New analysis from Suntory Beverage & Food GB&I (SBF GB&I) has revealed the increased importance of soft drinks to stores post-pandemic.
Study of the last ten years of soft drinks category data has also uncovered, for the first time, the true effect of Covid-19 on sales, and how this feeds into the category for the future.
The data shows that not only are soft drinks more important to retailers than ever before, but that there is also an opportunity to unlock an extra £1.2 billion in soft drink sales.
Between 2012and 2018, soft drink sales value grew from£13.4bn to just over £16bn – a total market growth in six years of 19.9 per cent.
As the pandemic took hold in 2020, there was a predictable initial sales dip which led to an overall annual sales drop to just under £15bn. Since that drop, however, sales have grown consistently to hit a high of almost £19bn in 2022. This represents sales growth in that period of an astonishing 27 per cent - demonstrating faster growth than pre-pandemic.
This growth is being driven by an overall rise in purchase frequency. Total soft drinks penetration – the number of households that buy a soft drink over a year – now stands at 95.2 per cent. This represents a rise from 90 per cent in 2012 and continued growth from 94.8 per cent in the summer immediately prior to the pandemic.
While soft drink prices have risen and inflation has played a part in value growth, there is a measurably increased appetite from shoppers to buy into the soft drinks category.
Changing habits and demographic drivers
Habits have changed since the pandemic. More people are buying into the category, and this is driven largely by growth across three key demographics – Pre-Families, Empty Nesters and Retirees. Men, in particular, are purchasing soft drinks more often than before – with a 3.7 per cent share change in consumption.
Not only are men purchasing more but, for the first time ever, they are purchasing more than women. An analysis of the frequency of purchase of soft drinks over the last 10 years shows that females consistently tracked above males by around 0.2 per cent. This continued until the middle of 2020, and since then the gap has widened. Overall frequency of purchases have grown across the piece, but now males purchase more frequently than females by 0.2 per cent.
More consistent sales
Sales have also seen less pronounced 'ups and downs' since the pandemic. While summer remains the biggest selling period, more people are buying into the category as part of their regular routines during the winter.
The gap between sales at the summer peak and the end of January (traditionally the point at which category sales are lowest) is narrowing. A comparison of the summer sales highs of 2013 and 2014, and the corresponding dips in January 2014 and 2015, reveals an average gap between the two of 5.6 percentage points.The gap between sales in August 2021 and the following winter, however, was only 3.7 percentage points.
Pre-pandemic, the lowest overall penetration point was 88.6 per cent. Since the pandemic, the lowest point has been 91.2 per cent, a 1.6 percentage point increase in households buying into the category at its lowest point. More people are buying into the category, more of the time.
Sales stimulated post-pandemic
Within the broader category trends, there are clear success stories. The performance of stimulation drinks post-pandemic, for example, is insightful.
In April 2020, as the pandemic was starting, penetration of stimulation drinks in the UK was at 5.8 per cent. This puts it almost exactly the same level as it was ten years prior. Since then, however, the category has spiked significantly, and continued to grow. In summer 2021, it reached 7.1 per cent, then a new high of 9 per cent in summer 2022.
The continued impact of the pandemic on the positive growth of stimulation sales can be seen through an analysis of the highest and lowest penetration points. In the three years leading into the pandemic, the midpoint of the penetration of the category was 3.4 per cent. The three years since the pandemic, this has risen to 3.7 per cent. More people are buying stimulation drinks, more of the time.
Alongside Stimulation sales, sport drinks have performed well since the pandemic. This tallies with a broader increase in focus on health following the impact of Covid-19. Penetration of sport drink sales grew by 66 per cent from February 2020 to February 2022. While a lower base than stimulation, the trend within Sports matches the upward swing in the broader Sports & Energy segment.
The amount of money spent per trip has seen similar growth across Colas, Bottled Water, Flavoured Carbs and Mixers as has been seen in the Stimulation segment.
Drinks sales are getting healthier!
Alongside this, another thing remains clear – health is here to stay. Key health aspects (lower in sugar; added vitamins; more natural drinks) of soft drink consumption have grown when compared with 2014. The number of occasions where soft drink shoppers cite health as the major reason for their purchase has grown to 8.3 per cent from 1.8 per cent in 2014.
The double-whammy of Covid-19 and the cost-of-living crisis has helped keep take-home drinks very firmly on the agenda. An analysis of volume sales (in litres bought) per household between 2013, and 2015 shows that the amount bought per household at the lowest sales point of the year was 17.4 litres. The average of the highest amounts bought at the busiest sales point across those three years was 20.5 litres. In 2020, ‘21 and ‘22, those numbers sat at 18.7 litres (lowest point of the year, in terms of litres bought per week) and 22.9 litres (highest point of the year, in terms of litres bought per week). The overall volume of drinks bought has gone up, as they look for a value offering to take home.This is true across all key segments of the soft drink category.
