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THE 2011 UK SOFT DRINKS REPORT By popular demand By popular demand

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Page 1: 2011 Soft Drinks Report_UK

THE 2011UK SOFT DRINKS

REPORT

By popular demand

By popular demand

Page 2: 2011 Soft Drinks Report_UK

Specialist food and drink consultancy,

Zenith International, has been

commissioned to produce this

2011 BSDA UK Soft Drinks Report.

All data and insights contained in

this report were produced using

Zenith’s internal market databases

and primary research.

In compiling its research, Zenith relies on the

goodwill and cooperation of companies active in

the marketplace. During Zenith’s annual research

into the UK soft drinks industry, over 250 soft

drinks producers are regularly contacted. This

includes larger branded operators, retailer own

label specialists, contract packers and a signifi cant

number of smaller independent companies.

Based on individual producer volumes for the

year, market, sector and segment totals are

calculated from the ‘bottom up’. At a sector and

segment level, adjustments are then made for any

double counting of contract and licensed bottling.

Estimates for unauthorised soft drink imports

sold through the ‘grey market’ are also included.

This is more pronounced in categories such as

energy drinks rather than dilute to taste drinks,

for example.

A complete picture of the UK soft drinks market

across all sales channels is produced, through

Zenith’s extensive study of the largest soft drinks

The 2011 UK Soft Drinks Report reports on a year of growth for the

soft drinks industry in the UK, and it also reports on a year of activity

by its trade association, BSDA. I believe that BSDA’s active programme

of communicating and representing the interests of the soft drinks

industry, along with its work in setting standards and providing services,

helps create the right environment for innovative and consumer-focused

companies to fl ourish.

This is not a time for complacency, however. Public expectations of business, in the soft

drinks industry as much as in any other, are rising, and the economic pressures have not

gone away. BSDA will continue to be active in helping the industry to put its consumers fi rst.

May I thank all BSDA members for their support and participation in the past year, and may

I invite any soft drinks companies that have not yet joined, to consider doing so.

Jill Ardagh

Director General

BSDA 2011

companies, alongside small to medium sized

operators and own label specialists. The market

fi gures presented therefore encompass all aspects

of the market including: take home, impulse and

on premise; water cooler volumes for the offi ce;

home dispense carbonated soft drinks; and pump

dispense carbonates in the licensed trade.

Following a detailed review of all data fi les

received, with all operators, certain adjustments

have been made to historic volumes. Volume

shipped in large pack formats, via pallets for

example, had previously been submitted to Zenith

using an incorrect conversion rate. This has now

been corrected for the years 2005 to 2009.

To produce this report, a considerable amount

of time and effort is spent contacting industry

players and striving to analyse the complexities

of the UK soft drinks arena. Zenith would like to

express its sincere gratitude to BSDA and the

entire UK soft drinks industry for its continued

help and support during the research process.

REPORT METHODOLOGY AND BACKGROUND

INTRODUCTION

Jill Ardagh

2 The 2011 UK Soft Drinks Report BSDA

Page 3: 2011 Soft Drinks Report_UK

THE 2011 UK SOFT DRINKS REPORTBY POPULAR DEMAND

4 OVERALL SOFT DRINKS CONSUMPTION

6 BOTTLED WATER

8 CARBONATES

10 DILUTABLES

12 FRUIT JUICE AND SMOOTHIES

14 STILL AND JUICE DRINKS

16 SPORTS AND ENERGY DRINKS

18 SETTING INDUSTRY STANDARDS

20 LEADING IN THE BUSINESS COMMUNITY

22 SUSTAINABILITY

23 ABOUT BSDA

CONTENTS

In April

2010 Britvic

launched a

600ml PET format

across its no and low

sugar portfolio. This was

the biggest pack innovation

that the market had seen in over

fi fteen years and a fi rst for the

UK. The new bottle format offered

consumers a bigger bottle

and better value for money in

tough economic times, whilst

invigorating the on-the-go

soft drinks category. Available

across Pepsi Max, Diet Pepsi,

7Up Free, and Tango, the

600ml format has dramatically

increased the rate of sale of

every variant (25 per cent to

45 per cent increase) with the

star performer being Pepsi

Max, which nearly doubled

its rate of sale since the

launch in April. The 600ml

format added £9.8million

to the on-the-go carbonates

sub-category, helping grow

the category from an 8.7 per

cent decline to up 3.8 per cent in

just fi ve months.

BY POPULAR DEMAND

Data sources: Nielsen, Total Coverage, MAT Volume sales August 2010; Nielsen scantrack (Total Impulse) data to 28.08.10

to

inv

so

ac

7U

60

in

ev

4

s

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s

BSDA The 2011 UK Soft Drinks Report 3

Page 4: 2011 Soft Drinks Report_UK

UK soft drinks sectors annual percentage change, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 13510 13565 13985 13865 13725 14005 14585

% change -1.4 +0.4 +3.1 -0.9 -1.0 +2.0 +4.1

Litres per person 224.8 224.5 230.3 227.1 223.6 226.9 235.1

Value, £ million 11955 12155 12525 12595 12720 13120 13880

% change -1.4 +1.7 +3.0 +0.6 +1.0 +3.1 +5.8

Value per litre, £ 0.88 0.90 0.90 0.91 0.93 0.94 0.95

Source: Zenith International

UK soft drinks consumption, 2004 - 2010

OVERALL SOFT DRINKS CONSUMPTION

4.1%INCREASE IN

CONSUMPTION SINCE LAST YEAR

All market fi gures have again been fully reviewed and revised historically, where appropriate.

