Since 2009, the naturally fermented kvass segment has been remarkably expanding – increasing by four times in proportion to the total Latvian kvass market. The fast development of this segment has been stimulated by the alignment of legislation in the kvass market that at the same time helped to educate consumers about the specific character of kvass.
Since the end of 2009, when representatives of fermented or real kvass initiated the alignment of legislation that would clearly distinguish two beverage categories - kvass and kvass beverages, the naturally fermented kvass proportion in the total Latvian kvass market according to sales volumes has remarkably increased - from 7 % in 2009 to 25 % in 2011. This tendency is especially pleasing within the framework of excessively high excise tax for non-alcoholic beverages in Latvia, which provides for the highest tax rate in Europe.
Being aware that knowledge helps in making an adequate and objective choice, as well as facilitates fair competition among beverage manufacturers, Cēsu alus regularly invests in consumer education and information by explaining the differences between kvass and kvass beverages. Currently, the marketing communication is being created, which will portray and explain the kvass fermentation process.
"The poll which was carried out in social media portals confirms that consumers know the difference between the two products available on the market - kvass and kvass beverages. 89 % of the respondents know that kvass is naturally fermented, while kvass beverages are non-alcoholic and contains preservatives, flavouring, synthetic sweeteners and other additives," says Cēsu alus Head of the Marketing Department Inese Kublicka.
Consumer awareness and increasing consumer choice towards naturally produced and healthier products, as well as the innovative product development in the particular segment have facilitated the growth of the naturally fermented kvass market. In the beginning of 2009, Cēsu alus introduced Latvian consumers to a new - naturally fermented bread kvass brand Ulmaņlaiku kvass, which in a very short period of time has become the second most popular among naturally fermented kvass brands, occupying 14 % of the market share in the total kvass market.
By innovative brand development and taking into consideration that packaging beverages in cans is becoming even more popular, this summer the favourite Ulmaņlaiku kvass will be available in a can.
"By developing the product portfolio of Ulmaņlaiku kvass, this summer we also offer it in a pint can. Kvass as a perfect thirst quencher is often taken along to various open-air events, picnics, and now in a can it is easier to carry it along. It should be noted that Ulmaņlaiku kvass is the first kvass in Latvia filled in a can, thus we perceive the target audience to be those who choose traditional values in more trendy packaging," says Head of the Marketing Department Inese Kublicka.
The investments for filling kvass in cans were 55 thousands euro.
JSC Cēsu alus Public Relations Manager
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