20
THE 2013 UK SOFT DRINKS REPORT REFRESHING THE NATION
THE 2013 UK SOFT DRINKS
REPORT
REFRESHING THE NATION
SOFT DRINKSREPORT
The data for this report is compiled from different sources, Zenith International and Kantar Worldpanel. BSDA thanks both of them for their assistance and expertise in preparing this report.
Zenith International
During Zenith International’s annual research into the UK soft drinks industry, over 150 soft drinks producers are contacted. This includes larger branded operators, retailer own label specialists, contract packers and a signifi cant number of smaller independent companies. Zenith International is grateful for the goodwill and co-operation of companies active in the marketplace.
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 carbonates rather than dilute-to-taste drinks, for example.
Set against a challenging economic backdrop and run of poor weather, there may be some who are tempted to be cautious about the industry’s prospects. But, despite the setback in growth this year, I think we have good reason to be positive.
The range of drinks on the shelves is growing, giving people a wider choice than ever of delicious and refreshing drinks. The market is in long-term growth and reaches almost everyone - more than 99 per cent of households enjoy soft drinks – but that solid base also brings with it responsibilities.
In the realm of public health, the soft drinks industry can promote balanced diets and active lifestyles. Soft drinks are not in themselves a cause of obesity, but nevertheless there are things that the industry can do to help address the issue. Companies are demonstrating their responsibility by introducing new lower calorie drinks, changing the recipes of some of their existing drinks, and promoting lower calorie options.
The soft drinks industry is also working in partnership with Defra and WRAP on its Sustainability Road Map, to be published in the summer, that will outline the key steps to be taken towards a more sustainable industry. Using resources more effi ciently makes environmental sense and saves money, so it’s an obvious opportunity to take.
The soft drinks industry plays a major role in this country and, working with its partners, can make a positive contribution to the life of the nation.
THE 2013 UK SOFT DRINKS REPORT
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 dispensed carbonated soft drinks; and pump dispensed carbonates in the licensed trade.
Following a detailed review of all data fi les received, certain adjustments have been made to historic volumes relating to bottled water, glucose energy drinks and nectars.
Kantar Worldpanel
The Usage panel is the UK’s largest and only continuous monitor of food and drink consumption. Using a consumer panel of 11,000 individuals who complete a two week consumption diary twice a year, Worldpanel Usage tracks foods and drinks consumed within the home, taken from the home and eaten outside, as well as snacks and drinks obtained and consumed out of the home. The details for each consumption occasion include:
(1) Who consumes each product (by age and sex including children)
(2) When the item was consumed (meal occasion, time of day, day of week)
REPORT METHODOLOGY AND BACKGROUND
INTRODUCTION
(3) How the product was prepared, cooking method and packaging/product format.
(4) Underlying reasons for why the product was chosen and consumed
(5) An understanding of true consumption – the product’s role within a meal / occasion, its contribution to a fi nished dish / snack, and understanding occasion, rather than category, based competition.
The data quoted was collected during the 12 months ending November 2012. The data is depicted in charts showing the likelihood of choosing a particular drink on any given consumption occasion, compared with average (expressed as an index of 100).
Market penetration relates to the proportion of households that have consumed the relevant product during the 52 weeks ending 23 December 2012.
N.B. Kantar Worldpanel data reports on consumption occasions, whereas Zenith International data reports on consumption volumes.
2013 REFRESHING THE NATION
GAVIN PARTINGTONDIRECTOR GENERAL, BSDA
2013 REFRESHING THE NATIONBS
DA 2013 REFRESHING THE NATION
2
4 OVERALL SOFT DRINKS CONSUMPTION
6 BOTTLED WATER
8
CARBONATES
1 0
DILUTABLES
1 2
FRUIT JUICE AND SMOOTHIES
1 4
STILL AND JUICE DRINKS
1 6
SPORTS AND ENERGY DRINKS
1 8 THE SOFT DRINKS INDUSTRY
1 9
ABOUT BSDA
CONTENTSREFRESHING THE NATION
3
All market fi gures have again been fully reviewed and revised historically, where appropriate.
