FDBusiness.com

The UK soft drinks market has once again demonstrated its resilience in spite of tough economic conditions, growing to £9.4b in value last year, with take-home sales up 6.6% to £6.6b and the on-premise category edging up 1% to reach £2.8b.

The newly published 2011 Britvic Soft Drinks Report also reveals that the impulse channel grew by 7% in value, reversing a 3% decline the previous year, and the food service channel reversed its 2009 decline, with sales up 9.4% in 2010 to £284m. Indeed, impulse sales growth overtook the grocery multiples, as more consumers took advantage of ‘top up shops’ and single serve formats became more popular. Cola remains the largest sub-category in the total market and grew substantially across all channels in 2010.

“2010 was another a tough year for UK consumers, but soft drinks remained resilient. Although people were watching their pounds, they were still willing to spend a comparatively small amount on a soft drink, whether it’s at the train station on the way to work or at their local retailer on the way home from school,” comments Murray Harris, customer management director at Britvic. “The increase in ‘top up’ shopping and single serve soft drinks sales has been great news for convenience retailers after they endured a difficult 2009, but we’ve yet to see a similar turn-around in the on-premise channel.”

He adds: “It’s fair to say the on-trade has had a tough time over the last 12 months, but soft drinks sales did hold up with cola, lemonade and flavoured carbonates all remaining popular with consumers. Ultimately, consumers pay more for soft drinks in pubs than they would from their local supermarket, so the experience they receive needs to be worth the higher price. We’ve recently introduced a new range of 300ml glass carbonates in Pepsi, 7Up and Tango, which gives pubs and bars a point of difference and offers consumers more choice.”