This paper provides an econometric analysis of food demand that contributes to a better understanding of changes taking place in the structure and evolution of food demand in Slovenia. Its objective is to estimate price and income elasticities of food demand in Slovenia and draw inferences about the impact of transition. Since the use of time-series data is inappropriate, Household Budget Survey data for 1988 and 1993 were used to estimate consumption trends and undertake an analysis of food demand for the two years. The paper estimates a LA/AIDS demand system for seven food groups. The estimated price and income elasticities are of magnitudes usually found in demand analysis of developed market economies.