-6

-4

-2

0

2

4

6

8

10

12

Bottled water

Carbonates

Dilutables

Fruit juice

Still & juice drinks

Total

2010200920082007200620052004

DEFINITION Soft drinks

Carbonated drinks, still and dilutable

drinks, fruit juices, smoothies and

bottled waters, including sports and

energy drinks.

4 The 2011 UK Soft Drinks Report BSDA

Page 5: 2011 Soft Drinks Report_UK

AVERAGE CONSUMPTION PER PERSON

2010 was a year of resilience and

recovery. Despite a long winter and

tough economic conditions, the UK soft

drinks market bounced back readily.

Consumers remain concerned with

value. Affordable, large pack sizes

have helped drive growth, alongside

convenient packs in the on-the-go

channel.

The market registered an impressive 4.1%

growth in volume and 5.8% increase in value

to stand at 14,585 million litres and £13,880

million respectively in 2010.

Bottled water showed a gradual recovery driven

by strong promotional activity. Carbonates once

again showed resilience, led by cola. Dilutables

saw another year of growth, repositioning the

sector through new innovation and double

concentrated variants.

On the back of a tough couple of years, fruit

juice and smoothies stepped into recovery mode.

Meanwhile, still and juice drinks continued to

provide a healthy alternative both on-the-go and

at leisure.

Soft drinks remain an affordable treat in these

times of economic hardship. Consumers buy into

soft drinks because of their indulgence, fun and

health qualities. This places the UK soft drinks

industry on a sound footing.

COMMENTARY

Source: Zenith International

UK soft drinks, low

calorie & no added

sugar vs regular, 2010

Low calorie 62%

Regular 38%

UK soft drinks

sectors 2010

Carbonates 44%

Dilutables 24%

Bottled water 14%

Fruit juice 8%

Still and juice drinks 10%

Source: Zenith International

UK soft drinks,

packaging, 2010

Plastic / PET 64%

Can 11%

Carton 11%

Glass / other 9%

Dispense 5%

Source: Zenith International

235LITRES

0

3

6

9

12

15

2010200920082007200620052004

000 million litres

UK soft drinks consumption, 2004 - 2010Source: Zenith International

When the

SHS Group

purchased

Merrydown plc

and the Shloer

brand in 2005, the

grape-based sparkling

adult soft drink was

a smaller player in a

category dominated by

market leaders. The

Drinks Division of the

Group then took on the

brand management and

prioritised consumer

insight, which revealed the

unique role that the brand

delivers as a premium

wine alternative with

adult appeal.

A signifi cant investment

package was rolled out,

including a pack redesign and an

above the line campaign, along with

category development and sales

callage. This support has allowed

the brand value to grow by 35 per

cent*over the last 5 years and 2010

saw the introduction of the Rosé

variant which has added incremental

sales to the brand. Every aspect of

the brand plan is now focused on the

consumer relationship with the brand

which has resulted in Shloer becoming the

number one adult soft drink in the market.

BY POPULAR DEMAND

Data source: Nielsen Value MAT

April 06 – Jan 11

BSDA The 2011 UK Soft Drinks Report 5

Page 6: 2011 Soft Drinks Report_UK

Source: Zenith International

UK bottled water

categories, 2010

Still bottled 72%

Sparkling bottled 14%

Still water cooler 14%

UK bottled water

types, 2010

Natural mineral water 61%

Spring water 28%

Bottled drinking water 11%

Source: Zenith International Source: Zenith International

UK bottled water

packaging, 2010

Plastic 93%

Glass / other 7%

Source: Zenith International

UK bottled water

origins, 2010

UK produced 76%

France 18%

Others 6%

0

500

1000

1500

2000

2500

2010200920082007200620052004

Million litres

UK bottled water consumption, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 2060 2140 2240 2125 2005 2040 2055

% change -0.5 +3.9 +4.7 -5.1 -5.6 +1.7 +0.7

Litres per person 34.3 35.4 36.9 34.8 32.7 33.1 33.1

% of all soft drinks 15.2 15.8 16.0 15.3 14.6 14.6 14.1

Value, £ million 1380 1470 1550 1460 1385 1425 1440

% change -1.8 +6.5 +5.4 -5.8 -5.1 +2.9 +1.1

Value per litre, £ 0.67 0.69 0.69 0.69 0.69 0.70 0.70

Source: Zenith International

UK bottled water consumption, 2004 - 2010

BOTTLED WATER

6 The 2011 UK Soft Drinks Report BSDA

Page 7: 2011 Soft Drinks Report_UK

In 2010, and for the second

consecutive year, the UK bottled

water market continued to recover

momentum, growing by 0.7% in

volume, compared to 2009. Sales

reached 2,055 million litres, whilst

pricing remained under pressure, as

both raw material and distribution

costs continued to rise.

Promotional activity and a couple of lucky breaks

in the weather kept bottled water afl oat.

Consumption of water in smaller retail pack sizes

(of 10 litres and below) increased by 2.4% to

1,765 million litres – as opposed to water coolers

in offi ces, which witnessed an 8.3% decline.

Across take home outlets and on-the-go retail,

promotional activity is a crucial tool for driving

sales. In the on-trade channel conditions remain

tough, as more and more consumers take the

dine-in option.

Despite the ongoing challenges, with per person

consumption of bottled water in the UK still far

below the West European average of 115 litres,

manufacturers are looking forward to turning the

tide for bottled water in the UK.

COMMENTARY

33LITRES

Last year

Princes Limited

stepped up its

investment in Aqua

Pura natural mineral

water with a major relaunch

focusing on the brand’s water

source in the heart of the

Cumbrian Countryside.

The relaunched Aqua Pura

range includes a new logo

and brand livery as well

as a refreshed pack design

featuring striking imagery of

its heartland in the Cumbrian

countryside.

