITIVE LANDSCAPE
Multinational producers Kraft Foods doo and Ferrero SpA were the leading players within chocolate confectionery in Slovenia during 2010. Kraft Foods led with a value share of 22% in 2010, while Ferrero followed with an 18% value share. These two players benefited mainly from highly recognised brands such as Milka, Ferrero and Kinder, which are very popular among Slovenian consumers. Third position was also held by a multinational company, Mars Overseas Holding doo, which managed a 6% value share in 2010. The remaining value sales were split among national and international producers and private label.

PROSPECTS
Chocolate confectionery in Slovenia is expected to register a favourable performance over the forecast period, with positive growth expected in both volume and constant value terms. The rising popularity of international brands, strong marketing activity and ongoing new product launches are set to remain the main drivers of sales in chocolate confectionery over the forecast period. In light of this, the two leading players, Kraft Foods and Ferrero SpA, are projected to increase their value shares during the forecast period. Another trend which is having a strong effect on many packaged food categories and will also continue to have a strong impact on chocolate confectionery is the health and wellness trend. In consequence, we can expect that healthier products containing more cacao, for example, will also be introduced into Slovenia during the forecast period.

CATEGORY DATA

Dried Processed Food in Slovenia – Category Analysis

HEADLINES

TRENDS
The two most important trends impacting dried processed food in 2011 were the health and wellness trend and the convenience trend. Over the review period, consumers looked to live healthier lifestyles and food was seen as one of the most important factors in achieving this goal. However consumers also show an increasing preference for greater convenience. As consumers had less time to devote to cooking their meals, they increasingly demanded quickly and easily prepared meal solutions.

COMPETITIVE LANDSCAPE
The domestic company Žito was the leading player in dried processed food in Slovenia in 2010, in accounting for a retail value sales share of 21%. This was mainly based on the strong performance seen by its Zlato Polje and Grande brands in rice and pasta, respectively. Private label accounted for a second-ranking retail value sales share of 16% in 2010. Private label saw a strong gain in retail value sales share over the review period, due to consumers seeking cheaper alternatives as the economic situation in the country worsened. Barilla ranked third on a retail value sales share of 12% in 2010, while Mars, with its Uncle Ben’s brand, ranked fourth on a retail value sales share of 10%.

PROSPECTS
It is expected that dried processed food will continue to benefit from the convenience and health and wellness trends over the forecast period. Health awareness is expected to increase over the forecast period, which is likely to positively impact demand for rice, since it is considered to be a relatively healthy source of carbohydrates. Demand for dessert mixes is expected to be positively impacted by the convenience trend, as consumers grow more time-constrained over the forecast period.

CATEGORY DATA

Table 150 Forecast Sales of Dried Processed Food by Category: % Volume Growth 2011-2016

Table 151 Forecast Sales of Dried Processed Food by Category: % Value Growth 2011-2016

Drinking Milk Products in Slovenia – Category Analysis

HEADLINES

TRENDS
As with many categories in packaged food, drinking milk products has also been strongly influenced by the health and wellness trend. Due to increased health awareness consumers are demanding healthier products with organic ingredients, fewer calories and fat and added ingredients such as calcium and vitamins. Also important has been the convenience trend. As people are leading busier lives they tend to have less time for eating and drinking. As a result, products which are suitable for on-the-go consumption have benefited greatly.

COMPETITIVE LANDSCAPE
The leading player in drinking milk products in 2010 was Ljubljanske Mlekarne dd with a 43% share of value sales, primarily generated by its Alpsko and Ljubljanske Mlekarne brands. Ranked second was private label with a share of 30%, followed by Pomurske Mlekarne in third place with a share of 17%.

PROSPECTS
The health and wellness and convenience trends are expected to be the biggest influences on drinking milk products over the forecast period. Due to their busy lives consumers are expected to continue to seek products which offer convenience and can be consumed easily and quickly, particularly while on the go. Another trend already present and which will continue to influence the category over the forecast period will be health and wellness. This trend will result in increased demand for healthier products with a lower fat content, fewer calories and healthy additions such as calcium and vitamins.

CATEGORY DATA

Frozen Processed Food in Slovenia – Category Analysis

HEADLINES

TRENDS
Increasing consumer preference for convenience and lower priced products were the two key trends influencing frozen processed food in 2011. Frozen processed food is considered convenient, as it is suited to being stored in a freezer for a long time prior to consumption. Furthermore, such products require only a relatively short cooking time prior to consumption. Growing consumer preference for lower priced products was evident in the increased demand seen for private label products. Private label saw an increase in demand over the later years of the review period, due to offering good quality at a lower price than branded alternatives.

