Bulgarian Soft Drink Association - Short Background Information of The Soft Drink Industry

Short Background Information of The Soft Drink Industry

The soft drink industry in Bulgaria has over 55 years of history and it has started with the first company for bottling natural mineral water. Building of contemporary for the 1960s enterprises for producing licensed drinks – ‘Оrangeade’, ‘Coca Cola’, ‘Pepsi Cola’, ‘Schweppes’, production of fruit juices and herbal concentrate and drinks among them marked the beginning of the new period in the sector development.

In the years after 1990 in the country started reorganization and restructuring of old business establishments: setting of many new bigger and smaller enterprises and workshops for manufacturing carbonated drinks, natural fruit juices, dissolvable drinks and for bottling water. The economical and political changes revealed opportunities for unfolding the private initiative. With foreign and local capital conditions are set for the manufacturing even bigger variety of drinks in line with the European criteria and standards. Today the Bulgarian market does not differentiate from the European market by variety of drinks, packing and packaging. The industry is enriched not only as a material base, but also as a technological. Many European and globally known companies, manufacturing raw materials, ingredients, equipment or technological equipment are immediately present in the industry.

At present, the companies from the soft drinks industry comprise 10% of the total amount of companies of food processing industry in Bulgaria. They make 6.5% of the wholesale turnover of the food and drink industry. The amount of the employed workers and attendants in 17 large and 290 medium and small companies is over 4600 people. The value of the production on retail price in the domestic market for 2006 is €530 million.

The industry is one of the most dynamic and fastest growing in the country. In the years after the changes occurring in the country the investments in new and reconstructed business establishments exceeded $550 million. Introducing capacity, output and power of most contemporary technical level, the search for modern technological solutions in all directions – in producing natural fruit juices and nectars, of carbonated and non-carbonated drinks, of functional drinks, in water bottling sector, makes the Bulgarian market in its diversity similar to the European. Many are now examples of investments, made with the partnership, both, with domestic: Bulgarian and with foreign capital: German, Austrian, Polish, Greek, North American, French, Turkish and others.

For the development of the industry the following factors show: in the past 10 years the consumption per capita of the population of bottled water increased 12 times, of fruit juices and nectars – more than 6 times, of non-carbonated drinks – more than 4 times. The soft drinks sector is a leader in the total consumption of drinks in Bulgaria (including beer, wine, and high in alcohol drinks, milk drinks, coffee and tea) with market share of over 62%, which increases each year.

The soft drink consumption in 2007 is expected to exceed 1630 million liters, which means growth of 16%. Thus the consumption per capita of the population will increase by 30 liters and by the end of the year it will reach 214 liters. The industry offers to the Bulgarian consumer exceptionally broad choice of drinks. Considerable contribution to the industry growth has the cooperation and partnership with many companies in Europe. Many of the manufacturers use technological plans and materials, technological and laboratory equipment, engineering services from German, Austrian, Dutch, French, Belgian companies.

Companies from the industry present themselves successfully on the united European market. Majority of them are certified by the ISO 9000:2001 standard for quality assurance and the integrated system ISO 22000. Many of them are preparing to adopt the standards of chain stores like BRS, IFS and others. Models of the Good manufacturing practices and HACCP systems are developed by the Soft Drink Association in assistance to the companies in the sector. Ever more expanding is becoming the circle of companies, which export own products into the European and global markets. In 2005 the export of bottled water, fruit juices and nectars was on the amount of 40 million liters and show indications to grow further in the following years. Products of Bulgarian companies, manufacturers of soft drinks, are sold in USA, UK, Germany, Holland, Belgium, Malta, and Cyprus, all Balkan countries, in Russia, Ukraine, Africa, Middle East, and Latin America.