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 13895 13770 13630 13915 14485 14595 14235% change +2.9 -0.9 -1.0 +2.1 +4.1 +0.8 -2.5Litres per person 229.5 226.1 222.4 225.7 233.5 233.8 226.8Value, £ million 12435 12500 12605 13010 13770 14475 14955% change +2.9 +0.5 +0.8 +3.2 +5.8 +5.1 +3.3Value per litre, £ 0.90 0.91 0.92 0.94 0.95 0.99 1.05
UK soft drinks consumption, 2006 - 2012
STATISTICS
OVERALL SOFT DRINKS CONSUMPTIONIn 2012, the UK soft drinks market faced a mix of very poor summer weather, rising raw material and energy costs and the continuing effects of a double-dip recession on consumer spending.
Total soft drinks consumption fell by 2.5%, although market volumes nevertheless exceeded 14.2 billion litres, or 227 litres per capita. Market value showed more resilience, growing by 3.3%, to nearly £15 billion. Whilst consumers were increasingly cautious with their spending, the continuing popularity of the ‘big night in’ favoured the ‘treat’ purchase of premium lines and stimulated product and promotional innovation. Brands generally outperformed own
label – consumers appeared to be buying less often, but still sticking with their favourite brands.
The London Olympics and the Queen’s Diamond Jubilee failed to stimulate soft drinks sales as much as had been hoped and the anticipated sunny summer did not materialise once again. The deluge, in fact, was held responsible for much of the soft drinks industry’s volume losses over the year.
Every category saw volume declines in 2012 except for bottled water and energy drinks. Carbonates, dilutables, fruit juice and still drinks all lost ground. The proportion of the market represented by no added sugar drinks remained
at 61 per cent, so overall calorie intake declined once more.
Although consumer confi dence remained low, the weather was poor and pressure on prices was intense, soft drinks remained fundamental, both at home and out-of-home. Price, innovation and high-profi le promotional activities continued to be the key market drivers in what was undoubtedly a very diffi cult year for the market.
Defi nition: Soft drinks
Carbonated drinks, still and dilutable drinks, fruit
juices, smoothies and bottled waters. Sports
and energy drinks are included within their
relevant sectors, namely still and carbonated
drinks respectively.
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK soft drinks, low
calorie & no added sugar vs regular,
2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK soft drinks sectors, 2012
Low calorie & no added sugar 61%Regular 39%
Carbonates 45%
Dilutables 22%
Bottled water 15%
Fruit juice 8%
Still & juice drinks 10%
BSD
A 2013 REFRESHING THE NATION
4
Source: Zenith International Source: Zenith International
Source: Zenith International
99%
0
50
100
150
200
childrenwomenmenall consumers
0
20
40
60
80
100
no added sugar added sugar drinks
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
obeseoverweightnormal weightunderweightall consumers
100
59%55% 60%
40%41%46%50%45%
54%50%
145
103
82 90
10077
97
151
99%
0
50
100
150
200
childrenwomenmenall consumers
0
20
40
60
80
100
no added sugar added sugar drinks
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
obeseoverweightnormal weightunderweightall consumers
100
59%55% 60%
40%41%46%50%45%
54%50%
145
103
82 90
10077
97
151
99%
0
50
100
150
200
childrenwomenmenall consumers
0
20
40
60
80
100
no added sugar added sugar drinks
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
obeseoverweightnormal weightunderweightall consumers
100
59%55% 60%
40%41%46%50%45%
54%50%
145
103
82 90
10077
97
151
99%
0
50
100
150
200
childrenwomenmenall consumers
0
20
40
60
80
100
no added sugar added sugar drinks
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
obeseoverweightnormal weightunderweightall consumers
100
59%55% 60%
40%41%46%50%45%
54%50%
145
103
82 90
10077
97
151
Soft drinks consumers, 2012Likelihood of choosing soft drinks, indexed against all consumers
Added sugar vs no added sugar drinks, 2012
Soft drinks consumers, by BMI, 2012
Likelihood of choosing soft drinks, indexed against all consumers
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK soft drinks, packaging, 2012
WHO DRINKS SOFT DRINKS?
Carton 10%
Glass / other 6%Dispense 5%
Can 12%
Plastic / PET 67%
The soft drinks market includes a wide range of different drinks,
which means that there is something to be enjoyed by
just about everybody. They are particularly enjoyed by children.
Underweight and normal weight people are more likely to choose soft drinks than are overweight and obese people, who tend to get more of their drinks in the
form of tea, coffee and alcoholic drinks. Note also that, when they do choose a soft drink, overweight and obese people are more likely to opt for a no added sugar drink
rather than the regular option.
