Now worth £8.5bn across all channels, the UK soft drinks category grew by 2% in value and 1% in volume, retaining its number one category position in take-home, and overtaking sprits within the licensed channel to become the second biggest category behind beer.
This strong performance highlights consumer perception of soft drinks as being affordable, everyday purchases in and out of the home.
The report demonstrates that although consumers remained cautious with their spending throughout 2009, soft drinks not only represented value for money, but also provided enjoyment within all budgets.
The report, which uses independent data from Nielsen, highlights that, across the board, cola remains the number one performing subcategory, growing by 4% in both channels and securing a 22% share of soft drinks within take-home and 41% within licensed.
Glucose and stimulant (energy) drinks and squash commanded the strongest value growth within take-home, of 7%. Smoothies were yet again the hardest hit in take-home, with a double-digit drop of 27% in value and volume as consumers continued to switch into more budget-friendly subcategories.
Murray Harris, sales director at Britvic, says: “Growing by 2% and now worth a huge £8.5bn, soft drinks retains its crown as one of the most valuable categories across all channels. What is clear from the report is that soft drinks continue to be seen to offer value for money to consumers and are a staple of consumers’ beverage repertoire in and out of the home. It has also highlighted a number of unexpected switches that consumers have made over the last year. Who would’ve thought that pure juice consumers would be switching now to low-calorie cola?”
Research commissioned for the report showed that consumers were prepared to shop around and change their buying habits to get the best value. This has impacted on shopper loyalty to brand and retailers, and resulted in an increase in promotions.
Within soft drinks alone, promotions on formats for later consumption increased by 3% to 49%. Supermarkets won this battle, discounters’ growth slowed and sales of soft drinks in impulse outlets declined in value by 3%. However, convenience stores of over 280 sq m enjoyed a 2% increase in sales.
This sustained search for best value has also resulted in a notable drop of 4% (worth £41m) within pure juice, the second biggest subcategory in take-home, as consumers switched to the less expensive options of juice drinks and low-calorie cola.
Within the on-premise channel, juice drinks didn’t fare as well, as squash became the more attractive option for value-hungry consumers trying to stretch their spend when drinking out-of-home. Food and family friendliness attract consumers out-of-home
Although the trend for more in-home social occasions increased, the 3% growth of soft drinks sales within the licensed channel offers some cheer for a channel that experienced yet another challenging year, with overall sales of beers, wines and spirits down by 8% volume and 5% in value. Licensed outlets that targeted the leisure pound by focusing on a good quality food offering and providing family friendly value offers has helped ensure soft drinks remained resilient.
“Although soft drinks form a part of our everyday lives and the industry can by buoyed by this return to form, consumer spending habits have undoubtedly changed during the course of the downturn,” says Harris. “Manufacturers and retailers have had to aggressively market soft drinks’ value for money, and the fact that the market has enjoyed solid growth in the last year can be attributed to this.”
Source: Britvic
© FoodBev Media Ltd 2024