COMPETITIVE LANDSCAPE
Private label accounted for a leading 16 % share of retail value sales in 2010. The main reason for this lies in offering quality products at significantly lower prices than branded producers. Perutnina Ptuj was the leading branded player in 2010, in accounting for a retail value sales share of 14%. This was due to the strong performance seen by its highly popular Perutnina Ptuj brand, which remained the leading brand in frozen processed food. Following behind was ETA živilska industrija with a 14% share, ETA remained among the top three players in 2010, the company saw a one percentage point loss of retail value sales share between 2007 and 2010, mainly to private label.

PROSPECTS
Convenience is expected to remain one of the major trends impacting frozen processed food over the forecast period. Consumers will demand products that are more easily and quickly prepared. Frozen processed red meat, frozen processed poultry and frozen processed fish/seafood are expected to benefit the most from this trend. Consumers are expected to show an ongoing preference for cheaper products, which will benefit private label and prevent producers of premium products from increasing their prices significantly. The health and wellness trend will also impact frozen processed food over the forecast period, with producers expected to introduce new healthier products, as consumers grow more health-conscious.

CATEGORY DATA

Gum in Slovenia – Category Analysis

HEADLINES

TRENDS
The health and wellness trend continues to have a strong impact on general developments across packaged food in Slovenia, and this situation is more than evident in gum. Due to the increasing health awareness among Slovenian consumers, demand for sugar-free gum continues to increase as sugar-free products are perceived as much healthier than sugarised products. Another trend which is having a strong influence on gum in Slovenia is the introduction of new products, mainly from the leading global gum producer Wrigley. Through its new product launches, Wrigley is able to maintain a high degree of consumer interest in gum and therefore contributes majorly to the favourable overall performance of gum in Slovenia.

COMPETITIVE LANDSCAPE
The leading producer and the undisputed leader within gum in Slovenia in 2010 remained Wrigley doo, which held an 84% value share. Wrigley was able to dominate gum due to its globally recognised brands such as Orbit, Winterfresh, Airwaves, Hubba Bubba and Spearmint. These brands enjoy much attention and remain the most popular gum brands among Slovenian consumers. Besides its excellent reputation for high quality products, Wrigley is also the most active gum company in Slovenia in terms of launching new products and also conducts the best and the most effective marketing campaigns in gum. In second position during 2010 was Tobacna Grosist doo, the distributor of the Mentos brand, which managed a value share of 1%.

PROSPECTS
It is expected that the major trend in gum in Slovenia during the forecast period will be the health and wellness trend. This trend is already having a major influence over gum, but it is expected that the impact of the health and wellness trend will intensify over the forecast period. In light of this, sugar-free gum is expected to continue recording the highest growth in gum in Slovenia. Furthermore, an increase can also be expected in the area of new product development. Bubble gum and sugarised gum, however, are likely to feel the negative effects of the health and wellness trend as these products are lacking health and wellness appeal and are not perceived as being at all healthy.

CATEGORY DATA

Table 175 Sales of Gum by Category: Value 2006-2011

Table 176 Sales of Gum by Category: % Volume Growth 2006-2011

Table 179 Gum Brand Shares 2007-2010

Table 180 Sales of Gum by Distribution Format: % Analysis 2006-2011

Table 183 Forecast Sales of Gum by Category: % Volume Growth 2011-2016

Table 184 Forecast Sales of Gum by Category: % Value Growth 2011-2016

Ice Cream in Slovenia – Category Analysis

HEADLINES

TRENDS
Two main trends have heavily influenced sales of ice cream in Slovenia in 2011. The first is the health and wellness trend which is visible throughout the packaged food industry and has particularly strongly impacted this category. Due to increased health awareness many consumers have turned to water ice cream which is seen as a healthier, lower-calorie product. Another key trend has been strong demand for convenience. This has particularly benefited impulse ice cream as these products are often consumed on the go.

COMPETITIVE LANDSCAPE
In 2010, private label products accounted for the biggest share (24%) in ice cream in Slovenia. These products were able to benefit from generally offering fair quality at significantly lower prices than branded products. The leading brand manufacturer was Ledo doo with a value share of 21%, thanks primarily to its popular Ledo brand. Ranked third was domestic producer Ljubljanske Mlekarne dd with a 19% share thanks to its various brands such as Lucka, Piran, Maxim, etc.

