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UK Soft Drinks Review 2013

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Britvic's annual review if the marketplace for 2013
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Page 1: UK Soft Drinks Review 2013

soft drinks review 2013

Page 2: UK Soft Drinks Review 2013

The 2013 Britvic Soft Drinks Review provides an overview of how the UK soft drinks market performed during the past year, reporting on 2012 sales for the grocery, convenience and impulse, and pubs and clubs markets.

The review is based on independent data and insight from UK soft drinks experts. The grocery, convenience and impulse data was supplied by Nielsen. The pubs and clubs data, which includes data on hotels, restaurants and leisure channels, was supplied by CGA. Finally, Mintel provided commentary on trends and product innovation as well as key UK consumer attitudes in 2012.

soft drink review 2013 overview 1

grocery, convenience and impulseoverview 3

pubs and clubsoverview 8

dataoverview data 12grocery, convenience and impulse 13pubs and clubs data 16

glossary 18

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Despite these challenges, value sales in both the grocery, convenience and impulse channel and pubs and clubs channel rose in 2012. Indeed the value of soft drinks in the grocery, convenience and impulse channel was double that of chocolate, proving that soft drinks remained a central feature of many consumers’ shopping lists.

Value sales for the 2012 grocery, convenience and impulse market grew 2.8% to £7.21 billion, with volume sales down 0.8% to 6.97 billion litres. The pubs and clubs channel had value growth of 1.5% to £2.73 billion, with volume sales down 3% to 509 million litres.

Although UK shoppers continued to be cautious, the grocery, convenience and impulse channel, in which soft drinks are heavily discounted, benefited as consumers opted to make stay-at-home occasions more special, with affordable brand indulgences winning out over own-label brands.

However, not all of the challenges facing the soft drinks industry in 2012 were driven by the economy. There was an increased focus on the impact that soft drink consumption had on the nation’s health from the government, NGOs and the media. The government continued to pursue its voluntary partnership approach through the Responsibility Deal, but a number of charities were more vociferous in calling for a regulatory response.

Although soft drinks contribute just 2% of the total calories in a typical diet, the industry was quick to respond. PepsiCo and CCE were amongst the first soft drinks companies to sign up to the government’s Calorie Reduction Pledge. More recently, a number of other leading UK companies, including Britvic, AG Barr and GlaxoSmithKline, have pledged their support.

Additionally, the industry faced another poor summer, with widespread flooding and cool weather throughout June, July and August. While the key 2012 events, including the London Olympic Games, did not lead to the uplift in soft drinks sales that some people had predicted, soft drinks companies continued to compete and hold their own against the Games sponsors, Coca-Cola.

At a supplier level, the big news of the year was the proposed merger of Britvic plc and AG Barr plc. The potential deal was officially confirmed in September, following media speculation, with the terms of the deal announced in November. Despite both companies gaining shareholder approval, the deal has since been referred to the Competition Commission, and both companies continue to pursue clearance.

The soft drinks market demonstrated ongoing resilience in 2012. The tough economic environment, another poor summer and consumers’ tight control on their spending, were just some of the issues that faced manufacturers and retailers.

soft drink review 2013

overview

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soft drinks review 2013

grocery, convenience and impulse

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Page 5: UK Soft Drinks Review 2013

Consumers remained cautious and demonstrated a desire for low entry price points, as they tried to stick to fixed budgets when shopping. However, the ‘big night in’ theme, prevalent in previous years, continued, with some consumers favouring premium products as a means of recreating the experiences of pubs and clubs in their own home.

This ‘big night in’ theme also stimulated product and promotional innovation. In fact, new product launches (which included flavour, packaging and special editions) into the UK soft drinks market were as high in 2012 as they had been for the past four years, at 795, underscoring the competitive nature of the market.

Suppliers

With 2012 value sales of just under £2 billion in this channel, CCE remained the UK’s largest soft drinks supplier, with a market share of 27.6%. Britvic was the second-largest branded operator in the grocery, convenience and impulse market, with an 11.3% share of value sales in 2012. GlaxoSmithKline was the third-largest soft drinks supplier with growth of 1.6% in 2012 to reach £537 million.

