Sparkling soft drinks are a popular refreshing accompaniment to bring summer occasions to life.
Larger packs are expected to remain in high demand as people continue to make the most of the opportunity to socialise at home and enjoy summer occasions in their gardens with friends and family.
On-the-go occasions are back, and sales of on-the-go soft drinks are increasing as people get back out and about (Nielsen). That’s why it’s important for retailers to find the right balance between on-the-go and at-home formats, keeping space for both.
With 29% of consumers saying they are focussed on sugar reduction following the pandemic (IGD), and with the HFSS restrictions due to come into effect later this year, low and no sugar options should be high on the agenda with retailers.
Whilst the regulations will require a lot of changes for impacted retailers, there can be opportunities too. 73% of soft drinks value sales already come from HFSS-compliant products (Kantar) – significantly more than other HFSS categories. Therefore soft drinks are well placed to replace other non-compliant products in key display areas.
“Two thirds of our volume sales (67%) now come from low and no sugar variants,” comments Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP). “Since 2010 we’ve launched 100 new low or no sugar soft drinks, reformulated 47 of our products to contain less sugar and since 2015 we have reduced our overall sugar use by 25%. This means that 86% all our soft drink brand ranges will be non-HFSS come October.”
Within this, Coca-Cola zero sugar is the fastest-growing cola in GB (Nielsen) and Monster Ultra is the number one zero sugar energy drinks range in GB (Nielsen) – not to mention the popularity of other leading HFFS-friendly brands, like Diet Coke, Fanta Zero, Sprite Zero.
“Our advice to retailers is to upweight low and no sugar variants of soft drinks as they can be displayed at the front of store, near the till point and on aisle ends, to replace HFSS impacted categories like chocolate and snacks,” says Burgess.
Fitness and healthier lifestyles remain a priority for consumers, and shoppers are increasingly looking for food and drink with functional qualities that can help them achieve maximum results during sports or workouts. This has given rise to the performance energy drinks segment.
CCEP’s Reign Total Body Fuel range is worth £7.56m and growing by 23.3% in retail (Nielsen). As well as containing 200mg of naturally-sourced caffeine, the recipe is enriched with branched-chain amino acids (BCAAs) to help prevent protein muscle breakdown, L-Arginine to improve blood flow and stimulate the release of growth hormones, and Vitamins B3, B6 and B12, which can contribute to reducing fatigue and normalising metabolism.
To build on this success, CCEP expanded the Reign Total Body Fuel range last year with the launch of two refreshing new variants – Peach Fizz and Orange Dreamsicle. Reign Total Body Fuel Peach Fizz is packed with the flavours of succulent peach and a hint of citrus fruits, while Orange Dreamsicle is inspired by the classic frozen treat with orange citrus and vanilla bean flavours.
“The Big Night In occasion became particularly popular over the last two years, and we expect it will remain a part of consumers’ lives moving forward,” adds Burgess. “With many consumers also conscious of their spending at the moment, nights at home provide an opportunity to meet with friends and family – whether that’s for a relaxed movie night or a more sophisticated evening meal – without the expense of going out.”
Soft drinks have enjoyed 12.6% value growth in convenience (Nielsen) and can play a key part in the Big Night In experience, either as a non-alcoholic option or as a mixer. In particular, it is important to stock a range of sharing formats for consumers to enjoy when socialising at home, such as large PET bottles of Coca-Cola, Fanta and Schweppes.
Earlier this year CCEP expanded its range with the launch of Monster Ultra Watermelon, which combines a juicy watermelon flavour with the renowned Monster energy blend, giving consumers a refreshing energy boost with no calories and no sugar.
Monster Ultra Watermelon will be available in both plain and price-marked 500ml packs for shoppers to enjoy on-the-go. It will also come in four-can multipacks, to capitalise on the continued popularity of the home-based energy drink occasions that accelerated during the pandemic, and that have boosted demand for larger pack formats ever since (Nielsen).