A new strapline – 100% Pure

Cumbrian – was also introduced

after research showed that Aqua

Pura’s provenance provides a

real resonance with shoppers who

associate this outstanding area

of natural beauty with purity and

natural products.

By emphasising Aqua Pura’s British

credentials on-pack, it has given

consumers a clear reason to buy.

This message appears to have struck

a chord with consumers and year on

year Aqua Pura is one of the UK’s

fastest growing water brands by volume.

0.7%

INCREASE IN CONSUMPTION SINCE

LAST YEAR

BY POPULAR DEMAND

DEFINITION Bottled water

Still, sparkling water and lightly

carbonated water; natural mineral water,

spring water, bottled drinking water;

packaged water in sizes of 10 litres and

below; water for coolers in sizes of 10.1

litres and above.

Data source: Nielsen MAT w/e 19/02/11

AVERAGE CONSUMPTION PER PERSON

BSDA The 2011 UK Soft Drinks Report 7

Page 8: 2011 Soft Drinks Report_UK

Source: Zenith International

UK carbonates regular

vs low calorie, 2010

Regular 63%

Low calorie 37%

UK carbonates

fl avours, 2010

Cola 53%

Fruit 14%

Lemonade 14%

Energy 7%

Other 12%

Source: Zenith International Source: Zenith International

UK carbonates

packaging, 2010

PET 57%

Can 26%

Dispense 11%

Glass 3%

Other 3%

0

1000

2000

3000

4000

5000

6000

7000

8000

2010200920082007200620052004

Million litres

UK carbonates consumption, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 6195 6015 5875 5810 5920 6100 6400

% change -5.1 -2.9 -2.3 -1.1 +1.9 +3.0 +4.9

Litres per person 103.1 99.6 96.8 95.2 96.4 98.8 103.1

% of all soft drinks 45.9 44.3 42.0 41.9 43.1 43.6 43.9

Value, £ million 6930 6795 6755 6850 7120 7515 8000

% change -1.8 -1.9 -0.6 +1.4 +3.9 +5.5 +6.5

Value per litre, £ 1.12 1.13 1.15 1.18 1.20 1.23 1.25

Source: Zenith International

UK carbonates consumption, 2004 - 2010

CARBONATES

DEFINITION Carbonates

Ready to drink including draught

dispense; home dispense; regular

including sparkling juice; low calorie

and zero calorie; cola; lemon including

lemonade; lemon-lime; mixers including

tonic and bitter drinks; orange; shandy;

others including other carbonated

fruit fl avours, energy drinks, sparkling

fl avoured water, health drinks and herbal

drinks.

8 The 2011 UK Soft Drinks Report BSDA

Page 9: 2011 Soft Drinks Report_UK

The nation’s favourite, with the largest

share of total soft drinks, carbonates

saw strong growth in 2010.

Consumption registered a 4.9% gain

to reach 6,400 million litres. Retail

value shone at £8,000 million, up

6.5% on 2009.

Driven by cola and energy drinks, carbonates

continued to be the most popular soft drinks

sector. Cola put a sparkle into the category with

new pack choices for the consumer and held its

dominant fl avour share.

Other variants such as fruit fl avours and lemonade

gave further shine to the strong momentum for

carbonates in 2010, boosted by a little help from

in-store promotions. Low calorie colas remained

popular and have fl ourished over the years as

an easy treat.

A wide range of pack choices are popular for

consumption throughout the day. All consumers,

keen to get value for money, picked up

larger pack sizes for in-home indulgence.

Multipacks, carrying smaller bottle and can

formats, added fi zz to the lunchbox and future

consumption occasions.

Carbonates epitomise the affordable treat

qualities that have sustained UK soft drinks for

so many years. From refreshment on the go,

or as an alternative to alcohol, carbonates

have a strong place in the hearts and minds of

British consumers.

COMMENTARY

IRN-BRU

appealed

to the

men and

women of

Brazil last

summer to help

Scotland create

the next generation

of Scottish football

legends. The ‘BRUzil:

Road to 2034’ was a

simple yet potentially

revolutionary idea:

to unite Scots and

Brazilians last summer

forever to enhance the

Scottish footballing gene

pool and creating phenomenal future

players for the world’s biggest football

tournament in 2034.

IRN-BRU kicked off the campaign

in Rio de Janeiro, with lonely hearts

adverts and billboards appealing to

single Brazilians to consider a Scottish

mate. Back in Scotland, the quest

was championed by football legend

Archie Gemmill, whose never-to-be-

forgotten wonder goal in 1978 had

Scots dreaming of global glory. The

campaign not only increased IRN-

BRU sales but also collected a number

of awards including the 2010 Scottish

Advertising Awards for best viral, best

low budget campaign and best integrated

campaign. It also won a Campaign

Magazine Media Award in 2010.

43.9%

4.9% BY POPULAR DEMAND

INCREASE IN CONSUMPTION

SINCE LAST YEAR

PERCENTAGE OF ALL SOFT

DRINKS

BSDA The 2011 UK Soft Drinks Report 9

Page 10: 2011 Soft Drinks Report_UK

Source: Zenith International

UK dilutables regular vs

low calorie, 2010

Low sugar / NAS 70%

Regular 23%

High juice 7%

UK dilutables

fl avours, 2010

Blends 51%

Orange 29%

Blackcurrant 11%

Lemon 5%

Lime 2%

Others 2%

Source: Zenith International Source: Zenith International

UK dilutables

packaging, 2010

Plastic up to 1 litre 56%

Plastic over 1 litre 35%

Others 9%

0

500

1000

1500

2000

2500

3000

3500

2010200920082007200620052004

Million litres

UK dilutables consumption, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 3125 3100 3350 3350 3250 3350 3500