PROSPECTS
It is expected that over the forecast period ice cream will continue to perform well. The prime influence which will have a strong impact on the performance of the category will be the health and wellness trend. Because of increased health awareness, consumers will continue to shift towards water ice cream from dairy ice cream. Water ice cream is considered a healthier option due to its lower calorie content. Another significant trend influencing the category over the forecast period will be demand for convenience. For this reason, impulse ice cream is expected to perform well. The third key trend will be an increased focus on developing new products to tap into the health and wellness and convenience trends.

CATEGORY DATA

Table 186 Sales of Ice Cream by Category: Value 2006-2011

Table 187 Sales of Ice Cream by Category: % Volume Growth 2006-2011

Table 190 Ice Cream Brand Shares 2007-2010

Table 191 Sales of Ice Cream by Distribution Format: % Analysis 2006-2011

Table 194 Forecast Sales of Ice Cream by Category: % Volume Growth 2011-2016

Table 195 Forecast Sales of Ice Cream by Category: % Value Growth 2011-2016

Meal Replacement in Slovenia – Category Analysis

HEADLINES

TRENDS
Meal replacement in Slovenia benefited greatly from the very influential health and wellness trend during 2010 and the first half of 2011, which is becoming increasingly important in several packaged food categories in Slovenia. Many Slovenians are making attempts to lead healthier lifestyles and consume healthier and more nutritious food. At the same time, many Slovenians also seek to maintain their fitness and have a slim attractive figure or physique, although a significant proportion of these consumers are willing to change their eating habits in order to achieve this. This is leading increasing numbers of Slovenians to turn to products which offer assistance in their quest to lose weight, and meal replacement slimming products are ideally positioned to cash in on this trend. However, these factors are being balanced out by on-going unit price growth, which is boosting value sales whilst limiting volume growth as rising prices continue to deter significant numbers of price-conscious Slovenians.

COMPETITIVE LANDSCAPE
Meal replacement was dominated by Herbalife Ltd leads meal replacement who accounted for 74% share of value sales of meal replacement products. The company managed to generate this share mainly due to its popular brand Formula. Herbalife Shapeworks is followed by Fidimed doo, which had a share of 3% and on third place were private label products with 10% share.

PROSPECTS
It is expected that health and wellness will continue having a positive impact on meal replacement products in Slovenia during the forecast period. Due to the ongoing rise of this trend, Slovenians are expected to continue focusing on their maintaining health and their looks, which means that their desire to remain fit and slim should be expected to continue throughout the forecast period. Consequently, demand for meal replacement products is set to remain high. However, rising unit prices and the high price sensitivity of Slovenian consumers due to the unstable economic situation are expected to have a negative influence on sales of meal replacement products. Slovenian consumers are expected to shift towards cheaper meal replacement products and this is expected to lead to the influence of private label and economy products increasing.

CATEGORY DATA

Table 196 Sales of Meal Replacement by Category: Volume 2006-2011

Table 200 Meal Replacement Company Shares 2006-2010

Table 201 Meal Replacement Brand Shares 2007-2010

Table 206 Forecast Sales of Meal Replacement by Category: % Value Growth 2011-2016

Noodles in Slovenia – Category Analysis

HEADLINES

TRENDS
The trend that is influencing sales of noodles the most in 2011 is the trend towards greater convenience. Another important trend is also increasing interest in exotic cuisines, especially Asian cuisine. For this reason, instant noodles is benefiting the most, since such products can be prepared easily and quickly and are mostly available in Asian flavours.

COMPETITIVE LANDSCAPE
In 2010 the leading producer within noodles in Slovenia was Mlinotest with a value share of 22%. Mlinotest was pretty closely followed by Pecjak with 20% and by Žito with 17%. They all generated most of their sales through brands which are named the same as the company and which are mostly present in plain noodles. Amongst internationals Nissin Foods Holdings with Nissin Cup Nudeln showed the best performance with a 5% value share.

PROSPECTS
Over the forecast period the trend towards greater convenience is expected to have the strongest impact on noodles. This means that consumers, due to their busy lives, like to purchase products that are easily and quickly prepared or even more, that are almost already able to consume right after the purchasing them in the store. Products with such features, such as pouch instant noodles, will benefit the most over the forecast period.

