MarketLine Industry Profile Carbonated Soft Drinks in the ... · In 2017, the United Kingdom...

United Kingdom - Carbonated Soft Drinks 0183 - 0028 - 2012

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MarketLine Industry Profile

Carbonated Soft Drinks in the United Kingdom August 2013

Reference Code: 0183-0028

Publication Date: August 2013

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EXECUTIVE SUMMARY

Market value The United Kingdom carbonated soft drinks market grew by 4.5% in 2012 to reach a value of $12,945.8 million.

Market value forecast In 2017, the United Kingdom carbonated soft drinks market is forecast to have a value of $16,063.6 million, an increase

of 24.1% since 2012.

Market volume The United Kingdom carbonated soft drinks market grew by 3.9% in 2012 to reach a volume of 6,605.7 million liters.

Market volume forecast In 2017, the United Kingdom carbonated soft drinks market is forecast to have a volume of 7,972.3 million liters, an

increase of 20.7% since 2012.

Category segmentation Fruit-flavored carbonates is the largest segment of the carbonated soft drinks market in the United Kin gdom, accounting

for 34.9% of the market's total value.

Geography segmentation The United Kingdom accounts for 18.7% of the European carbonated soft drinks market value.

Market share The Coca-Cola Company is the leading player in the United Kingdom carbonated soft drinks market, generating a 59.3%

share of the market's volume.

Market rivalry Rivalry in the UK market is affected by continuing concentration of market share by two key players.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Market volume...............................................................................................................................................................................2

Market volume forecast ...............................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market share..................................................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market volume...............................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Category segmentation..............................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................11

Market share................................................................................................................................................................................12

Market distribution ......................................................................................................................................................................13

Market Outlook ................................................................................................................................................................................14

Market value forecast.................................................................................................................................................................14

Market volume forecast .............................................................................................................................................................15

Five Forces Analysis ......................................................................................................................................................................16

Summary ......................................................................................................................................................................................16

Buyer power.................................................................................................................................................................................17

Supplier power ............................................................................................................................................................................18

New entrants ...............................................................................................................................................................................19

Threat of substitutes...................................................................................................................................................................20

Degree of rivalry..........................................................................................................................................................................21

Leading Companies........................................................................................................................................................................22



A.G.Barr p.l.c. ..............................................................................................................................................................................22

Britvic plc ......................................................................................................................................................................................25

The Coca-Cola Company ..........................................................................................................................................................28

Nichols plc....................................................................................................................................................................................32

Macroeconomic Indicators.............................................................................................................................................................35

Country Data ...............................................................................................................................................................................35

Appendix...........................................................................................................................................................................................37

Methodology ................................................................................................................................................................................37

Industry associations..................................................................................................................................................................38

Related MarketLine research....................................................................................................................................................38



LIST OF TABLES

Table 1: United Kingdom carbonated soft drinks market value: $ million, 2008–12 ..............................................................8

Table 2: United Kingdom carbonated soft drinks market volume: million liters, 2008–12.....................................................9

Table 3: United Kingdom carbonated soft drinks market category segmentation: $ million, 2012....................................10

Table 4: United Kingdom carbonated soft drinks market geography segmentation: $ million, 2012 ................................11

Table 5: United Kingdom carbonated soft drinks market share: % share, by volume, 2012 ..............................................12

Table 6: United Kingdom carbonated soft drinks market distribution: % share, by volume, 2012 ....................................13

Table 7: United Kingdom carbonated soft drinks market value forecast: $ million, 2012–17.............................................14

Table 8: United Kingdom carbonated soft drinks market volume forecast: million liters, 2012–17 ...................................15

Table 9: A.G.Barr p.l.c.: key facts .................................................................................................................................................22

Table 10: A.G.Barr p.l.c.: key financials ($) ................................................................................................................................23

Table 11: A.G.Barr p.l.c.: key financials (£) ................................................................................................................................23

Table 12: A.G.Barr p.l.c.: key financial ratios .............................................................................................................................23

Table 13: Britvic plc: key facts ......................................................................................................................................................25

Table 14: Britvic plc: key financials ($) ........................................................................................................................................26

Table 15: Britvic plc: key financials (£) ........................................................................................................................................26

Table 16: Britvic plc: key financial ratios .....................................................................................................................................26

Table 17: The Coca-Cola Company: key facts ..........................................................................................................................28

Table 18: The Coca-Cola Company: key financials ($) ............................................................................................................29

Table 19: The Coca-Cola Company: key financial ratios .........................................................................................................30

Table 20: Nichols plc: key facts ....................................................................................................................................................32

Table 21: Nichols plc: key financials ($) ......................................................................................................................................32

Table 22: Nichols plc: key financials (£) ......................................................................................................................................33

Table 23: Nichols plc: key financial ratios ...................................................................................................................................33

Table 24: United Kingdom size of population (million), 2008–12 ............................................................................................35

Table 25: United Kingdom gdp (constant 2000 prices, $ billion), 2008–12 ...........................................................................35

Table 26: United Kingdom gdp (current prices, $ billion), 2008–12........................................................................................35