% change -1.6 -0.8 +8.1 0.0 -3.0 +3.1 +4.5

Litres per person 52.0 51.3 55.2 54.9 52.9 54.3 56.4

% of all soft drinks 23.1 22.9 24.0 24.2 23.7 23.9 24.0

Value, £ million 780 775 805 805 795 850 910

% change -1.3 -0.6 +3.9 0.0 -1.2 +6.9 +7.1

Value per litre, £ 0.25 0.25 0.24 0.24 0.24 0.25 0.26

Source: Zenith International

UK dilutables consumption, 2004 - 2010

DILUTABLES

DEFINITION Dilutables

Squashes, cordials, powders and other

concentrates for dilution to taste by

consumers, normally adding 4 parts

water to 1 part product; high juice

(minimum 40% fruit content as sold);

regular including squashes and cordials

(minimum 25%); low sugar including no

added sugar and sugar free; (dilutables

are expressed as ready to drink for ease

of comparison where measuring overall

soft drinks market fi gures/shares).

10 The 2011 UK Soft Drinks Report BSDA

Page 11: 2011 Soft Drinks Report_UK

Dilute to taste drinks registered a

steady growth in 2010 with consumed

volume increasing by 4.5% to 3,500

million litres. The retail value of

concentrate was up 7.1% to stand at

£910 million.

By volume consumed, the sector continued to

hold the second largest share in the UK soft

drinks market. Classic dilutables are typically

mixed with four parts water to one part syrup.

Double concentrate, a strong driver of overall

consumed volume in recent years, is typically

mixed nine parts water to one part squash.

Double concentrate, from its retailer own label

origins, has added even more affordability

to dilutables and has stayed popular with

British consumers.

The UK recession has brought consumers back

to basics, with traditional products and childhood

favourites becoming a preference. It is therefore

no surprise that squash has fl ourished during the

main recessionary years of 2009 and 2010.

Dilutables offer a low cost, easy to carry and

reliable standby in the kitchen. Low and no added

sugar variants dominate the sector and provide

lower calorie refreshment on tap for both adults

and children.

COMMENTARY

In March

2010,

Coca-Cola

Enterprises Ltd

(CCE) launched the

Open More Business

report. Following £2m

investment and three years

of extensive research, Open

More Business shares new

evidence-based insights on

how consumers approach the

soft drinks category. It gives

detailed insight into how customers

can unlock the huge opportunity

soft drinks present by understanding

shoppers, their needs and

preferences, and the environments

in which they shop. The report

identifi ed an exciting future for

the soft drinks category, including

a £1.4 billion growth opportunity

which CCE is looking to target over

the next fi ve years. In simple terms,

this equates to existing soft drinks

shoppers buying just one extra soft

drink a fortnight each.

Since launching last year, the

Open More Business initiative has

continued to develop. Retailers across

Great Britain are now able to take CCE’s

Open More Business soft drinks MOT,

a fi ve minute self-assessment scorecard

that can help them maximise sales from

their existing soft drinks range.

4.5%

CONSUMED IN 2010

BY POPULAR DEMAND

INCREASE IN CONSUMPTION

SINCE LAST YEAR

3500MILLION LITRES

BSDA The 2011 UK Soft Drinks Report 11

Page 12: 2011 Soft Drinks Report_UK

Source: Zenith International

UK ambient vs chilled

fruit juice, 2010

Ambient 45%

Chilled not from concentrate 27%

Chilled from concentrate 21%

Chilled smoothies 5%

Chilled freshly squeezed 2%

UK fruit juice

fl avours, 2010

Orange 54%

Apple 13%

Blends 16%

Pineapple 5%

Grapefruit 2%

Others 10%Source: Zenith International Source: Zenith International

UK fruit juice

packaging, 2010

Carton 76%

Plastic 16%

Glass / other 8%

0

300

600

900

1200

1500

2010200920082007200620052004

Million litres

UK fruit juice consumption, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 1040 1120 1210 1230 1190 1145 1180

% change +3.0 +7.7 +8.0 +1.7 -3.3 -3.8 +3.1

Litres per person 17.3 18.5 19.9 20.1 19.4 18.6 19.0

% of all soft drinks 7.7 8.3 8.7 8.9 8.7 8.2 8.1

Value, £ million 1540 1675 1820 1830 1760 1670 1760

% change +0.7 +8.8 +8.7 +0.5 -3.8 -5.1 +5.4

Value per litre, £ 1.48 1.50 1.50 1.49 1.48 1.46 1.49

Source: Zenith International

UK fruit juice consumption, 2004 - 2010

FRUIT JUICE AND SMOOTHIES

INCREASE IN CONSUMPTION

SINCE LAST YEAR

3.1%

DEFINITION Fruit juice

100% fruit content equivalent,

sometimes referred to as pure juice or

100% juice. Chilled juice comprises

four main types: smoothies (based

predominately on whole crushed fruit,

chilled and with a short shelf life);

freshly squeezed juice (not pasteurised,

chilled with a shelf life of a few days);

not from concentrate juice (squeezed

then pasteurised, chilled with a shelf

life of a few weeks); other chilled from

concentrate (from concentrate or part

squeezed and part from concentrate).

Ambient or long life juice is mainly from

concentrate and heat treated; shelf life

of up to 18 months.

12 The 2011 UK Soft Drinks Report BSDA

Page 13: 2011 Soft Drinks Report_UK

The fruit juice sector has had a tough

couple of years as consumers traded

down to cheaper alternatives during

the recession. However, in 2010, the

category registered 3.1% volume

growth to 1,180 million litres. Retail

sales value increased by 5.4% to

£1,760 million.

