Category Focus: Soft Drinks

Monday, 24 November 2008

Soft drinks can help boost sales for retailers during the all-important Christmas period. In 2007, the market saw growth of 3.4% year-on-year in the 12 weeks to 30 December, says TNS, the market research firm.

The total market was worth £816m. Fruit Juice was the most popular variety, holding a market share of 30% and seeing sales of £244m. Compared with the same period in 2006, the growth rate of this product was 4.7%.

Red Bull offers hints for Soft Drinks sales

A 5.7% increase in price also led to higher spending on Fruit Juice, TNS says.

Colas were in second place overall, taking £159m and occupying a market share of 19.5%, with Flavours - such as Fanta - in third (worth £144m).

One Shot [small 200ml pack] Drinks (£101m), Fruit Squash (£85m), Mineral Water (£56m) and Mixers (£25m) all performed well. Shandies were bottom, bringing in just £2m.

TNS says One Shot Drinks grew by 11.1% year-on-year, yet the Mineral Water category dropped by 4.4%.

So, how can retailers ensure that they see success in the category this year?

According to Coca-Cola, the Christmas soft drinks category is worth £236m - the fourth biggest in ambient grocery.

Trade communications manager Kenny Chisholm says consumers "trade-up" to well-known brands during the Christmas period and retailers should bear this in mind.

GlaxoSmithKline (GSK), producer of a wide range of drinks including Ribena, adds that home drinking occasions are becoming more diverse, meaning consumers demand more variety.

It too says premium products will be popular throughout Christmas.

Retailers ought to meet shoppers' needs in these festive weeks, GSK also argues, and stock fizzy refreshments, energy-giving options and healthy choices.

By grouping similar soft drinks together consumers can easily find what they are looking for, the firm says.

GSK comments: "Delete slow-selling lines and ensure big brands have the right share of space. Stock the best sellers and major brands at eye level."

Moreover, the company urges store owners to "use promotions where you can. They'll engage the customer and drive sales".

Red Bull suggests that point of purchase material can encourage people to buy these types of drink on the spot. Retailers must ensure drinks are chilled, it adds.

What do the manufacturers have planned for 2008?

A £2.5m multi-media campaign is being carried out by Coca-Cola, alongside on-pack promotions on 500ml and two-litre bottles of Coca-Cola and Diet Coke and its "holidays are coming" adverts.

Red Bull says it will spend £1m on its Cola product in the run-up to Christmas, which includes an advertising and education campaign.

Coke's on-pack promotion offers customers the opportunity to win prises such as shoes, VIP tickets and high-tech gadgets.

Additionally, £2m is being invested on national TV and 96-sheet outdoor campaigns for the Schweppes brand by Coca-Cola.