Table 27: United Kingdom inflation, 2008–12 ............................................................................................................................36

Table 28: United Kingdom consumer price index (absolute), 2008–12 .................................................................................36

Table 29: United Kingdom exchange rate, 2008–12.................................................................................................................36



LIST OF FIGURES

Figure 1: United Kingdom carbonated soft drinks market value: $ million, 2008–12.............................................................8

Figure 2: United Kingdom carbonated soft drinks market volume: million liters, 2008–12 ...................................................9

Figure 3: United Kingdom carbonated soft drinks market category segmentation: % share, by value, 2012 .................10

Figure 4: United Kingdom carbonated soft drinks market geography segmentation: % share, by value, 2012..............11

Figure 5: United Kingdom carbonated soft drinks market share: % share, by volume, 2012.............................................12

Figure 6: United Kingdom carbonated soft drinks market distribution: % share, by volume, 2012 ...................................13

Figure 7: United Kingdom carbonated soft drinks market value forecast: $ million, 2012–17 ...........................................14

Figure 8: United Kingdom carbonated soft drinks market volume forecast: million liters, 2012–17 ..................................15

Figure 9: Forces driving competition in the carbonated soft drinks market in the United Kingdom, 2012 .......................16

Figure 10: Drivers of buyer power in the carbonated soft drinks market in the United Kingdom, 2012............................17

Figure 11: Drivers of supplier power in the carbonated soft drinks market in the United Kingdom, 2012........................18

Figure 12: Factors influencing the likelihood of new entrants in the carbonated soft drinks market in the United Kingdom,

2012 ..................................................................................................................................................................................................19

Figure 13: Factors influencing the threat of substitutes in the carbonated soft drinks market in the United Kingdom, 2012

...........................................................................................................................................................................................................20

Figure 14: Drivers of degree of rivalry in the carbonated soft drinks market in the United Kingdom, 2012 .....................21

Figure 15: A.G.Barr p.l.c.: revenues & profitability ....................................................................................................................24

Figure 16: A.G.Barr p.l.c.: assets & liabilities .............................................................................................................................24

Figure 17: Britvic plc: revenues & profitability ............................................................................................................................27

Figure 18: Britvic plc: assets & liabilities .....................................................................................................................................27

Figure 19: The Coca-Cola Company: revenues & profitability ................................................................................................30

Figure 20: The Coca-Cola Company: assets & liabilities .........................................................................................................31

Figure 21: Nichols plc: revenues & profitability ..........................................................................................................................33

Figure 22: Nichols plc: assets & liabilities ...................................................................................................................................34



MARKET OVERVIEW

Market definition The carbonated soft drinks market consists of retail sales of diet cola, standard cola, fruit-flavored carbonates, mixers

and other carbonates. The market is valued according to retail selling price (RSP) and includes any applicable taxes.

Any currency conversions used in the compilation of this report have been calculated using 2012 annual average

exchange rates.

For the purposes of this report, Europe consists of Western Europe and Eastern Europe.

Western Europe comprises Austria, Belgium, Denmark, France, Finland, Germany, Greece, Italy, Ireland, the

Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Turkey.

Market analysis The UK carbonated soft drinks market has experienced moderate growth in value and volume in recent years. This is set

to continue over the forecast period to 2017.

The UK carbonated soft drinks market had total revenues of $12,945.8m in 2012, representing a compound annual

growth rate (CAGR) of 2.6% between 2008 and 2012. In comparison, the French and German markets grew with

CAGRs of 1% and 1.7% respectively, over the same period, to reach respective values of $4,582.6m and $10,431.2m in

2012.

Market consumption volumes increased with a CAGR of 2.2% between 2008 and 2012, to reach a total of 6,605.7 million

liters in 2012. The market's volume is expected to rise to 7,972.3 m illion liters by the end of 2017, representing a CAGR

of 3.8% for the 2012-2017 period.

The fruit-flavored carbonates segment was the market's most lucrative in 2012, with total revenues of $4,515.0m,

equivalent to 34.9% of the market's overall value. The diet cola segment contributed revenues of $3,558.9m in 2012,

equating to 27.5% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 4.4% for the five -year period 2012

- 2017, which is expected to drive the market to a value of $16,063.6m by the end of 2017. Comparatively, the French

and German markets will grow with CAGRs of 1% and 1.6% respectively, over the same period, to reach respective

values of $4,827.6m and $11,274.2m in 2017.



MARKET DATA

Market value The United Kingdom carbonated soft drinks market grew by 4.5% in 2012 to reach a value of $12,945.8 million.

The compound annual growth rate of the market in the period 2008–12 was 2.6%.

Table 1: United Kingdom carbonated soft drinks market value: $ million, 2008–12

Year $ million £ million € million % Growth

2008 11,669.3 7,364.3 9,079.4

2009 11,457.3 7,230.5 8,914.4 (1.8%)

2010 11,845.9 7,475.7 9,216.8 3.4%

2011 12,385.5 7,816.2 9,636.6 4.6%

2012 12,945.8 8,169.8 10,072.5 4.5%

CAGR: 2008–12 2.6%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: United Kingdom carbonated soft drinks market value: $ million, 2008–12




Market volume The United Kingdom carbonated soft drinks market grew by 3.9% in 2012 to reach a volume of 6,605.7 million liters.