5
Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
Source: Kantar Worldpanel
Source: Kantar Worldpanel
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 2210 2090 1970 2010 2025 2070 2135% change +3.2 -5.4 -5.6 +1.9 +0.7 +2.2 +3.3Litres per person 36.5 34.3 32.2 32.6 32.6 33.1 34.0% of all soft drinks 15.9 15.2 14.5 14.4 13.9 14.2 15.0Value, £ million 1530 1430 1360 1400 1420 1490 1610% change +4.1 -6.4 -5.0 +3.1 +1.1 +5.0 +8.0Value per litre, £ 0.69 0.69 0.69 0.70 0.70 0.72 0.75
UK soft drinks consumption, 2006 - 2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
STATISTICS
BOTTLED WATERFollowing on from the momentum of the last two years, in 2012 the UK bottled water market continued to recover, growing by 3.3% in volume, compared to 2011. Sales reached 2,135 million litres. Pricing remained under pressure, as both raw material and distribution costs have increased.
A late summer heat wave, the Diamond Jubilee, the Olympics and signifi cant brand activation helped spur growth.
Consumption of water in smaller retail pack sizes (of 10 litres and below) increased by
4.7% to 1,870 million litres – as opposed to water coolers in offi ces, which witnessed a 5.7% decline.
Promotional activity is still key to driving sales across take home outlets and on-the-go retail, helped further by innovation in pack formats. Sales in the on-trade channel saw a slight recovery in 2012.
Despite the ongoing challenges, with per person consumption of bottled water in the UK at 34 litres still far below the West European average of 119 litres, manufacturers are looking forward to continued growth for bottled water in the UK.
Defi nition: 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.
UK bottled water categories, 2012
UK bottled water,types, 2012
Still bottled 73%
Sparkling bottled 14%
Still water cooler 12%
Natural mineral water 62%
Spring water 31%
Bottled drinking water 8%
BSD
A 2013 REFRESHING THE NATION
6
Source: Zenith International
Percentages may not add up to 100 because of rounding to whole numbers.
Source: Zenith International
Source: Zenith International
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
65%
100
0
30
60
90
120
150
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
100
10090
123
130
96107
96
74
65%
100
0
30
60
90
120
150
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
30
60
90
120
150
obeseoverweightnormal weightunderweightall consumers
100
10090
123
130
96107
96
74
Nearly two-thirds of households drink bottled water, and women
are somewhat more likely to drink bottled water than men.
Bottled water consumers, 2012Likelihood of choosing bottled water, indexed against all consumers
UK bottled water,
packaging, 2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK bottled water, origins,
2012
Plastic 95%
Glass / other 5%
UK produced 73%
France 15%
Others 12%
WHO DRINKS BOTTLED WATER?
7
Source: Zenith International Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 5815 5750 5857 6040 6330 6600 6440% change -2.4 -1.1 +1.9 +3.1 +4.8 +4.2 -2.4Litres per person 96.1 94.4 95.6 98.0 102.0 105.7 102.6% of all soft drinks 41.9 41.8 43.0 43.4 43.7 45.2 45.2Value, £ million 6687 6785 7028 7428 7913 8412 8707% change -0.6 +1.5 +3.6 +5.7 +6.5 +6.3 +3.5Value per litre, £ 1.15 1.18 1.20 1.23 1.25 1.28 1.35
UK carbonates consumption, 2006 - 2012
STATISTICS
CARBONATESCarbonates remained the largest soft drinks sector in 2012 with 45% market share. However, carbonates declined in volume from 6,600 million litres in 2011 to 6,440 million litres in 2012, a fall of 2.4%. This meant that per capita consumption fell from 105.7 litres per person to 102.6 litres per person. Nevertheless, carbonates value grew in 2012 by 3.5% to reach £8,705 million.
Falling volume refl ects the continued diffi cult economic environment with cost conscious customers restricting their discretionary
purchases. In addition, many companies increased prices in 2012. This was to meet rising raw material costs and explains the rise in value for carbonates in the year.
Within fl avours, fruit grew its share most to 17% of carbonates. This is due to the relative success of Adult Soft Drinks (ASDs) which are classed within fruit carbonates. The growth in popularity of ASDs may also explain an increase in glass packaging’s share within carbonates in 2012. Larger pack sizes also grew in 2012 which may suggest that shoppers are choosing to entertain at home rather than go out to pubs/bars.
