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THE 2011UK SOFT DRINKS
REPORT
By popular demand
By popular demand
Specialist food and drink consultancy,
Zenith International, has been
commissioned to produce this
2011 BSDA UK Soft Drinks Report.
All data and insights contained in
this report were produced using
Zenith’s internal market databases
and primary research.
In compiling its research, Zenith relies on the
goodwill and cooperation of companies active in
the marketplace. During Zenith’s annual research
into the UK soft drinks industry, over 250 soft
drinks producers are regularly contacted. This
includes larger branded operators, retailer own
label specialists, contract packers and a signifi cant
number of smaller independent companies.
Based on individual producer volumes for the
year, market, sector and segment totals are
calculated from the ‘bottom up’. At a sector and
segment level, adjustments are then made for any
double counting of contract and licensed bottling.
Estimates for unauthorised soft drink imports
sold through the ‘grey market’ are also included.
This is more pronounced in categories such as
energy drinks rather than dilute to taste drinks,
for example.
A complete picture of the UK soft drinks market
across all sales channels is produced, through
Zenith’s extensive study of the largest soft drinks
The 2011 UK Soft Drinks Report reports on a year of growth for the
soft drinks industry in the UK, and it also reports on a year of activity
by its trade association, BSDA. I believe that BSDA’s active programme
of communicating and representing the interests of the soft drinks
industry, along with its work in setting standards and providing services,
helps create the right environment for innovative and consumer-focused
companies to fl ourish.
This is not a time for complacency, however. Public expectations of business, in the soft
drinks industry as much as in any other, are rising, and the economic pressures have not
gone away. BSDA will continue to be active in helping the industry to put its consumers fi rst.
May I thank all BSDA members for their support and participation in the past year, and may
I invite any soft drinks companies that have not yet joined, to consider doing so.
Jill Ardagh
Director General
BSDA 2011
companies, alongside small to medium sized
operators and own label specialists. The market
fi gures presented therefore encompass all aspects
of the market including: take home, impulse and
on premise; water cooler volumes for the offi ce;
home dispense carbonated soft drinks; and pump
dispense carbonates in the licensed trade.
Following a detailed review of all data fi les
received, with all operators, certain adjustments
have been made to historic volumes. Volume
shipped in large pack formats, via pallets for
example, had previously been submitted to Zenith
using an incorrect conversion rate. This has now
been corrected for the years 2005 to 2009.
To produce this report, a considerable amount
of time and effort is spent contacting industry
players and striving to analyse the complexities
of the UK soft drinks arena. Zenith would like to
express its sincere gratitude to BSDA and the
entire UK soft drinks industry for its continued
help and support during the research process.
REPORT METHODOLOGY AND BACKGROUND
INTRODUCTION
Jill Ardagh
2 The 2011 UK Soft Drinks Report BSDA
THE 2011 UK SOFT DRINKS REPORTBY POPULAR DEMAND
4 OVERALL SOFT DRINKS CONSUMPTION
6 BOTTLED WATER
8 CARBONATES
10 DILUTABLES
12 FRUIT JUICE AND SMOOTHIES
14 STILL AND JUICE DRINKS
16 SPORTS AND ENERGY DRINKS
18 SETTING INDUSTRY STANDARDS
20 LEADING IN THE BUSINESS COMMUNITY
22 SUSTAINABILITY
23 ABOUT BSDA
CONTENTS
In April
2010 Britvic
launched a
600ml PET format
across its no and low
sugar portfolio. This was
the biggest pack innovation
that the market had seen in over
fi fteen years and a fi rst for the
UK. The new bottle format offered
consumers a bigger bottle
and better value for money in
tough economic times, whilst
invigorating the on-the-go
soft drinks category. Available
across Pepsi Max, Diet Pepsi,
7Up Free, and Tango, the
600ml format has dramatically
increased the rate of sale of
every variant (25 per cent to
45 per cent increase) with the
star performer being Pepsi
Max, which nearly doubled
its rate of sale since the
launch in April. The 600ml
format added £9.8million
to the on-the-go carbonates
sub-category, helping grow
the category from an 8.7 per
cent decline to up 3.8 per cent in
just fi ve months.
BY POPULAR DEMAND
Data sources: Nielsen, Total Coverage, MAT Volume sales August 2010; Nielsen scantrack (Total Impulse) data to 28.08.10
to
inv
so
ac
7U
60
in
ev
4
s
M
s
BSDA The 2011 UK Soft Drinks Report 3
UK soft drinks sectors annual percentage change, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 13510 13565 13985 13865 13725 14005 14585
% change -1.4 +0.4 +3.1 -0.9 -1.0 +2.0 +4.1
Litres per person 224.8 224.5 230.3 227.1 223.6 226.9 235.1
Value, £ million 11955 12155 12525 12595 12720 13120 13880
% change -1.4 +1.7 +3.0 +0.6 +1.0 +3.1 +5.8
Value per litre, £ 0.88 0.90 0.90 0.91 0.93 0.94 0.95
Source: Zenith International
UK soft drinks consumption, 2004 - 2010
OVERALL SOFT DRINKS CONSUMPTION
4.1%INCREASE IN
CONSUMPTION SINCE LAST YEAR
All market fi gures have again been fully reviewed and revised historically, where appropriate.
-6
-4
-2
0
2
4
6
8
10
12
Bottled water
Carbonates
Dilutables
Fruit juice
Still & juice drinks
Total
2010200920082007200620052004
DEFINITION Soft drinks
Carbonated drinks, still and dilutable
drinks, fruit juices, smoothies and
bottled waters, including sports and
energy drinks.
