Coca-Cola HBC Hungary Enters Snack Market
Coca-Cola HBC Hungary has started vertical portfolio development; the largest domestic soft drink manufacturer is testing its latest biscuit brand on the snack market worth a total of HUF 80 billion, according to a press release sent to the Budapest Business Journal.
Flavored oat and functional biscuits, known as MyWellness, are currently available in 19 domestic stores at Auchan Hungary from November.
The most dynamically growing segment of the Hungarian snack market is the biscuit market, which accounts for 42% of the total category in value and 62% in volume. On average, Hungarians consume 2.9 kilograms of biscuits a year, paying more and more attention to products rich in nutrients important for the body or with added functionality.
The company has decades of experience in the markets of ready-to-drink soft drinks, natural mineral water, juice, coffee, and premium alcohol products, but says that it is also open to expanding into new food categories other than its core business segments. The consumption of snacks is closely related to soft drink consumption occasions, opening gates to product bundling in these categories.
In 2019, the parent company of Coca-Cola HBC Hungary acquired Bambi, the market leader biscuit company in Serbia, for 260 million euros, whose brands have since become part of the total portfolio of the Coca-Cola HBC Group, which has a presence in 29 countries. The history of Bambi began in 1967 in Pozarevac, Serbia, and in the 55 years since, the various sweet and savory snacks offered by the company have become favorites of generations. Hungary joins the list of countries that sell Bambi brands with the periodic introduction of MyWellness biscuits.
MyWellness is a modern brand that contains useful, nutritious ingredients, according to the press release. The products are 100% made of integral flour and are rich in vitamins and fiber. They are available in many flavors with coatings made of high-quality real chocolate. MyWellness biscuits are all vegan products.
The current market test, which started in November this year, aims to increase awareness of the MyWellness brand and encourage the testing of products. During the pilot period, Coca-Cola HBC Hungary would like to learn more about the snack market, the benefits and challenges of marketing the novel food category, and the investment needs that are essential for a long-term presence in the segment.
"We are constantly improving our portfolio and services to respond to changing consumer needs. Snacking is becoming an increasingly popular activity in Hungary, and consumers are happy to combine their sweet or salty snacks with their favorite drinks. Therefore, we think it is a logical business decision to serve these new consumption occasions, and therefore it is essential to have a pervasive knowledge of the market. This market test provides an excellent opportunity to gain experience and earn a foothold in the Hungarian snack market in the future, even in the long term," said Márton Vajda, coffee & premium spirits business director at Coca-Cola HBC Hungary.
The products include classic oat biscuits in five flavors (raisins, coconut, chocolate-banana, hazelnuts, chocolate chunks), two oat biscuits coated with chocolate (coconut-chocolate, orange-chocolate), while the MyWellness brand also offers sugar-free alternatives in cinnamon-cocoa-chocolate and orange-chocolate flavors.
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