The compound annual growth rate of the market in the period 2008–12 was 2.2%.

Table 2: United Kingdom carbonated soft drinks market volume: million liters, 2008–12

Year million liters % Growth

2008 6,044.3

2009 5,987.1 (0.9%)

2010 6,114.8 2.1%

2011 6,356.4 4.0%

2012 6,605.7 3.9%

CAGR: 2008–12 2.2%


Figure 2: United Kingdom carbonated soft drinks market volume: million liters, 2008–12




MARKET SEGMENTATION

Category segmentation Fruit-flavored carbonates is the largest segment of the carbonated soft drinks market in the United Kingdom, accounting

for 34.9% of the market's total value.

The Diet cola segment accounts for a further 27.5% of the market.

Table 3: United Kingdom carbonated soft drinks market category segmentation: $ million, 2012

Category 2012 %

Fruit-flavored carbonates 4,515.0 34.9%

Diet cola 3,558.9 27.5%

Standard cola 3,316.0 25.6%

Mixers 468.3 3.6%

Other 1,087.7 8.4%

Total 12,945.9 100%


Figure 3: United Kingdom carbonated soft drinks market category segmentation: % share, by value, 2012




Geography segmentation The United Kingdom accounts for 18.7% of the European carbonated soft drinks market value.

The Germany accounts for a further 15.1% of the European market.

Table 4: United Kingdom carbonated soft drinks market geography segmentation: $ million, 2012

Geography 2012 %

United Kingdom 12,945.8 18.7

Germany 10,431.2 15.1

Spain 7,871.4 11.4

France 4,582.6 6.6

Italy 4,500.9 6.5

Rest of Europe 28,891.5 41.7

Total 69,223.4 100%


Figure 4: United Kingdom carbonated soft drinks market geography segmentation: % share, by value, 2012




Market share The Coca-Cola Company is the leading player in the United Kingdom carbonated soft drinks market, generating a 59.3%

share of the market's volume.

Britvic Plc accounts for a further 15.9% of the market.

Table 5: United Kingdom carbonated soft drinks market share: % share, by volume, 2012

Company % Share

The Coca-Cola Company 59.3%

Britvic Plc 15.9%

A.G.Barr p.l.c. 3.4%

Nichols Plc 2.9%

Other 18.4%

Total 100%


Figure 5: United Kingdom carbonated soft drinks market share: % share, by volume, 2012




Market distribution Supermarkets / hypermarkets form the leading distribution channel in the United Kingdom carbonated soft drinks market,

accounting for a 35.2% share of the total market's volume.

On-trade accounts for a further 25.9% of the market.

Table 6: United Kingdom carbonated soft drinks market distribution: % share, by volume, 2012

Channel % Share

Supermarkets / hypermarkets 35.2%

On-trade 25.9%

Convenience stores 12.1%

Vending machines 9.7%

Other 17.1%

Total 100%


Figure 6: United Kingdom carbonated soft drinks market distribution: % share, by volume, 2012




MARKET OUTLOOK

Market value forecast In 2017, the United Kingdom carbonated soft drinks market is forecast to have a value of $16,063.6 million, an increase

of 24.1% since 2012.

The compound annual growth rate of the market in the period 2012–17 is predicted to be 4.4%.

Table 7: United Kingdom carbonated soft drinks market value forecast: $ million, 2012–17

Year $ million £ million € million % Growth

2012 12,945.8 8,169.8 10,072.5 4.5%

2013 13,530.1 8,538.5 10,527.1 4.5%

2014 14,141.2 8,924.2 11,002.6 4.5%

2015 14,774.7 9,324.0 11,495.5 4.5%

2016 15,424.6 9,734.1 12,001.2 4.4%

2017 16,063.6 10,137.4 12,498.3 4.1%

CAGR: 2012–17 4.4%


Figure 7: United Kingdom carbonated soft drinks market value forecast: $ million, 2012–17




Market volume forecast In 2017, the United Kingdom carbonated soft drinks market is forecast to have a volume of 7,972.3 million liters, an

increase of 20.7% since 2012.

The compound annual growth rate of the market in the period 2012–17 is predicted to be 3.8%.

Table 8: United Kingdom carbonated soft drinks market volume forecast: million liters, 2012–17

Year million liters % Growth

2012 6,605.7 3.9%

2013 6,864.3 3.9%

2014 7,133.2 3.9%

2015 7,410.4 3.9%

2016 7,693.2 3.8%

2017 7,972.3 3.6%

CAGR: 2012–17 3.8%


Figure 8: United Kingdom carbonated soft drinks market volume forecast: million liters, 2012–17




FIVE FORCES ANALYSIS

The carbonated soft drinks market will be analyzed taking soft drinks manufacturers as players. The key buyers will be

taken as bottling companies and retailers, and producers of packaging, soft drinks ingredients and othe r raw materials as

the key suppliers.

