Leading soft drinks business Britvic is cutting carbon and saving energy with more than a million pounds of investment in its Rugby factory.
The major environmental upgrade will see the factory’s centralised chilling system upgraded to make use of more efficient cooling towers. This £1,150,000 investment will be supported by a grant of £305,000 from the government’s Industrial Energy Transformation Fund.
The cooling towers will offer increased efficiency over the current heat rejection set up, allowing for a reduction in electricity consumption on the chiller units. This will provide a cost saving in the medium term and cover the cost of the investment within four years. This reduction in the site’s electricity consumption will also see carbon emissions cut, saving up to 650 tonnes of carbon dioxide equivalent emissions per year.
Britvic said the upgrade will enhance the reliability and efficiency of the chilling system, especially during the peak summer months, allowing the production of much-loved brands including Robinsons, Tango and Pepsi MAX to continue smoothly during warmer weather.
Heat is removed from products such as Pepsi MAX prior to carbonisation to avoid foaming and waste. Heat is also removed from drinks that have been pasteurised.
“Britvic is proud to be at the forefront of our industry when it comes to sustainable manufacturing practices. This project is an important step forward in our carbon reduction efforts as well as improving the efficiency of our operations,” Paul Graham, Britvic’s managing director in Great Britain, said.
“Supported by the government's Industrial Energy Transformation Fund, this initiative not only signifies our dedication to environmental stewardship but also showcases Britvic’s commitment to our Healthier People, Healthier planet sustainability goals.”
Work on the project began in November and be completed by February 2025.
This project follows an £8 million investment to increase efficiency at Britvic’s London factory announced in 2023. This was also supported by the Industrial Energy Transformation Fund and work commenced on the project last year.
Both projects are part of Britvic’s long-term strategy to reduce its carbon emissions. In February Britvic announced that 75 per cent of its National Grid electricity needs in Britain now come from a 160-acre solar farm in Northamptonshire. This initiative could cut 642 tonnes of carbon dioxide from the drink manufacturer’s supply chain each year.
In 2023, Britvic announced a similar agreement in Ireland – meaning that 75 per cent of Britvic Ireland’s total electricity requirements are now provided by wind power.
Britain's big retailers, including Tesco, Sainsbury's, M&S and Next, say they are stepping up their drive for efficiency through automation and other measures, to limit the impact of rising costs on the prices they charge their customers.
As the UK economy struggles to grow, the new Labour government's solution is a hike in employer taxes to raise money for investment in infrastructure and public services, which has prompted criticism from the business community.
Retailers have said the increased social security payments, a rise in the national minimum wage, packaging levies and higher business rates - all coming in April - will cost the sector £7 billion a year.
Concerns of the wider economic impact sent retail share prices sharply lower this week and drove up government borrowing costs.
In the retail sector, larger players have more scope to adapt and are cushioned by previous healthy profits, but analysts have said smaller players could find themselves under severe pressure.
Clothing retailer Next said it faced a £67 million increase in wage costs in its year to end-January 2026, but still forecast profit growth.
It reckons it can offset the higher wage bill with measures including a 1 per cent increase in prices that it said was "unwelcome, but still lower than UK general inflation". It can also increase operational efficiencies in its warehouses, distribution network and stores, the company said.
CEO Simon Wolfson said more automation was inevitable across the sector.
"With any mechanisation project you're always looking at a pay-back on it - you're saying 'what's the saving versus the cost of the mechanisation, or AI or software'," he told Reuters.
"If the price of the mechanisation doesn't go up, but the price of the labour it saves does go up, it's going to mean that more projects can be justified."
More robots?
Baker and food-to-go chain Greggs last year opened a highly automated production line at its Newcastle, northeast England, site, meaning it can make up to 4 million more steak bakes and other products each week from its current 10 million.
Tesco, Britain's biggest supermarket, is also increasing automation and will open a robotic chilled distribution centre in Aylesford, southeast England, this year.
No. 2 grocer Sainsbury's is encouraging more shoppers to use its SmartShop handheld self-scanning technology.
Even though Tesco faces a £250m annual hit from the hike in employer national insurance contributions alone, CEO Ken Murphy said it would cope.
Having navigated the Covid pandemic, supply chain disruption and commodity and energy inflation, he said Tesco was used to dealing with rising costs by finding savings elsewhere.
Finance chief Imran Nawaz said Tesco's "Save to Invest" programme was on track to deliver £500m of efficiency savings in its year to February 2025, having delivered £640m in 2023/24.