CATEGORY DATA

Table 209 Sales of Noodles by Category: % Volume Growth 2006-2011

Table 210 Sales of Noodles by Category: % Value Growth 2006-2011

Table 213 Sales of Noodles by Distribution Format: % Analysis 2006-2011

Table 214 Forecast Sales of Noodles by Category: Volume 2011-2016

Table 217 Forecast Sales of Noodles by Category: % Value Growth 2011-2016

Oils and Fats in Slovenia – Category Analysis

HEADLINES

TRENDS
Health and wellness has been the main trend impacting sales of oils and fats in 2011, resulting in stronger demand for healthier products, such as low-fat/calorie offerings or products with additional benefits, such as added omega-3 or vitamins. Olive oil and functional spreadable oils and fats are set to be the best performers as these products are perceived to be the healthiest. However, increasing health awareness also means that certain products are suffering a fall in popularity and are subsequently seeing a decline in volume sales.

COMPETITIVE LANDSCAPE
The leading player in oils and fats in Slovenia in 2010 was domestic producer Tovarna Olja Gea dd with a value share of 41%, thanks primarily to its popular Cekin, Gea and Zvezda brands. The second highest share of 14% was held by private label, generally thanks to its lower prices.

PROSPECTS
The most important trend impacting oils and fats over the forecast period will be the health and wellness trend. Health awareness among consumers is increasing, which means they are trying to live healthier lives and consumer healthier foods. For oils and fats this will result in an overall negative volume performance but also stronger demand for products that have a lower fat/calorie content and offer some extra benefits, such as added omega-3 or vitamins, for example.

CATEGORY DATA

Table 219 Sales of Oils and Fats by Category: Value 2006-2011

Table 220 Sales of Oils and Fats by Category: % Volume Growth 2006-2011

Table 223 Oils and Fats Brand Shares 2007-2010

Table 224 Sales of Oils and Fats by Distribution Format: % Analysis 2006-2011

Table 226 Forecast Sales of Oils and Fats by Category: Value 2011-2016

Table 227 Forecast Sales of Oils and Fats by Category: % Volume Growth 2011-2016

Other Dairy in Slovenia – Category Analysis

HEADLINES

TRENDS
The main trend influencing the other dairy category in 2011 has been demand for greater convenience. Because consumers are leading ever busier lives they appreciate products that can be consumed quickly and easily. Consequently, shelf stable dairy-based desserts has performed well because this type of product can be quickly consumed as a dessert after a meal or as a quick snack.

COMPETITIVE LANDSCAPE
The leading player in other dairy in Slovenia in 2010 was domestic producer Ljubljanske Mlekarne with a value share of 19%, mainly thanks to its popular Ljubljanske Mlekarne and Alpsko brands. Ranked second was private label with a value share of 16%, achieved primarily because of its lower prices. Ranked third in 2010 was another domestic player, Mlekarna Celeia doo, with a share of 14%.

PROSPECTS
The key influences on other dairy over the forecast period will be the health and wellness and convenience trends. As a result, producers will focus on developing new products to tap into these demands. Low-calorie products and products with added benefits will likely be launched, along with convenience features.

CATEGORY DATA

Table 229 Sales of Other Dairy by Category: Volume 2006-2011

Table 230 Sales of Other Dairy by Category: Value 2006-2011

Table 233 Sales of Other Dairy by Distribution Format: % Analysis 2006-2011

Table 234 Forecast Sales of Other Dairy by Category: Volume 2011-2016

Table 237 Forecast Sales of Other Dairy by Category: % Value Growth 2011-2016

Pasta in Slovenia – Category Analysis

HEADLINES

TRENDS
Three main trends influenced pasta in 2011. As people tend to have less and less time for cooking meals for themselves or their families, the demand for products which can be prepared quickly and easily is growing. Pasta is nicely benefiting from this trend since it is perceived as a convenient product that can be turned into a full and tasty meal within 10-15 minutes. Next, consumers in Slovenia like to have things fresh since it gives them the feeling that they are better and healthier. That is another reason for rapid growth of chilled/fresh pasta in the last years. The last major trend that importantly impacts pasta is the health and wellness trend. Consumers try to live healthier in all areas, which means they also want to consume healthier food and healthier pasta. Products that are produced from organically produced wheat or which are able to offer any other similar feature benefits from the health and wellness trend.

