Cordials and Squashes - UK - May 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Sales of cordials and squashes have continued to fall
Figure 1: Forecast of UK value sales of cordials and squashes, 2011-21
On-premise sales of cordials and squashes slide
Value sales are expected to recover
Sugar is a key driver for change in the category
Reduced alcohol consumption could be an opportunity for cordials and squashes
Companies and brands
Robinsons and own-labels dominate the category
Figure 2: Share of retail value sales of top-selling cordial and squash brands, 2014/15-2016/17
Drop in launch activity in 2016
Companies look to peg drinks to occasions
Half of 2016 product launches carried an L/N/R sugar claim
2016 saw sharp drop in adspend
Vimto Remix shifts TV advertising budget to online
The consumer
Four fifths of people drink cordials/squash
No-added-sugar variants most commonly drunk
Figure 3: Usage of cordials and squashes, by type, by frequency, February 2017
Usage throughout the day is the key occasion for cordials and squash
Few buyers choose cordials or squashes for formal occasions
Figure 4: Usage of cordials and/or squashes, by occasions, February 2017
Sugar is the biggest barrier to usage
Over a quarter simply don’t think to drink squash and cordials
Figure 5: Barriers to usage of squashes and/or cordials, February 2017
Hydration can underpin squash and cordial consumption
Mothers want more cordials and squashes in restaurants and cafés
Figure 6: Attitudes related to cordials and squashes, February 2017
Few people see cordials and squashes as natural
Figure 7: Qualities associated with cordials and squashes, correspondence analysis, February 2017
What we think
ISSUES AND INSIGHTS
Concern over sugar and artificial sweeteners leaves companies in a tricky position
The facts
The implications
A premium touch may be needed to improve suitability for formal occasions
The facts
The implications
Pushing hydration could open the market up to a wider audience
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Sales of cordials and squashes have continued to fall
On-premise sales of cordials and squashes slide
Value sales are expected to recover
Sugar is a key driver for change in the category
Reduced alcohol consumption could be an opportunity for cordials and squash
MARKET SIZE AND FORECAST
Sales of cordials and squashes have continued to fall
Figure 8: UK value sales of cordials and squashes, at current and constant prices, 2011-21
On-premise sales of cordials and squashes slide
Figure 9: UK value sales of cordials and squashes in the on-premise and retail channel, 2011-16
Value sales are expected to recover
Figure 10: Forecast of UK value sales of cordials and squashes, 2011-21
Forecast methodology
MARKET DRIVERS
Sugar is a key driver for change in the category
Soft Drinks Levy on the cards in 2018
Sugar has caught up with fat as health “foe”
Industry responds with sugar reduction
Artificial sweeteners concern consumers
Reduced alcohol consumption could be an opportunity for cordials and squash
End in sight to growing real consumer incomes
Weakening of the Pound offers advantage to UK-grown fruit and botanicals
Soft Drinks Levy adds to upward price pressure
Growing child population a positive for the category
Warmer summers benefit sales of cordials and squashes
Figure 11: Total hours of sunshine in the UK, by month, 2012-16
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Robinsons and own-labels dominate the category
Drop in launch activity in 2016
Companies look to peg drinks to occasions
Half of 2016 product launches carried an L/N/R sugar claim
2016 saw sharp drop in adspend
Vimto Remix shifts TV advertising budget to online
MARKET SHARE
Robinsons and own-labels dominate the category
Figure 12: Value retail sales of top-selling cordial and squash brands, 2014/15-2016/17
Vimto and Belvoir buck the downward trend
LAUNCH ACTIVITY AND INNOVATION
Drop in launch activity in 2016
Figure 13: Share of new cordial and squash product launches in the UK non-alcoholic drinks market, 2012-16
Brands gain share of new product launches
Figure 14: New product launches in the cordials and squashes market, by own-label and brands, 2013-16
Vimto shakes things up with Remix range
Packaging updates for super-concentrated formats
Companies look to peg drinks to occasions
Belvoir celebrates Queen’s 90th birthday
Ribena brings back Winter Spice edition
Limited edition Wimbledon labels for Robinsons
Tesco reformulates high fruit juice range to avoid sugar tax
M&S cordials focus on British ingredients
