Consumers have been feeling the pinch from rising living costs and inflation this last year, with increasing numbers being mindful of the amount they spend.
In a bid to make their money stretch further, these pressured shoppers are expected to move toward smaller transactions and smaller pack sizes.
At the same time, we’re also seeing a ‘lipstick effect’ where shoppers are switching from expensive purchases to treating themselves with smaller treats and indulgences.
“As inflation is set to continue, it’s important for retailers to offer choice to shoppers who will all be impacted differently – there’s no one size fits all solution,” comments Ben Parker, GB Retail Commercial Director at Britvic. “This should include a range of on-the-go options, in addition to multipacks and larger bottles, as well as price-marked packs (PMPs) as people will continue to look for value for money to help manage their budgets.”
We have seen the trend for healthier products continue to increase among consumers and with the high in fat, salt and sugar (HFSS) regulations now in place, reduced sugar options when it comes to soft drinks will only continue to grow in importance.
“As a category we were well prepared ahead of the legislation, following the introduction of the Soft Drinks Industry Levy which came into effect in 2018,” adds Parker. “Therefore, to date, soft drinks has been in an ideal position to help retailers with any shortfall from other non-HFSS categories.”
“At Britvic, we know how important it is to offer retailers and shoppers choice, and as a business, we have a long history of helping people make healthier choices,” says Parker. “Our innovation pipeline continues to centre around low and no-sugar products which meet HFSS regulations and offer consumers better-for-you options as part of our strategy. Our leading approach to low- and no-sugar reformulations has resulted in 90% of our portfolio – 196 liquids – already being HFSS compliant, all while maintaining our commitment to never compromising on taste.”
A recent example of this is the launch of Tango Apple Sugar Free in September 2022 and 7UP Free Cherry in a 500ml bottle for the first time in March 2022, so that people could enjoy the popular drink on-the-go. With the growing popularity of flavoured carbonates, both products meet the consumer demand for tasty sugar free flavours. Last year Britvic also reduced the sugar content across the Rockstar core range of energy drinks, making the brand’s six best-selling flavours HFSS compliant.
The accelerated health trend has also created opportunities for wellness brands, it’s no longer just about removing sugar or calories from diets. Shoppers are on the lookout for added vitamins or ingredients that can support both physical and mental health, from immune boosting benefits to those helping them to focus.
Low in calories, with botanical extracts and added vitamins, Purdey’s has broad appeal, making it perfectly placed to lead in the wellness drinks segment. Its ambition is to make wellness drinks accessible to more people, by aligning with current consumer trends and providing great taste. The brand delivers the important factors customers look for in functional soft drinks – clear benefits, great taste and healthier ingredients.
Britvic has also reviewed how it can serve the demand for functional benefits within its existing portfolio and last year launched Robinsons Benefit Drops, available in four flavours, each with a different added functional benefit. The range offers shoppers a convenient and tasty way to gain additional vitamins while on-the-move.
“As we look at consumer behaviour since the pandemic, hybrid working now appears to be the new norm,” continues Parker. “Alongside this, we can see that traditional mealtimes have shifted and consumers are now looking at all times of the day for meals or drinks.”
On the go drink shoppers spend on average £3.82 per visit vs lunch on the go shoppers who spent £6.37 (Lumina). Therefore, meal deals will give stores opportunities to offer bigger ticket propositions, tempting shoppers with recognised brands which have a strong appeal. Whatever happens next, soft drinks stand to benefit by being versatile, relevant, available all day and suitable across age groups and occasions.
Pure juice drinks in particular are performing well, currently up 26.71% vs YA (IRI). Last year Britvic expanded its Robinsons Ready to Drink range, capitalising on this growth.
Launched in March 2022, Blackberry & Blueberry is the third flavour to the line-up. The new flavour allows retailers to offer their shoppers even more variety when it comes to choosing soft drinks.
The latest Blackberry & Blueberry flavour launch helps retailers further drive on-the-go sales with an instantly recognisable and trusted brand in their chillers. Robinsons Ready to Drink was the official soft drinks partner for The Hundred cricket competition last year, which included an on-pack promotion giving consumers the chance to win tickets to the tournament. The promotion will be available again this year from August, following its success.