COMPETITIVE LANDSCAPE
Barilla Holding is the dominant player in pasta in Slovenia. In 2010 it accounted for 25% of retail value sales. Barilla benefits from its great reputation as a quality Italian pasta producer. Domestic producer Žito followed with 15% share with its two brands, Grande and Intes, although Intes had very small share. Third ranked was Mlinotest, another domestic player, with a 12% share. Private label is also very strong in pasta, accounting for 30% of all value sales in 2010. Private label mainly offers simple products that are naturally sold at lower prices. Due to the financial crisis and low confidence of people in the economic situation, price is becoming an even more important factor, which is the main reason for increasing strength of private label.

PROSPECTS
The health and wellness trend will keep influencing pasta sales in the forecast period. Consumer demand for healthier products with natural ingredients is expected to grow, which also means that demand for chilled/fresh pasta will grow simultaneously. The health and wellness trend will also cause launches of new, healthier products. Another trend that could impact pasta in the future is demand for a good price-quality ratio, which means further increase in value shares of cheaper brands and private label.

CATEGORY DATA

Table 242 Pasta Company Shares 2006-2010

Table 243 Pasta Brand Shares 2007-2010

Table 246 Forecast Sales of Pasta by Category: Value 2011-2016

Table 247 Forecast Sales of Pasta by Category: % Volume Growth 2011-2016

Ready Meals in Slovenia – Category Analysis

HEADLINES

TRENDS
The most important trend influencing ready meals in Slovenia in 2011 was the convenience trend. The pace of life in Slovenia became more hectic over the review period, which left consumers less time for activities, including preparing meals for themselves and their families. As a result of this, demand for quickly prepared meal solutions, including ready meals, increased rapidly. The health and wellness trend also impacted the category in 2011. This is visible from the performance expected of prepared salads, which is expected to see the strongest retail volume and value sales growth. A third noticeable trend in 2011 was consumers demanding a more favourable price to quality ratio in products, which favoured the performance of private label.

COMPETITIVE LANDSCAPE
Ready meals continued to be led by private label in 2010, which accounted for a retail value sales share of 36%. The Mercator private label line from the leading Slovenian retailer accounted for an 18% share of retail value sales in 2010. Private labels offered products of comparable quality to, but at a lower price than, branded products, which proved especially appealing to consumers in light of the country’s harsh economic climate. Proconi was the leading branded player in 2010, in accounting for a retail value sales share of 19%. This was entirely based on the strong performance seen by its popular Pogrej in Pojej brand. The domestic player, ETA živilska industrija also saw strong performance in 2010, in accounting for a 16% share of retail value sales. Other smaller producers accounted for a combined retail value sales share of 26% in 2010.

PROSPECTS
Over the forecast period, the convenience and health and wellness trends are expected to have a significant impact on demand for ready meals. As the pace of life in Slovenia becomes ever more hectic, consumers will have increasingly less time to dedicate to cooking, which will result in increased demand for convenient meal solutions. As a result, ready meals is expected to see continued strong retail volume and value sales growth over the forecast period. Prepared salads and frozen ready meals, in particular, are expected to benefit from the convenience trend. Meanwhile, the health and wellness trend is likely to result in more products with healthy ingredients or added-value ingredients being introduced. Prepared salads is also expected to benefit from this trend. It is likely that players will continue to pay special attention to the pricing of products, in light of the strong presence of private label and the likelihood that consumers will remain price-sensitive.

CATEGORY DATA

Table 251 Sales of Ready Meals by Category: % Volume Growth 2006-2011

Table 252 Sales of Ready Meals by Category: % Value Growth 2006-2011

Table 255 Ready Meals Brand Shares 2007-2010

Table 256 Sales of Ready Meals by Distribution Format: % Analysis 2006-2011

Sauces, Dressings and Condiments in Slovenia – Category Analysis

HEADLINES

TRENDS
The global financial crisis impacted consumers in Slovenia in many different ways. One of them is that they cut back on going out to eat in restaurants, which means they increased their home cooking. The trend towards eating at home influenced sauces, dressings and condiments positively, since demand of these products increased due to increased home cooking activity. Another trend that impacted sales of sauces, dressings and condiments is the health and wellness trend. Although “light” products are not that popular they are slowly growing in acceptance amongst consumers and are becoming more and more important. The health and wellness trend also impacted sales of sauces, dressings and condiments more indirectly, as more emphasis on eating fresh salads resulted in fast growth of salad dressings.

