Other Hot Drinks in the United Kingdom

2020 IMPACT

Stockpiling effect benefits other hot drinks

The national lockdown during the first wave of the pandemic in the UK in March 2020 and the introduction of social distancing measures in order to fight the spread of virus has strongly impacted sales of other hot drinks via foodservice with the channel set to record double-digit volume decline over the year. Indeed, foodservice chocolate-based flavoured powder drinks sales have been particularly strongly hit as they dominate sales through this channel, due to the loss of out-of-home social occasions and especially as a consequence of the second wave, which is likely to impact autumn and pre-Christmas sales.

Chocolate-based flavoured powder drinks sales rise through retail driven by at-home demand

Chocolate-based flavoured powder drinks is set to be the only positive performer within the category in retail terms in 2020, driven by at-home consumption trends. Autumn/winter demand is also likely to boost demand for this drink type towards the end of the year, as the country faces a second national lockdown and the re-introduction of various restrictions.

Mondelez retains leadership due to wide portfolio of chocolate-based flavoured powder drinks

Mondelez UK Ltd retained its leadership of other hot drinks in 2020, due to its strength in the dominant chocolate-based flavoured powder drinks with its brand Cadbury which offers a range of indulgent products inspired by popular chocolate confectionery including Cadbury Wispa, while its brand Green & Black's Organic Hot Chocolate continued to gain value share by appealing to consumers’ sentiment for more sustainable products. Nevertheless, the player lost marginal value share to GlaxoSmithKline Plc in 2020; despite ongoing declining demand for malt-based hot drinks, the latter continued to gain ground through its Horlicks and Horlicks Light variants.

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