Danone continued to dominate the bottled water market through its Volvic and Evian brands, rising by 5.1% in value. From smaller bases, AG Barr and Nestlé Waters achieved strong growth rates last year, as did innocent, as a result of its diversification into the pure juice category.

Although private-label continued to play a significant role, with grocers’ own-label brands accounting for 21.3% of value sales and 33.1% of volume sales, it did not see the value growth which branded soft drinks experienced.

The grocery, convenience and impulse channel generated value sales of £7.21 billion and volume sales of 6.97 billion litres in 2012 (52 weeks ending 29.12.12). Value sales in the category grew 2.8%, while volume declined 0.8% from the previous year. This was a steady performance and considerably better than the declines seen in many other FMCG categories during 2012.

grocery, convenience and impulse

overview

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Page 6: UK Soft Drinks Review 2013

Brands

With sales of £1.15 billion (up 0.8%), Coca-Cola was the leading brand in the market; however, volume fell by 3.3%. Coca-Cola continued to invest the most in advertising and marketing in the soft drinks market, particularly with its sponsorship of the London 2012 Olympics, although this did not lead to the sales uplift which was expected. Pepsi enjoyed a particularly strong performance in the UK last year with value and volume sales increases of 7.4% and 10% respectively, driven by a highly effective marketing and promotional strategy.

Lucozade and Red Bull’s strong performances in 2012 reflected consumer interest in functional drinks and the strength of the overall sub category.

Grocery multiples

In 2012, grocery multiples accounted for three quarters of soft drink value sales and 84% of total grocery, convenience and impulse volume sales, benefitting from consumers eating and entertaining at home rather than going out. Tapping into the consumer desire for better price points, grocery multiples leveraged fewer volume-driven promotions such as multibuys, and more actively engaged in direct price cuts.

Out-of-town venues continued to account for the largest share of soft drink grocery, convenience and impulse sales and held a 45% share in 2012, while value sales increased by 2%. However, a 1.2% slip in volume, maybe as a result of fewer shoppers visiting out-of-town supermarkets. In fact visits were down 2.1% between 2008 and 2012, while visits to high street and town centre supermarkets were up 5.9% in the same period*. Wider cost concerns such as the rising cost of petrol also led people to reassess where they did their shopping.

Online remained a significant part of the soft drinks market in the UK, with some major grocery retailers positioning online shopping as the savvy and cost-effective option. Mintel measured the online grocery business as growing at 17% in 2011 and 19% in 2012.

Convenience and impulse

Convenience venues accounted for 35% of value sales and 25% of volume sales of soft drinks in 2012. The performance of the channel in 2012 followed a similar pattern to that of the grocery multiples. Value sales grew 1.6%, while volume declined by 1.9%, reflecting changes in shopping habits which revolved around budgeting and trying to minimise top-up and impulse-oriented shopping visits. Glucose/stimulant drinks outsold colas in the impulse channel in value terms, benefiting from their ability to provide consumers with a spontaneous energy boost.

grocery, convenience and impulse overview

4 *GB TGI, Kantar Media UK Ltd Q3 2008-12 (April-March)/Mintel

Page 7: UK Soft Drinks Review 2013

grocery, convenience and impulse

overview

£7.21bngrocery, convenience and impulse value sales

5

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sub-category performanceThe top three

With sales of over £1.6 billion, colas maintained their status as the UK’s favourite soft drink category in 2012, accounting for 22% of total grocery, convenience and impulse soft drink sales. Value sales increased marginally, while volumes slipped (-0.4%) to 1.7 billion litres. Continuing the performance seen in 2011, Pepsi, led by Pepsi MAX, again outperformed its nearest competitor in terms of growth in 2012.

With value sales of £1.2 billion, pure juice remained the soft drink market’s second-largest sub-category, and saw value growth of 1%, while volume fell 5.8% in 2012. The sub-category has been particularly hard hit by raw material increases and the impulse channel was pure juice’s Achilles heel, where juice has continued to struggle, with value and volume slipping further in 2012.

