Carbonates in the United Kingdom

PROSPECTS

Sugar reformulation has enabled carbonates to grow in 2019

A year on from the introduction of the Soft Drinks Industry Levy (SDIL) in April 2018, brands that have made a recipe change to remain under the tax threshold have seen their retail sales boosted, taking the industry by surprise. Coca-Cola, which made a move to reformulate its Zero variant to “taste more like Coke” in 2016 witnessed positive growth, driven by consumers’ shift towards low and reduced sugar carbonated drinks.

Non-cola carbonates show positive performance in on-trade

As consumers are looking to reduce their alcohol intake, they are starting to seek alternative drinks to consume after work. In the on-trade, non-cola carbonates will continue to grow over the forecast period, driven by consumers’ interest in new flavours in fizzy drinks.

Botanicals and CBD-based recipes: A key focus for new players

New local companies are helping to challenge carbonates leaders with a focus on botanicals, hemp and fruit-flavoured beverages for all occasions, jumping on the health and wellness trend to target the most health-conscious consumers. Carbonates with ginger, rosemary, elderflower and lemon are on the rise and strongly resonate with younger generations, willing to try out new beverages in their daily consumption.

COMPETITIVE LANDSCAPE

Irn-Bru stands tall after consumer backlash from 2018

Irn-Bru, owned by Cumbernauld-based Barr Company, reported continuous volume growth in 2019, backed by heavy investment in promotional activity such as its latest GBP6 million marketing campaign “Get Some Irn In You”, showcasing its standing as a bold, unapologetic soft drink - and repairing its damaged relationship with consumers, after its announcement of a recipe change earlier in 2018. Irn-Bru’s value-driven strategy has enabled it to boost share and consolidate its leading position in non-cola carbonates.

Coca-Cola invests in new flavours and consumption occasions

Witnessing consumers’ continued interest in premium drinks, Coca-Cola has invested in new consumption occasions and launched a range of flavoured mixers for both the on-trade and off-trade, a strategic move into dark spirits mixology. In addition to this latest launch, the brand has also launched a Coca-Cola Zero Sugar Raspberry, responding to requests raised from consumers on social media, a move also followed by PepsiCo a few months later.

Fever-Tree posts impressive growth in tonic water/other bitters

In 2019, Fever-Tree managed once again to increase its share in tonic water/other bitters, outperforming Schweppes in off-trade value terms. Responding to consumers’ interest in botanical flavours with its widened portfolio and premium offering, Fever-Tree’s growth is very promising.

Files are delivered directly into your account within a few minutes of purchase.