Carlsberg Britvic open to further expansion

Carlsberg Britvic is “open to exploring emerging spaces” and expanding in the drinks market, according to Tim Downes, category, revenue growth management and insights director.

 

Speaking at an event launching the beverage giant’s Soft Drinks Review 2025 on 15 May, Downes said that any further portfolio enlargement could involve “build yourself or buy it” brands, both of which were represented in Britvic’s offer prior to its £3.3b acquisition by Carlsberg. However, any review would only take place after the business has defined what its long-term strategy is, work on which is still ongoing, following the merger’s completion in January.

 

Vice president of on-trade sales, Chris Pratt, said of the integration: “We’ve got two big portfolios, which is a strength. So we’re doing work to understand how our portfolios fit together and which parts are right for which channels.” He noted that in theory, the business could utilise Carlsberg’s existing licensed premises logistics network for some customers in non-licensed categories, adding: “Where possible I want everybody to be multi-category, but there will be some outlets and channels which are more licensed than soft drinks.”

 

Paul Davies, now chief executive of Carlsberg Britvic, having moved from the same role at Carlsberg Marston Brewing Company, said: “We look with excitement at the way the Britvic business is set up to manage more brands and get benefit from scale. We will look at breakthrough brands in the future and it gives us great confidence that the Brtivic business we have inherited seems to be very successful at nurturing small brands into a stronger future, which is quite unusual. So we’re playing a hands-off role not to jeopardise that.”

 

These comments followed the reveal of the business’s Soft Drinks Review 2025, which pointed to soft drinks as “helping to bring a buzz back” to the hospitality sector, most notably for Generation Z, by fulfilling a widening range of consumer demands including refreshment, indulgence and functional health benefits.

 

The report also advised licensed venues to present soft drinks and low and no alternatives on an equal pegging with alcoholic drinks to stand out from the competition.

 

Now that the enlarged Carlsberg Britvic has a breadth of offer across both the soft drinks and alcoholic beverages channels, Downes said: “Having a number of brands which could play in that space is a really good place to be. We’ve got to make sure we have the right propositions to meet consumer needs. It’s better having more propositions than not. We’re still working through quite how we map them all together.”

 

With CGA by NielsenIQ data finding that overall UK soft drinks sales in 2024 grew by 2% to £2.9bn, Carlsberg Britvic identified that operators can drive additional opportunities by creating excitement through their soft drinks and low and no offering.

 

Within the Soft Drinks Review, operators were advised to attract the Gen Z cohort of more than 10 million consumers by:

• Making soft drinks a unique and novel experience, such as Pepsi Electric blue cola 
• Offering indulgence and quality for treating occasions, including elevated versions of everyday drinks, from coffees to hand-spun shakes and smoothies
• Stocking up on and promoting products with functional health benefits, such as Aqua Libra waters or Plenish health shots
• Encouraging consumers to share their drinks on social media

Meanwhile for licensed premises were encouraged to:

• Make soft drinks stand out in their venues, website and socials
• Tap into the rising popularity of juices, exotic flavours, hot drinks and non-alcoholic cocktails, such as using shots of Teisseire syrups and cordials to shake up drinks
• Offer experiences that go beyond alcohol and food: Live entertainment, events and themed menus

Pratt added: “Operators are having to work harder to attract people into their venues, encourage them to spend more time (and money) there and keep them coming back for more. To do this, licensed venues need to broaden their appeal and offer unique experiences, while striking a balance between value and excellence – which is no mean feat!

 

“Despite the marked differences we have come to associate with the younger generation – namely their attitudes to drinking alcohol and the impact that this is having on the industry – we believe that the opportunities far outweigh this.”

 

Carlsberg Britvic’s portfolio encompasses brands including Pepsi Max, 7up, Tango, Robinsons, J2O, Fruit Shoot, Plenish, Jimmy’s Iced Coffee, Carlsberg Danish Pilsner, 1664, Birrificio Angelo Poretti, Brooklyn Brewery, Hobgoblin, Pedigree and Wainwright.