4 The 2011 UK Soft Drinks Report BSDA
AVERAGE CONSUMPTION PER PERSON
2010 was a year of resilience and
recovery. Despite a long winter and
tough economic conditions, the UK soft
drinks market bounced back readily.
Consumers remain concerned with
value. Affordable, large pack sizes
have helped drive growth, alongside
convenient packs in the on-the-go
channel.
The market registered an impressive 4.1%
growth in volume and 5.8% increase in value
to stand at 14,585 million litres and £13,880
million respectively in 2010.
Bottled water showed a gradual recovery driven
by strong promotional activity. Carbonates once
again showed resilience, led by cola. Dilutables
saw another year of growth, repositioning the
sector through new innovation and double
concentrated variants.
On the back of a tough couple of years, fruit
juice and smoothies stepped into recovery mode.
Meanwhile, still and juice drinks continued to
provide a healthy alternative both on-the-go and
at leisure.
Soft drinks remain an affordable treat in these
times of economic hardship. Consumers buy into
soft drinks because of their indulgence, fun and
health qualities. This places the UK soft drinks
industry on a sound footing.
COMMENTARY
Source: Zenith International
UK soft drinks, low
calorie & no added
sugar vs regular, 2010
Low calorie 62%
Regular 38%
UK soft drinks
sectors 2010
Carbonates 44%
Dilutables 24%
Bottled water 14%
Fruit juice 8%
Still and juice drinks 10%
Source: Zenith International
UK soft drinks,
packaging, 2010
Plastic / PET 64%
Can 11%
Carton 11%
Glass / other 9%
Dispense 5%
Source: Zenith International
235LITRES
0
3
6
9
12
15
2010200920082007200620052004
000 million litres
UK soft drinks consumption, 2004 - 2010Source: Zenith International
When the
SHS Group
purchased
Merrydown plc
and the Shloer
brand in 2005, the
grape-based sparkling
adult soft drink was
a smaller player in a
category dominated by
market leaders. The
Drinks Division of the
Group then took on the
brand management and
prioritised consumer
insight, which revealed the
unique role that the brand
delivers as a premium
wine alternative with
adult appeal.
A signifi cant investment
package was rolled out,
including a pack redesign and an
above the line campaign, along with
category development and sales
callage. This support has allowed
the brand value to grow by 35 per
cent*over the last 5 years and 2010
saw the introduction of the Rosé
variant which has added incremental
sales to the brand. Every aspect of
the brand plan is now focused on the
consumer relationship with the brand
which has resulted in Shloer becoming the
number one adult soft drink in the market.
BY POPULAR DEMAND
Data source: Nielsen Value MAT
April 06 – Jan 11
BSDA The 2011 UK Soft Drinks Report 5
Source: Zenith International
UK bottled water
categories, 2010
Still bottled 72%
Sparkling bottled 14%
Still water cooler 14%
UK bottled water
types, 2010
Natural mineral water 61%
Spring water 28%
Bottled drinking water 11%
Source: Zenith International Source: Zenith International
UK bottled water
packaging, 2010
Plastic 93%
Glass / other 7%
Source: Zenith International
UK bottled water
origins, 2010
UK produced 76%
France 18%
Others 6%
0
500
1000
1500
2000
2500
2010200920082007200620052004
Million litres
UK bottled water consumption, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 2060 2140 2240 2125 2005 2040 2055
% change -0.5 +3.9 +4.7 -5.1 -5.6 +1.7 +0.7
Litres per person 34.3 35.4 36.9 34.8 32.7 33.1 33.1
% of all soft drinks 15.2 15.8 16.0 15.3 14.6 14.6 14.1
Value, £ million 1380 1470 1550 1460 1385 1425 1440
% change -1.8 +6.5 +5.4 -5.8 -5.1 +2.9 +1.1
Value per litre, £ 0.67 0.69 0.69 0.69 0.69 0.70 0.70
Source: Zenith International
UK bottled water consumption, 2004 - 2010
BOTTLED WATER
6 The 2011 UK Soft Drinks Report BSDA
In 2010, and for the second
consecutive year, the UK bottled
water market continued to recover
momentum, growing by 0.7% in
volume, compared to 2009. Sales
reached 2,055 million litres, whilst
pricing remained under pressure, as
both raw material and distribution
costs continued to rise.
Promotional activity and a couple of lucky breaks
in the weather kept bottled water afl oat.
Consumption of water in smaller retail pack sizes
(of 10 litres and below) increased by 2.4% to
1,765 million litres – as opposed to water coolers
in offi ces, which witnessed an 8.3% decline.
Across take home outlets and on-the-go retail,
promotional activity is a crucial tool for driving
sales. In the on-trade channel conditions remain
tough, as more and more consumers take the
dine-in option.
Despite the ongoing challenges, with per person
consumption of bottled water in the UK still far
below the West European average of 115 litres,
manufacturers are looking forward to turning the
tide for bottled water in the UK.
COMMENTARY
33LITRES
Last year
Princes Limited
stepped up its
investment in Aqua
Pura natural mineral
water with a major relaunch
focusing on the brand’s water
source in the heart of the
Cumbrian Countryside.
The relaunched Aqua Pura
range includes a new logo
and brand livery as well
as a refreshed pack design
featuring striking imagery of
its heartland in the Cumbrian
countryside.
A new strapline – 100% Pure
Cumbrian – was also introduced
after research showed that Aqua
Pura’s provenance provides a
real resonance with shoppers who
associate this outstanding area
of natural beauty with purity and
natural products.
By emphasising Aqua Pura’s British
credentials on-pack, it has given
consumers a clear reason to buy.