Orange has retained its place as most popular

juice fl avour, although the dominance of orange

has been squeezed by blends, tropical and other

fl avours gaining a following amongst consumers

keen to try a new taste experience.

Smoothies have been the hardest hit juice

category in the last couple of years, with a price

premium battling against an economic storm. Yet,

in 2010, smoothies registered a strong recovery,

up 8.5% in volume to reach 51 million litres.

This equates to 0.8 litres per person and a total

value of £141 million. With on-going 5-a-day

messages and health virtues, smoothies provided

consumers with an on-the-go alternative for one

or two of their 5-a-day.

As consumers’ disposable income is expected

to be strained further in 2011, due to the VAT

increase and rising living costs, promotions and

fi nding an appropriate price point will remain key.

The fl uctuation in global juice commodity prices

may yet take some zest out of fruit juice in this

year and beyond.

COMMENTARY

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 23 35 55 79 64 47 51

% change +15.0 +52.2 +57.1 +43.6 -19.0 -26.6 +8.5

Litres per person 0.4 0.6 0.9 1.3 1.0 0.8 0.8

% of all soft drinks 0.2 0.3 0.4 0.6 0.5 0.3 0.3

Source: Zenith International

UK smoothies consumption, 2004 - 2010

The Del Monte

brand has great

heritage and trust with

consumers and has been in

existence since 1892 selling

high quality fresh fruit, tinned fruit

and juices around the world. The

current market environment has

consumers considering even more

seriously what products they spend

their hard-earned cash on, and

Del Monte’s juice range provides

consumers with high quality juice

at great value. The juice range

was relaunched during 2010,

including a re-formulation of the

range recipes to ensure that it

offered the best taste, as well as

a brand new packaging design

and integrated support plan to

re-establish the brand as the

number one brand in ambient

juice.

Throughout February 2011,

a regional TV test, door drop

and radio campaign has had

great success in the South West

region and included a taste test so that

consumers could fi nd out for themselves.

The results of the relaunch were fantastic

with Del Monte growing at 15.9 per cent in

12 weeks compared with 5.7 per cent for the

ambient category as a whole.

BY POPULAR DEMAND

Data source: IRI market data to

22 Jan 2011

8.5%INCREASE IN

CONSUMPTION OF SMOOTHIES LAST

YEAR

BSDA The 2011 UK Soft Drinks Report 13

Page 14: 2011 Soft Drinks Report_UK

Source: Zenith International

UK still and juice

drinks regular vs low

calorie, 2010

Regular 57%

Low calorie 43%

UK still and juice drink

categories, 2010

Juice drinks 63%

Nectars 12%

Still fl avoured water 14%

Sports 11%

Source: Zenith International Source: Zenith International

UK still and juice drink

packaging, 2010

Carton 48%

Plastic 25%

Glass / other 27%

0

300

600

900

1200

1500

2010200920082007200620052004

Million litres

UK still and juice drinks consumption, 2004 - 2010Source: Zenith International

STATISTICS

BSDA 2011BY POPULAR DEMAND

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 1090 1190 1310 1350 1360 1370 1450

% change +10.7 +9.2 +10.1 +3.1 +0.7 +0.7 +5.8

Litres per person 18.1 19.7 21.6 22.1 22.2 22.2 23.4

% of all soft drinks 8.1 8.8 9.4 9.7 9.9 9.8 9.9

Value, £ million 1325 1440 1595 1650 1660 1660 1770

% change +9.1 +8.7 +10.8 +3.4 +0.6 0.0 +6.6

Value per litre, £ 1.22 1.21 1.21 1.22 1.22 1.21 1.22

Source: Zenith International

UK still and juice drinks consumption, 2004 - 2010

STILL & JUICE DRINKS

DEFINITION Still & juice drinks

Nectars (25-99% fruit content); juice

drinks (5-25% fruit content); other

still drinks (0-5%) including iced tea,

sports drinks, still fl avoured water and

non-fruit drinks.

14 The 2011 UK Soft Drinks Report BSDA

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23.4

5.8%

AVERAGE CONSUMPTION PER PERSON IN

2010

Encompassing nectars and juice drinks

with less than 25% fruit content,

alongside sports drinks, iced tea and

still fl avoured water, the still and juice

drinks sector grew 5.8% in volume

last year, to reach 1,450 million litres.

In value terms, still and juice drinks

registered a 6.6% increase to

£1,770 million.

This sector is designed for a wide range of

consumers from children to grown ups, providing

an array of product choice. Still and juice drinks

continue to offer a taste alternative to plain bottled

water or carbonates, and remain a popular choice

for all health-minded consumers.

The grab and go virtues of still drinks have seen

the category pass a number of milestones. Barring

a slower gain in the tough economic backdrop of

2008 and 2009, still and juice drinks have hit

the high notes of growth in every year of the past

decade.

Diversity is the name of the game for the sector.

Chilled juice drinks in 1 litre cartons provide

refreshment and ‘gluggability’. Sports drinks,

typically in sports cap bottles, deliver hydration

and electrolytes for a before, during and after

sport occasion. While, from juice drinks to new

fl avoured waters, the lunchbox can be crammed

with healthy options!

COMMENTARY

Volvic Touch

of Fruit,

the fl avoured

water range under

the Volvic megabrand,

has been the key driver of

growth for fl avoured still water

and now commands over 50

per cent share of the category.

2010 was a particularly strong

year for Touch of Fruit with 8.4

per cent growth in value and

5.1 per cent in volume sales,

driven by consumer demand

for the existing range and new

fl avour innovation. The launch

of Limited Edition Touch of

Blackcurrant in 2010 was

such a success that the fl avour

has now become a permanent

part of the range, and 2011

will see the introduction of a new

Limited Edition - Touch of Summer

Fruits. The brand has grown rapidly

in impulse over the last two years

by tapping in to the need for tasty,

on-the-go hydration and Volvic will

build on this insight by launching a

new 75cl sports cap bottle. This year,

Danone Waters UK will drive mass

awareness of Touch of Fruit with its fi rst

TV advert for over four years, supported

by outdoor media and extensive sampling.

