Table of Contents
The Impact of COVID-19 on Premium Soft Drinks
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- Short, medium and long-term impact on the industry
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- Figure 1: Expected impact of COVID-19 on premium soft drinks, short, medium and long-term, 29 April 2020
- Opportunities and Threats
- Lockdown stops on-premise sales
- Economic downturn will put premium products in the line of fire
- Keener focus on health will endure, creating opportunities and challenges
- Impact on the premium soft drinks market
- COVID-19 prompts closure of foodservice and on-trade venues
- …and fuels a surge in online demand
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- Figure 2: Stocking up on groceries/other supplies as a result of the COVID-19/coronavirus outbreak, 28 February 2020-16 April 2020
- Smaller drinks makers are most exposed to cashflow issues
- Shifts in consumer behaviour
- COVID-19 puts spotlight on health
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- Figure 3: Change in priorities regarding eating healthily since the start of the COVID-19/coronavirus outbreak, by age, 16th-23rd April 2020
- Impact on key consumer segments
- 16-34s core users are heavily exposed to economic downturn
- How a COVID-19 recession will reshape the market
- COVID-19 will see household incomes come under pressure
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- Figure 4: Frequency of drinking premium soft drinks at home, by financial situation, January 2020
- Focus on price will grow
- Impact on the marketing mix
- Health warrants attention in marketing and NPD
- Retail channel will remain crucial, ‘weekly shop’ warrants attention
- COVID-19: Market context
Executive Summary
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- Impact of COVID-19 on Premium Soft Drinks
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- Figure 5: Expected impact of COVID-19 on premium soft drinks, short, medium and long-term, 29 April 2020
- COVID-19 prompts closure of foodservice and on-trade venues
- Household incomes will come under pressure due to COVID-19
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- Figure 6: Frequency of drinking premium soft drinks at home, by financial situation, January 2020
- Moderation and spotlight on health elevated by COVID-19
- Aging population a challenge for the market
- Companies and brands
- Mixers amp up tailoring
- Premium soft drinks continue to explore healthier variants
- Robinsons Fruit Creations range for adults enjoys ad support
- The consumer
- Ingredient quality seen as the top defining factor for premium soft drinks
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- Figure 7: Factors that define a premium soft drink, January 2020
- Younger consumers drink premium soft drinks more
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- Figure 8: Usage of premium soft drinks, by age and household income, January 2020
- Opportunity to partner with alcoholic drink brands
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- Figure 9: Usage premium soft drinks, January 2020
- Two thirds prefer less-sweet options
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- Figure 10: Attitudes towards premium soft drinks, January 2020
- Functional benefits attract interest
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- Figure 11: Product concepts of interest in premium soft drinks, January 2020
- Taste is the priority
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- Figure 12: Purchase drivers for premium soft drinks, January 2020
- What we think
Issues and Insights
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- Healthier variants would chime widely
- The facts
- The implications
- Less-sweet variants are an untapped opportunity for premium soft drinks
- The facts
- The implications
- On-trade lags on premium soft drinks consumption
- The facts
- The implications
The Market – What You Need to Know
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- COVID-19 prompts closure of foodservice and on-trade venues
- COVID-19 will see household incomes come under pressure
- Moderation in alcohol consumption present opportunity for market
- COVID-19 puts spotlight on health
- Aging population a challenge for the market
Market Drivers
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- Moderation in alcohol consumption presents opportunity for soft drinks
- Aging population poses a challenge for the market
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- Figure 13: Trends in the age structure of the UK population, 2014-19 and 2019-24
- Rising real incomes had supported the market
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- Figure 14: CPI vs average weekly earnings, 2016-19
Companies and Brands – What You Need to Know
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- Mixers ramp up tailoring
- Premium soft drinks continue to explore healthier variants
- Robinsons targets adults with Fruit Creations range
- Coca-Cola seeks new mixologists for Signature Mixers
Launch Activity and Innovation
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- Mixers continue to move beyond tonic water to target dark spirits
- Coca-Cola enters premium mixers space…
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- Figure 15: Coca-Cola Signature Mixers range, 2019
- …while Fever-Tree expands ginger ale range
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- Figure 16: Examples of Fever-Tree mixers aimed at dark spirits, 2019
- Sekforde offers tailored mixers