Summary

Figure 9: Forces driving competition in the carbonated soft drinks market in the United Kingdom, 2012


Rivalry in the UK market is affected by continuing concentration of market share by two key players.

Bottling companies and retailers represent the main buyers in the carbonated soft drinks market, the latter of which

constitutes the more significant force. However, despite the financial muscle of larger retailers, it is public demand that is

the central driver of sales within this market. Shaped by heavy marketing campaigns, brand consciousness ensures that

popular products must be stocked by retailers, reducing buyer power to moderate levels.

Supplier power is not substantial, as most inputs are readily available commodities. New entrants to the market face

significant obstacles, such as strong brand loyalty and significant fixed costs.

With economies of scale further favouring established manufacturers, the threat from new entrants is weak.

There are various products such as tea, coffee and non-carbonated soft drinks that may serve as substitutes to

carbonated soft drinks, yet the diversity of public demand ensures a wide range of products wi ll continue to be stocked

by retailers. The threat from substitutes is, therefore, only moderate.

During periods of decline or limited growth, manufacturers with large fixed costs can be forced into direct competition

with one another for a limited pool of consumers. Although concentration of the market reduces the intensity of market

rivalry, with dominant companies secure in their relevant area and bolstered by a strong brand image, the large size of

players serves to increase rivalry, which is assessed as moderate overall.



Buyer power

Figure 10: Drivers of buyer power in the carbonated soft drinks market in the United Kingdom, 2012


The distribution of carbonated soft drinks is achieved through a variety of means in this market, resulting in a large

number of buyers.

It is not uncommon for manufacturers, such as The Coca-Cola Company and PepsiCo, to produce soft drinks that are

ready for consumption and supply retailers directly.

The leading players generate most of their revenue from the production of concentrates, which are sold to bottling

companies. Some bottlers are independent, whereas others are owned by the big -name manufacturers, and are usually

described as 'partners' and 'customers'. The bottlers are licensed to convert purchased raw materials into soft drinks,

packaged with the manufacturers' branding, and distribute them as ready for sale commodities to buyers within a

particular sales territory. In fact, in the UK, PepsiCo's carbonated soft drinks are distributed through a partnership with

Britvic.

Although the majority of bottlers are free to make their own business decisions, the close ties between manufacturers

and bottlers mean that food & beverage retailers are arguably the more significant buyers from the point of view of

market players. The financial muscle of such retailers is enhanced by the concentration of the retail market, with

supermarkets and hypermarkets accounting for the largest proportion of retail distribution.

However, a strong level of brand consciousness amongst consumers undercuts this position of strength. Consumers in

this market are likely to be strongly influenced by brand, and this weakens buyer power, as retailers are forced to stock

brands popular with consumers. Failure to stock successful items can be highly detrimental for a retailer.

Overall, buyer power is assessed as moderate.



Supplier power

Figure 11: Drivers of supplier power in the carbonated soft drinks market in the United Kingdom, 2012


Manufacturers in this market, require access to a range of ingredients, including sweeteners, refined sugar (sucrose) and

aspartame.

Although certain ingredients are available from more than one supplier, such sourcing remains vulnerable to fluctuations

in the market price of the relevant commodity.

Other ingredients, such as aspartame, can be acquired only from a limited number of companies upstream. However,

even in these cases, there are usually substitutes available.

For example, if aspartame becomes expensive or unobtainable, then it can be substituted by saccharine and other

similar products.

Water, which is the major input in this market, may raise the concerns of multinational players, especially in some

countries, where water scarcity is a risk factor for their business.

Advertising and marketing agencies also play significant role in the brand building process in the carbonated soft drinks

market. Years of consolidation has left the advertising industry highly concentrated in most countries, strengthening

supplier power to some extent.

Overall, supplier power is assessed as moderate in this market.



New entrants

Figure 12: Factors influencing the likelihood of new entrants in the carbonated soft drinks market in the United Kingdom, 2012


Although it would be difficult for a new entrant to compete with the brand strength and reach of existing incumbents, it

may be possible to achieve small-scale success stressing a unique production method.

However, even if a new player opts for a business model in which much of the production process is performed by

bottling partners under license, there will still be a need to invest in manufacturing capacity in order to produce the

concentrates.

The nature of the market also demands an extensive marketing campaign in order to generate and maintain a successful

brand image. With large players, such as The Coca-Cola Company and Britvic, so firmly established within the market,

even aside from the costs, this acts as a daunting deterrent to many potential entrants.

The effect of economies of scale which benefits current mass manufacturers of such products also makes it difficult for a

new entrant to enter into the market.

In addition, new entrants would also face stringent regulation from a number of EU directives concerning the ingredients,

safety and labelling requirements of carbonated soft drink products. Following the recent EU Regulation 1169/2011, new

entrants will also face stricter regulation concerning the labelling, presentation and advertising of foodstuffs, as well as

nutrition labelling requirements from December 2014 onwards.

The fact that the market has achieved moderate growth in the past few years makes it a reasonably attractive prospect

to potential new entrants.

Overall, there is a weak likelihood of new entrants.