Earlier this year CCEP announced the return of #WhatTheFanta, following a hugely successful campaign last year. Delivering on consumer demand for zero sugar variants and flavour innovation – whilst bringing some fun and personality to the soft drinks fixture – a new, bright pink mystery Fanta variant is rolling out in 500ml and 2l packs now. The liquid inside the bottle could be one of multiple exotic zero sugar flavours. New for 2022, there are subtle differences on packs to help shoppers find different ones or repeat buy their favourite.
To solve the flavour mystery, consumers are invited to scan the QR codes on-pack to unlock a series of interactive online clues hidden within action-movie style videos – which will develop across several weeks, to sustain interest and intrigue.
CCEP and Costa Coffee are launching a new ready-to-drink (RTD) Frappé range, to drive incremental sales within the RTD coffee segment.
Initially, the range features two popular flavours from Costa Coffee’s coffee shop business – Chocolate Fudge Brownie and Caramel Swirl – in a drink that’s creamier, thicker and more indulgent than the existing Costa Coffee RTD line-up. Crafted by combining Costa Coffee’s slow-roasted, smooth and nutty Signature Blend coffee espresso with fresh milk, the fudge chocolate brownie flavour or caramel swirl flavour is then added to finish off a great iced coffee taste experience.
Available in a 250ml,100% recyclable bottles and made with 100% recycled plastic (excluding caps & labels), the range is rolling out throughout May across grocery, wholesale and convenience.
Costa Coffee and CCEP’s Coffee Vision consumer research identified that the key RTD coffee need state of a ‘boost’ or ‘pick me up’ can be broken down into low intensity, medium intensity and high intensity, where distinct audience groups make choices based on level of caffeine, coffee flavour and sweetness.
As well as having low caffeine intensity – which is attractive to younger adults – the RTD Frappés from Costa Coffee contain less sugar than many of the other brands on the market, meaning that even though they’re designed for treating, they will still comply with HFSS regulations.
The low intensity sub-segment has been the least well catered for to date but is up 34% YOY and has significant growth potential. With the launch of the RTD Frappés, Costa Coffee will now offer low, medium and high intensity options across the range which also includes Latte, Vanilla Latte, Caramel Latte and Flat White.
The launch follows a year whereby Costa Coffee RTD nearly doubled in size for the second year in a row, growing at twice the rate of an already-booming segment and achieving 90% incrementality – proof of a strategy that’s successfully bringing new shoppers in, rather than encouraging existing shoppers to switch brands.
To maintain this momentum, there continues to be significant investment in the brand. The Costa Coffee RTD Latte and Flat White variants will benefit from a subtle recipe tweak to deliver an even better Costa taste, and a bold new look to deliver maximum standout on the shelf.
The brand will also be launching its biggest nationwide summer marketing campaign which fits under a global activation platform of “Summer is a state of mind”. It will aim to uplift the nation and inspire positivity whatever the weather this summer, and includes out-of-home, social media advertising, as well as influencer activity.
As part of this, the Costa Coffee RTD range will be supported by a summer sampling campaign which will tour the nation, visiting 10 different cities and major events including Brighton Pride, CarFest and Bristol International Balloon Fiesta.
Martin Attock, Vice-President, Commercial Development at CCEP GB, commented: “RTD coffee is worth £228m and up 37% in value YOY, which equates to an extra £65m of sales in the last 12 months. But it’s still yet to reach its full potential.
“Understanding the variety of need states the segment caters for is vital, so we can ensure all bases are covered – which is absolutely the case now for Costa Coffee RTD with the addition of the Frappé range. We’re confident that, along with the great new taste across our Latte and Flat White variants, the Frappé range will help attract more consumers to the RTD coffee category this summer.”
Nigel Tarn, marketing manager at Fentimans, comments: “Healthy soft drinks and low sugar drinks are growing in popularity amongst consumers. For obvious reasons, the Covid-19 pandemic has led consumers to rethink their health, beyond just hand-washing and vaccinations. In fact, the Fentimans 2022 Market Trends Report found that 73% of Brits are now proactively trying to lead a healthy lifestyle.”
This sharpening focus on health has meant more and more people are considering more carefully what goes into their bodies, and meaning drinks with reduced sugar, and added health boosting ingredients are coming to the fore.