Adrian Troy, Marketing Director at Barr Soft Drinks, comments: “The UK’s £10.6 billion (IRI) soft drinks category is growing at +10% and is one of the most profitable categories for retailers. By stocking a range of quality and trusted brands from Barr Soft Drinks, there are some key opportunities to drive incremental sales and increase profits.”
Over the last year, the Barr Soft Drinks portfolio of brands delivered an additional £28.2 million in retail sales value to the soft drinks category (IRI).
With unprecedented temperatures recorded last summer, sales were better than ever in soft drinks, with flavoured carbonates and water seeing the biggest uplifts.
Within this, flavoured carbonates achieved the biggest subcategory uplift, growing +55% in retail (IRI), highlighting the importance of brands like IRN BRU and Rubicon Sparkling, known for their iconic flavours and exotic fruitiness.
As the trend of sustainability continues to grow across categories, this has become a key driver for shoppers when making purchasing decisions.
Last year, Barr Soft Drinks announced plans to become carbon net zero by 2040. Under its No Time To Waste initiative, the company will be bringing together multiple energy, packaging and waste programmes to become more sustainable.
Building on changes that have already been implemented, such as 100% recyclable soft drinks packaging, clear on-pack messaging and a 41% reduction in greenhouse gases, No Time To Waste will drive forward even more measures to reduce overall environmental impact.
Kat Jones, Marketing Director at Cawston Press, comments: “Providing a variety of formats can help cater to different audiences and occasions across the year.”
Cawston Press has three different ranges: Pressed Fruit Juices (1L cartons), Fruit Waters (200ml cartons), Sparkling Juices, which come in cans (single 330ml cans and 4x330ml multipacks) as well as glass bottles (250ml and 750ml).
The brand’s Fruit Water Cartons are catered towards children and can provide options for family days out, lunch boxes, picnics or children’s parties and are school approved. The Pressed Fruit Juice range provides great breakfast options, or alternatively, for evening occasions the juices can be mixed with or without alcohol for an elevated experience. The Sparkling Juice Cans are available on their own, ideal for on-the-go drinking, or can be purchased as a multipack of 4 to take home. For adult socialising, the 250 ml Sparkling Bottles are perfect as a long drink or even as a mixer, whilst the larger 750ml bottles are great for sharing at special occasions.
According to Global Newswire’s report on the Global Fruit Juice Market (2022 to 2027), the consumption of soft drinks such as fizzy drinks is reducing due to ‘high sugar content, artificial colouring, phosphoric acid, artificial sweeteners, and caffeine’, creating a greater shift in demand from carbonated drinks towards natural fruit juices, with ‘not from concentrate’ leading the category. This coincides with research commissioned by Cawston Press via YouGov, which highlighted that 60% of UK adults are concerned about the amount of sugar and sweeteners in fizzy drinks. Also, 63% would prefer if their drinks were made with more natural ingredients.
“Here at Cawston Press, we use only the finest ingredients inspired by the kitchen garden, picked at harvest time when they are brimming with flavour,” adds Jones. “Our drinks are made with real pressed fruit, with no added sugar, sweeteners and never from concentrate being the second biggest brand in the Not from Concentrate category. We use simple, clean and familiar ingredients, No Jiggery Pokery, improving consumer choice within the soft drinks category.”
The soft drinks category is worth more than £2.7bn in convenience (ACN) and is the third most valuable category to independent retailers (The Retail Data Partnership). CCEP has identified a number of opportunities for retailers to drive further growth as part of its Refresh Tomorrow soft drinks category vision.
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “Retailers should focus on leading brands like Coca-Cola, led by Coca-Coca Zero Sugar (the fastest-growing major cola brand in retail, up 12.5% in value, Nielsen); Fanta, the number one flavoured carbonates brand in volume and value (Nielsen); and Schweppes, the number one mixers brand in convenience (Nielsen).
“Getting the right balance between sharing packs for those socialising at home, and single packs to enjoy on the go, is key.”
Both on-the-go and take-home packs of Coca-Cola, Fanta and Sprite have all increased over the past 12 weeks (Nielsen WE 08.10.2022), showing that there is a dual opportunity.