Threat of substitutes

Figure 13: Factors influencing the threat of substitutes in the carbonated soft drinks market in the United Kingdom, 2012


There are many substitutes for carbonated soft drinks available for both: retailers and end -users. Some examples

include: tea, coffee, and non-carbonated soft drinks, such as squash or juice.

Leading players tend to have diverse product ranges, which reduces the threat posed by substitutes. For example, Coca -

Cola offers a wide range of drink products, including water and juices, outside of its core offering of carbonated soft

drinks.

In this market, an increasing health consciousness amongst consumers may serve to cause retailers to favor healthier

alternatives to carbonated soft drinks.

Furthermore, switching in the sense of allocating more shelf space to the substitutes may be advantageous in cost terms

(substitutes such as coffee, tea and squash can be stored at room temperature instead of fridges). This may be

especially beneficial in countries where electricity is relatively expensive, such as India.

The threat from substitutes is increasing in this market; however, at the moment, it remains moderate.



Degree of rivalry

Figure 14: Drivers of degree of rivalry in the carbonated soft drinks market in the United Kingdom, 2012


The UK carbonated soft drinks market is highly concentrated, with the top two players alone accounting for 75.2% of the

total market volume. Additionally, the proposed merger of Britvic and the third larges t player in the UK market, A.G.Barr

p.l.c., could have led to further consolidation within the market. The green light was given by the UK Office of Fair

Trading for this merger to go ahead. However, on 11 June, 2013 this deal fell through at the last minu te, following

Britvic's concerns over the terms of the merger. As such, the market remains less consolidated than it might have been,

increasing rivalry.

The companies that operate under high fixed costs, due to specialist production facilities and marketing campaigns, have

less freedom to scale down during periods of slow or poor growth. Equally, with the nature of the market, economies of

scale favor mass manufacturers and encourage expansion. For these reasons, companies can be pushed into direct

competition for a limited number of consumers.

Some carbonated soft drinks companies outsource later stages of their production process to third parties, in order to

evade some of these difficulties, reducing the possibility of its market exit. However, for playe rs who own the majority of

their manufacturing resources, this option is unavailable.

With only a limited number of players, competition is lessened as each player establishes a more secure segment of the

market, aided by strong branding and product differentiation, although the size of major players serve to increase rivalry

to an extent.

However, moderate market performance in recent years eases rivalry to an extent.

Overall, there is a moderate degree of rivalry in the UK carbonated soft drinks market.



LEADING COMPANIES

A.G.Barr p.l.c.

Table 9: A.G.Barr p.l.c.: key facts

Head office: Westfield House, 4 Mollins Road, Westfield, Cumbernauld G68 9HD, GBR

Telephone: 44 1236 852 400

Fax: 44 1236 852 400

Website: www.agbarr.co.uk

Financial year-end: January

Ticker: BAG

Stock exchange: London

SOURCE: COMPANY WEBSITE M A R K E T L I N E

A.G.Barr is a UK-based company that manufactures, markets and sells soft drinks. The company offers its products

under the brand names of IRN-BRU, Rubicon, Barr Brands, KA, Strathmore, Simply, Tizer, D'N'B, St. Clement's,

Findlays and Abbott's. The company's partnership brands include Orangina, Rockstar and Snapple.

The company operates through two segments: carbonates and still drinks. Its portfolio of products includes carbonated

drinks, dilutables, bottled waters, fruit juices, and still and juice drinks.

A.G.Barr offers carbonated soft drinks such as sparkling juices, colas, mixers, tonic and bitter drinks, and flavored

waters, among others. Its dilutables include squashes and cordials. The company offers natural mineral water, spring

water and table water, and also offers hypotonic, isotonic and hypertonic sports drinks as well as energy drinks.

The company offers still and juice drinks, soft drinks made with varying quantities of different types of fruit juice.

A.G.Barr's still and juice drinks are sold under the brand name 'Simply Juicy' with variants such as orange and lemon,

strawberry, blackcurrant and apple.

A.G.Barr's subsidiaries include Barr Leasing Limited, which is involved in central commercial activities; Findlays Limited,

a natural mineral water bottler; and Rubicon Drinks Limited, a manufacturer and distributor of soft drinks.

Key Metrics

The company recorded revenues of $376m in the fiscal year ending January 2013, an increase of 6.6% compared to

fiscal 2012. Its net income was $41m in fiscal 2013, compared to a net income of $45m in the preceding year.



Table 10: A.G.Barr p.l.c.: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 268.9 319.2 352.4 353.2 376.5

Net income (loss) 25.0 28.4 35.8 44.6 40.5

Total assets 296.2 304.0 320.4 311.1 340.4

Total liabilities 149.3 119.1 161.1 109.7 133.4

Employees 895 947 1,016 972 976

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 11: A.G.Barr p.l.c.: key financials (£)

£ million 2009 2010 2011 2012 2013

Revenues 169.7 201.4 222.4 222.9 237.6

Net income (loss) 15.8 17.9 22.6 28.1 25.6

Total assets 186.9 191.9 202.2 196.3 214.8



Table 12: A.G.Barr p.l.c.: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 9.3% 8.9% 10.2% 12.6% 10.8%

