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Soft drinks sales weather the financial squeeze in 2010

25 March 2011 by
Soft drinks sales weather the financial squeeze in 2010

Sales of soft drinks weathered the financial meltdown last year, although they slowed in pubs and clubs, according to the http://www.britvic.co.uk/en/Media-Centre/Reports.aspx" target="_blank" rel="noreferrer">2011 Britvic Soft Drinks Report, which is based on market data from Nielsen and CGA.

However, the Horeca (hotel, restaurant and catering) sector reversed the decline of 2009 and boosted soft drinks sales by 9.4% to a value of £284m.

Fruit juice was the most popular choice in Horeca channels (with sales up by 8.4% to £78m) followed by Cola drinks, which rose by 27.2% to £49.4m. However still water, flavoured water and drinking yogurts all saw declines in sales.

Despite a 3% fall in volume in pubs and clubs, soft drink sales grew by 1% in value to £2.8b, outperforming ale, lager and stout (but not cider).

This sector was hard hit by pub closures (especially in leased/tenanted outlets) and the cold weather that bookended the year.

"Despite these challenges, soft drinks managed to stay afloat thanks to the increase of family and food-led outlets," said Britvic customer management director Murray Harris.

Cola drinks (headed by the Pepsi brand) remained the biggest and best-performing sector in pubs and clubs, with sales rising by 9% in value to £987m. Lemonade remained the second top choice (up 5.5% to £416m) while flavoured carbonates and fruit juices also performed well.

However, sales of mineral water, juice drinks, mixers, energy drinks and squashes all declined in the on-premises market.

Cold hot drinks proved the big success story in the take-home sector, rising by 93% by value and 70% by volume. This trend was spearheaded by Starbucks' Discoveries and Double Shot drinks and Lipton Ice Tea.

The overall market for soft drinks increased in value to £9.4b.

Horeca - sub-channel performance (Nielsen, 18 December 2010)

-
- Channel - ValueGrowth
- Workplace catering - £66.6m - +9.4%
- Education - £40.8m - +6.35
- Fast food and cafés - £35.3m - +2%
- Travel & leisur - £32.2m - +7.2%
- Hotels - £30.2m - +6.5%
- Health & welfare - £29.2m - +0.8%
- Restaurants - £28.2m - +26.6%
- Pubs & Bar - £20.8m - +11.3%
- Total £283.9m +9.2%

Horeca - sub-category performance (Nielsen, 18 December 2010)

-
- Channel - ValueGrowth
- Fruit juice - £78m - +8.4%
- Carbonates - Cola - £49.4m - +27.2%
- Fruit Drinks - £46.4m - +7.4%
- Still Water - £26m - -6.9%
- Energy drinks - £24.7m - +1.8%
- Other carbonates - £22.7m - +18.4%
- Squashes - £10.9m - +3.1%
- Flavoured milk - £9.7m - +8.8%
- Sparkling water - £6.7m - +4.3%
- Flavoured water - £2.9m - -3.7%
- Mixers - £2.5m - +37%
- Carbonates - Lemonade - £2m - -6.8%
- Drinking yogurt - £2m - -6.8%

Pubs and bars - sub-category performance (CGA, 52w/e 30.10.2010)

-
- Channel - ValueGrowth
- Cola - £987m - +8.5%
- Lemonade - £416m - +5.5%
- Fruit juice - £365m - +0.8%
- Squash - £280m - -4.8%
- Mixers - £245m - -7.8%
- Mixers - £245m - -7.8%
- Juice drinks - £210m - -9.1%
- Energy - £128m - -5.2%
- Flavoured carbs (excluding energy) - £102m - +5.1%
- Mineral water - £99m - -14.7%
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