The beverage industry has undergone a real revolution in the last few months. Shop shelves look very different than they did at the end of 2020, both in terms of products and prices. Of course, the main reason for these changes is the sugar levy, which has significantly influenced the prices of sweetened beverages - especially carbonated ones - and thus forced modifications to consumer trends.
We make no secret of the fact that for us as producers this has been a very difficult time, especially as the legislative changes were introduced at an express pace and did not allow the industry to prepare properly. The COVID-19 pandemic has also caused major problems, highlighting the worldwide shortage of commodities and the frenzy of commodity price increases, and when you add to this the not inconsiderable rise in energy prices, it is clear that shelf prices for consumers can make it questionable whether or not they should reach for a particular product and put it in their shopping basket.
The pandemic itself has also fuelled the rise of health trends, which have become even more important than before. Consumers on a wider scale began to look on the shelves for products that would have a positive impact on their health and immunity. In response to such a turn of events and the modification of the market, many companies decided to quickly introduce innovative products as an answer to falling sales. Among other things, Ustronianka has decided to develop a series of "Ustronianka Z Natury" products, i.e. drinks without preservatives, sweetening or calories, created exclusively on the basis of natural mineral water with the addition of natural fruit flavours. This is another step towards pro-health trends, which are particularly close to our hearts as a producer of mineral waters. These are the products that play the most important role in Ustronianka's portfolio and we are sure that our next moves will be aimed at these trends. The situation is similar in the case of the Arctic+ brand, whose functional beverages have been enriched with 20% juice content and this was also a step making this product line part of health-oriented trends.
In the portfolio of our next brand, which is based on sweetened carbonated drinks, we have also taken the necessary steps to meet customer expectations. The Hoop brand, as it is referred to, has started expanding products sweetened with fruit juices with a minimum content of 20% from the beginning of 2021. Hoop Cola Lemon, Orange or Red Star, which is the equivalent of the traditional cola flavour, are new products that are just examples of such innovative actions.
The market situation in the beverage industry is so dynamic that a lot can change overnight. Producers are competing for innovations, ideas and new product categories, even more intensively than in previous years. There is a kind of race to introduce new products. In the current abundance of offerings, customers have such a wide choice that it affects their loyalty and commitment to a brand to a certain extent, which often translates into a shorter product life cycle. All this guarantees, however, that the coming months will bring us all many more interesting solutions, which will hopefully successfully win the hearts of consumers.