Revenue growth 14.4% 18.7% 10.4% 0.2% 6.6%

Asset growth 51.1% 2.7% 5.4% (2.9%) 9.4%

Liabilities growth 142.1% (20.2%) 35.3% (31.9%) 21.7%

Debt/asset ratio 50.4% 39.2% 50.3% 35.3% 39.2%

Return on assets 10.2% 9.5% 11.5% 14.1% 12.4%

Revenue per employee $300,448 $337,013 $346,809 $363,372 $385,747

Profit per employee $27,919 $30,032 $35,224 $45,884 $41,504




Figure 15: A.G.Barr p.l.c.: revenues & profitability


Figure 16: A.G.Barr p.l.c.: assets & liabilities




Britvic plc

Table 13: Britvic plc: key facts

Head office: Breakspear Park, Breakspear Way, Hertfordshire HP2 4TZ, GBR

Telephone: 44 1442 284 411

Fax: 44 1442 284 402

Website: www.britvic.com

Financial year-end: September

Ticker: BVIC



Britvic is a UK-based company, engaged in manufacturing and distributing soft drinks. The company has operations in

the UK, France, and Ireland.

The company operates through five business units including Britvic GB, Britvic Ireland, Britvic France, Britvic

International, and Britvic Worldwide.

Britvic GB provides soft drink brands including Robinsons, Fruit Shoot, J2O, Tango, and Drench. It also supplies various

brands including Pepsi, 7UP, and Mountain Dew, which are bottled under franchise from PepsiCo and Tango. Britvic

Ireland's brands include Ballygowan, Mi Wadi, and Club. It also operates PepsiCo bottling agreements for Pepsi and

7UP.

The company's Britvic France brands include Teisseire, Moulin de Valdonne, Fruite, and Pressade. It supplies private -

label juice and syrup to its customers. Britvic International manages the export of products across more than 50

countries. Britvic Worldwide operates the Britvic's international franchise business.

Britvic operates 12 factories across the UK that produces around 1.9 billion liters of soft drinks an nually. Britvic exports

its products to markets including the Netherlands, Sweden, Finland, Denmark, and Norway. The company also exports

to over 50 countries globally and operates brand franchises in the US, Australia, and Malta.

The company's subsidiaries include Britannia Soft Drinks Limited, Britvic Finance No 2 Limited, Britvic International

Limited, Britvic Soft Drinks Limited, Britvic Irish Holdings Limited, Britvic Ireland Limited, Britvic Northern Ireland Limited,

Aquaporte Limited, Britvic Worldwide Brands Limited, Britvic North America LLC, Britvic France SNC, Fruite Entreprises

SA, Fruite SAS, Bricfruit SAS, Unisource SAS, Teisseire SAS, and Teisseire Benelux SA.

Key Metrics

The company recorded revenues of $1,990m in the fiscal year ending September 2012, a decrease of 2.6% compared to




Table 14: Britvic plc: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 1,468.9 1,551.3 1,804.8 2,044.1 1,990.2

Net income (loss) 50.7 74.5 (76.1) 91.9 90.3

Total assets 1,174.2 1,353.2 1,659.1 1,687.6 1,625.8

Total liabilities 1,159.9 1,356.4 1,706.6 1,652.7 1,567.2

Employees 3,153 3,036 3,025 3,532 3,337


Table 15: Britvic plc: key financials (£)

£ million 2008 2009 2010 2011 2012

Revenues 927.0 979.0 1,139.0 1,290.0 1,256.0

Net income (loss) 32.0 47.0 (48.0) 58.0 57.0

Total assets 741.0 854.0 1,047.0 1,065.0 1,026.0

Total liabilities 732.0 856.0 1,077.0 1,043.0 989.0


Table 16: Britvic plc: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 3.5% 4.8% (4.2%) 4.5% 4.5%

Revenue growth 29.5% 5.6% 16.3% 13.3% (2.6%)

Asset growth 6.3% 15.2% 22.6% 1.7% (3.7%)

Liabilities growth 5.8% 16.9% 25.8% (3.2%) (5.2%)

Debt/asset ratio 98.8% 100.2% 102.9% 97.9% 96.4%

Return on assets 4.5% 5.9% (5.0%) 5.5% 5.5%


Profit per employee $16,082 $24,531 ($25,144) $26,021 $27,067




Figure 17: Britvic plc: revenues & profitability


Figure 18: Britvic plc: assets & liabilities




The Coca-Cola Company

Table 17: The Coca-Cola Company: key facts

Head office: One Coca-Cola Plaza, Atlanta, Georgia 30313, USA

Telephone: 1 404 676 2121

Local office: Coca-Cola United Kingdom, 1 Queen Caroline Street, Hammersmith, London W6 9HQ, GBR

Telephone: 44 800 22 7711

Website: www.thecoca-colacompany.com

Financial year-end: December

Ticker: KO

Stock exchange: New York


Coca-Cola engages in the manufacturing, distribution and marketing of non-alcoholic beverage concentrates and syrups.

The company owns one of the world's most valuable brands: Coca-Cola. Furthermore, Coca-Cola markets four of the

world's top five nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite. The company's

finished beverage products are sold in more than 200 countries worldwide.