This message appears to have struck
a chord with consumers and year on
year Aqua Pura is one of the UK’s
fastest growing water brands by volume.
0.7%
INCREASE IN CONSUMPTION SINCE
LAST YEAR
BY POPULAR DEMAND
DEFINITION Bottled water
Still, sparkling water and lightly
carbonated water; natural mineral water,
spring water, bottled drinking water;
packaged water in sizes of 10 litres and
below; water for coolers in sizes of 10.1
litres and above.
Data source: Nielsen MAT w/e 19/02/11
AVERAGE CONSUMPTION PER PERSON
BSDA The 2011 UK Soft Drinks Report 7
Source: Zenith International
UK carbonates regular
vs low calorie, 2010
Regular 63%
Low calorie 37%
UK carbonates
fl avours, 2010
Cola 53%
Fruit 14%
Lemonade 14%
Energy 7%
Other 12%
Source: Zenith International Source: Zenith International
UK carbonates
packaging, 2010
PET 57%
Can 26%
Dispense 11%
Glass 3%
Other 3%
0
1000
2000
3000
4000
5000
6000
7000
8000
2010200920082007200620052004
Million litres
UK carbonates consumption, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 6195 6015 5875 5810 5920 6100 6400
% change -5.1 -2.9 -2.3 -1.1 +1.9 +3.0 +4.9
Litres per person 103.1 99.6 96.8 95.2 96.4 98.8 103.1
% of all soft drinks 45.9 44.3 42.0 41.9 43.1 43.6 43.9
Value, £ million 6930 6795 6755 6850 7120 7515 8000
% change -1.8 -1.9 -0.6 +1.4 +3.9 +5.5 +6.5
Value per litre, £ 1.12 1.13 1.15 1.18 1.20 1.23 1.25
Source: Zenith International
UK carbonates consumption, 2004 - 2010
CARBONATES
DEFINITION Carbonates
Ready to drink including draught
dispense; home dispense; regular
including sparkling juice; low calorie
and zero calorie; cola; lemon including
lemonade; lemon-lime; mixers including
tonic and bitter drinks; orange; shandy;
others including other carbonated
fruit fl avours, energy drinks, sparkling
fl avoured water, health drinks and herbal
drinks.
8 The 2011 UK Soft Drinks Report BSDA
The nation’s favourite, with the largest
share of total soft drinks, carbonates
saw strong growth in 2010.
Consumption registered a 4.9% gain
to reach 6,400 million litres. Retail
value shone at £8,000 million, up
6.5% on 2009.
Driven by cola and energy drinks, carbonates
continued to be the most popular soft drinks
sector. Cola put a sparkle into the category with
new pack choices for the consumer and held its
dominant fl avour share.
Other variants such as fruit fl avours and lemonade
gave further shine to the strong momentum for
carbonates in 2010, boosted by a little help from
in-store promotions. Low calorie colas remained
popular and have fl ourished over the years as
an easy treat.
A wide range of pack choices are popular for
consumption throughout the day. All consumers,
keen to get value for money, picked up
larger pack sizes for in-home indulgence.
Multipacks, carrying smaller bottle and can
formats, added fi zz to the lunchbox and future
consumption occasions.
Carbonates epitomise the affordable treat
qualities that have sustained UK soft drinks for
so many years. From refreshment on the go,
or as an alternative to alcohol, carbonates
have a strong place in the hearts and minds of
British consumers.
COMMENTARY
IRN-BRU
appealed
to the
men and
women of
Brazil last
summer to help
Scotland create
the next generation
of Scottish football
legends. The ‘BRUzil:
Road to 2034’ was a
simple yet potentially
revolutionary idea:
to unite Scots and
Brazilians last summer
forever to enhance the
Scottish footballing gene
pool and creating phenomenal future
players for the world’s biggest football
tournament in 2034.
IRN-BRU kicked off the campaign
in Rio de Janeiro, with lonely hearts
adverts and billboards appealing to
single Brazilians to consider a Scottish
mate. Back in Scotland, the quest
was championed by football legend
Archie Gemmill, whose never-to-be-
forgotten wonder goal in 1978 had
Scots dreaming of global glory. The
campaign not only increased IRN-
BRU sales but also collected a number
of awards including the 2010 Scottish
Advertising Awards for best viral, best
low budget campaign and best integrated
campaign. It also won a Campaign
Magazine Media Award in 2010.
43.9%
4.9% BY POPULAR DEMAND
INCREASE IN CONSUMPTION
SINCE LAST YEAR
PERCENTAGE OF ALL SOFT
DRINKS
BSDA The 2011 UK Soft Drinks Report 9
Source: Zenith International
UK dilutables regular vs
low calorie, 2010
Low sugar / NAS 70%
Regular 23%
High juice 7%
UK dilutables
fl avours, 2010
Blends 51%
Orange 29%
Blackcurrant 11%
Lemon 5%
Lime 2%
Others 2%
Source: Zenith International Source: Zenith International
UK dilutables
packaging, 2010
Plastic up to 1 litre 56%
Plastic over 1 litre 35%
Others 9%
0
500
1000
1500
2000
2500
3000
3500
2010200920082007200620052004
Million litres
UK dilutables consumption, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 3125 3100 3350 3350 3250 3350 3500
% change -1.6 -0.8 +8.1 0.0 -3.0 +3.1 +4.5
Litres per person 52.0 51.3 55.2 54.9 52.9 54.3 56.4
% of all soft drinks 23.1 22.9 24.0 24.2 23.7 23.9 24.0
Value, £ million 780 775 805 805 795 850 910
% change -1.3 -0.6 +3.9 0.0 -1.2 +6.9 +7.1
Value per litre, £ 0.25 0.25 0.24 0.24 0.24 0.25 0.26
Source: Zenith International
UK dilutables consumption, 2004 - 2010
DILUTABLES
DEFINITION Dilutables
Squashes, cordials, powders and other
concentrates for dilution to taste by
consumers, normally adding 4 parts
water to 1 part product; high juice
(minimum 40% fruit content as sold);
regular including squashes and cordials
(minimum 25%); low sugar including no
added sugar and sugar free; (dilutables
are expressed as ready to drink for ease
of comparison where measuring overall
soft drinks market fi gures/shares).
