S


oft drinks are everywhere in foodservice. CGA’s figures show that soft drinks edge ahead of alcohol across the core sectors it monitors – available in 112,225 outlets com- pared to 112,134 for its closest competitor, beer. Total distribution, as tracked by CGA, declined, down 2.2% at the end of 2018 com- pared to a year earlier – which to a large extent reflects the continued decline in pub num- bers, as well as the much-publicised chal- lenges faced by many casual dining operators. Balancing those numbers is the over-


all growth of the soft drinks category, with volume sales up 1.1% in 2018 and a 0.5% increase in the share of total on-trade drinks volumes claimed by soft drinks. The value share was up by a strong 4.8%.


It also needs to be emphasised for soft drinks in particular that the foodservice sector extends well beyond just the licensed outlets sector covered by these CGA figures, with its total foodservice universe estimated at around 200,000 further outlets, from sandwich bars to sports clubs, stations and schools, all relying primarily on the soft drinks sector to keep customers lubricated.


In that context, the increase recorded by CGA reflects wider trends across the market. Part of the increase in sales must reflect the impact of the introduction of the Soft Drinks Levy in April 2016. It also seems to confirm the continued trend towards premiumisa- tion across the drinks sector as a whole, and the switch by a signif- icant number of con- sumers, notably the younger demographic, towards drinking alcohol less often. This is underscored


While research by Nielsen suggested that 62% of UK shoppers claimed to have not changed their soft drinks consumption in any way following the levy implementation, it has definitely spurred producers to imple- ment changes. Alongside reformulations, advertising and marketing budgets have shifted strongly towards zero-sugar versions of familiar brands. The industry argues that reformulation has been an ongoing process, with the British Soft Drinks Association pointing out that its members’ sugar reduction was down by 22.9% since 2014 by the time the levy was imple- mented, and was the only category likely to achieve Public Health England’s calorie reduc- tion target of 20% by 2020.


HARD CHOICES ON SOFT DRINKS Jessica Waller, head of brand at premium soft drink supplier Martin Frobisher’s, believes that: “This is the year when we are going to see a huge shift in consumer drinking habits, with a variety of soft drinks becoming more important for caterers.” To address this, she describes the business as “on a mission to toughen up the category, to ensure that a soft drink is not the soft option.” Martin Frobisher’s


sees “Caterers who are


switched on to this trend for grown- up soft drinks are


by research published by the Office for National Statistics in May 2018, showing that young people aged 16 to 24 are less likely to drink than any other age group, with 20.4% reporting that they do not drink alcohol at all. The focus on long-term health of this


generation, and those following them, was behind the introduction of the Soft Drinks Levy. This so-called ‘sugar tax’ mean soft drinks companies pay a levy at: ● 24p per litre of drink containing 8g or more of sugar per 100ml; ● 18p per litre of drink containing between 5g and 8g of sugar per 100ml. The money goes towards initia- tives such as the Primary Sports Premium, the creation of a Healthy Pupils Capital Fund and the funding of school breakfast clubs. By the time the levy came into effect,


the Treasury had reduced its estimate of the levy’s income from £415m, esti- mated in early 2017, to £240m. In one sense, this may show the effective- ness of the levy. If, on the other hand, the aim was to raise funds to invest in public health, it could be argued it has been too effective.


www.thecaterer.com the younger,


reaping the benefits” Jessica Waller, Martin Frobisher’s


alcohol-avoiding demographic as “hugely influential.” Waller adds: “With their rela- tively high disposable income compared to ageing demograph- ics and frequency of drinking out, they are an obvious target for operators wanting to take advantage of premiumisation. “The changing behaviour of millenni-


als has been cited as the most important long- term consumer trend, and caterers who are switched on to this for grown-up soft drinks are reaping the benefits.”


The megatrend for premiumisation is also still strong in soft drinks, with 54% of 18- to 34-year-olds surveyed by the brand say- ing they are likely to choose a high-quality drink or to pay more to upgrade to one. “Clean eating and plant-based diets have been a driver in this decision process, with the demand for healthy, environmentally friendly, high-quality drinks leading to an acceptance of higher price points,” says Waller. Products developed to address this include its Sparklers range, a calorie-reduced option with fewer than 85 calories per bottle, and a smoothie range which offers an on-trend, nutritious mix of fruit, vegetables and botanicals. As consumers continue to look towards operators and brand own- ers to offer healthier lifestyle and premium drinking choices, soft drinks are at the forefront of a growth opportunity.


Drinks Guide 2019 | 7


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40