The glucose/stimulant sub-category experienced another strong year of growth in 2012, with value and volume sales rising by nearly 10% to £860 million and 396 million litres respectively. Energy drinks in particular benefited from growing consumer interest in products which perform a specific function, such as providing an energy boost or boosting endurance when exercising. Consumers at impulse saw greater value in glucose/stimulant drinks over colas, despite higher prices, because of the immediate energy boost. As a result, grocery, convenience and impulse outlets dedicated an increasing amount of space in their stores to energy drinks.

Ones to watch

Water plus’ growth outpaced that of plain water during the past year, with brands tapping into consumer demand for healthy soft drinks which also offer interesting and enjoyable flavours. While the sub-category remained relatively small, accounting for just 3% of value sales in the grocery, convenience and impulse soft drinks channel, it achieved a 7.4% growth in value sales in 2012, reaching £199 million, and a 7.7% increase in volume sales to 267 million litres. Water plus performed strongly in both the grocery multiples and impulse channels, achieving value and volume sales growth in both in 2012.

Cold hot drinks was still a relatively small sub-category in the UK, accounting for less than 1% of total value and volume sales. However, the fact that value rose 42% in 2012 and was supported by volume growth of 22% bodes well for the coming years.

Squashes remained a popular part of the soft drinks landscape, experiencing a 1.8% value growth.

grocery, convenience and impulse sub-categories

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soft drinks review 2013

pubs and clubs

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There was optimism that 2012 would be a successful year for pubs, with high-profile events such as the London Olympics and the Queen’s Diamond Jubilee encouraging consumers to drink out of home more often. While some pub operators did report a positive performance, the reality for most was that the golden summer did not materialise. Soft drinks, however, experienced a steady value growth of 1.5% within pubs and clubs, reversing the 2011 value decline and maintaining its position as the third largest category after beer and spirits, worth £2.73billion. Growth was attributed to the on-going popularity of cola and positive performances of the glucose stimulant, flavoured carbonates and juice drinks sub-categories.

There were also signs that consumers changed their drinking out experiences, with a shift towards visiting more affordable late-night circuit bars instead of nightclubs. Meanwhile, pub closures continued to slow down in 2012, averaging around 15 per week over the course of the year, but still left the market considerably smaller than prior to the recession.

Managed pubs accounted for the highest share of pubs’ and clubs’ soft drink value (45%) and volume (42%) sales. Value sales outperformed the overall market and grew 3.3% in 2012 whilst volume fell 3.5%. With pub closures slowing down and leased/tenanted operators often becoming more rigorous with their demands of landlords, non-managed pubs reversed the downward trend of 2011 and achieved growth in 2012.

Draught soft drink sales remained higher than packaged in 2012, accounting for a 54% share of pubs’ and clubs’ value sales and 59% of volume sales. However, overall draught sales slipped while packaged value sales grew 3.6% last year, buoyed by the success of energy and juice drinks in particular.

Economic conditions continued to affect soft drinks in the on-trade as stagnating wages and rising household outgoings put increasing pressure on discretionary spending.

pubs and clubs

overview

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Page 11: UK Soft Drinks Review 2013

Suppliers

In a tougher market environment than grocery, convenience and impulse, suppliers looked to maintain volume as best they could while looking to add value through more premium offerings.

Britvic remained a leading supplier with a 45% share of both value and volume pubs and clubs soft drink sales. Britvic’s value sales increased last year to £1.2 billion, while volume dipped, but still outperformed the channel’s volume performance, which declined 3%.

CCE, which accounted for 35% of pubs and clubs value and volume sales last year, increased its value sales 4.5% (to £958 million) and saw volume up by 0.5% to 179 million litres.

Collectively, the other pubs and clubs suppliers saw value sales decrease 1.6% to £547.5 million and volume decrease almost 10%, dipping to just under 100 million litres in the process. Red Bull defied this trend, with strong value and volume growth of its eponymous energy drink brand.