10 The 2011 UK Soft Drinks Report BSDA
Dilute to taste drinks registered a
steady growth in 2010 with consumed
volume increasing by 4.5% to 3,500
million litres. The retail value of
concentrate was up 7.1% to stand at
£910 million.
By volume consumed, the sector continued to
hold the second largest share in the UK soft
drinks market. Classic dilutables are typically
mixed with four parts water to one part syrup.
Double concentrate, a strong driver of overall
consumed volume in recent years, is typically
mixed nine parts water to one part squash.
Double concentrate, from its retailer own label
origins, has added even more affordability
to dilutables and has stayed popular with
British consumers.
The UK recession has brought consumers back
to basics, with traditional products and childhood
favourites becoming a preference. It is therefore
no surprise that squash has fl ourished during the
main recessionary years of 2009 and 2010.
Dilutables offer a low cost, easy to carry and
reliable standby in the kitchen. Low and no added
sugar variants dominate the sector and provide
lower calorie refreshment on tap for both adults
and children.
COMMENTARY
In March
2010,
Coca-Cola
Enterprises Ltd
(CCE) launched the
Open More Business
report. Following £2m
investment and three years
of extensive research, Open
More Business shares new
evidence-based insights on
how consumers approach the
soft drinks category. It gives
detailed insight into how customers
can unlock the huge opportunity
soft drinks present by understanding
shoppers, their needs and
preferences, and the environments
in which they shop. The report
identifi ed an exciting future for
the soft drinks category, including
a £1.4 billion growth opportunity
which CCE is looking to target over
the next fi ve years. In simple terms,
this equates to existing soft drinks
shoppers buying just one extra soft
drink a fortnight each.
Since launching last year, the
Open More Business initiative has
continued to develop. Retailers across
Great Britain are now able to take CCE’s
Open More Business soft drinks MOT,
a fi ve minute self-assessment scorecard
that can help them maximise sales from
their existing soft drinks range.
4.5%
CONSUMED IN 2010
BY POPULAR DEMAND
INCREASE IN CONSUMPTION
SINCE LAST YEAR
3500MILLION LITRES
BSDA The 2011 UK Soft Drinks Report 11
Source: Zenith International
UK ambient vs chilled
fruit juice, 2010
Ambient 45%
Chilled not from concentrate 27%
Chilled from concentrate 21%
Chilled smoothies 5%
Chilled freshly squeezed 2%
UK fruit juice
fl avours, 2010
Orange 54%
Apple 13%
Blends 16%
Pineapple 5%
Grapefruit 2%
Others 10%Source: Zenith International Source: Zenith International
UK fruit juice
packaging, 2010
Carton 76%
Plastic 16%
Glass / other 8%
0
300
600
900
1200
1500
2010200920082007200620052004
Million litres
UK fruit juice consumption, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 1040 1120 1210 1230 1190 1145 1180
% change +3.0 +7.7 +8.0 +1.7 -3.3 -3.8 +3.1
Litres per person 17.3 18.5 19.9 20.1 19.4 18.6 19.0
% of all soft drinks 7.7 8.3 8.7 8.9 8.7 8.2 8.1
Value, £ million 1540 1675 1820 1830 1760 1670 1760
% change +0.7 +8.8 +8.7 +0.5 -3.8 -5.1 +5.4
Value per litre, £ 1.48 1.50 1.50 1.49 1.48 1.46 1.49
Source: Zenith International
UK fruit juice consumption, 2004 - 2010
FRUIT JUICE AND SMOOTHIES
INCREASE IN CONSUMPTION
SINCE LAST YEAR
3.1%
DEFINITION Fruit juice
100% fruit content equivalent,
sometimes referred to as pure juice or
100% juice. Chilled juice comprises
four main types: smoothies (based
predominately on whole crushed fruit,
chilled and with a short shelf life);
freshly squeezed juice (not pasteurised,
chilled with a shelf life of a few days);
not from concentrate juice (squeezed
then pasteurised, chilled with a shelf
life of a few weeks); other chilled from
concentrate (from concentrate or part
squeezed and part from concentrate).
Ambient or long life juice is mainly from
concentrate and heat treated; shelf life
of up to 18 months.
12 The 2011 UK Soft Drinks Report BSDA
The fruit juice sector has had a tough
couple of years as consumers traded
down to cheaper alternatives during
the recession. However, in 2010, the
category registered 3.1% volume
growth to 1,180 million litres. Retail
sales value increased by 5.4% to
£1,760 million.
Orange has retained its place as most popular
juice fl avour, although the dominance of orange
has been squeezed by blends, tropical and other
fl avours gaining a following amongst consumers
keen to try a new taste experience.
Smoothies have been the hardest hit juice
category in the last couple of years, with a price
premium battling against an economic storm. Yet,
in 2010, smoothies registered a strong recovery,
up 8.5% in volume to reach 51 million litres.