Shoppers perceive they are getting better value when they purchase price-marked packs (PMPs) in convenience. PMPs give them a feeling of getting the same for a cheaper price, helping to drive sales for retailers (Lumina).
CCEP’s best-loved brands, including Coca-Cola, Fanta, Sprite, Dr Pepper, Monster, Relentless and Reign are all available in PMPs and plain packs, so retailers can choose the best option for their stores.
“Healthier choices have been a priority for consumers for some time,” adds Burgess. “That’s why we identified it as one of the key drivers to unlock the growth opportunity in the soft drinks category in our Refresh Tomorrow category vision. And the recent implementation of HFSS display regulations has added extra emphasis to the importance of low and no sugar options.”
Soft drinks are well placed to help retailers now the HFSS legislation is in place due to longer-term sugar reduction initiatives. Even before the regulations came into force, 76% of the category sales were from non-HFSS products (Kantar) and 86% of CCEP soft drinks are now HFSS-compliant. Soft drinks are therefore a great option to drive impulse sales from HFSS-restricted locations such as aisle ends and till points.
This includes CCEP’s light colas range, comprised of Diet Coke, Coca-Cola Zero Sugar and their respective flavours, and zero sugar flavoured carbonates including Fanta Zero and Dr Pepper Zero.
“At the same time, it’s important not to reduce space allocated to best sellers like Coca-Cola Original Taste, because people still want choice,” says Burgess.
“We’re proud of our sugar reduction achievements, but we’re still backing best-sellers like Coca-Cola Original Taste and Monster Original, and we’re encouraging retailers to do the same and give shoppers choice.” Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, comments: “We’ve been seeing a long-term trend towards drinks with lower sugar, as consumers become more aware of their health and wellbeing. 70% of adults say that they are conscious of their sugar intake (YouGov) and at least a third of shoppers say that they want to reduce sugar in their diet (Nielsen).”
The low- or no-calorie segment continues to outperform regular soft drinks, with almost 70% (BSDA) of total soft drink sales, and sugar-free carbonates in particular have grown by over 5% (Nielsen) in the last year. “We advise retailers to stock up on lower-sugar drinks such as Ribena Light, which has seen 2.3% (Nielsen) YOY growth in the last year, and Lucozade Zero, which is seeing recent YOY growth of over 18% (Nielsen), and Ribena Sparkling Zero Sugar to make the most of this ongoing trend,” adds Gouldsmith.
Carlotta Cattelani, head of marketing and innovation at Upbeat Drinks, comments: “Low and no sugar soft drinks have been becoming increasingly popular in recent years. The trend has been driven by growing awareness of the negative health effects of consuming too much sugar, as well as the wakeup call caused by the Covid19 pandemic. Consumers are increasingly looking for healthier beverage options, to reduce their sugar intake but also hydrate, energise and improve their gut health.”
This trend is expected to continue as consumers continue to prioritise their health and wellbeing, with functionality becoming the purchase focus for soft drinks users.
The soft drink market is undergoing several new consumer trends. Upbeat Drinks is well positioned to meet the demands of today’s health-conscious and environmentally conscious consumers.
Consumers are looking for healthier beverage options that offer additional benefits beyond hydration. The key trends in this category are healthy energy drinks, vitamin waters, and protein shakes.
Consumers are seeking solutions that cover more than one need in one purchase. With wallets being squeezed, convenience has become a key factor in the beverage market.
As consumers become more environmentally conscious, they are looking for drinks that are sustainably packaged and made from environmentally friendly materials.
In response to these trends, Upbeat Drinks has created a product that combines all these elements, offering a unique and innovative solution. Its range of drinks are made with clear whey isolate (the purest form of Whey), BCAA, vitamin B complex, and are available with or without caffeine. The products make high-end nutritional technology accessible in everyday life.
Moreover, Upbeat Drinks is committed to sustainability. As a certified Carbon Neutral company, its bottles are made with 30% recycled PET plastic and are fully recyclable from label to lid. The company’s aim is to reach 100% recycled PET plastic by 2024, ensuring that its products are not only good for you, but good for the environment too.
