According to IRI’s Pulse Drinks Report (Q4 2013), total sales for non-alcoholic drinks across Europe was €43.6m, a drop of 0.4%, with only the UK and France seeing sales rise over the previous year and all other markets decline. Coffee and tea were the biggest losers.
While mineral water still outperformed other soft drinks categories, a change in drinking behaviour in countries such as Germany and Italy means that carbonated mineral water is declining in popularity, as younger people turn to still water, non-alcoholic beers and adult lemonades, as well as energy drinks. However, colder, wetter and more unreliable weather seems to be the single biggest factor in lower volume sales for cold beverages across most countries.
“The weather plays a major factor in the drinks market,” said Björn Steinbach, senior consultant at IRI. “In the UK, for example, we experienced the coldest March on record in the last 50 years, and as a result saw an upswing in sales of hot beverages, while during the hot summer shoppers spent more on mineral water, soft drinks, squashes and juices.”
IRI advises manufacturers and retailers to do more to capitalise on the weather, including running mineral water promotions in the summer to help regain lost sales during the colder months.
“While the weather isn’t as reliable as it once was – we can have an unseasonably mild and dry March and a cold, wet June, which throws traditional patterns of shopping behaviour out of the window – retailers need to be prepared and be able to react quickly.”
IRI also points to new product development to help drive sales, especially in the water-plus category where mineral water with added flavourings like lemon and lime are becoming more popular with a younger generation.
“Fizzy water is now associated with older drinkers, so people are looking for trendy alternatives like flavoured waters, lemonade-style and energy drinks. “
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