This equates to 0.8 litres per person and a total
value of £141 million. With on-going 5-a-day
messages and health virtues, smoothies provided
consumers with an on-the-go alternative for one
or two of their 5-a-day.
As consumers’ disposable income is expected
to be strained further in 2011, due to the VAT
increase and rising living costs, promotions and
fi nding an appropriate price point will remain key.
The fl uctuation in global juice commodity prices
may yet take some zest out of fruit juice in this
year and beyond.
COMMENTARY
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 23 35 55 79 64 47 51
% change +15.0 +52.2 +57.1 +43.6 -19.0 -26.6 +8.5
Litres per person 0.4 0.6 0.9 1.3 1.0 0.8 0.8
% of all soft drinks 0.2 0.3 0.4 0.6 0.5 0.3 0.3
Source: Zenith International
UK smoothies consumption, 2004 - 2010
The Del Monte
brand has great
heritage and trust with
consumers and has been in
existence since 1892 selling
high quality fresh fruit, tinned fruit
and juices around the world. The
current market environment has
consumers considering even more
seriously what products they spend
their hard-earned cash on, and
Del Monte’s juice range provides
consumers with high quality juice
at great value. The juice range
was relaunched during 2010,
including a re-formulation of the
range recipes to ensure that it
offered the best taste, as well as
a brand new packaging design
and integrated support plan to
re-establish the brand as the
number one brand in ambient
juice.
Throughout February 2011,
a regional TV test, door drop
and radio campaign has had
great success in the South West
region and included a taste test so that
consumers could fi nd out for themselves.
The results of the relaunch were fantastic
with Del Monte growing at 15.9 per cent in
12 weeks compared with 5.7 per cent for the
ambient category as a whole.
BY POPULAR DEMAND
Data source: IRI market data to
22 Jan 2011
8.5%INCREASE IN
CONSUMPTION OF SMOOTHIES LAST
YEAR
BSDA The 2011 UK Soft Drinks Report 13
Source: Zenith International
UK still and juice
drinks regular vs low
calorie, 2010
Regular 57%
Low calorie 43%
UK still and juice drink
categories, 2010
Juice drinks 63%
Nectars 12%
Still fl avoured water 14%
Sports 11%
Source: Zenith International Source: Zenith International
UK still and juice drink
packaging, 2010
Carton 48%
Plastic 25%
Glass / other 27%
0
300
600
900
1200
1500
2010200920082007200620052004
Million litres
UK still and juice drinks consumption, 2004 - 2010Source: Zenith International
STATISTICS
BSDA 2011BY POPULAR DEMAND
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 1090 1190 1310 1350 1360 1370 1450
% change +10.7 +9.2 +10.1 +3.1 +0.7 +0.7 +5.8
Litres per person 18.1 19.7 21.6 22.1 22.2 22.2 23.4
% of all soft drinks 8.1 8.8 9.4 9.7 9.9 9.8 9.9
Value, £ million 1325 1440 1595 1650 1660 1660 1770
% change +9.1 +8.7 +10.8 +3.4 +0.6 0.0 +6.6
Value per litre, £ 1.22 1.21 1.21 1.22 1.22 1.21 1.22
Source: Zenith International
UK still and juice drinks consumption, 2004 - 2010
STILL & JUICE DRINKS
DEFINITION Still & juice drinks
Nectars (25-99% fruit content); juice
drinks (5-25% fruit content); other
still drinks (0-5%) including iced tea,
sports drinks, still fl avoured water and
non-fruit drinks.
14 The 2011 UK Soft Drinks Report BSDA
23.4
5.8%
AVERAGE CONSUMPTION PER PERSON IN
2010
Encompassing nectars and juice drinks
with less than 25% fruit content,
alongside sports drinks, iced tea and
still fl avoured water, the still and juice
drinks sector grew 5.8% in volume
last year, to reach 1,450 million litres.
In value terms, still and juice drinks
registered a 6.6% increase to
£1,770 million.
This sector is designed for a wide range of
consumers from children to grown ups, providing
an array of product choice. Still and juice drinks
continue to offer a taste alternative to plain bottled
water or carbonates, and remain a popular choice
for all health-minded consumers.
The grab and go virtues of still drinks have seen
the category pass a number of milestones. Barring
a slower gain in the tough economic backdrop of
2008 and 2009, still and juice drinks have hit
the high notes of growth in every year of the past
decade.
Diversity is the name of the game for the sector.
Chilled juice drinks in 1 litre cartons provide
refreshment and ‘gluggability’. Sports drinks,
typically in sports cap bottles, deliver hydration
and electrolytes for a before, during and after
sport occasion. While, from juice drinks to new
fl avoured waters, the lunchbox can be crammed
with healthy options!
COMMENTARY
Volvic Touch
of Fruit,
the fl avoured
water range under
the Volvic megabrand,
has been the key driver of
growth for fl avoured still water
and now commands over 50
per cent share of the category.
2010 was a particularly strong
year for Touch of Fruit with 8.4
per cent growth in value and
5.1 per cent in volume sales,
driven by consumer demand
for the existing range and new
fl avour innovation. The launch
of Limited Edition Touch of
Blackcurrant in 2010 was
such a success that the fl avour
has now become a permanent
part of the range, and 2011
will see the introduction of a new
Limited Edition - Touch of Summer
Fruits. The brand has grown rapidly
in impulse over the last two years
by tapping in to the need for tasty,
on-the-go hydration and Volvic will
build on this insight by launching a
new 75cl sports cap bottle. This year,
Danone Waters UK will drive mass
awareness of Touch of Fruit with its fi rst
TV advert for over four years, supported
by outdoor media and extensive sampling.
