Kvass - Latvia

Latvia

After the fall of the Soviet Union in 1991, the street vendors disappeared from the streets of Latvia due to new health laws that banned its sale on the street and economic disruptions forced many kvass factories to close. The Coca-Cola company moved in and quickly dominated the market for soft drinks, but in 1998 the local soft drink industry adapted by selling bottled kvass and launching aggressive marketing campaigns. This surge in sales was stimulated by the fact that kvass sold for about half the price of Coca-Cola. In just three years, kvass constituted as much as 30% of the soft drink market in Latvia, while the market share of Coca-Cola fell from 65% to 44%. The Coca-Cola company had losses in Latvia of about $1 million in 1999 and 2000. The situation was similar in the other Baltic countries and in Russia. Coca-Cola responded by buying kvass manufacturers and also started making kvass at their soft drink plants.

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