In 2012, there was some increase in low calorie variants reaching 39% of carbonates in 2012,
up from 38% in 2011. Consumer awareness of the role that reduced and zero calorie carbonates can play continued to grow. The soft drinks industry is seeking to increase this awareness with a number of leading companies committing to promote their diet carbonates still further.
Defi nition: 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.
UK carbonates, regular vs no
added sugar, 2012
UK carbonates fl avours, 2012
Cola 54%
Fruit 17%
Lemonade 12%
Energy 7%
Other 10%
Regular 61%No added sugar 39%
BSD
A 2013 REFRESHING THE NATION
8
Source: Zenith International Source: Zenith International
Source: Zenith International
WHO DRINKS CARBONATES?
91%
100
0
20
40
60
80
100
120
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
20
40
60
80
100
120
obeseoverweightnormal weightunderweightall consumers
100
100 104 98
11097
85
119
97
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
PET 58%
Can 27%
Dispense 10%
Glass 5%
UK carbonates, packaging, 2012
Carbonated drinks are the mostly widely consumed category of soft drink: 91 per cent of households
enjoy them.
What is more, they are enjoyed by the whole family – men, women and
children, too.
91%
100
0
20
40
60
80
100
120
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
20
40
60
80
100
120
obeseoverweightnormal weightunderweightall consumers
100
100 104 98
11097
85
119
97
Carbonates consumers, 2012Likelihood of choosing carbonated drinks, indexed against all consumers
9
Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 3350 3350 3250 3350 3500 3300 3175% change +8.1 - -3.0 +3.1 +4.5 -5.7 -3.7Litres per person 55.3 55.0 53.0 54.3 56.4 52.9 50.6% of all soft drinks 24.1 24.3 23.8 24.1 24.0 22.6 22.3Value, £ million 805 805 795 850 910 945 965% change +3.9 - -1.2 +6.9 +7.1 +3.7 +2.0Value per litre, £ 0.24 0.24 0.24 0.25 0.26 0.29 0.30
UK dilutables consumption, 2006 - 2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
STATISTICS
DILUTABLES
UK dilutables,
low calorie & no added sugar vs
regular, 2012
UK dilutables fl avours, 2012
Dilutables suppliers can take some consolation from the fact that sector volume declined less sharply in 2012 than in 2011. Consumption dropped by 3.7%, to 3,175 million litres at ready-to-drink volumes, whilst value sales rose by 2%, to £965 million. Value growth was due almost entirely to price infl ation. Whilst sector growth may have faltered for the second year in succession, dilutables give ground only to carbonates in terms of litres drunk; particularly popular with children, they remain a staple of the UK soft drinks market.
Low-sugar and no-added-sugar lines increased their sector share in 2012 and now represent 72% of volumes. Reduced calorie products have greatly increased the range of consumer choice within the category, as have premium high-juice
lines, which now take 4% of volume sales. However, the high juice range was affected by the price increase and lost its volume share in 2012.
Blended fl avours grew their share in 2012, to take 53% of the sector, followed by orange, with 30%. Blackcurrant cordials, on the other hand, lost ground.
With their relatively low unit cost, dilutables offer affordability, a factor which became increasingly crucial in 2012 as pressure on household budgets tightened. ‘Adult’ cordials have made signifi cant headway and have helped broaden the sector’s consumer base.
Dilutables are an at-home drink. The nature of the product has meant that the sector has been unable to capitalise on growth in the ‘on-the-
go’ trade, with the gap being fi lled by juice drinks. Unlike carbonates and bottled water, dilutables are not available in the on premise channel where high prices offer better margins. As a result, the sector leans strongly on multiple retail, where pricing is at its keenest, discounting widespread and margins tight.
Defi nition: Dilutables
Squashes, cordials, powders and other concentrates
for dilution to taste by consumers, adding 4 parts
water to 1 part product (or 9 parts water to 1 part
product for double concentrate); high juice (minimum
40% fruit content as sold); regular including
squashes and cordials; 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).
Low sugar & no added sugar 72%
Regular 24%
High juice 4%
Blends 53%
Orange 30%
Blackcurrant 7%
Lemon 5%
Lime 2%Others 3%
Source: Zenith International Source: Zenith International
Source: Zenith International
BSD
A 2013 REFRESHING THE NATION
10
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK dilutables, packaging, 2012
WHO DRINKS DILUTABLES?
