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April 19, 2016

Growth predicted for premium soft drinks

The yearly Soft Drinks Review by Britvic has highlighted the growth potential...

The yearly Soft Drinks Review by Britvic has highlighted the growth potential in premium soft drinks. It shows that consumers are buying more premium soft drinks when they go out. For example, premium mixers grew by 14% in 2015 while premium spirits were up 19%. Also, overall sales of premium soft drinks in the licensed trade grew by 4.3% in value to more than £4.1bn.

People are looking for more sophisticated soft drinks experiences when out of the home and this has led to growth in cocktails and mixing in the on-trade. Ruth Scullin from Britvic commented “Demand for personalisation increases. What consumers really want when they go out is something they can’t easily replicate at home.”

This growth in the licensed trade follows an increase in the number of UK adults who chose to eat and drink out of the home in 2015, up by one million. Restaurants, hotels, and food-led pubs benefited from consumers eating out more, with these outlets contributing to 96% of overall soft drinks growth.

So people are going out more and looking for something interesting. However, this doesn’t always include alcohol as shown by the growth in teetotalism which is up by 40% amongst younger consumers over the past 8 years.

So what can the trade do to give consumers what they want while delivering good margins? We obviously know that draught and syrups can deliver quality products at great margins. For example, offering premium Sicilian Lemonade instead of standard lemonade on tap has proven very popular. Plus, with the surge in popularity of cocktails, sourcing your sugar syrup and staples such as lime and lemon juice in bulk will deliver higher margins and lower staff costs required for squeezing and juicing.

On top of this you can even create your own flavours to be delivered on draught or as a mixer syrup poured straight from a bottle and topped up with still or sparkling water. The options are endless and it’s worth talking to soft drinks experts such Think Drinks to develop some unique ideas that will give your customers something different and deliver greater margins to you.

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