Upbeat Drinks is changing the game in the functional drink market. Since launching just six months ago, its two ranges, Protein Hydration and Protein Energy, have been embraced by retailers with three SKUs already selling online and offline. Its fourth SKU is set to launch soon, solidifying the brand’s position in the healthy energy drinks category.
Combining Clear Whey Protein, Vitamin B and absolutely zero sugar (and with caffeinated and non-caffeinated options) Upbeat has captured the attention of the fitness community – for its ability to boost performance and aid recovery – as well as the ‘go-to’ for health-seeking shoppers, looking for a healthier alternative to traditional energy and soft drinks.
Upbeat’s marketing strategy combines experiential marketing, influencer marketing, and digital efforts to increase brand awareness, facilitate trial, and build brand loyalty.
“By organising sampling and participating in events, we are able to engage with consumers directly: we can give them the opportunity to try the product (decreasing the first purchase barrier) and we can direct them to their closer retail for future purchases,” adds Cattelani. “Engaging personally with potential and existing consumers also gives us the chance to create a personal connection with the brand.”
A Red Bull spokesperson comments: “Every shopper need is different, so it is crucial that their favourite soft drink is available in a range of formats to help satisfy their immediate requirement. 2 in 3 Red Bull shoppers actually go into store knowing which can size they want to buy (Kantar), therefore Red Bull Energy Drink is available in three different can sizes – 250ml, 355ml and 473ml, with each playing a key role.”
Red Bull Energy Drink 250ml is ideal for on-the-go consumption, with 50% of 250ml shoppers drinking the can immediately after purchase. Whereas, 1 in 3 Red Bull shoppers are likely to consume the larger cans later in the day, with Red Bull Energy Drink 355ml linked to gaming, studying, and socialising, and Red Bull Energy Drink 473ml being the can of choice for all meal occasions, making it ideal for a meal deal offering (Kantar).
Red Bull Energy Drink 250ml sells more packs than any other single serve soft drink (Nielsen) and drives the highest demand in Red Bull portfolio (Nielsen), so an absolute must-stock for convenience retailers. Additionally, Red Bull Energy Drink 355ml and 473ml are the top two fastest growing PMP skus in Sports & Energy, +£8.9m (+24.0%) and +£7.4m (+18.0%) respectively (Nielsen).
“During the summer, as well as these core functional missions, consumers want hydration, so flavoured Sports & Energy drinks are a must-stock,” adds the spokesperson. “Red Bull Editions are growing ahead of total Sports & Energy flavours, with the top three skus (Red Edition 250ml, Apricot Edition 250ml, and Tropical Edition 250ml) cumulatively amassing £4.3m in value sales over the summer – that’s 61% of all Editions sales. Stock all three to offer shoppers choice during the warmer months and maximise sales.”
For a long time, the Red Bull portfolio has been about offering choice, ensuring the right product is available for each shopper at their point of need. Increasingly consumers have been looking to moderate their sugar consumption providing retailers an opportunity to highlight key low/no sugar ranges.
As a result, low/no sugar soft drinks are the best-selling sector (+£1.5bn) and fastest growing, +12.8% vs full sugar +12.5% (Nielsen). Red Bull offers no sugar variants in both Single Serve and Multipacks with Red Bull low calorie Single Serve in growth +£3.7m, +18.0% YoY and Multipacks, £772.9k, +240.1%. The brand’s best-selling low-calorie drink is Red Bull Sugarfree 250ml, £23.4m, +12.6% (Nielsen).
With regards to the shopper, Red Bull low-calorie has a higher share of males vs total soft drinks (+58% vs 48%), which is representative of the Sports & Energy sector. They also tend to be younger and less affluent, whereas low-calorie soft drinks shoppers are largely older and more affluent, therefore Red Bull offers a different type of shopper vs the category (Kantar).
That said, there is generally a higher need for sugar in functional drinks vs other soft drinks, as an ingredient that provides part of the functional benefit. As a result, despite the overall growth, there have been 46% less servings consumed YoY as a reason why shoppers choose to consume functional drinks because they are low in sugar, this is compared to total soft drinks occasions, where shoppers’ reason for choosing a drink because it is low in sugar, servings consumed has increased by 6% YoY (Kantar).
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