81%
0
50
100
150
200
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
100
71 79
170
105
68 73
198
Dilutables are a popular family favourite – they are to be found
in more than four households out of fi ve – and are heavily focused
on children.
Plastic up to 1 litre 59%Plastic over 1 litre 38%
Others 3%
Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
81%
0
50
100
150
200
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
100
71 79
170
105
68 73
198
Dilutables consumers, 2012Likelihood of choosing dilutable drinks, indexed against all consumers
11
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 1210 1230 1190 1145 1180 1160 1105% change +8.0 +1.7 -3.3 -3.8 +3.1 -1.7 -4.9Litres per person 20.0 20.2 19.4 18.6 19.0 18.6 17.6% of all soft drinks 8.7 8.9 8.7 8.2 8.1 7.9 7.7Value, £ million 1820 1830 1760 1670 1760 1835 1860% change +8.7 +0.5 -3.8 -5.1 +5.4 +4.2 +1.5Value per litre, £ 1.50 1.49 1.48 1.46 1.49 1.58 1.69
UK fruit juice consumption, 2006 - 2012
Year 2006 2007 2008 2009 2010 2011 2012Million litres 55 80 65 45 50 55 55% change +57.1 +43.6 -19.0 -26.6 +8.5 +11.0 -6.4Litres per person 0.9 1.3 1.0 0.8 0.8 0.9 0.8% of all soft drinks 0.4 0.6 0.5 0.3 0.3 0.4 0.4
UK smoothies consumption, 2006 - 2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
STATISTICS
FRUIT JUICE AND SMOOTHIES
UK ambient vs chilled fruit juice,
2012
UK fruit juice fl avours, 2012
Consumption of fruit juice (including smoothies) fell by 4.9% in 2012, to 1,105 million litres. Sector value rose by 1.5%, to £1,860 million, driven primarily by price infl ation. Per capita consumption dropped back a little, to 17.6 litres.
Global commodity prices of both fruit and fruit concentrate rose sharply in 2011; this worked through to retail prices during 2012, even though commodity prices started to reduce. Increasing prices and tough economic times meant consumers bought less often and less-per-trip. However when they did buy, they were
more likely to buy better quality – chilled juice gained share over ambient, driven by Not-From-Concentrate juice (NFC), which accounted for a third of the UK market by the end of the year. NFC has been driven forward by some heavy marketing investment and aggressive promotional activities.
Single-serve fruit juices have proved popular, particularly as part of a lunchtime ‘meal deal’. More juice consumption is taking place out-of-home and single-serve formats have continuing potential.
Smoothies struggled – volumes were down 6.4% on 2011, to less than 55 million litres. Their premium pricing appears to have driven consumers to other formats, despite attempts by manufacturers to make smoothies more affordable.
Fruit juice has a healthy, natural image – a glass of fruit juice can count as one of the daily fi ve recommended portions of fruit and vegetables – but consumers need to understand that the sugars it contains are natural and come from the fruit that the juice is made from.
Ambient 44%
Orange 54%
Apple 14%
Blends 15%
Pineapple 5%
Grapefruit 2% Others 10%
Chilled not from concentrate 33%
Chilled from concentrate 17%
Chilled smoothies 5%
Chilled freshly squeezed 1%
Defi nition: 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 pasteurised; shelf life of up to 18 months.
Source: Zenith International Source: Zenith International
Source: Zenith International
BSD
A 2013 REFRESHING THE NATION
12
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK fruit juice, packaging, 2012
Carton 75%
Plastic 18%
Glass / other 7%
WHO DRINKS FRUIT JUICE?
85%
0
50
100
150
200
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
10077
90
161
112
80 76
166
Source: Zenith International
Source: Kantar Worldpanel
Fruit juice is consumed in 85 per cent of households, and particularly by children. Women are more likely
to drink fruit juice than men are.