Claire Woolridge,Category Controller at Suntory Beverage & Food GB&I, says: “The pandemic saw many different purchasing habits creeping into everyday lives as routines changed. People have now settled into different routines, and with them different purchasing habits and patterns. These are impacting retail sales in interesting ways.
“Thanks to these changes, the soft drinks category is more valuable than ever before for convenience retailers, more people are buying into the category, and people are physically buying more drinks. Soft drinks have consistently delivered ahead of other categories and remained stable during tough economictimes.
“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.”
What the past means for the future
These findings have helped inform SBF GB&I’s renewed and reformulated category vision. There is a real opportunity to unlock an extra £1.2bn in soft drink sales if retailers can take advantage of the above knowledge and tap into the emerging and growing trends.
SBF GB&I’s category vision is underpinned by five key areas of opportunity – the five key drivers – that show the sub-categories and brands retailers should look at to unlock that £1.2BN opportunity over the next five years.
Choose wellness: A £289m opportunity that can be unlocked by ensuring the 7/10 consumers who say they are interested in purchasing functional drinks can find what they need, at a price they can afford; and the 54 per cent 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 per cent 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 per cent 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 per cent of adults who identify themselves as physically active.
Enhance food moments: While 25 per cent of soft drink occasions are with food, for 20 per cent 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 per cent of people who buy into the category with their evening meal.
Claire Woolridge concludes: “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”.
Diablo, the producer of disobediently good wines, has inked a partnership with new musical The Devil Wears Prada, which makes its UK debut in London this month.
Diablo (which means "devil" in Spanish) will feature on programmes, and competitions will be run to award tickets for the shows, which run until 31 May 2025. Diablo wines will also be poured at Elton John’s Opening Night Gala at the British Museum in London on 1 December, where a bespoke "Diablo" bar will be built.
The Devil Wears Prada Musical is a new stage adaptation of the popular 2006 film, itself based on Lauren Weisberger's novel.
The Diablo wine brand, first launched in 2018, is growing at a phenomenal rate in the UK, +33.4 per cent by value in the past 52 weeks. It has successfully introduced new wines into its portfolio, with the original Diablo Dark Red being joined by Chardonnay, and most recently Purple Malbec, Volcanic Cab and Deep Carmenere, all listed in major multiple grocers.
Diablo is attracting a distinctive younger and more affluent shopper (45 per cent of its shoppers are under 45 versus 14 per cent of shoppers across total still wine).
“This is an incredibly exciting time for the brand," said Javiera Moller, Senior Brand Manager at Concha y Toro UK. "The Devil Wears Prada is an iconic and much-loved story, now brought to life on the London stage with a star cast and a great score by Elton John, and the 'devil' connection makes it a perfect partner for our brand.
“Our audience are disruptive, intelligent, stylish and early adopters of brands and trends. This partnership gives us the chance to activate with our target consumers, and build the profile of an already-thriving wine brand.”
From its initial launch in 2018 with Diablo Dark Red blend, the brand now has six wines in multiple retail distribution in the UK:
Diablo Dark Red
Diablo Volcanic Cabernet Sauvignon
Diablo Purple Malbec
Diablo Deep Carmenere
Diablo Golden Chardonnay
Diablo Crystal Sauvignon Blanc
The brand has grown from £2 million in retail sales value in the UK less than five years ago to be worth over £20 million today (RSV).
Tilda has announced the launch of its 2024 limited-edition tin, created in collaboration with Lovo, a non-profit organisation dedicated to empowering and inspiring women and their families.
The tin will be available from November at independent retailers, offered free with a 2kg purchase of Tilda Pure Basmati Rice for a limited time only.
Designed to celebrate diversity and women’s empowerment, the tin features intricate patterns that embody sisterhood, while its vibrant flora and fauna reflect community and personal growth. The striking colour palette of green, yellow, pink, and blue conveys strength and gratitude—values that resonate deeply within the Lovo community.
Not only is this tin visually captivating, but it is also practical, making it an ideal storage solution for rice while symbolising support for a noble cause.
To commemorate the launch, Tilda and Lovo hosted a celebratory event on 26 September, unveiling the limited-edition tin to over 150 attendees, including the mayor of Southwark, Naima Ali. Highlights of the event included a keynote address from a financial expert, a global lunch featuring Jollof rice and biryani, lively performances by drummers and dancers, and a special moment where guests were encouraged to write their dreams and aspirations for the future on a symbolic ‘Tree of Aspiration’ that stood at the heart of the celebration.
“This vibrant tin reflects the varied cultures and communities that Tilda serves. Rice is such an integral part of meals worldwide, and we are thrilled to partner with Lovo, an organisation that aligns perfectly with our values of diversity and empowerment.” Anna Beheshti, head of marketing at Tilda, said.
Ola Stephen, founder and director of Lovo, added, “The tin is a true celebration of diversity. It is not only beautiful but also embodies the spirit of the community we are nurturing together.”