BY POPULAR DEMAND
Data source: Total Coverage Nielsen
INCREASE IN CONSUMPTION
SINCE LAST YEAR
LITRES
BSDA The 2011 UK Soft Drinks Report 15
Source: Zenith International
UK sports and energy
drinks, 2010
Sports 27%
Energy 73%
UK sports drink
types, 2010
Isotonic 91%
Hypotonic 9%
Hypertonic <1%
Source: Zenith International Source: Zenith International
UK energy drink
types, 2010
Glucose 58%
Stimulant 42%
0
100
200
300
400
500
600
2010200920082007200620052004
Million litres
UK sports and energy drinks consumption, 2004 - 2010
Source: Zenith International
DEFINITION Sports drinks
Drinks that enhance physical
performance before, during or after
physical/sporting activity. Sports drinks
replace fl uids and electrolytes/minerals
lost by sweating and supply a boost of
carbohydrate: isotonic (fl uid, electrolytes
and 6 to 8% carbohydrate), hypotonic
(fl uids, electrolytes and a low level of
carbohydrate) and hypertonic (high level
of carbohydrate).
Energy drinks
Traditional glucose-based energy
drinks; functional or stimulation energy
drinks which claim a particular energy
boost from caffeine, guarana, taurine
and ginseng or other herbs or some
combination of these ingredients.
STATISTICS
BSDA 2011BY POPULAR DEMAND
SPORTS & ENERGY DRINKS
Source: Zenith International
Year 2004 2005 2006 2007 2008 2009 2010
Million litres 320 365 405 455 505 532 600
% change +16.4 +14.1 +11.0 +12.3 +11.0 +5.2 +12.9
Litres per person 5.3 6.0 6.7 7.5 8.2 8.6 9.7
% of all soft drinks 2.4 2.7 2.9 3.3 3.7 3.8 4.1
Sports drinks, million litres 85 95 110 125 135 142 160
% change +13.3 +11.8 +15.8 +13.6 +8.0 +4.8 +13.1
Litres per person 1.4 1.6 1.8 2.0 2.2 2.3 2.6
% of all soft drinks 0.6 0.7 0.8 0.9 1.0 1.0 1.1
Energy drinks, million litres 235 270 295 330 370 390 440
% change +17.5 +14.9 +9.3 +11.9 +12.1 +5.4 +12.8
Litres per person 3.9 4.5 4.9 5.4 6.0 6.3 7.1
% of all soft drinks 1.7 2.0 2.1 2.4 2.7 2.8 3.0
UK sports and energy drinks consumption, 2004 - 2010
16 The 2011 UK Soft Drinks Report BSDA
The buzz around sports and energy
drinks is here to stay. This has
remained the fastest growing sector
in the UK soft drinks market in recent
years. The combined category saw
another year of high growth in 2010
to reach 600 million litres. In value
terms, sports and energy drinks
continue to command a premium,
surpassing a total value, across all
sales channels, of £1,500 million
in 2010.
Sports drinks – comprised predominantly of
isotonic and hypotonic drinks – and energy drinks
with glucose and stimulant drink variants – again
saw their respective segment shares remain
effectively unchanged in 2010.
Those of us with longer working hours and
more stressful lives are increasingly using energy
drinks to help get through the day – and the
night. In 2010, energy drinks registered 12.8%
growth, reaching 440 million litres. This pushed
consumption to 6.8 litres per head, and generated
total category value of £1,260 million.
Sports drinks provide replenishment and
hydration for modern lifestyles and resonate
with a wide range of consumers, whether in the
gym or as active refreshment on-the-go. Overall,
sports drinks grew by 13.1% in volume to stand
at 160 million litres in 2010. This equates to 2.6
litres per person and a total category value of
£260 million.
COMMENTARY
INCREASE IN CONSUMPTION
OF SPORTS DRINKS SINCE
LAST YEAR
In January
2011, Coca-
Cola Enterprises
Ltd (CCE) extended its
Relentless portfolio with
the launch of a new variant,
Libertus. The sugar-free stimulation
product also unveiled a new look
across the rest of the range with an
eye-catching insignia on one side of
the pack and the original Relentless
logo on the other.
Libertus contains just 20 calories
per 500ml can, with the same
great fl avour and the same
amount of caffeine, taurine
and B6 and B12 vitamins of
Relentless Origin. The sugar-free
variant has been developed to
meet the consumer needstate for
mental renewal and recharging
without the sugar, and to offer
consumers more choice when
shopping the sector.
Always innovative, Relentless
continues to push the
boundaries of cutting edge
on-pack design. Libertus and the
existing range deliver striking on-shelf
stand out allowing retailers to alternate
display with either a facing of the
Relentless insignia or the original logo.
12.8%
13%
BY POPULAR DEMAND
INCREASE IN CONSUMPTION
OF ENERGY DRINKS SINCE
LAST YEAR
BSDA The 2011 UK Soft Drinks Report 17
Because high caffeine soft drinks
are growing in popularity, BSDA has
published a code of practice covering
how they are labelled and marketed
in order to ensure that consumers
have all information needed to make
informed choices about purchasing
and enjoying high caffeine content
soft drinks safely. (The word “high”
compares them with other soft drinks,
not with other beverages more
generally – they contain no more
caffeine than a typical cup of coffee.)
The code was drawn up following discussion
among manufacturers of high caffeine drinks
(including non-members of BSDA, one of whom
subsequently joined), with the benefi t of advice
from retailer trade bodies and offi cials at the FSA.
It has been complemented by a similar code
adopted at European level by UNESDA.
