Soft Drinks is a hugely profitable category with growing strength in the market. Since the focus for many pubs with Soft Drinks is still towards food, families and females - known in the trade as “The three F’s” - it is crucial to have a range of products that cater for all of these considerations. The ontrade sales value of Soft Drinks was worth £2.7 billion in 2011, with the Soft Drinks category remaining the second highest in volume and third largest in value behind beer and spirits. The cola and energy drinks categories experienced the largest growth rates over the last 12 months. Cola remained the top sub-category of Soft Drinks with a 1% rise in volume and a 5% increase in value to £1.4 billion. Pepsi remained the number one brand in the cola category, despite an 11% value and 6% volume growth for Coca-Cola. Interestingly, the growth of diet cola brands was greater than that of full sugar brands. Energy drinks experienced exceptional growth, with value increasing by 16% and volume by 9%, rises fuelled by the growing ‘bomb’ trend of mixing energy drinks with spirits. The renewal in popularity of spirits also had a positive effect on mixers, which demonstrated a 4% growth in both value and volume as well as an availability increase in 4% more outlets. Mirroring the trend in the beer market, ginger was a popular flavour in the mixers category during 2011. As in recent years, juice drinks remained popular with 7% and 3% increases in value and volume respectively, while carbonates and mineral waters both experienced declines. 80% of the Soft Drinks market in 2011 was accounted for by Britvic and CCE, both of which out-performed the whole Soft Drinks market in the ontrade. However, many other suppliers experienced falls in value and volume, with the notable exception of Energy Drinks such as Red Bull and Monster. Soft Drinks are now mirroring the trend in the alcoholic drinks categories for premiumisation, with consumers prepared to pay higher prices for quality and an excellent serve. The two big players in the Soft Drinks market, Coca-Cola Enterprises and Britvic, have both invested in ontrade support, training programmes and guidelines on perfect serves in a bid to standardise servings across outlets to guarantee that customers receive the best value for money. Premiumisation within the Soft Drinks category creates opportunities for smaller brands offering points of difference to enter the ontrade, with predictions for an increased focus on more interesting flavours over the next year. It has even been suggested that outlets transfer their approach to Cask Ales to their strategy for Soft Drinks by both offering a core range and incorporating frequently changing guest brands.
Top Tips: •
Remember “The three F’s” Food, Family and Females: ensure you stock soft drinks that cater for all three of these categories.
Soft Drinks are undergoing premiumisation with customers prepared to pay more for quality and excellent serve. Ensure attractive glass ware and offer ice and lemon or lime if appropriate.
Energy drinks have experienced exceptional growth fuelled by the growing “bomb” trend of mixing energy drinks with spirits. Stocking energy drinks is great for targeting younger audiences.
The OnTrade Preview 2012 Britvic Soft Drinks Report 2012
Middleton Wholesale Brands Book 2012