There’s currently a trend for health-conscious drinkers, as a long-lasting result of the Covid-19 pandemic. In fact, the Fentimans 2022 Market Trends Report indicates that almost three quarters of adults (73%) are now proactively seeking to lead a healthier lifestyle. For instance, Kombucha has moved rapidly from niche to mainstream, with numerous brands fighting for a share of this space.
It’s likely that this trend will continue to influence the soft drinks industry during the summer, and we’ll see a growing demand for soft drinks with health benefits, such as aiding digestive health – which has seen real innovation in the adjacent categories of yoghurt, milk alternatives and protein enriched kefir drinks.
We are definitely seeing a trend for consumers looking to recreate the on-trade experience at home. In fact, the Fentimans 2022 Market Trends Report found that half of Brits have been prompted to buy a certain brand of drink to enjoy at home, following an experience of it in the on-trade.
Because of this, Fentimans has recently launched a new ‘fridge pack’ format of its best-selling mixer flavours: Rose Lemonade, Ginger Beer, Premium Indian Tonic and Valencian Orange Tonic Water. These new packs are designed to capitalise on the growing at-home consumption, consisting of 6x150ml cans.
Fentimans’ best-selling mixer flavours are Rose Lemonade, Ginger Beer, Premium Indian Tonic and Valencian Orange Tonic Water. These are the flavours selected for the new ‘fridge pack’ format of canned mixers, consisting of 6x150ml cans.
Fentimans’ biggest product launch this summer is the new Good & Fruity range, which aims to better meet the needs of a growing audience seeking functional health benefits in premium soft drinks. The new range has 35% fruit juice, as well as Calcium, Zinc and Vitamin B6 to support digestion and metabolism, and consists of three flavours: Cherry & Blood Orange, Apple & Elderflower and Lemon & Pink Ginger. The range has an RSP of £4.50 for a pack of 4 x 250ml bottles.
On top of this, Fentimans also recently launched a new ‘fridge pack’ format, consisting of 6 x 150ml cans. These packs are available in four of its best-selling mixer flavours: Rose Lemonade, Ginger Beer, Premium Indian Tonic and Valencian Orange Tonic Water, with an RRP of £3.75 per pack.
Chris Butler, Marketing Manager at Radnor Hills comments: “With the rise in consumers becoming more health conscious, there is a huge opportunity for brands to release low/ no sugars drinks into the market. Radnor Infusions were released in 2020 for this very reason as since the beginning of the pandemic, consumers are focusing more on the health and seeking products with low/no sugar levels.”
When it comes to mixers, many consumers try to replicate drinks they would get in a restaurant or bar, however the key to this is the premium mixer. With the rise in staycations, consumers are consistently looking for new brands to create their favourite summer drink and when hospitality was closed, there was a rise in demand for premium soft drinks. The best way to entice consumers into buying these mixers is via sampling as many consumers like to try before they buy.
Radnor Splash continues to be one of the most popular products at Radnor Hills, in 2021 two bottles were sold every second. They are the brand’s best-selling products as they are value driving, especially when the range expanded into Tetra Pak during the pandemic to offer more options at low prices.
Radnor Fruits Sparkling cans recently launched in a fridge pack. During lockdown Radnor Splash products launched into 250ml Tetra Pak to offer consumers more value driving products in the market.
Radnor Splash has strong sales with existing major multiple listings, as well as being one of the most popular flavoured waters in the UK. Every month, Radnor Splash is our highest selling product, especially the Forest Fruits flavour.
“Post pandemic, there were trends showing that consumers returned to familiarity,” adds Chris Butler. “For example, in the soft drinks industry consumers stick to what they know and buy what they are familiar with. The best advice to boost sales is to offer sampling, so consumers have the chance to try the product and encourage the sale to avoid them sticking to their old ways.”
This year Radnor Hills has launched a very exciting partnership with one of the UK’s most popular theme parks, Alton Towers. This partnership includes an on-pack promotion of 2 for 1 entry on tickets when you buy a bottle of any Radnor Splash flavour. Combining one of the UK’s most favourited drinks with one of the UK’s most popular theme parks creates an extremely exciting collaboration.