Half of 2016 product launches carried an L/N/R sugar claim
Figure 15: Share of new products launched in the cordials and squashes market with an L/N/R sugar claim, 2013-16
ADVERTISING AND MARKETING ACTIVITY
2016 saw sharp drop in adspend
Figure 16: Total above-the-line, online display and direct mail advertising expenditure on cordials and squash, 2013-16
Marketing for Ribena brand should also have benefited its squash
Figure 17: Total above-the-line, online display and direct mail advertising expenditure on cordials and squashes, by top five brands, 2013-16
Britvic continues to promote Wimbledon sponsorship
Robinsons rejuvenates hydration campaign in 2017
Vimto Remix shifts TV advertising budget to online
‘Freebees’ from Belvoir to help declining bee population
Oasis Mighty Drops targeted festival-goers with unique raincoats
Nielsen Ad Intel coverage
THE CONSUMER – WHAT YOU NEED TO KNOW
Four fifths of people drink cordials/squash
No-added-sugar variants most commonly drunk
Usage throughout the day is the key occasion for cordials and squash
Few buyers choose cordials or squashes for formal occasions
Sugar is the biggest barrier to usage
Over a quarter simply don’t think to drink squash and cordials
Hydration can underpin squash and cordial consumption
Mothers want more cordials and squashes in restaurants and cafés
Few people see cordials and squashes as natural
USAGE OF CORDIALS AND SQUASHES
Four fifths of people drink cordials/squash
Figure 18: Repertoire of usage of types of cordials and squashes, February 2017
Standard-strength squash remains top choice
Figure 19: Usage of cordials and squashes, by type, by frequency, February 2017
A third buy super-concentrated squashes but not for use on the go
No-added-sugar variants most commonly drunk
Over-55s top no-added-sugar usage
Figure 20: Usage of cordials and squashes, by sugar-content, February 2017
OCCASIONS FOR DRINKING CORDIALS AND SQUASHES
Usage throughout the day is the key occasion for cordials and squash
45% of users drink cordials or squash with food
Few buyers choose cordials or squashes for formal occasions
Figure 21: Occasions cordials and squashes have been bought for, February 2017
Cordials/squashes are a rare choice at pubs, bars or restaurants
Visibility remains a key challenge
Comparisons to retail can dilute value image
BARRIERS TO USAGE OF CORDIALS AND SQUASHES
Sugar is the biggest barrier to usage
Artificial sweeteners are a turn-off for many
Figure 22: Barriers to usage of cordials and/or squashes, February 2017
Over a quarter simply don’t think to drink squash and cordials
Seasonality plays a role in cordial/squash consumption
ATTITUDES RELATED TO CORDIALS AND SQUASHES
Hydration can underpin squash and cordial consumption
Scope for category to further mine links with water
Figure 23: Attitudes related to cordials and squashes, February 2017
Mothers want more cordials and squashes in restaurants and cafés
Two in five ABs see hot squash/cordials as a good alternative to tea/coffee
Scope for cordials and squashes to replace alcohol…
Figure 24: Attitudes related to usage of squashes and cordials, February 2017
…and to make good cocktail ingredients
QUALITIES ASSOCIATED WITH CORDIALS AND SQUASHES
Few people see cordials and squashes as natural
Squash is strongly associated with being refreshing
Figure 25: Qualities associated with cordials, squashes and selected competing drinks, correspondence analysis, February 2017
Neither seen to be particularly suitable for adults
Figure 26: Qualities associated with cordials, squashes and selected competing drinks, February 2017
Methodology
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 27: Best- and worst-case forecasts for the total cordials and squashes market, by value, 2016-21
Forecast Methodology
APPENDIX – MARKET DRIVERS
Figure 28: Annual UK rainfall (mm), by month, 2012-16
Figure 29: Annual UK mean temperature (°C), by month, 2012-16
APPENDIX – MARKET SHARE
Figure 30: Value retail sales of top-selling cordial and squash manufacturers, 2014/15-2016/17
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 31: New product launches in the cordials and squashes market, by top 10 claims, 2013-16
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 32: Total above-the-line, online display and direct mail advertising expenditure on cordials and squashes, by top six companies, 2013-16
APPENDIX – CONSUMER RESEARCH
Figure 33: Usage of cordials and squashes, by type, February 2017
Figure 34: Frequency of cordials and squashes drank, by type, February 2017