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On-trade Soft Drinks - UK - December 2009
Drink: UK Price: £1500 / $3000 / €2250
Report sections
click here to read 'about this report' »
Contents
Issues in the Market
Market in Brief
Internal Market Environment
Broader Market Environment
Competitive Context of Soft Drinks in On- and Off-trade
Strengths and Weaknesses in the Market
Market Size and Forecast
Segment Performance
Market Share
Companies and Products
Channels to Market
Brand Communication and Promotion
Consumer Usage
Appendix – Internal Market Environment
Appendix – Broader Market Environment
Appendix – Brand Communication and Promotion
Appendix – Consumer Usage
Latest news updates to this report
(click here for all news updates »)
17-03-2010  £1.4bn growth opportunity for soft drinks
1-03-2010  Monster relaunch for the on-trade
8-02-2010  Pubs charging 60p more for a soft drink than a pint of beer
21-01-2010  Nichols buys rival Ben Shaws
25-11-2009  Britvic pre-tax profits surge
...more »
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  Fruit Juice and Juice Drinks: The Consumer - US - January 2010
  Premium Soft Drinks - UK - January 2010
  Lager - UK - November 2009
  Pub Visiting - UK - November 2009
...more »
About this report

The report focuses on soft drinks bought for consumption in the on-trade, outside of the home.

  • Cash-squeezed consumers have been cutting back on eating/drinking out. As a result, sales of on-trade soft drinks have declined by 6% (by value) between 2007 and 2009 in sharp contrast to 2004-2007 when sales grew steadily (8% by value).
  • Mintel’s research shows 29 million adults resent paying what they perceive to be very high prices for soft drinks in a pub or bar when they know they can buy it for so much cheaper in shops.
  • Pubs, bars and restaurants primarily sell non-diet versions of soft drinks. Yet on-trade outlets are not maximising the potential opportunity as 32 million adults think they should stock a healthier range of soft drinks.
  • Eight in ten people prefer to drink soft drinks rather than alcohol at lunchtime.
  • The on-trade soft drinks market is dominated by Britvic and Coca Cola Enterprises (CCE) who between them account for 80% of the market (by value).
  • Despite struggling for some years in the off-trade, Pepsi (owned by Britvic) is the joint top selling brand (along with Coca Cola) in the on-trade. The brand has benefited from Britvic’s state-of-the-art dispensing technology.
If you want more details about this particular report, please contact the Mintel information team on  +1 312-932-0400 in the U.S.,  +44 028-90-241-849 in Northern Ireland,  +353 048-90-241-849 in the Republic of Ireland or  +44 (0)20-7606-6000 in the UK and the rest of the world, or email info@mintel.com.
Contents

Issues in the Market

Definition

Abbreviations

Market in Brief

Consumers want better

Pubs discouraging consumers from drinking soft drinks?

Major brands dominating distribution

Performance of on-trade soft drinks closely linked to economy

Market will grow as Britain moves out of recession

Internal Market Environment

Key points

Population going soft

Figure 1: A comparison of UK value sales for alcoholic and non-alcoholic drinks, 1998 and 2008
Figure 2: Trends for penetration of alcohol drinkers among over-18 british population, 2005-09

Health and dieting are key consumer needs

Figure 3: Personal concerns among population, October 2009

Failure to adapt is behind the decline of the traditional pub…

Figure 4: Net pub closures in the UK, 2005-09
Figure 5: Trends for penetration of pubs/bars and cafés, 2007-09

…however, food-led pubs are performing (relatively) well

Figure 6: Proportion of population who visit pubs or bars for either a drink or a meal, 2009

New soft drinks face many restrictions

Broader Market Environment

Key points

Legislation favours soft drinks

Figure 7: Trends in alcohol duty, by selected alcohol type, 2004-09

A maximum price on soft drinks?

