The functional wellness drinks segment is presenting the convenience channel with a £27m opportunity this year, equating to an additional £812 per store[1], according to the latest Britvic Soft Drinks Review.
Read More: How is Britvic finding success in soft drinks? – Better Wholesaling
The report also shows that at a time when the pandemic has shone a light on health and wellness for many, 37% of people are now positively interested in premium soft drinks with added benefits[2].
Meanwhile, the foodservice sector lost 362.1 million litres of soft drinks sales over the past year, equating to 145 Olympic swimming pools[3], according to the review. The Foodservice report showcases that this part of the soft drinks market closed 2020 at -37.2% in value, and -33.5% in volume, versus 2019[4].
The findings highlight that at a time when the channel is re-opening and planning its road to recovery, soft drinks can play a crucial role here to help meet the change in consumer needs. According to CGA[5], there is a view that the market may become polarised – some consumers seeking value while others look to trade up their experiences – representing a real opportunity for foodservice outlets that can adapt their offer to serve both audiences.
The licensed sector also lost 449.3 million litres of soft drink sales over the past year, the equivalent of around 180 Olympic swimming pools[6] and approximately 80% more than the volume sales lost in foodservice. According to the report, the soft drinks category in this sector delivered just 39.5% of the value sales and 39.4% of the volume sales achieved in 2019[7].
One of the worst affected areas by the Covid-19 pandemic, the licensed trade has proven its resilience in the past and Britvic has identified soft drinks as having a critical role to play in the sector’s road to recovery. The popularity of non-alcoholic drinks has been growing steadily as people turn to healthier options. Furthermore, consumers stated that when the trade reopened, they were intending to choose low and no alternatives[8] over drinks containing alcohol – demonstrating the need for outlets to adapt.
[1] NielsenIQ RMS, Total Impulse Britvic Defined Wellness Drinks Fair Share Opportunity (£27.2m)/ Number of ACS members (33,500)
[2] Mintel Attitudes towards Premium Soft Drinks: Inc Impact of COVID-19 – UK – April 2020
[3] 2020 Absolute Volume lost -362.1million/2.5million litres (Olympic Swimming Pool Volume)
[4] CGA Foodservice, Value and Volume, MAT TY w.e. 31.12.2020
[5] CGA Brand Track June 2020
[6] 2020 Absolute Volume lost -449.3million/2.5million litres (Olympic Swimming Pool Volume)
[7] CGA Licensed, Value and Volume, MAT TY w.e. 26.12.2020
[8] Distill Ventures white paper May 2020
