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Adult Soft Drinks - UK - January 2006

INTRODUCTION AND ABBREVIATIONS
Definitions
Consumer research
ACORN
 ABBREVIATIONS
PREMIER INSIGHT
Designer soft drinks
Encourage amateur cocktail bartenders
Possibilities for new entrants
EXECUTIVE SUMMARY
Health concerns and NPD drive growth in the market
Growth outstrips soft drinks market
Flavoured water and premium drinks take largest shares
BSD takes the greatest share
NPD in packaging, flavours and function
Strongest growth in the on-trade
Young, mass-market appeal
Future promises continuing growth
MARKET DRIVERS
The healthy proposition
Figure 1: Agreement with selected lifestyle statements, 2001-05
Figure 2: Penetration of soft drinks, 2002-04
NPD maintains consumer interest
An alternative to alcohol
Figure 3: Consumption of alcoholic drinks, 2000-04
The demise of the ‘lunchtime pint’
The importance of image
Seasonality and the weather
Figure 4: UK average summer temperature and sunshine hours, 2002-05
Coffee shop culture encourages home consumption
Figure 5: Number of coffee shops, by turnover, 2000-04
Rising disposable incomes mean consumers willing to pay more
Figure 6: PDI and consumer expenditure, at constant 2000 prices, 2000-09
Population trends and demographics
Figure 7: Trends and projections in UK population, by age group, 2000-09
Figure 8: Trends and projections in UK population, by socio-economic group, 2000-09
MARKET SIZE AND TRENDS
‘Healthy’ image driving healthy growth
Figure 9: UK retail sales of adult soft drinks, by volume and value, 2000-05
Growth outstripping soft drinks market
Figure 10: UK retail sales of adult soft drinks against total soft drinks, by volume and value, 2001-05
MARKET SEGMENTATION
Flavoured water takes highest share of volumes, but loses out in value
Figure 11: UK retail sales of adult soft drinks, by type, volume and value, 2003 and 2005
Growth in sales of flavoured water slows
Figure 12: UK retail sales of flavoured water, by volume and value, 2000-05
Sugar vs sweeteners
Fruit drinks offer a healthier alternative
Figure 13: UK retail sales of adult fruit drinks, volume and value, 2000-05
New product launches driving growth
Consumers seeking additional benefits
Exotic tastes ‘on the go’
Premium sector boosted by a willingness to pay more
Figure 14: UK retail sales of premium adult drinks, volume and value, 2000-05
Premium dilutables performing well
Health and convenience key to sector growth
Iced tea and coffee – an emerging segment
Figure 15: UK retail sales of RTD tea and coffee, volume and value, 2000-05
THE SUPPLY STRUCTURE
Figure 16: Selected manufacturers/distributors and brands in the UK adult soft drinks market, 2005
Danone leads the market in volume terms
Figure 17: Estimated UK supplier shares of adult soft drinks, by volume, 2003 and 2005
BSD takes greatest value share
Figure 18: Estimated UK supplier shares of adult soft drinks, by value, 2003 and 2005
 COMPANIES AND BRANDS
AG Barr
Belvoir Fruit Farms
Bottlegreen Drinks
Britvic Soft Drinks
Amé
Aqua Libra
J2O
Other brands
Above-the-line investment across the board
Figure 19: Britvic, advertising expenditure on selected brands, 2000-05
Cadbury Schweppes
Coca-Cola Enterprises
Oasis
Appletiser
Other brands
Danone
Volvic Touch of Fruit
Shape
Del Monte Europe
The Feel Good Drinks Company
Fentimans
Gerber
Ocean Spray
Figure 20: Main media advertising expenditure in support of Ocean Spray, 2000-04
Welch’s
Kraft Foods
Matthew Clark Brands
Merrydown
Rubicon
The Silver Spring Mineral Water Company
Stock Vital
Tetley
Twinings
Unilever
Figure 21: Main media advertising expenditure in support of Lipton Iced Tea (£000), 2002-05
Own label
Others
NEW PRODUCT TRENDS
Fruit-based drinks dominate
Blackcurrant and cranberry are leading flavours
RTD tea – an expanding category
Flavoured waters less prominent than juice drinks
Functionality and wellbeing are key features
Winter warmers
Convenience and packaging
 NEW PRODUCT BRIEFS
DISTRIBUTION
All channels benefiting from strong demand
NPD encouraging growth in both impulse and take-home sectors
Figure 22: UK retail sales of adult soft drinks, by value and type of outlet, 2003 and 2005
On-trade looks to non-alcoholic revenue
THE CONSUMER
 PURCHASING OF ADULT SOFT DRINKS
