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October 07, 2015

5 key market trends and what this means for soft drinks

We’ve been doing a lot of business planning lately and are feeling...

We’ve been doing a lot of business planning lately and are feeling really positive about the future for soft drinks. Here’s the trends we’ve seen that make us feel good.

Everyone seems fairly positive about the years ahead.

People are going out more, especially to eat.

Great value is what consumers want. But value certainly doesn’t just mean low price.

  • “Consumers are now seeking a broader value proposition not just linked to price. They are seeking real, immersive, artisanal and engaging concepts.” (Allegra research consultant). This is also shown by the growth in branded restaurant concepts such as our great friends at Turtlebay.

People are drinking alcohol less.

  • Especially amongst the next generation of consumers as seen by teetotalism amongst the younger generation has grown 40% in the past eight years. (Telegraph 2015)

But the on trade haven’t yet positioned themselves well for this shift especially around soft drinks.

  • “Soft drinks haven’t made the kind of progress many expected. The three-quarters of pubs that still haven’t got the category’s contribution above 10% of turnover may be missing a trick, considering the margins to be made” Morning advertiser pub market report 2014

So here’s some ideas on how to take advantage of these trends.

  • Create interesting soft drink options such as new flavours or even unique flavours. Your own brand flavour could really make you stand out.
  • Offer soft drinks free with meals. With draught dispense the cost savings over bottled will protect your margins. Some of our customers run effective free refill promos.
  • Dispense soft drinks in ways that stand out and encourage customers to ask for them.
  • Ditch wasteful lines of bottled soft drinks and use draught to deliver increased margins, lower waste disposal costs and unique flavours.

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