COMPETITIVE LANDSCAPE
Competition in sauces, dressings and condiments is very fragmented in Slovenia. Private label held a 21% retail value share in 2010 and is even slowly increasing its share. Within private label Mercator was the strongest with a 6% value share. Private label benefits from low-priced products with fair quality. Mars Overseas Holding (Mars) was the most successful branded company with a 19% value share. This was achieved with its strong international brands Uncle Ben’s and Dolmio. Unilever Slovenija (Unilever) held a 15% share accumulated through its brands Knorr and Hellmann’s.

PROSPECTS
The eat-at-home trend is expected to impact sauces, dressings and condiments strongly also over the forecast period. Since dining at home is cheaper, people will continue staying home and preparing their own meals, which also means they will keep consuming more products from this category. Another important trend will be health and wellness. It is expected that people’s health consciousness will further increase in the future years, which means that products aligned with this trend will be successful. On one hand, this means healthier products with less fat, added vitamins and the like will do well and, on the other hand, it also means opportunity for products that are used as additives to healthy products. For example, salad dressings will continue to benefit when from increased salad consumption.

CATEGORY DATA

Table 263 Sales of Sauces, Dressings and Condiments by Category: % Volume Growth 2006-2011

Table 264 Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2006-2011

Table 266 Sauces, Dressings and Condiments Brand Shares 2007-2010

Table 267 Sales of Sauces, Dressings and Condiments by Distribution Format: % Analysis 2006-2011

Table 271 Forecast Sales of Sauces, Dressings and Condiments by Category: % Value Growth 2011-2016

Snack Bars in Slovenia – Category Analysis

HEADLINES

TRENDS
The main influence snack bars in Slovenia during 2010 and the first half of 2011 was the inexorable rise of the convenience trend. The popularity of snack bars continues to build in Slovenia as the lifestyles of average consumers become busier and many Slovenians find that they have less time to prepare decent meals and snacks. Breakfast bars are seen to be particularly convenient, although the negative side of breakfast bars is the high unit prices they tend to carry.

COMPETITIVE LANDSCAPE
Domestic player Fructal dd remained the leading producer in snack bars in Slovenia during 2010 with a 43% value share. This impressive performance was largely due to the company’s very popular and famous Frutabela brand. Fructal dd was followed in second position by Schwartauer Werke GmbH & Co, which generated its 9% value share through its Corny brand. The third-ranked producer in 2010 was Mars Overseas Holding doo with its Milky Way Minute brand. Apart from these three leaders, snack bars remains a rather fragmented category, with others accounting for 39% of total snack bars retail value sales in 2010.

PROSPECTS
The trend which is expected to have the greatest impact snack bars on snack bars in Slovenia during the forecast period is the health and wellness trend. The health and wellness trend is having a strong influence on the country’s entire packaged food industry and it is expected that this impact will remain prevalent in snack bars throughout the forecast period. However, this influence is not expected to be entirely positive as snack bars do not have such a healthy image in Slovenia and volume sales might suffer as consumers turn to alternative products which are regarded as being healthier and more nutritious, specifically breakfast cereals.

CATEGORY DATA

Table 274 Sales of Snack Bars by Category: % Volume Growth 2006-2011

Table 275 Sales of Snack Bars by Category: % Value Growth 2006-2011

Table 278 Sales of Snack Bars by Distribution Format: % Analysis 2006-2011

Table 279 Forecast Sales of Snack Bars by Category: Volume 2011-2016

Table 282 Forecast Sales of Snack Bars by Category: % Value Growth 2011-2016

Soup in Slovenia – Category Analysis

HEADLINES

TRENDS
Launching of new, tasty flavours of soups is the first trend that is impacting soup in 2011. Since soups are very popular in Slovenia and are served almost every day at lunch people are happy to try and taste different flavours. The second major trend is connected with convenience. Life tempo is getting faster every day and people do not have or do not take a lot of time to cook their meals. They want meals to be prepared easily and quickly, and dehydrated soups are successfully prospering from this trend.

COMPETITIVE LANDSCAPE
Leading company in 2010 was Unilever Slovenija with a 54% value share. This was achieved with its internationally famous and popular brand Knorr. Second place was taken by Nestlé with its popular brand Maggi. It had 20% value share. Third is Podravka with an 18% value share.

PROSPECTS
It is expected that soup in Slovenia will be influenced by two key trends over the forecast period. These are desire for convenience features and new, tasty flavours. The fast pace of people’s lives will not slow down, which means that consumers will be constantly in hurry and will have less time and will to prepare meals for themselves and their families. Due to this we can expect even more innovation on the convenience side and more launches of new flavours.