BY POPULAR DEMAND

Data source: Total Coverage Nielsen

INCREASE IN CONSUMPTION

SINCE LAST YEAR

LITRES

BSDA The 2011 UK Soft Drinks Report 15

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Source: Zenith International

UK sports and energy

drinks, 2010

Sports 27%

Energy 73%

UK sports drink

types, 2010

Isotonic 91%

Hypotonic 9%

Hypertonic <1%

Source: Zenith International Source: Zenith International

UK energy drink

types, 2010

Glucose 58%

Stimulant 42%

0

100

200

300

400

500

600

2010200920082007200620052004

Million litres

UK sports and energy drinks consumption, 2004 - 2010

Source: Zenith International

DEFINITION Sports drinks

Drinks that enhance physical

performance before, during or after

physical/sporting activity. Sports drinks

replace fl uids and electrolytes/minerals

lost by sweating and supply a boost of

carbohydrate: isotonic (fl uid, electrolytes

and 6 to 8% carbohydrate), hypotonic

(fl uids, electrolytes and a low level of

carbohydrate) and hypertonic (high level

of carbohydrate).

Energy drinks

Traditional glucose-based energy

drinks; functional or stimulation energy

drinks which claim a particular energy

boost from caffeine, guarana, taurine

and ginseng or other herbs or some

combination of these ingredients.

STATISTICS

BSDA 2011BY POPULAR DEMAND

SPORTS & ENERGY DRINKS

Source: Zenith International

Year 2004 2005 2006 2007 2008 2009 2010

Million litres 320 365 405 455 505 532 600

% change +16.4 +14.1 +11.0 +12.3 +11.0 +5.2 +12.9

Litres per person 5.3 6.0 6.7 7.5 8.2 8.6 9.7

% of all soft drinks 2.4 2.7 2.9 3.3 3.7 3.8 4.1

Sports drinks, million litres 85 95 110 125 135 142 160

% change +13.3 +11.8 +15.8 +13.6 +8.0 +4.8 +13.1

Litres per person 1.4 1.6 1.8 2.0 2.2 2.3 2.6

% of all soft drinks 0.6 0.7 0.8 0.9 1.0 1.0 1.1

Energy drinks, million litres 235 270 295 330 370 390 440

% change +17.5 +14.9 +9.3 +11.9 +12.1 +5.4 +12.8

Litres per person 3.9 4.5 4.9 5.4 6.0 6.3 7.1

% of all soft drinks 1.7 2.0 2.1 2.4 2.7 2.8 3.0

UK sports and energy drinks consumption, 2004 - 2010

16 The 2011 UK Soft Drinks Report BSDA

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The buzz around sports and energy

drinks is here to stay. This has

remained the fastest growing sector

in the UK soft drinks market in recent

years. The combined category saw

another year of high growth in 2010

to reach 600 million litres. In value

terms, sports and energy drinks

continue to command a premium,

surpassing a total value, across all

sales channels, of £1,500 million

in 2010.

Sports drinks – comprised predominantly of

isotonic and hypotonic drinks – and energy drinks

with glucose and stimulant drink variants – again

saw their respective segment shares remain

effectively unchanged in 2010.

Those of us with longer working hours and

more stressful lives are increasingly using energy

drinks to help get through the day – and the

night. In 2010, energy drinks registered 12.8%

growth, reaching 440 million litres. This pushed

consumption to 6.8 litres per head, and generated

total category value of £1,260 million.

Sports drinks provide replenishment and

hydration for modern lifestyles and resonate

with a wide range of consumers, whether in the

gym or as active refreshment on-the-go. Overall,

sports drinks grew by 13.1% in volume to stand

at 160 million litres in 2010. This equates to 2.6

litres per person and a total category value of

£260 million.

COMMENTARY

INCREASE IN CONSUMPTION

OF SPORTS DRINKS SINCE

LAST YEAR

In January

2011, Coca-

Cola Enterprises

Ltd (CCE) extended its

Relentless portfolio with

the launch of a new variant,

Libertus. The sugar-free stimulation

product also unveiled a new look

across the rest of the range with an

eye-catching insignia on one side of

the pack and the original Relentless

logo on the other.

Libertus contains just 20 calories

per 500ml can, with the same

great fl avour and the same

amount of caffeine, taurine

and B6 and B12 vitamins of

Relentless Origin. The sugar-free

variant has been developed to

meet the consumer needstate for

mental renewal and recharging

without the sugar, and to offer

consumers more choice when

shopping the sector.

Always innovative, Relentless

continues to push the

boundaries of cutting edge

on-pack design. Libertus and the

existing range deliver striking on-shelf

stand out allowing retailers to alternate

display with either a facing of the

Relentless insignia or the original logo.

12.8%

13%

BY POPULAR DEMAND

INCREASE IN CONSUMPTION

OF ENERGY DRINKS SINCE

LAST YEAR

BSDA The 2011 UK Soft Drinks Report 17

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Because high caffeine soft drinks

are growing in popularity, BSDA has

published a code of practice covering

how they are labelled and marketed

in order to ensure that consumers

have all information needed to make

informed choices about purchasing

and enjoying high caffeine content

soft drinks safely. (The word “high”

compares them with other soft drinks,

not with other beverages more

generally – they contain no more

caffeine than a typical cup of coffee.)