The code of practice requires that all drinks with a
high caffeine content carry the additional labelling
statement “Not suitable for children, pregnant
women and persons sensitive to caffeine”. In
addition, such drinks may not be promoted or
marketed to persons aged under 16.
SOFT DRINKS INDUSTRY LAUNCHES HIGH CAFFEINE CODE OF PRACTICE
BSDA 2011SETTING INDUSTRYSTANDARDS
NEW EDITION OF GUIDE TO GOOD BOTTLED WATER STANDARDSBottled water producers now have an
up-to-date handbook to help them
with their production: the Guide to
Good Bottled Water Standards.
BSDA revised and updated its defi nitive guide
to the rules and methods followed in producing
natural mineral water, spring water, and bottled
drinking water. The Guide covers everything
from the permissible sources of water and
extraction and bottling processes to the labelling
and presentation of the water
when it is sold.
For anyone who is already
a water bottler, or if you
are thinking of setting up
a bottling business of your
own, the newly updated BSDA
Guide to Good Bottled Water
Standards is a must-have.
Over 80 pages in length,
this guide will provide you
with up-to-date advice on
everything you need to know
in order to set up or stay in
business. Members of BSDA
get free access to the latest
edition of the Guide to Good
Bottled Water Standards via
the members’ section of the
BSDA website.
18 The 2011 UK Soft Drinks Report BSDA
TECHNICAL EXPERTISE CALLED INTO ACTIONBSDA’s technical expertise has been called upon repeatedly in the past
year to ensure that the industry’s interests are taken into account in the
framing of new legislation. It is not in the interests of consumers if rules
are drawn up in a way which makes it unnecessarily expensive or even
impossible to comply. This work requires regular engagement with the
regulatory authorities – the Food Standards Agency and its European
equivalent, EFSA – and active participation in the three European trade
associations, UNESDA (for carbonates, dilutables, still and juice drinks),
EFBW (for bottled waters) and AIJN (for fruit juices and smoothies).
For example, in the review of the use of additives being conducted by the European Food Safety
Authority, BSDA has ensured that up-to-date data is provided on their use and consumption,
so that decisions on usage levels can be based on the most accurate information possible.
Parts of the industry’s code of practice on fruit juice have been recognised in the annex to the
EU’s fruit juice directive, which provides assurance to consumers about the authenticity of the
juices they are buying.
This is the central theme of BSDA’s representational work: that the industry exists to serve
consumers and that regulation should be consistent with this objective and not contrary to it.
BSDA The 2011 UK Soft Drinks Report 19
BSDA 2011LEADING IN THE BUSINESS COMMUNITY
AWARDS SUCCESS FOR LIQUIDS MEAN LIFE
The BSDA education project Liquids Mean Life
won the award for Enterprise & Innovation
at the IEBE Business Awards 2010. This
prestigious award recognises enterprise
and innovation in business involvement
in education, and was presented to the
British Soft Drinks Association and Britvic
Soft Drinks by the Institute for Education
Business Excellence.
Over 150 businesses, education partners and guests
attended the awards ceremony at London’s Design
Museum on Friday 1 October 2010. It was hosted by
broadcaster and IEBE Patron Maggie Philbin.
The IEBE judge, Jane Samuels, Project and Operations
Manager of Edge, said:
“This is an excellent example of a trade association
and a major corporate working in partnership with
local education business partnership organisations
across the country to provide valuable resources and
support for teachers. Particularly impressive is
the long term commitment to education
demonstrated by Britvic’s Learning Zone
provision at its Beckton site and the
plans to expand this provision to two
other sites in Leeds and Norwich.
The curriculum materials, industry
visits and competition programmes
are all highly praised by teachers
and students who have benefi tted from
them. The current plans to develop links
with PGCE students at universities is especially
innovative and a great example of maximising the
potential of a programme from every angle.”
The annual BSDA Industry Lunch on 8 June 2010 saw a record
number of guests gather to hear a keynote address by Olympic
hero Lord Sebastian Coe KBE. An audience of over 200 listened
to an inspiring, motivating and entertaining speech, drawing from
Lord Coe’s career as an athlete, a politician, and most recently
chair of the London 2012 Organising Committee of the Olympic
and Paralympic Games.
Newly-elected president of BSDA, Roger White, Chief Executive of A G Barr, introduced Lord Coe, and also took the opportunity to speak about the industry’s wider concerns.
On the economy: “I do not envy the new Government their task – however, I would strongly oppose any further short term tax rises which would penalise consumers and jeopardise our fragile economic recovery.”
On healthy lifestyles: “the message is clear: voluntary, industry-led action blended with increased education is far more effective than legislation and coercion from Government.”
On sustainability: “this is not an industry which sits back but one which has an on-going commitment to sustainability.”
RECORD ATTENDANCE AT BSDA INDUSTRY LUNCH
Lord Sebastian Coe
Roger White
BSDA and Britvic receive the award from Maggie Philbin (second left)
20 The 2011 UK Soft Drinks Report BSDA
The coalition government
elected in May 2010 brought
with it a new approach to
public health, and in particular
policy on obesity. Rather than
seeking to impose changes on
the composition of food and
drink, the plan is to encourage
companies to make their own
changes in line with what their
businesses can reasonably
achieve, through what have been
named Responsibility Deals.
This approach has been welcomed by BSDA.
Jill Ardagh, BSDA Director General, said:
“The soft drinks industry has proved over
the years that a responsible approach by
industry is the right way to deal with issues
of public concern. For example, people
thinking about the issue of obesity should
note how the soft drinks product range has
changed radically. The proportion of the
market made up of drinks with no added
sugar is now 60 per cent, up from only 30
per cent 20 years ago.