CATEGORY DATA

Table 284 Sales of Soup by Category: Value 2006-2011

Table 285 Sales of Soup by Category: % Volume Growth 2006-2011

Table 288 Soup Brand Shares 2007-2010

Table 289 Sales of Soup by Distribution Format: % Analysis 2006-2011

Table 293 Forecast Sales of Soup by Category: % Value Growth 2011-2016

Spreads in Slovenia – Category Analysis

HEADLINES

TRENDS
Demand for spreads continues to be strongly affected by the health and wellness trend, although the impact of this is far from positive. On one hand, Slovenians are consuming less bread due to the unhealthy image of bread, which is limiting volume growth in spreads, a category of products which are usually consumed with bread. On the other hand, Slovenians now opt for healthier packaged food products as the focus falls on optimum nutrition, which is leading them to consume products with less sugar and fewer calories, which means lower demand for jams and preserves.

COMPETITIVE LANDSCAPE
Private label accounted for 25% of total spreads retail value sales in Slovenia during 2010, positioning spreads in first position. The main reason for this favourable position for private label in spreads is that private label products offer an ideal compromise of high product quality at significantly lower prices than equivalent branded products. The leading branded producer of spreads in Slovenia during 2010 was Podravka doo, which held a value share of 11%. The majority of this was derived from sales of its popular brand Podravka, with the remainder sold under its Belsad brand. Another strong branded producer was Petlja doo, which held third position in 2010 with a value share of 8%. This result was achieved mainly through the marketing and distribution of imported jams and preserves brand Uwe and domestic chocolate spread brand Viki.

PROSPECTS
Spreads is expected to be influenced mainly by the health and wellness trend during the forecast period. Slovenian consumers are making increasingly attempting to lead healthier lifestyles, which also means that they are demanding healthier and more nutritious food which contains less sugar and, ideally, natural and organic ingredients whilst containing no additives and preservatives. This trend is set to have a heavy impact on Slovenia’s leading producers of spreads over the forecast period and developing trends will need to be closely monitored. Spreads producers will need to become more innovative and creative in terms of developing new products in order to remain successful during the forecast period.

CATEGORY DATA

Table 297 Sales of Spreads by Category: % Value Growth 2006-2011

Table 298 Spreads Company Shares 2006-2010

Table 301 Forecast Sales of Spreads by Category: Volume 2011-2016

Table 302 Forecast Sales of Spreads by Category: Value 2011-2016

Sugar Confectionery in Slovenia – Category Analysis

HEADLINES

TRENDS
Sugar confectionery in Slovenia is expected to perform well during 2011, with positive increases registered in both volume and value terms. The most important trend to have a strong impact on sugar confectionery was the health and wellness trend. Increasing health awareness means that Slovenian consumers are now attempting to lead healthier lifestyles, which is contributing to the general move towards to healthier products across several packaged food categories. Due to the ongoing rise of the health and wellness trend, medicated confectionery continues to post excellent growth in Slovenia, while in other categories, products which contain only natural sweeteners and focus on other natural ingredients are performing very well. Another trend which has been noticed in sugar confectionery in Slovenia is that more brands and products are being deliberately targeted at children, the consumer group most likely to be strongly attached to sugar confectionery brands. This trend is highly evident in Slovenia and it remains very important for maintaining the popularity of the leading international brands, which continue to lead sales in sugar confectionery in Slovenia.

COMPETITIVE LANDSCAPE
The leading producer in sugar confectionery in Slovenia during 2010 was Wrigley doo with a value share of 30%. In second position was another foreign producer, Ricola AG, while domestic company Žito dd occupied third position, each player registering an 8% value share. Wrigley continues to dominate sugar confectionery with its internationally famous brands Orbit, Winterfresh and Airwaves. However, sugar confectionery in Slovenia remains a very fragmented category, with 32% of total retail value sales accounted for by others in 2010.

PROSPECTS
It is expected that sugar confectionery in Slovenia will be strongly influenced over the forecast period by trends similar to what was recorded during 2010 and the first half of 2011. For instance, the health and wellness trend will continue to develop in Slovenia, becoming increasingly influential as time passes. In light of this, we can expect that the leading producers of sugar confectionery in Slovenia will continue introducing innovative and healthier products which will attract an even higher number of consumers. Medicated confectionery is expected to be the category to benefit the most from this trend. The dominance of multinational players and international brands is expected to continue throughout 2011. These companies will continue increasing their value shares, largely at the expense of domestic players.