"As we look ahead it's clear it's going to be another year where we'll need to do a stellar job," Nawaz said, singling out savings from better buying by Tesco's procurement organisation, in logistics, in freight, and in cutting waste.
Sainsbury's, facing an additional £140m national insurance headwind, is similarly targeting £1bn of cost savings by March 2027.
Clothing and food retailer M&S, facing £120m of extra wage costs, said it aimed to pass on "as little as possible" to consumers.
One of the biggest names on the British high street, the 141-year-old retailer is in the middle of a successful turnaround programme and believes it can continue to grind out further savings, modernising its distribution and supply chain.
"My summary is: big job, but lots in our control and we've got to be ruthlessly focused on costs in these next 12 months," CEO Stuart Machin said.
"We talk a lot about volume growth, because the more we sell, the more that offsets some of these cost pressures."
Ian Lance, fund manager at Redwheel, one of M&S's biggest investors, said the firm was likely to be able to weather the cost challenges better than most. "They have an exceptionally capable management team and a product offering which is clearly resonating with consumers for its quality and value," he said.
But for many smaller players raising prices is the only option.
A British Chambers of Commerce survey of 4,800 businesses, mostly with fewer than 250 staff, found 55 per cent planned price increases - potentially hampering the fight to contain inflation and grow the economy.
And for some, more drastic action may be required.
British discount retailer Shoe Zone has said the additional costs of the budget meant some stores had become unviable and would be closed.
Sales of high-end sparkling teas soared over Christmas as it replaced champagne during festive toasts, suggesting that tea is winning new loyal fans as a soft drink version with “wellbeing” powers as well as a headache-free alternative to booze.
Sparkling tea is fast becoming a staple of the “nolo” ranges of supermarkets and drinks specialists amid the annual “dry January” marketing blitz.
The Buckinghamshire-based drinks company Real says demand for its sparkling tea, which costs about £10 a bottle, is soaring, The Guardian reported.
Over Christmas, sales of its fizz, which includes green tea-based Dry Dragon and Peony Blush (from white peony tea), were 72 per cent and 60 per cent up on 2023 levels in Ocado and Waitrose respectively. The company is also behind the wine merchant Berry Bros & Rudd’s £17 sparkling tea, of which 1,600 bottles were sold over the holiday period.
Last year, Twinings entered the fray with its own canned sparkling tea aimed at health-conscious consumers. The cans are almost £2 each but feature in some supermarket “meal deals”.
Apart from alcohol range, sparkling tea has also started giving competition to cola and lemonade for the lunchtime trade in supermarket drinks chillers.
The market is also seeing a huge demand of bubble tea, kombucha and even energy drinks containing tea.
According to Polina Jones, a food and drink expert at the data company NIQ, Britons are not necessarily “falling out of love” with tea, they are just drinking it in a different way.
A recent poll by the research company Mintel suggested that less than half of the nation – 45 per cent of adults – drink standard breakfast tea at least once a day. The amount being bought by Britons has tumbled by almost a fifth since 2020, it says.
Research points to a big opportunity for non-alcoholic drinks that actually taste good. A Mintel poll conducted last year found 59 per cent of adults had limited their consumption in the past 12 months, or did not drink alcohol.
Alcohol moderation is now a “mainstream” trend, according to Mintel’s Kiti Soininen. She points to the presence of tannins in tea, which are also a crucial component in the flavour profile of many wines.
“The absence of that pleasingly ‘mouth-drying’ element of tannins can be a factor in why alcohol alternatives taste too thin or too sweet,” The Guardian quoted Soininen as saying.
However, sparkling tea faces the “same hurdle as other alcohol alternatives in justifying its price” as just over half of adults told Mintel that the price of “nolo” drinks puts them off.
Cadbury has unveiled its latest campaign in its celebrated Cadbury Dairy Milk ‘Generosity’ brand platform, "There’s a Glass and a Half in Everyone".
Created in partnership with its global agency of record, VCCP, the campaign furthers Cadbury’s mission to inspire acts of generosity while highlighting how gifting chocolate can serve as a powerful gesture of kindness and connection.
"Memory" marks the seventh year of Cadbury’s generosity brand platform, a globally recognised campaign known for its heartfelt and emotional storytelling. The campaign continues to resonate with audiences by highlighting meaningful, relatable moments that celebrate the power of generosity whilst also challenging industry conventions by focusing on small, emotional moments rather than action-packed narratives.