Coca-Cola produces more than 3,500 beverage products, including a variety of sparkling and still beverages. The

company manufactures beverage concentrates and syrups, which it sells to authorized bottling and canning operators.

The company also manufactures finished beverages. Coca-Cola owns or licenses nearly 500 brands, including diet and

light beverages, waters, enhanced waters, juice and juice drinks, teas, coffees, and energy and sports drinks. In addition,

the company has ownership interests in a number of bottling and canning operations, most of which are independently

owned and managed.

Most of Coca-Cola's products are manufactured and sold by bottling partners, who convert them into finished packaged

products for sale to distributors and other customers. The company sells the concentrates and syrups for bottled and

canned beverages to authorized bottling and canning operations. Authorized bottlers and canners either combine syrups

with sparkling water or combine concentrates with sweeteners (depending on the product), still water and sparkling water

to produce finished sparkling beverages. These sparkling beverages are packaged in cans, glass and plastic bottles and

sold to wholesalers and retailers. In addition to selling concentrates and syrups for ma king sparkling beverages and

flavored still beverages, the company also sells concentrates for purified water products such as Dasani to authorized

bottling operations.

The company's beverage products under the Coca-Cola trade mark include Coca-Cola, Diet Coke and Coca-Cola Zero

and all their variations and line extensions, including Coca-Cola Light, caffeine free Diet Coke and Cherry Coke. Other

trade mark beverages sold by the company include Fanta Orange, Fanta Zero Orange, Fanta Apple, Sprite, Diet Spri te,

Sprite Zero, Sprite Light, Simply Orange, Simply Apple and Simply Grapefruit. The company also manufactures, markets

and sells the Dobriy juice products primarily in Russia, Ukraine and Belarus by Multon, a Russian juice business

operated as a joint venture with CocaCola Hellenic Bottling Company. In Brazil, Coca-Cola manufactures, markets and

sells Leão and Matte Leão teas through a joint venture with its bottling partners. In Mexico and Brazil, the company

manufactures, markets and sells juices and juice drinks under the Del Valle trademark through joint ventures with its

bottling partners.

Coca-Cola operates its business through six business segments, classified based on geographical presence: North

America, Eurasia and Africa, Europe, Latin America, Pacific, and Bottling investments. Coca-Cola also reports a non-

operating segment: corporate.



The North American business segment consists of Coca-Cola Refreshments (CCR) and the other operations in North

America. In 2010, the company acquired the North Am erican business of Coca-Cola Enterprises (CCE). This business

was combined with its existing foodservice business, Minute Maid and Odwalla juice businesses, North America supply

chain operations, and company-owned bottling operations in Philadelphia, Penns ylvania into a unified bottling and

customer service organization called CCR. The remaining Coca-Cola North America (CCNA) operations were reshaped

into an organization that primarily provides franchise leadership and consumer marketing and innovation for the North

American market.

The Eurasia and Africa business segment consists of six business units: Central, East and West Africa; India and South

West Asia; Middle-East and North Africa; Russia, Ukraine and Belarus; South Africa; and Turkey, Caucasus and Central

Asia.

The Europe business segment consists of Central and Southern Europe, Germany, Iberia, and Northwest Europe and

Nordics business units.

The Latin American business segment comprises of Brazil, Latin center, Mexico and South Latin business units .

Coca-Cola's Pacific business segment includes Association of South East Asian Nations (ASEAN) business unit, Greater

China and Korea business unit, Japan business unit and South Pacific business unit.

The bottling investment business segment operates through six business units: China, Malaysia and Singapore;

Germany; India and Bangladesh; Latin America and Japan; Russia, Middle East and Africa; and Philippines.

Key Metrics

The company recorded revenues of $48,017m in the fiscal year ending December 2012, an increase of 3.2% compared

to fiscal 2011. Its net income was $9,019m in fiscal 2012, compared to a net income of $8,572m in the preceding year.

Table 18: The Coca-Cola Company: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 31,944.0 30,990.0 35,119.0 46,542.0 48,017.0

Net income (loss) 5,807.0 6,824.0 11,809.0 8,572.0 9,019.0

Total assets 40,519.0 48,671.0 72,921.0 79,974.0 86,174.0

Total liabilities 12,988.0 13,721.0 41,604.0 48,053.0 53,006.0

Employees 92,400 92,800 139,600 146,200 150,900




Table 19: The Coca-Cola Company: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 18.2% 22.0% 33.6% 18.4% 18.8%

Revenue growth 10.7% (3.0%) 13.3% 32.5% 3.2%

Asset growth (6.4%) 20.1% 49.8% 9.7% 7.8%

Liabilities growth (39.7%) 5.6% 203.2% 15.5% 10.3%

Debt/asset ratio 32.1% 28.2% 57.1% 60.1% 61.5%

Return on assets 13.9% 15.3% 19.4% 11.2% 10.9%


Profit per employee $62,846 $73,534 $84,592 $58,632 $59,768


Figure 19: The Coca-Cola Company: revenues & profitability




Figure 20: The Coca-Cola Company: asse ts & liabilities




Nichols plc

Table 20: Nichols plc: key facts

Head office: Laurel House, Woodlands Park, Ashton Road, Newton Le Willows, Merseyside WA12 0HH, GBR

Telephone: 44 1925 222 222

Fax: 44 1925 222 233

Website: www.nicholsplc.co.uk

Financial year-end: December

Ticker: NICL



Nichols is the UK based company that is engaged in producing soft drinks and other beverages. The company

distributes its products to the retail, wholesale, vending, catering, licensed, and leisure industries. The company has

operations in the UK, Middle East, China and Africa.