CATEGORY DATA

Table 310 Pastilles, Gums, Jellies and Chews by Type: % Value Breakdown 2006-2011

Table 311 Sugar Confectionery Company Shares 2006-2010

Table 314 Forecast Sales of Sugar Confectionery by Category: Volume 2011-2016

Table 315 Forecast Sales of Sugar Confectionery by Category: Value 2011-2016

Table 317 Forecast Sales of Sugar Confectionery by Category: % Value Growth 2011-2016

Sweet and Savoury Snacks in Slovenia – Category Analysis

HEADLINES

TRENDS
Health awareness is increasing amongst Slovenians and is significantly impacting packaged food in general and this category as well. In sweet and savoury snacks this is seen especially in fruit snacks, which is growing faster than other categories in both current value and volume. For the same reason nuts is also becoming more and more popular. However, at both categories value growth in 2011 was slower than value CAGR growth over review period. Another very important is the trend towards greater convenience. Due to faster and faster life tempo, consumers have less and less time to sit down and eat. Because to this, producers must adjust packaging to consumers’ needs and count the convenience feature as one of the deciding purchasing factors in all categories within sweet and savoury snacks. This is resulting in a packaging which can be carried around so that products can be consumed quickly and on-the-go.

COMPETITIVE LANDSCAPE
Intersnack was the dominating player in sweet and savoury snacks in Slovenia in 2010. Intersnack sells internationally popular brands Chio, Kelly’s, Soletti and Wolf Pom Bär; consequently it controls 41% of retail value sales. The best-performing Intersnack´s brands are Chio and Kelly’s. Private label held a 28% value share (Mercator being amongst the popular private label brands with a 16% share) and is becoming stronger mainly due to lower prices. Third is Lorenz Bahlzen Snack-World with a 20% value share.

PROSPECTS
Growth of sweet and savoury snacks over the forecast period will remain determined by trends of health and wellness and convenience. Producers will compete in convenience features, trying to make products even more suitable for on-the-go consumption. The second key trend will be higher demand for healthier products. This means that nuts and fruit snacks will keep on prospering naturally. For producers in other categories it will be very important to follow this trend closely and produce products that are healthier –adding less salt, or less fat, etc and of course finding an effective way to successfully market these features to consumers.

CATEGORY DATA

Table 320 Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2006-2011

Table 321 Sales of Sweet and Savoury Snacks by Category: % Value Growth 2006-2011

Table 324 Sweet and Savoury Snacks Brand Shares 2007-2010

Table 325 Sales of Sweet and Savoury Snacks by Distribution Format: % Analysis 2006-2011

Table 328 Forecast Sales of Sweet and Savoury Snacks by Category: % Volume Growth 2011-2016

Yoghurt and Sour Milk Drinks in Slovenia – Category Analysis

HEADLINES

TRENDS
Yoghurt and sour milk drinks continues to be heavily impacted by the health and wellness trend. As health awareness among consumers is increasing, so is demand for healthier and more nutritious products. Consumers are demanding functional products that provide balanced nutrition as well as additional benefits such as added calcium or vitamins. Besides health and wellness, the convenience trend has also impacted the category. As a result, functional drinking yoghurt is set to register the strongest performance as it is suitable for on-the-go consumption.

COMPETITIVE LANDSCAPE
Private label led the category in 2010 with a value share of 26%. Private label products attract consumers through their good quality at lower prices. The leading branded player was Danone doo with a share of 17%, followed by domestic producer Ljubljanske Mlekarne with 11%. Danone’s position can be attributed to the strength of its Activia, Actimel and Vitalinea brands.

PROSPECTS
It is expected that two main trends will influence yoghurt and sour milk drinks over the forecast period. The first will be the health and wellness trend. Increasing consumer health awareness will boost demand for healthier products with additional benefits. As a result, products that benefit the immune system and aid digestion, for example, are expected to perform well over the forecast period. The second key trend will be demand for convenience. Due to busier lives Slovenians will seek convenient products which can be consumed quickly, particularly while on the go.

CATEGORY DATA

Table 331 Sales of Yoghurt and Sour Milk Drinks by Category: Value 2006-2011

Table 332 Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2006-2011

Table 335 Yoghurt and Sour Milk Drinks Company Shares 2006-2010

Table 336 Yoghurt and Sour Milk Drinks Brand Shares 2007-2010

Table 340 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Volume Growth 2011-2016

Table 341 Forecast Sales of Yoghurt and Sour Milk Drinks by Category: % Value Growth 2011-2016