The multi-award-winning campaign, which includes previous films such as "Mum’s Birthday", "Fence", "Bus" has garnered widespread recognition, including winning D&AD pencils, British Arrows and effectiveness awards from the IPA, Marketing Week and The Marketing Society.
At the heart of the campaign is a 60” second film that tells a moving story of a daughter and her father, directed by the acclaimed Steve Rogers, known for directing "Speakerphone" and "Garage" Cadbury films. It has been produced by Biscuit Filmworks.
Cadbury is committed to telling inclusive stories rooted in human truths, that are representative of the nation. To ensure the story’s accurate portrayal of people living with dementia, Cadbury consulted with specialists throughout the development of the film.
Cadbury has extended its partnership with Alzheimer’s Research UK, the UK’s leading dementia research charity, into 2025. The two organisations first joined together in 2024 to celebrate the role of Cadbury in the nation’s shared memories and to support the charity’s mission for a cure for dementia
Scotland’s Speciality Food & Drink Show opens on 19th Jan, against a backdrop of growth in the quality food and drink sector. With the quality and provenance of Scottish produce renowned the world over this points to what should be a successful show and with the hall packed with exhibitors from large and small it’s certainly one not to be missed for any farm shop, tourist outlet, hospitality space retailer or food buyer from Yorkshire northwards.
Large regional stands are always popular and this year Appetite for Angus will exhibit for the first time. Be sure to check out Angus Alchemy, Kinnaird Kitchen, Pitscandly Farm, Redcastle, Upper Dysart Larder and Wee Cook Pies on Stand P60.
Other producers recently signed up include BeeHype Honey, Brine & Smoke, Brownhill Whisky Company, Black Dog Coffee Roasters, Chevron Hot Chocolate, Cortino, MacMillan Spirits and 55 and 46 Degrees North.
Following a strong summer tourist season in Scotland and a relatively strong performance in hospitality food, the independent sector is in reasonable shape and better than the rest of the UK (according to the British Retail Consortium.)
First stop at the Show has to be the Launch Gallery with its innovative, young suppliers such as The Third Sin, Sour Power Vinegars, Foreva Farmers, Seilich and Goat Rodeo Goods.
Show Director Mark Saunders said: “Scotland’s Speciality Food & Drink Show is perfectly positioned at the start of the 2025 buying season for farm shops, delis, tourist outlets and the hospitality trade to taste and source stock ahead of the spring summer season. The variety and quality of our exhibitors grows each year. Don’t miss out and we’ll look forward to welcoming you at 9.30am on Sun 19th Jan.”
Beyond the buying purpose the Show offers endless business and retail advice in its Talking Shop, with a phenomenal line-up of experts – see the programme here.
The Best Product Awards have been elevated this year with more finalists selected and an awards ceremony at 5pm on Sun 19th Jan at the Show.
Nick Moriarty from Blair Drummond Smiddy Farm Shop said: “The pre Christmas season and prior to that has been a positive trading period across the hospitality, food and non-food departments. There continues to be strong interest in the independent sector, with customers specifically looking for high quality, locally produced food that are unique and not on the high street.”
Nisa has kicked off 2025 with a major boost for its retail partners, by removing the fuel levy and extending its pricing campaign, in a move which reflects the wholesalers’ commitment to strengthen its proposition and support its retailers through a challenging economic environment.
The fuel levy, which was first introduced in January 2022, has been removed from today (10) to help its retailers manage high operating costs.
Fluctuating in line with the volatile fuel industry, Nisa dropped its fuel levy down to £3.66 per delivery in October 2024, for the first time in over year.
Katie Secretan, Retail & Sales Director at Nisa, said: “Retailers continue to be faced with increasing operating costs, and alongside the highly competitive convenience market, this is causing further erosion to their profit margins.
"It’s our absolute priority to drive more value for our partners, and the removal of this charge will allow our retailers to invest these vital funds into their businesses, so they can continue to serve their communities for years to come.”
To further support its retailers, Nisa is continuing its Mega Deals pricing campaign into 2025, giving access to weekly market-leading prices across footfall driving products.
Originally launched to help partners capitalise on the festive trading period, the Mega Deals campaign has proven to be a big success, which featured more than 200 products since its launch in October.
Secretan added, “Our goal is to ensure Nisa retailers remain well-stocked with the most popular and in demand products, at the best price on the market, to drive footfall and sales and ultimately increase their profitability.”
Powered by the trusted Co-op Group, Nisa supports independent retailers with tailored solutions to help them thrive in today’s market. This includes access to Co-op’s market leading and multi-award-winning own brand range, delivered through consistently strong levels of availability.