The code was drawn up following discussion

among manufacturers of high caffeine drinks

(including non-members of BSDA, one of whom

subsequently joined), with the benefi t of advice

from retailer trade bodies and offi cials at the FSA.

It has been complemented by a similar code

adopted at European level by UNESDA.

The code of practice requires that all drinks with a

high caffeine content carry the additional labelling

statement “Not suitable for children, pregnant

women and persons sensitive to caffeine”. In

addition, such drinks may not be promoted or

marketed to persons aged under 16.

SOFT DRINKS INDUSTRY LAUNCHES HIGH CAFFEINE CODE OF PRACTICE

BSDA 2011SETTING INDUSTRYSTANDARDS

NEW EDITION OF GUIDE TO GOOD BOTTLED WATER STANDARDSBottled water producers now have an

up-to-date handbook to help them

with their production: the Guide to

Good Bottled Water Standards.

BSDA revised and updated its defi nitive guide

to the rules and methods followed in producing

natural mineral water, spring water, and bottled

drinking water. The Guide covers everything

from the permissible sources of water and

extraction and bottling processes to the labelling

and presentation of the water

when it is sold.

For anyone who is already

a water bottler, or if you

are thinking of setting up

a bottling business of your

own, the newly updated BSDA

Guide to Good Bottled Water

Standards is a must-have.

Over 80 pages in length,

this guide will provide you

with up-to-date advice on

everything you need to know

in order to set up or stay in

business. Members of BSDA

get free access to the latest

edition of the Guide to Good

Bottled Water Standards via

the members’ section of the

BSDA website.

18 The 2011 UK Soft Drinks Report BSDA

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TECHNICAL EXPERTISE CALLED INTO ACTIONBSDA’s technical expertise has been called upon repeatedly in the past

year to ensure that the industry’s interests are taken into account in the

framing of new legislation. It is not in the interests of consumers if rules

are drawn up in a way which makes it unnecessarily expensive or even

impossible to comply. This work requires regular engagement with the

regulatory authorities – the Food Standards Agency and its European

equivalent, EFSA – and active participation in the three European trade

associations, UNESDA (for carbonates, dilutables, still and juice drinks),

EFBW (for bottled waters) and AIJN (for fruit juices and smoothies).

For example, in the review of the use of additives being conducted by the European Food Safety

Authority, BSDA has ensured that up-to-date data is provided on their use and consumption,

so that decisions on usage levels can be based on the most accurate information possible.

Parts of the industry’s code of practice on fruit juice have been recognised in the annex to the

EU’s fruit juice directive, which provides assurance to consumers about the authenticity of the

juices they are buying.

This is the central theme of BSDA’s representational work: that the industry exists to serve

consumers and that regulation should be consistent with this objective and not contrary to it.

BSDA The 2011 UK Soft Drinks Report 19

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BSDA 2011LEADING IN THE BUSINESS COMMUNITY

AWARDS SUCCESS FOR LIQUIDS MEAN LIFE

The BSDA education project Liquids Mean Life

won the award for Enterprise & Innovation

at the IEBE Business Awards 2010. This

prestigious award recognises enterprise

and innovation in business involvement

in education, and was presented to the

British Soft Drinks Association and Britvic

Soft Drinks by the Institute for Education

Business Excellence.

Over 150 businesses, education partners and guests

attended the awards ceremony at London’s Design

Museum on Friday 1 October 2010. It was hosted by

broadcaster and IEBE Patron Maggie Philbin.

The IEBE judge, Jane Samuels, Project and Operations

Manager of Edge, said:

“This is an excellent example of a trade association

and a major corporate working in partnership with

local education business partnership organisations

across the country to provide valuable resources and

support for teachers. Particularly impressive is

the long term commitment to education

demonstrated by Britvic’s Learning Zone

provision at its Beckton site and the

plans to expand this provision to two

other sites in Leeds and Norwich.

The curriculum materials, industry

visits and competition programmes

are all highly praised by teachers

and students who have benefi tted from

them. The current plans to develop links

with PGCE students at universities is especially

innovative and a great example of maximising the

potential of a programme from every angle.”

The annual BSDA Industry Lunch on 8 June 2010 saw a record

number of guests gather to hear a keynote address by Olympic

hero Lord Sebastian Coe KBE. An audience of over 200 listened

to an inspiring, motivating and entertaining speech, drawing from

Lord Coe’s career as an athlete, a politician, and most recently

chair of the London 2012 Organising Committee of the Olympic

and Paralympic Games.

Newly-elected president of BSDA, Roger White, Chief Executive of A G Barr, introduced Lord Coe, and also took the opportunity to speak about the industry’s wider concerns.

On the economy: “I do not envy the new Government their task – however, I would strongly oppose any further short term tax rises which would penalise consumers and jeopardise our fragile economic recovery.”

On healthy lifestyles: “the message is clear: voluntary, industry-led action blended with increased education is far more effective than legislation and coercion from Government.”

On sustainability: “this is not an industry which sits back but one which has an on-going commitment to sustainability.”

RECORD ATTENDANCE AT BSDA INDUSTRY LUNCH

Lord Sebastian Coe

Roger White

BSDA and Britvic receive the award from Maggie Philbin (second left)

20 The 2011 UK Soft Drinks Report BSDA

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The coalition government

elected in May 2010 brought

with it a new approach to

public health, and in particular

policy on obesity. Rather than

seeking to impose changes on

the composition of food and

drink, the plan is to encourage

companies to make their own

changes in line with what their

businesses can reasonably

achieve, through what have been

named Responsibility Deals.

This approach has been welcomed by BSDA.

