New research from Suntory Beverage & Food GB&I (SBF GB&I) has found an opportunity for retailers to unlock an extra £1.2bn in soft drinks sales, if they capitalise on the category trends that have grown since the pandemic.
According to the supplier, category sales grew by 27% from 2020 to 2022, increasing from just under £15bn to almost £19bn.
Retailers can drive further growth thanks to five key areas of opportunity:
- Choose wellness: A £289m opportunity that can be unlocked by ensuring the seven out of 10 consumers who say they are interested in purchasing functional drinks can find what they need, at a price they can afford; and the 54% of the population who say they are focusing on their mental health can find drinks that positively impact their mood and emotions.
- Recharge the moment: this driver can deliver up to £238m, if the 75% of society who say they are concerned about tiredness buy into buying drinks that energise and refuel them.
- Elevate the experience: this £186m opportunity can be unlocked by getting the 30% of people who claim to be teetotal to buy into soft drinks for special moments and occasions.
- Enjoy hydration: a £203m opportunity for retailers if they can encourage more shoppers to buy into tastier hydration options than water, get shoppers to understand the functionality of sports drinks such as Lucozade Sport, and by growing sales of categories like this to cater for the 66% of adults who identify themselves as physically active.
- Enhance food moments: while 25% of soft drink occasions are with food, for 20% of these, tap water is chosen. To open up £263m over the next five years, retailers need to make soft drinks easier to buy into for the 9% of people who buy into the category with their evening meal.
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Claire Woolridge, category controller at SBF GB&I, said: “There are clear things that, if they’re not already doing them, retailers should ensure they focus on to tap into these embedded behavioural changes in store. Health has been a growing factor and the pandemic accelerated this – so ensure you have a strong range of branded low- and no-sugar soft drinks in your range. Large-format and multipack drinks to take-home have seen sales increases, so they are essential to focus on.”
She added: “Soft drink sales have delivered great value in recent years, and we know from our research that by focusing on five key simple areas of opportunity, we can unlock even more value across the category.
“By tackling these five growth drivers head on, there is a tremendous opportunity for retailers to delight customers, bring more shoppers through their doors, and deliver soft drink ranges that are truly fit for the future.”
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