85%
0
50
100
150
200
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
10077
90
161
112
80 76
166
Fruit juice consumers, 2012Likelihood of choosing fruit juice, indexed against all consumers
Source: Kantar Worldpanel
13
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
Juice drinks 60%
High juice drinks 12%
Still fl avoured water 15%
Sports 11%
Others 2%
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 1310 1350 1360 1370 1450 1470 1380% change +10.1 +3.1 +0.7 +0.7 +5.8 +1.2 -6.0Litres per person 21.6 22.2 22.2 22.2 23.4 23.5 22.0% of all soft drinks 9.4 9.8 10.0 9.8 9.9 10.1 9.7Value, £ million 1595 1650 1660 1660 1770 1795 1820% change +10.8 +3.4 +0.6 - +6.6 +1.5 +1.2Value per litre, £ 1.22 1.22 1.22 1.21 1.22 1.22 1.32
UK still and juice drinks consumption, 2006 - 2012
STILL AND JUICE DRINKS
STATISTICS
UK still and juice drink categories,
2012
Still and juice drinks saw a fall in volume from 1470 million litres in 2011 to 1380 million litres in 2012, a decline of 6%. This equates to per capita consumption of 22 litres.
This is a very diverse category with a range of products appealing to adults and children. However, poor summer weather in 2012 was an obstacle for this category as was the continuing diffi cult economic situation in the UK.
Nevertheless, the value of the category rose by 1.2% to £1,820 million. This was due to price rises offsetting rising raw material costs, (e.g. the cost of some fruit juices has soared).
Low calorie took a 42% share of this category in 2012, up from 40% in 2011. The increase in low calorie’s share suggests consumers concerned about sugar intake for themselves and their children are moving to lower calorie offerings.
Within the category, still fl avoured water grew to a 15% share in 2012. It had been only 13% in 2011 and made still fl avoured water the most dynamic segment of this category in 2012. Among the smaller segments, iced tea also continued to grow well. Innovation continued to play an important role in this category.
Defi nition: Still and juice drinks
High juice drinks (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.
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
Regular 58%Low calorie & no added sugar 42%
UK still & juice drinks, low
calorie & no added sugar vs regular,
2012
Source: Zenith International Source: Zenith International
Source: Zenith International
BSD
A 2013 REFRESHING THE NATION
14
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
Carton 48%
Plastic 33%
Glass / other 19%
UK still and juice drink, packaging,
2012
WHO DRINKS STILL AND JUICE DRINKS?
74%
0
50
100
150
200
250
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
100
61 71
167
11189
67
234
74%
0
50
100
150
200
250
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
obeseoverweightnormal weightunderweightall consumers
100
100
61 71
167
11189
67
234
Still and juice drinks are particularly geared towards the children’s
market, but there are drinks in the range for adults too.
Still and juice drinks consumers, 2012Likelihood of choosing still and juice drinks, indexed against all consumers
Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
15
Year 2006 2007 2008 2009 2010 2011 2012
Million litres 345 395 440 470 530 600 630% change +13.1 +14.5 +11.9 +6.6 +12.5 +13.2 +5.2Litres per person 5.7 6.5 7.2 7.6 8.5 9.6 10.1% of all soft drinks 2.5 2.9 3.2 3.4 3.6 4.1 4.4
Sports drinks, million litres 110 125 135 140 160 165 155% change +15.8 +13.6 +8.0 +5.3 +12.5 +4.6 -6.4Litres per person 1.8 2.1 2.2 2.3 2.6 2.7 2.5% of all soft drinks 0.8 0.9 1.0 1.0 1.1 1.1 1.1
Energy drinks, million litres 235 270 305 330 370 435 475% change +11.9 +14.9 +13.7 +7.2 +12.5 +17.0 +9.7Litres per person 3.9 4.4 5.0 5.3 6.0 6.9 7.6% of all soft drinks 1.7 2.0 2.3 2.4 2.5 3.0 3.3
UK sports and energy drinks consumption, 2006 - 2012
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
SPORTS AND ENERGY DRINKS
STATISTICS
Defi nition: 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.
UK sports and energy drinks, 2012
UK sports drink types, 2012
The combined category of sports and energy drinks continued to grow in 2012. The total of sports and energy drinks volume went from 600 million litres in 2011 to 630 million litres in 2012, an increase of 5.2%. Total sports and energy drinks value was at £1,665 million, an increase of 10.2% on 2011.
Sports drinks saw a decline in volumes from 165 million litres in 2011 to 155 million litres in 2012 as cost conscious consumers reduced
their spending. Consumption equates to 2.5 litres per person and a total value of £265 million, down 1.4% on 2011. Despite the major sporting events such as the 2012 Olympics and Euro 2012, sports drinks did not see as much boost as perhaps had been originally anticipated. The bad weather over summer probably did not help.