The company's brand portfolio includes Vimto, which is sold in over 65 countries and Levi Roots, Weight Watchers,

Sunkist and Panda that are sold in the UK. The company offers still and carbonates drinks. The company offers soft

drinks on dispense market, where its brands include Cabana and Ben Shaws.

The company's subsidiaries include Beacon Holdings, Beacon Drinks, Ben Shaws Dispense Drinks, Cabana (Holdings),

Cabana Soft Drinks, Cariel Soft Drinks, Dayla Liquid Packing and MiniUrban Limited.

Dayla manufactures cold soft drinks on draught and supplies into soft drink wholesalers. Ben Shaws Dispense Drinks

supplies cold soft drinks on draught into pubs, clubs, restaurants and other leisure outlets through a national network of

distributors. Cabana is a wholesale supplier of cold soft drinks on draught into pubs, clubs, restaurants and other leisure

outlets.

Key Metrics

The company recorded revenues of $171m in the fiscal year ending December 2012, an increase of 9.0% compared to


Table 21: Nichols plc: key financials ($)

$ million 2008 2009 2010 2011 2012

Revenues 89.1 114.7 132.9 156.7 170.8

Net income (loss) 4.7 13.2 17.2 21.1 24.2

Total assets 58.0 69.8 79.9 102.4 116.0





Table 22: Nichols plc: key financials (£)

£ million 2008 2009 2010 2011 2012

Revenues 56.2 72.4 83.9 98.9 107.8

Net income (loss) 3.0 8.4 10.8 13.3 15.3

Total assets 36.6 44.1 50.4 64.6 73.2



Table 23: Nichols plc: key financial ratios

Ratio 2008 2009 2010 2011 2012

Profit margin 5.3% 11.5% 12.9% 13.5% 14.2%

Revenue growth 1.7% 28.7% 15.9% 17.9% 9.0%

Asset growth 15.0% 20.3% 14.5% 28.1% 13.3%

Liabilities growth 18.2% 26.0% 4.8% 39.8% (0.4%)

Debt/asset ratio 41.9% 43.9% 40.2% 43.8% 38.5%

Return on assets 8.6% 20.7% 22.9% 23.2% 22.1%


Figure 21: Nichols plc: revenues & profitability




Figure 22: Nichols plc: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 24: United Kingdom size of population (million), 2008–12

Year Population (million) % Growth

2008 61.4 0.7%

2009 61.8 0.6%

2010 62.3 0.8%

2011 63.2 1.5%

2012 63.5 0.6%


Table 25: United Kingdom gdp (constant 2000 prices, $ billion), 2008–12

Year Constant 2000 Prices, $ billion % Growth

2008 2,404.3 (1.0%)

2009 2,308.7 (4.0%)

2010 2,350.3 1.8%

2011 2,372.7 1.0%

2012 2,377.9 0.2%


Table 26: United Kingdom gdp (current prices, $ billion), 2008–12

Year Current Prices, $ billion % Growth

2008 2,657.3 (5.6%)

2009 2,180.7 (17.9%)

2010 2,263.1 3.8%

2011 2,468.8 9.1%

2012 2,543.8 3.0%




Table 27: United Kingdom inflation, 2008–12

Year Inflation Rate (%)

2008 3.6%

2009 2.2%

2010 3.3%

2011 4.5%

2012 2.8%


Table 28: United Kingdom consumer price index (absolute), 2008–12

Year Consumer Price Index (2000 = 100)

2008 108.5

2009 110.8

2010 114.5

2011 119.6

2012 123.0


Table 29: United Kingdom exchange rate, 2008–12

Year Exchange rate ($/£) Exchange rate (€/£)

2008 0.5449 0.7973

2009 0.6416 0.8921

2010 0.6475 0.8589

2011 0.6235 0.8674

2012 0.6311 0.8111




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross -

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, includ ing:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

UNESDA

Bd Saint-Michel 77-79 B-1040 Brussels, BEL

Tel.: 32 2 743 4050

Fax: 32 2 732 5102

www.unesda.org

British Soft Drinks Association 20-22 Stukeley Street, London WC2B 5LR, GBR

Tel.: 44 20 7430 0356

Fax: 44 20 7831 6014

www.britishsoftdrinks.com

Related MarketLine research

Industry Profile

Global Carbonated Soft Drinks

Carbonated Soft Drinks in the United States

Carbonated Soft Drinks in Belgium

Carbonated Soft Drinks in Germany

Carbonated Soft Drinks in France

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