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- Figure 17: Examples of Sekforde mixers, 2019-20
- Funkin explores unusual mixers packaging
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- Figure 18: Range of Funkin mixers, 2019
- Aldi joins premium private label mixers
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- Figure 19: Range of Ridge Valley premium tonic waters, 2019
- Premium soft drinks continue to explore healthier variants
- Bottlegreen launches Light Infusions range
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- Figure 20: Example of the Bottlegreen Light Infusions range, 2019
- Fentimans releases Light range
Advertising and Marketing Activity
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- Robinsons targets adults with Fruit Creations range
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- Figure 21: Total above-the line, online display and direct mail advertising expenditure on selected premium soft drinks brands, 2019
- Coca-Cola seeks new mixologists for Signature Mixers
- Schweppes goes on a flavour tour
- Bottlegreen associates with summer music
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Ingredient quality seen as the top defining factor for premium soft drinks
- Younger consumers drink premium soft drinks more
- Opportunity to partner with alcoholic drink brands
- Two thirds prefer less-sweet options
- Taste is the priority
- Functional benefits and botanicals attract interest
Defining Premium Soft Drinks
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- Ingredient quality seen as the top defining factor for premium soft drinks
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- Figure 22: Factors that define a premium soft drink, January 2020
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- Figure 23: Examples of products highlighting specific origin of ingredients, 2019
- Authenticity drives premium perception
- A third associate a clear difference in taste with premium soft drinks
- Scope to explore adventurous flavours…
- …as well as spices
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- Figure 24: Morrison’s The Best Black cherry & cinnamon sparkling pressé and Franklin’s Exotic Pineapple & Aromatic Cardamon with Cracked Cubeb Pepper Infused Soda, 2018
Frequency of Drinking Premium Soft Drinks
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- Younger consumers drink premium soft drinks more frequently
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- Figure 25: Usage of premium soft drinks, by age and household income, January 2020
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- Figure 26: Examples of alcohol-free alternative drinks, 2019
- Premium soft drinks enjoy more frequent uptake in off-trade
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- Figure 27: Frequency of drinking premium soft drinks, January 2020
- On-trade lags on premium soft drinks consumption
- Food pairings appeal widely
- Visibility remains key to driving purchase
Usage of Premium Soft Drinks On Their Own and With Alcoholic Drinks
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- Opportunity to partner with alcoholic drink brands
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- Figure 28: Usage premium soft drinks, January 2020
- Recipe inspiration can tap interest in pairing
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- Figure 29: Jeffrey's Original recipe tonic syrup with cassia, nutmeg & allspice, 2020
- Use of premium soft drink in alcohol-free mixology is still niche
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- Figure 30: Examples of Alcohol-free spirits, 2018-19
Attitudes towards Premium Soft Drinks
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- Two thirds prefer less-sweet options
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- Figure 31: Attitudes towards premium soft drinks, January 2020
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- Figure 32: Example of products featuring spice flavours, 2018-19
- Over half of premium soft drink users would be reassured by awards
Interest in Premium Soft Drinks Concepts
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- Functional benefits attract interest
- Focus could be on physical benefits…
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- Figure 33: Product concepts of interest in premium soft drinks, January 2020
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- Figure 34: Examples of soft drinks with digestive functional claims, 2019
- … or emotional wellbeing
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- Figure 35: Examples of products with functional claims in soft drinks, 2019-20 year
- Older consumers focus on health benefits
- Brain and heart health hold strong appeal among over-55s
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- Figure 36: 4Move Active Vitamin drink with brain and nervous system functional claim, 2020
- Interest in botanicals
Purchase Drivers for Premium Soft Drinks
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- Taste is the priority
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- Figure 37: Purchase drivers for premium soft drinks, January 2020
- Over half of buyers are cost conscious
- Healthiness is a key purchase driver for two in five
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- Figure 38: Examples of soft drinks with ‘healthy’ claims, 2019-20
- 1 in 5 concerned about eco credentials
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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