Jill Ardagh, BSDA Director General, said:

“The soft drinks industry has proved over

the years that a responsible approach by

industry is the right way to deal with issues

of public concern. For example, people

thinking about the issue of obesity should

note how the soft drinks product range has

changed radically. The proportion of the

market made up of drinks with no added

sugar is now 60 per cent, up from only 30

per cent 20 years ago.

SOFT DRINKS INDUSTRY WELCOMES RESPONSIBILITY DEAL INITIATIVE

“This has been achieved without regulation.

Instead, it was a combination of product

innovation, clear nutritional information,

and a focus on the needs of the consumer

that delivered. A responsible approach by

industry works.”

BSDA published a Responsibility Report to

illustrate the industry’s wide-ranging actions

to improve and extend choice of sustainably

produced and responsibly marketed drinks.

BSDA has been an active participant

in the Vending Choice Coalition, an

industry initiative set up to explain

the role of vending as a channel

for providing food and drink.

The spark was the introduction

of restrictions on what could be

sold through vending machines

(although not other retail outlets) in

hospitals in Wales, but challenges of

providing choice to consumers and

information about those choices

can be felt more broadly.

The VCC is led by the Automatic Vending

Association, but brings together vending

operators and suppliers along with other

trade associations. Providing the widest

possible range of soft drinks through

vending is an important objective.

A highlight of the past year was a Vending

Choice Conference held in Cardiff on 6 July

2010. The conference aimed to increase

the choice of products available from

vending machines, introduce new products

to the vending stream, and enable vending

operators to understand the changing needs

of consumers.

PROMOTION OF VENDING CHOICE

BSDA The 2011 UK Soft Drinks Report 21

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BSDA 2011SUSTAINABILITY

THE CASE AGAINST

MANDATORY DEPOSITS

The debate about mandatory deposits was revived again in September 2010

with a report from the Campaign to Protect Rural England. Never mind

that deposit schemes have largely fallen out of favour with consumers over

the years, the CPRE proposed that a new levy of at least 15 pence (or 30

pence for bottles larger than 500 ml) should be introduced, along with an

extensive new bureaucracy to collect, administer and return the deposits and

send the bottles on for recycling.

BSDA was quick to hit the airwaves in

response, pointing out that household

collections of plastic bottles for recycling

were increasing by 20 per cent a year,

progress that should be supported and not

undermined. Furthermore, the airy claim

that the costs of the scheme would be paid

for by industry actually meant that they

would be paid for by consumers in the form

of higher prices.

But this is not to say that the soft drinks

industry is inactive in the face of litter and

waste. The

opposite

is true.

BSDA is backing the “Love where you live”

campaign that seeks to persuade people

not to drop litter and waste, and many

soft drinks companies sponsor on the go

collection facilities for recycling themselves.

BSDA is also backing the Courtauld

2 commitment on reducing the wider

environmental impact of packaging.

It would be wrong for BSDA to claim all

the credit for the opposition to mandatory

deposits. The campaign has been a joint

project with other industry bodies including

INCPEN, the Industry Council for Packaging

and the Environment, and the retailers’

trade associations, such as the British

Retail Consortium and the Association

of Convenience Stores. The

campaign against mandatory

deposits, like the campaign

against litter itself, can only be

won by a collective approach.

BSDA published the second annual report

on the progress made by Britain’s soft

drinks industry towards its sustainability

goals. The sustainability strategy was

adopted in 2008 with the aims of:

• reducing carbon emissions

• reducing waste and

increasing recycling

• reducing water use

• reducing the external impacts

of transport

Examples of the efforts made by soft

drinks companies and reported in the

Sustainability Report include:

• the use of more effi cient

refrigerants and lighting in chillers

• using more recycled PET in bottles

• redesigning the secondary

packaging of products so that less

cardboard is used

• reorganising road transport routes

to reduce the number of miles

covered by trucks on the road

REPORTING ON THE SUSTAINABILITY STRATEGY

22 The 2011 UK Soft Drinks Report BSDA

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The British Soft Drinks Association is the national trade

association representing the collective interests of producers and

manufacturers of soft drinks including carbonated drinks, still and

dilutable drinks, fruit juices and smoothies, and bottled waters.

BSDA is based in central London with an experienced, professional staff and is governed by an Executive Council of directors elected from its members. It provides a central meeting point for the industry and a range of services to help the industry and its manufacturers to be at the leading edge.

Main membership benefi ts include:

• Information, advice and advance warning on all aspects of the industry, including technical standards, best practice and legislation to ensure good compliance and planning

• Participation in the development of Codes of Practice and initiatives to promote the industry’s reputation and demonstrate social responsibility

• Assistance and advice on incident management

• Inclusion in BSDA’s online listing of manufacturers and suppliers

• Free access to the Members’ website with its information, advice and publications

• A range of training courses tailored to the industry with substantial discounts for members

• The opportunity to network with industry colleagues at BSDA meetings and events and infl uence BSDA policy-making

ABOUT BSDA

BSDA 2011ABOUT BSDA

THE BRITISH SOFT DRINKS ASSOCIATION FOR:-

• MEDIA & PUBLIC AFFAIRS

• REGULATORY ISSUES

• SUSTAINABILITY

• EDUCATION & SKILLS

For more information about BSDA

and its activities contact

British Soft Drinks Association

20-22 Stukeley Street

London

WC2B 5LR

Telephone: +44 (0) 20 7430 0356

Fax: +44 (0) 20 7831 6014

Email: [email protected]

Website: www.britishsoftdrinks.com

BSDA The 2011 UK Soft Drinks Report 23

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British Soft Drinks Association

20-22 Stukeley Street

London

WC2B 5LR

Telephone: +44 (0) 20 7430 0356

Fax: +44 (0) 20 7831 6014

Email: [email protected]

Website: www.britishsoftdrinks.com