SOFT DRINKS INDUSTRY WELCOMES RESPONSIBILITY DEAL INITIATIVE
“This has been achieved without regulation.
Instead, it was a combination of product
innovation, clear nutritional information,
and a focus on the needs of the consumer
that delivered. A responsible approach by
industry works.”
BSDA published a Responsibility Report to
illustrate the industry’s wide-ranging actions
to improve and extend choice of sustainably
produced and responsibly marketed drinks.
BSDA has been an active participant
in the Vending Choice Coalition, an
industry initiative set up to explain
the role of vending as a channel
for providing food and drink.
The spark was the introduction
of restrictions on what could be
sold through vending machines
(although not other retail outlets) in
hospitals in Wales, but challenges of
providing choice to consumers and
information about those choices
can be felt more broadly.
The VCC is led by the Automatic Vending
Association, but brings together vending
operators and suppliers along with other
trade associations. Providing the widest
possible range of soft drinks through
vending is an important objective.
A highlight of the past year was a Vending
Choice Conference held in Cardiff on 6 July
2010. The conference aimed to increase
the choice of products available from
vending machines, introduce new products
to the vending stream, and enable vending
operators to understand the changing needs
of consumers.
PROMOTION OF VENDING CHOICE
BSDA The 2011 UK Soft Drinks Report 21
BSDA 2011SUSTAINABILITY
THE CASE AGAINST
MANDATORY DEPOSITS
The debate about mandatory deposits was revived again in September 2010
with a report from the Campaign to Protect Rural England. Never mind
that deposit schemes have largely fallen out of favour with consumers over
the years, the CPRE proposed that a new levy of at least 15 pence (or 30
pence for bottles larger than 500 ml) should be introduced, along with an
extensive new bureaucracy to collect, administer and return the deposits and
send the bottles on for recycling.
BSDA was quick to hit the airwaves in
response, pointing out that household
collections of plastic bottles for recycling
were increasing by 20 per cent a year,
progress that should be supported and not
undermined. Furthermore, the airy claim
that the costs of the scheme would be paid
for by industry actually meant that they
would be paid for by consumers in the form
of higher prices.
But this is not to say that the soft drinks
industry is inactive in the face of litter and
waste. The
opposite
is true.
BSDA is backing the “Love where you live”
campaign that seeks to persuade people
not to drop litter and waste, and many
soft drinks companies sponsor on the go
collection facilities for recycling themselves.
BSDA is also backing the Courtauld
2 commitment on reducing the wider
environmental impact of packaging.
It would be wrong for BSDA to claim all
the credit for the opposition to mandatory
deposits. The campaign has been a joint
project with other industry bodies including
INCPEN, the Industry Council for Packaging
and the Environment, and the retailers’
trade associations, such as the British
Retail Consortium and the Association
of Convenience Stores. The
campaign against mandatory
deposits, like the campaign
against litter itself, can only be
won by a collective approach.
BSDA published the second annual report
on the progress made by Britain’s soft
drinks industry towards its sustainability
goals. The sustainability strategy was
adopted in 2008 with the aims of:
• reducing carbon emissions
• reducing waste and
increasing recycling
• reducing water use
• reducing the external impacts
of transport
Examples of the efforts made by soft
drinks companies and reported in the
Sustainability Report include:
• the use of more effi cient
refrigerants and lighting in chillers
• using more recycled PET in bottles
• redesigning the secondary
packaging of products so that less
cardboard is used
• reorganising road transport routes
to reduce the number of miles
covered by trucks on the road
REPORTING ON THE SUSTAINABILITY STRATEGY
22 The 2011 UK Soft Drinks Report BSDA
The British Soft Drinks Association is the national trade
association representing the collective interests of producers and
manufacturers of soft drinks including carbonated drinks, still and
dilutable drinks, fruit juices and smoothies, and bottled waters.
BSDA is based in central London with an experienced, professional staff and is governed by an Executive Council of directors elected from its members. It provides a central meeting point for the industry and a range of services to help the industry and its manufacturers to be at the leading edge.
Main membership benefi ts include:
• Information, advice and advance warning on all aspects of the industry, including technical standards, best practice and legislation to ensure good compliance and planning
• Participation in the development of Codes of Practice and initiatives to promote the industry’s reputation and demonstrate social responsibility
• Assistance and advice on incident management
• Inclusion in BSDA’s online listing of manufacturers and suppliers
• Free access to the Members’ website with its information, advice and publications
• A range of training courses tailored to the industry with substantial discounts for members
• The opportunity to network with industry colleagues at BSDA meetings and events and infl uence BSDA policy-making
ABOUT BSDA
BSDA 2011ABOUT BSDA
THE BRITISH SOFT DRINKS ASSOCIATION FOR:-
• MEDIA & PUBLIC AFFAIRS
• REGULATORY ISSUES
• SUSTAINABILITY
• EDUCATION & SKILLS
For more information about BSDA
and its activities contact
British Soft Drinks Association
20-22 Stukeley Street
London
WC2B 5LR
Telephone: +44 (0) 20 7430 0356
Fax: +44 (0) 20 7831 6014
Email: [email protected]
Website: www.britishsoftdrinks.com
BSDA The 2011 UK Soft Drinks Report 23
British Soft Drinks Association
20-22 Stukeley Street
London
WC2B 5LR
Telephone: +44 (0) 20 7430 0356
Fax: +44 (0) 20 7831 6014
Email: [email protected]
Website: www.britishsoftdrinks.com