Last month, Tilda announced a £10,000 donation to support Lovo’s initiatives.
ADRIATICO is once again disrupting the amaretto category by expanding its portfolio, this time in the world of rum. ADRIATICO Amaretto today announces the launch of ADRIATICO Roasted Amaretto Planteray Rum Cask, a new limited edition amaretto made up of only 2,600 bottles, in collaboration with the prestigious rum producer.
This is the fourth limited edition ADRIATICO Amaretto release following the successful Heaven Hill Bourbon Cask, Caroni Rum Cask and Bonollo Grappa Cask expressions. The new limited edition expression ages ADRIATICO Roasted Amaretto for eight months in ex-Planteray Fijian Rum casks, creating an intense amaretto with nuances of classic rum flavours.
As part of the collaboration, Maison Ferrand, producers of Planteray Rum, have also used ADRIATICO Amaretto casks to age their Barbados Single Cask Rum from 2017. This will be the first time that a rum has been matured in an ex-amaretto cask and approximately 1,500 bottles will be released.
"It was essential to have a very intense rum to complement the intensity of the amaretto," said Fannie Thibaud, Head of Creation and Experimentation at Maison Ferrand. "Amaretto is quite sweet, so we needed a rum that was more tannic and structured to achieve a nicely balanced palate. Additionally, the almond and sweet orange notes pair perfectly with the coffee and toasted flavours of the Fiji rum, with slightly animalistic notes that further enhance the marriage of these spirits.”
Jean-Robert Bellanger, Co-Founder of ADRIATICO Amaretto, says: “We are thrilled to collaborate with such a famous rum producer for our fourth limited edition expression. Planteray is a leader in the rum category, producing original blends and single-cask rums from around the world. We found that the Planteray Fijian Rum Casks enhanced ADRIATICO Roasted Amaretto beautifully. We decided to trade our ADRIATICO Roasted Amaretto casks with the founder of Planteray, Alexandre Gabriel, so that he could age his Barbados Single Cask Rum in our Amaretto casks and so that we could use his rum casks to age our Amaretto, creating a fantastic limited edition rum and amaretto. The result is a cosy amaretto with hints of spices and strength.”
Gordon’s is today unveiling its new ATL campaign, "Mix It Up". The ad, which shows consumers choosing to pace their consumption by switching between Gordon’s Pink and Gordon’s Pink 0.0%, has been created to empower consumers to moderate their consumption in a way that works for them.
Mix It Up is the first Gordon’s campaign to bring both Gordon’s Pink and Gordon’s Pink alcohol-free variants together in one advert. With 36 per cent of drinkers currently pacing their consumption with soft drinks and 49 per cent of alcohol-free occasions also featuring alcohol, the campaign offers those looking to moderate an option that doesn’t compromise on taste.
The new TVC invites viewers to join an evening out with a group of friends. As the group begin to drink their Gordon’s & Tonic, the screen splits in two to visually demonstrate how they choose to pace their night by switching between Gordon’s Pink and Gordon’s Pink 0.0%.
In addition to the new TVC, a suite of assets have been created to bring the campaign to life across social and digital channels. Whilst in the same universe as the commercial, the social content hero’s Gordon's long-term partner Maya Jama who brings to life how she chooses to mix it up for followers.
“When creating this campaign, we wanted to demonstrate that moderation didn’t have to be a binary decision between having something alcoholic or alcohol free," said Tayara Sousa Linke, Global Head of Marketing. "We know that this perceived choice impacts people’s decision to moderate, so, through Mix It Up, we wanted to highlight that it is possible to seamlessly switch between the two and enjoy the same great taste of Gordon’s Pink whilst moderating with Gordon’s Pink Alcohol Free.”
The new creative will run across BVOD, Social and Digital channels in GB.
Scandinavian Tobacco Group UK is pleased to introduce this year’s limited-edition pack for its ever-popular Henri Wintermans Half Corona brand, which is available to retailers now.
The Henri Wintermans Half Corona is easily the biggest brand in the medium / large segment and is now the UK’s fifth biggest selling cigar in value terms, with annual sales worth £16.3m. This new limited edition "Gentleman" pack adds a personal touch to the brand and celebrates its long heritage and continuing success, designed in a timeless pin stripe suit with the logo and information stitched into the fabric, which reflects both the aspirational nature of the product and the attention to detail that goes into crafting these fine cigars. Despite the changes to the packaging, the cigars inside of course remain the same.
“Retailers certainly won’t need me to tell them that sales of larger cigars go up in the build up to Christmas when adult smokers are in celebratory mood and typically have more time to enjoy them," said STG’s UK Head of Marketing, Prianka Jhingan. "Our Henri Wintermans Half Corona is always a big seller at this time of year and this limited issue Gentleman’s edition pack should only increase sales further. My advice to retailers is to stock up on it, as it is easily the UK’s best-selling medium / large cigar and has a loyal following due to its quality blend and heritage.”