Energy drinks fared much better and grew from 435 million litres in 2011 to 475 million litres in 2012, an increase of 9.7%. This represents
per capita consumption of 7.6 litres and a total value of £1,400 million, an increase of 12.8% on 2011. Nonetheless price competition in an increasingly crowded segment is a challenge for producers. The leading brands are meeting this challenge with product innovations introducing new fl avours to get more consumers to try the brands.
Sports 25%Energy 75%
Isotonic 94%
Hypotonic 6%
BSD
A 2013 REFRESHING THE NATION
16
Source: Zenith International Source: Zenith International
Source: Zenith International
e
d
c
b
a
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
0.8
1.0
1.2
0100200300400500600700
UK energy drink types, 2012
Glucose 42%
Stimulant 58%
WHO DRINKS SPORTS AND ENERGY DRINKS?
42%
0
30
60
90
120
150
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
250
300
obeseoverweightnormal weightunderweightall consumers
100
100
71
150
50
300
100
50 50
42%
0
30
60
90
120
150
childrenwomenmenall consumers
0.0
0.2
0.4
0.6
0.8
1.0
0
50
100
150
200
250
300
obeseoverweightnormal weightunderweightall consumers
100
100
71
150
50
300
100
50 50
Sports and energy drinks consumers, 2012Likelihood of choosing sports and energy drinks, indexed against all consumers
Men score three times higher than women when it comes to
choosing sports and energy drinks. The children’s consumption is all
accounted for by teenagers.
17
Source: Zenith International
Source: Kantar Worldpanel
Source: Kantar Worldpanel
BSD
A 2013 REFRESHING THE NATION
18
ABOUT THE SOFT DRINKS INDUSTRY
The soft drinks industry is a major employer with thousands of people working for the industry and its suppliers throughout the UK. We support efforts to encourage consumers to lead healthier lifestyles with a balanced diet – the majority of the drinks on the UK market contain no added sugar.The industry is committed to reducing its environmental impact, preserving natural resources and promoting sustainability.
SOFT DRINKS AND UK MANUFACTURING
SOFT DRINKS AND THE ENVIRONMENT
SOFT DRINKS AND HEALTH
There are about 12,000 people employed in the soft drinks industry as a whole, with another 50,000 jobs among suppliers and others reliant on the sector1
Dominated by domestic products: more than 80 per cent of the UK market is home-produced2
The soft drinks industry funds apprentices and undergraduates studying food science through the British Soft Drinks Industry Foundation
1 BSDA member companies’ data
2 A C Nielsen, Zenith International
A plastic bottle now contains 30 per cent less plastic than it did 20 years ago, and a typical can 25 per cent less metal3
100 per cent of soft drinks packaging is recyclable
The amount of soft drinks packaging recycled today is more than 7 times as much as 10 years ago4
Many bottles and cans now contain 25-50 per cent recycled content5
3 Data from industry estimates
4 RECOUP, Defra, Zenith International/BSDA UK soft drinks report
5 Data from industry estimates
More than 60 per cent of soft drinks now contain no added sugar up from 30 per cent 20 years ago6
In the last 10 years, the consumption of soft drinks containing added sugar has fallen by 9 per cent while the incidence of obesity has increased by 15 per cent7
Soft drinks containing added sugar contribute just 2 per cent of calories to the average diet8
Companies supporting the Responsibility Deal calorie reduction pledge have market share of 60 per cent9 6 Zenith International
7 Zenith International, Offi ce of National Statistics
8 National Diet and Nutrition Survey
9 A C Nielsen, Department of Health
ABOUT BSDA
19
For more information about BSDA and its activities contact
British Soft Drinks Association
20-22 Bedford RowLondonWC1R 4EB
Telephone: +44 (0) 20 7405 0300Fax: +44 (0) 20 7831 6014Email: [email protected]: www.britishsoftdrinks.com
• 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
• 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
• Access to and representation by our European associations: UNESDA, AIJN and EFBW
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:
THE BRITISH SOFT DRINKS ASSOCIATION FOR:-
• MEDIA & PUBLIC AFFAIRS • REGULATORY ISSUES • SUSTAINABILITY • EDUCATION & SKILLS •
British Soft Drinks Association
20-22 Bedford Row
London
WC1R 4EB
Telephone: +44 (0) 20 7405 0300
Fax: +44 (0) 20 7831 6014
Email: [email protected]
Website: www.britishsoftdrinks.com