Figure 23: Adult soft drinks bought in the last six months, 2001-05
Consumption on the rise
Niche sectors grow in popularity
Consumption highest amongst middle socio-economic groups
A young consumer base
Figure 24: Consumption of adult soft drinks, by age, August 2005
The family factor
Opportunities to increase volumes
Targeting by media
Media usage reflects socio-economic profile
Consumers of adult soft drinks watch more television
 WEIGHT OF CONSUMPTION
Figure 25: Weight of consumption of flavoured water, herbal and premium soft drinks, 2001-05
Heavy usage on the rise
Light vs heavy usage – the demographic profile
Older consumers welcome alternatives to carbonates
ABC1s – the social drinkers
The influence of children
THE CONSUMER – DETAILED DEMOGRAPHICS
Figure 26: Adult soft drinks bought in the last six months, by gender, age, socio-economic group and region, August 2005
Figure 27: Adult soft drinks bought in the last six months, by marital status, working status, presence of children, lifestage and Special Groups, August 2005
Figure 28: Adult soft drinks bought in the last six months, by media usage, household size, ACORN category, TV viewing and supermarkets, August 2005
Figure 29: Weight of consumption of flavoured water, herbal and premium soft drinks, by gender, age, socio-economic group, presence of children and marital status, 2005
Figure 30: Weight of consumption of flavoured water, herbal and premium soft drinks, by working status, household size, region, lifestage and Mintel’s Special Groups, 2005
THE CONSUMER: ATTITUDES AND TYPOLOGIES
 ATTITUDES TOWARDS ADULT SOFT DRINKS
Figure 31: Attitudes towards adult soft drinks, 2003-05
Negative attitudes feature highly
A popular meal accompaniment
Strongest resistance among older consumers
The sceptical ABs
Young DEs buy into healthy image
Cross-tabulation – attitudes investigated further
Figure 32: Cross-tabulation of attitudes towards adult soft drinks by attitudes towards adult soft drinks, August 2005
Health and price concerns the main deterrents
Avoiding alcohol at dinner
Figure 33: Cross-tabulation of types of adult soft drinks by attitudes towards adult soft drinks, August 2005
Herbal drinks and iced tea – popular meal accompaniments
A question of taste
 CORRELATION ANALYSIS
Figure 34: Cross-analysis of supermarket usage and consumption of adult soft drinks, August 2005
Fizzy fruit drinks ripe for growth
Figure 35: Correlation analysis of supermarket usage and consumption of adult soft drinks, August 2005
THE CONSUMER: ATTITUDES AND TYPOLOGIES – DETAILED DEMOGRAPHICS
Figure 36: Attitudes towards adult soft drinks, by gender, age, socio-economic group and region, August 2005
Figure 37: Attitudes towards adult soft drinks, by marital status, working status, presence of children, lifestage and Special Groups, August 2005
Figure 38: Attitudes towards adult soft drinks, by media usage, household size, ACORN category, TV viewing and supermarkets, August 2005
Figure 39: Further attitudes towards adult soft drinks, by gender, age, socio-economic group and region, August 2005
Figure 40: Further attitudes towards adult soft drinks, by marital status, working status, presence of children, lifestage and Special Groups, August 2005
Figure 41: Further attitudes towards adult soft drinks, by media usage, household size, ACORN category, TV viewing and supermarkets, August 2005
Figure 42: Consumer target groups, by gender, age, socio-economic group, ACORN category and lifestage, August 2005
Figure 43: Consumer target groups, by detailed lifestage, region, presence of children, Mintel’s Special Groups and media usage, August 2005
Figure 44: Consumer target groups, by supermarket usage and TV viewing, august 2005
FUTURE AND FORECAST
Economic and demographic trends suggest continuing growth
On-trade sales set to take greater share
Health concerns will continue to drive the market
Big players to maintain dominance
Interest from other manufacturers to increase
Impressive growth to continue
Figure 45: Forecast of the UK adult soft drinks market, by segment, by value, 2005-10
Figure 46: Forecast of the UK adult soft drinks market, by segment, by volume, 2005-10
Factors used in the forecast

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