Caroline Wilding, UK Head of Marketing, Juices at Tropicana Brands Group, comments: “Throughout the pandemic, there were several changes to the ways we buy and consume juice. In the past, juice has been synonymous with breakfast, but we know that rest of day juice occasions are growing. Consumers are looking for more variety in their drink options. Because of this, we are developing exciting flavour combinations which will move the Chilled Fruit Juice category beyond breakfast, giving consumers delicious new flavours that do not compromise on enjoyment or health benefits.”
This year, two new flavours were added to the Tropicana Sensations range: Raspberry & Mango Sunset and Passionfruit Punch. The range has been designed to tap into the growth of chilled juice consumption outside of breakfast, with shoppers now spending more on juice for rest of day occasions versus at breakfast time (Kantar), the new exotic flavours are perfectly positioned to support this trend and make summer drinks occasions feel a little extra special.
A key growth driver in the category is consumers’ desires for elevated experiences. As the cost of living continues to rise, cost-conscious consumers are going out less this summer, and instead, are elevating their in-home festivities. With this comes an increase in demand for products that can bring some excitement to everyday, at-home, occasions. Tropicana’s complete range of juices answers this demand as consumers enjoy a glass with friends and family at home.
“When it comes to chilled drink choices, consumers are looking for moments of reward that make them feel good, as well as giving them good,” adds Wilding. “Our ambition as a brand is to offer uncompromising, great-tasting juices that enrich consumers’ everyday lives and help them feel like they are thriving.”
Tropicana is the UK’s most loved juice brand, with a survey of 46,000 UK consumers finding that Tropicana was the nation’s third most-loved drinks brand overall (Savanta). The brand is trusted by consumers in delivering flavour and quality, with juices made from 100% pressed fruits and with no added sugar, it is therefore well-placed to make summer drink occasions even more special.
Tropicana juices count as 1 of 5 a day per 150ml servings, and provide a source of Vitamin C, so as well as great-tasting and refreshing options for a summer day, consumers also gain health benefits while consuming it.
Adrian Troy, Marketing Director at Barr Soft Drinks, comments: “The UK’s £2.9 billion (IRI) convenience soft drinks category is growing at +6% 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 £14.3 million in retail sales value to the soft drinks category (IRI).
“Retailers need to ensure that they are stocking a wide range of soft drinks in different flavours and formats to suit every shopper,” adds Troy. “They should also ensure their fixture is balanced to reflect seasonal category uplifts, such as increasing facings of chilled carbonates and juices during spring and summer, in order to generate maximum profits from the chiller.”
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. This will include, significantly reducing the use of virgin plastic through 100% recycled film on all multipacks, introducing paper straws on smaller juice packs and being one of the first in the UK to introduce plant-based plastics in its 1L cartons.
IRN-BRU is the UK’s No.1 flavoured carbonate brand (IRI), and is a must stock brand for all retailers, showing £3 million growth from loyal shoppers in 2021 (IRI). IRN-BRU XTRA, delivering extra IRN-BRU taste with zero sugar, is growing three times faster than the category (IRI) and provide a popular flavour choice within the fast growing low calorie carbonates sector.
Rubicon is now worth more than £57 million (IRI) and is growing faster than all other major soft drinks brands in the top 25. Rubicon Spring, the UK’s No1. sparkling flavoured water brand (IRI), brought 55% new shoppers into the category in 2021 vs previous year (Kantar). Rubicon Spring Pineapple Passion launched in summer last year, targeting shoppers at the water fixture who are looking for an exciting new flavour.
Rubicon Sparkling Raspberry & Pineapple is the first soft drink in the UK with this fruity flavour combination and the brand’s first Sparkling flavour launch for over 30 years. Taste remains the number one motivation for shoppers when choosing a soft drink and new flavour innovations continue to drive growth in the category. These two new tropical flavours are perfectly placed to drive incremental sales opportunities for retailers.