The fortunes of pubs closely linked to economy

Figure 8: Relationship between GDP and pub visiting, by quarter, 2007-09

Grey pound is essential for pubs

Figure 9: Forecast of adult population trends, by lifestage, 2004-14

Rising middle class is good news for soft drinks

Figure 10: Structure of the UK population, by socio-economic group, 2004-14

Competitive Context of Soft Drinks in On- and Off-trade

Key points

Functional and healthy soft drinks drive impressive growth

Chilled soft drinks outperform hot beverages

Figure 11: Trends for value sales of chilled soft drinks and hot beverages, 1998-2008

Recession alters soft drink market

Figure 12: Consumption of selected soft drinks in the last 12 months, 2005-09

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Size and Forecast

Market will bounce back after recession

Figure 13: Forecast of volume and value sales of on-trade soft drinks market, 2004-14

Expect prices to come down

Figure 14: Forecast of cost per litre of on-trade soft drinks market, in current and real prices, 2004-14

Juice drinks will be the main winner

Figure 15: Forecast of value sales of on-trade soft drinks, by drink type, 2004-14
Figure 16: Forecast of volume sales of on-trade soft drinks, by drink type, 2004-14

Factors used in the forecast

Segment Performance

Key points

Figure 17: Value and volume sales of on-trade soft drinks, by sub-category, 2007-09

Energy drinks

Figure 18: Forecast of volume and value sales of energy drinks in the on-trade, 2004-14

Carbonated soft drinks

Figure 19: Forecast of volume and value sales of carbonated soft drinks in the on-trade, 2004-14

Juice drinks

Figure 20: Forecast of volume and value sales of juice drinks in the on-trade, 2004-14

Bottled water

Figure 21: Forecast of volume and value sales of bottled water in the on-trade, 2004-14

Mixers

Figure 22: Forecast of volume and value sales of mixers in the on-trade, 2004-14

Squash

Figure 23: Forecast of volume and value sales of squash in the on-trade, 2004-14

Market Share

Key points

Britvic and CCE dominate the market

Figure 24: Market share of on-trade soft drink distributors, by value sales, 2008

Colas dominate among brands

Figure 25: Market share of top ten on-trade soft drink brands, by value sales, 2007-09

Companies and Products

Key points

Main players

Britvic

Figure 26: Britvic’s soft drinks brands, 2009

Coca-Cola Enterprises (CCE)

Figure 27: Coca-Cola Enterprises’ soft drink brands, 2009

Others

AG Barr plc

Figure 28: AG Barr’s soft drink brands, 2009

Ben Shaws Dispense

GlaxoSmithKline (GSK) UK Ltd

Innocent Drinks

PepsiCo UK

Red Bull UK

Channels to Market

Key points

Independents pubs are driving soft drink sales

Figure 29: Value of soft drinks, by on-trade channel, 2007-09

Changing structure of the pub business

Figure 30: Structure of the pub industry, by ownership type, 2004-09

Brand Communication and Promotion

Key points

Carbonated soft drinks and fruit juices dominate spend

Figure 31: Proportion of above-the-line advertising on soft drinks (includes on- and off-trade), by sub-category, 2007-09*
Figure 32: Above-the-line adspend, by sub-category, 2007-09

CCE comfortably the leading spender in the category

Figure 33: Adspend, by company, 2007-09*
Figure 34: Adspend, by brand, 2007-09

Consumer Usage

Key points

Four in five are on-trade soft drink consumers

Low penetration of diet drinks

Figure 35: Non-alcoholic drinks drunk in the on-trade over the last year, October 2009

Pub footfall overly reliant on men aged 18-24

Figure 36: Frequency of visiting a pub to drink, by gender, age, socio-economic group and lifestage, September 2009

Healthier drinking habits among women

Figure 37: Net percentage difference between female and male consumption* of on-trade soft drinks and hot beverages, by type, October 2009

Appendix – Internal Market Environment

Figure 44: Trends in visit to pubs or bars, 2005-09

Appendix – Broader Market Environment

Figure 45: Trends in PDI and consumer expenditure, 2004-14

Appendix – Brand Communication and Promotion

Figure 46: Adspend on soft drinks, by company, 2007-09

Appendix – Consumer Usage

Figure 47: Non-alcoholic drinks drunk in the last year, by demographics, October 2009
Figure 48: Non-alcoholic drinks drunk in the last year, by demographics, October 2009 (continued)
Mintel Group ©