Angela Reay, Brand and Innovation Controller, Nichols PLC, comments: “Carbonates come into their own during the spring and summer months, and traditionally they overtrade during this time. In fact, spring and summer is the most important time for soft drinks, as sales are at their highest, with more than half of all category sales taking place between April to September, and soft drinks sales increasing by over 10% from quarter one to quarter two annually.”
This is due to consumers seeking out those products that are refreshing, as well as flavours that capture the mood of the warmer weather and longer days.
The Nichols plc portfolio line-up has a wide range of flavours and formats that tap perfectly into this sales opportunity, with its flavoured carbonates range performing well, growing +5.9% year on year (Nielsen).
Nichols’ carbonates portfolio comprises Vimto, known for its refreshingly different flavour variants, Levi Roots, with its tropical flavours that promise to put some music in your glass and Sunkist, a brand with Californian roots of sun, sand and surf which makes it a favourite among UK consumers. Nichols also offers a range of No Added Sugar variants to offer complete choice, and over the past ten years has cut 1,333 tonnes of added sugar from its UK packaged products.
Vimto is the only squash brand that has enjoyed 10 years of consecutive growth (Nielsen). 2021 was a pivotal year for the brand with key initiatives that have reinvigorated the category. From the roll out of a new visual brand identity, as well as launching a category first fortification of Vitamin C & D across the entire squash range, Vimto also introduced new flavour, Blackberry, Raspberry & Blueberry. Vimto’s squash performance, grew by +4.3% in value sales over the past year alone (Nielsen). Vimto squash is currently outperforming the market by an impressive +11.4ppts (Nielsen).
“As we see a resurgence of on the go, we are beginning to witness consumers seek out healthy hydration moments and prioritise still juice drinks in a bid to make more informed and balanced choices,” adds Reay.
“Over 60% of servings are currently chosen for health or natural benefit reasons, and these reasons for consumers over index versus the rest of the category (Kantar).” Consumers naturally gravitate towards brands they recognise and trust, and alongside the Vimto Original and Vimto Original No Added Sugar flavours, the wider Vimto carbonates range also offers distinct flavour combinations such as Vimto Raspberry, Orange & Passionfruit, Vimto Mango, Strawberry & Pineapple and, brand-new for 2022, Vimto Cherry Raspberry & Blackcurrant, all available in 500ml bottled formats. Unique flavours with a distinctive taste set our carbonates portfolio apart and we are committed to continuing the development of flavour innovation in-line with consumer trends, and to make the most of the on-the-go opportunity our Vimto flavours Original and Original No Added Sugar are available in 330ml cans.
“To create more stand out in the chiller, consider brand blocking multiple flavour variants,” suggests Reay. “The line-up will not only create impact and draw the consumers eye in, but it will also encourage exploration to try other products from the same trusted brand. In 2021, we launched a new portfolio wide brand identity with a cleaner, bolder, modern look centred around a striking ‘V’. Not only creating strong on-shelf standout and clear brand recognition in general, but when displayed as a series allowing for maximum shelf impact.”
As the savvy shopping trend also begins to revitalise, PMPs are a fantastic way for retailers to encourage consumers to trial new flavour variants as they seek out deals, as well as communicating value and building trust with customers. In stills, PMPs account for 50% of all units sold, and they continue to be popular with customers as unit consumption has grown by +19% year on year (Nielsen). New for 2022, and following its successful squash launch in 2021, we have recently launched our Blackberry, Raspberry & Blueberry flavour in a 500ml Still PMP.
Alongside Original Vimto squash flavour, the portfolio now boasts four distinct and unique fruit flavour blends, which allow retailers to tap into consumer trends and encourage exploration and trial. Over the warmer months, utilising fruit flavours that are synonymous with summer will also be key to unlocking growth. Vimto Raspberry, Orange & Passionfruit and the latest addition, No Added Sugar Vimto Blackberry, Raspberry & Blueberry, both offer unique and easily recognised fruit flavour blends that provide consumers with those summer taste profiles. Vimto Blackberry, Raspberry & Blueberry was introduced in 2021 and has performed fantastically since launch, and is now worth £1.7m in market (Nielsen).
Sunkist has enjoyed a particularly positive year, growing by +14% and outperforming the category by +21%ppts (Nielsen).
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