Brands

Pepsi remained one of the front-runner pubs and clubs brands for both value and volume in 2012. With an 8% value increase to £336 million and 1.3% volume growth, it saw stronger growth in the last year than its closest rival cola brand. Coca-Cola saw value growth of 6.8% (to £301 million), while volume slipped 3%.

While lemonades struggled in the grocery, convenience and impulse market, their fortunes were notably more positive in the pubs and clubs market in 2012. R Whites performance in 2012 remained stable, although its value growth was outperformed by Schweppes.

Hotels and Restaurants

Despite an increase in outlet numbers in and around London in recent years to accommo-date the increasing tourist presence for the 2012 London Olympics, soft drinks were not the big winners in this channel. Indeed, soft drink distribution in hotels only increased 0.1% in 2012. Volume sales were broadly static but value was up 5%, driven by the two largest pubs and clubs categories, cola and lemonade.

pubs and clubs overview

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pubs and clubs

overview

£2.73bnpubs and clubs value sales

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sub-category performanceThe top three

Reflecting the fact that the top four pubs and clubs brands are colas, this sub-category accounted for the greatest share of value and volume sales, at 40% and 47%, respectively. Value sales rose 3.2% in 2012 to just under £1.1 billion, driven by the strong performance of Pepsi and Coca-Cola and their diet equivalents. Pepsi was able to extend its strong position in the sub-segment.

Despite its struggles in the grocery, convenience and impulse market, lemonade performed strongly in pubs and clubs. It remained the second-largest sub-category last year, with value and volume sales of £390 million and 91.4 million litres, respectively. Annual growth rates mirrored those of the cola segment with strong value growth, in this case 6.2%, but a 3% fall in volume. R Whites and Schweppes both increased in value and smaller brands also saw encouraging growth from smaller starting points.

With value sales of £250 million and volume sales of 31.6 million litres, fruit juice was the third-largest pubs and clubs sub-category in 2012. However, value and volume slumped, down 14% and 17% respectively, as the majority of brands struggled in the face of competition from other soft drinks such as juice drinks. Nevertheless, there were some positive signs last year, with Britvic 100 seeing value sales rise 11% and Ocean Spray enjoying robust growth through managed pubs.

Ones to watch

Juice drinks was among the fastest-growing sub-categories last year, with value growth of 10.5% to £235 million. Meanwhile, volume sales grew 4.2% to 36.3 million litres, the majority of which came through managed pubs and sports/social clubs. Britvic remained a key operator in the sub-category, with a number of brands such as J2O enjoying positive growth.

Energy/sports drinks showed continued signs of rapid growth. Value sales reached £193 million in 2012, a 29% increase over 2011, with volume up 19%, underlining the dramatic growth of these drinks. With mixed drinks such as vodka and Red Bull proving popular with younger consumers in particular, the sub-category effectively forged a position of appeal during morning, daytime and evening occasions. Red Bull remained the biggest brand last year, although a number of newer brands such as Monster and Relentless boosted sales on the back of a greater on-trade presence.

With many consumers looking for soft drinks with new and interesting flavours, fruit-flavoured carbonates enjoyed robust growth in pubs and clubs in 2012, turning around their underperformance in the previous year. With value increasing by a fifth (to £102.6 million) and supported by an 11% increase in volume, the sub-category effectively tapped into consumer tastes when drinking out of home. Orange-flavoured Tango and Fanta enjoyed significant sales growth in 2012, while the 7UP brand also enjoyed volume growth for both its regular and diet variants.

pubs and clubs sub-categories

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soft drinks review 2013

data

The soft drinks market

Value£

millions%

share %

change Grocery, convenience and impulse 7,206.2 74% 2.8%Pubs and clubs 2,728.8 26% 1.5%

Volumelitres

millions%

share %

change Grocery, convenience and impulse 6,974.8 93% -0.8%Pubs and clubs 509 7% -3.0%

Source: Neilson Scantrack, MAT 29 Dec 2012 and CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29 Dec 2012

The grocery, convenience and impulse soft drinks market in context

£

millions%

change

Soft drinks 7,206.2 2.8%Chocolate 3,481.1 5.0%Snacks 2,625.4 5.6%Sugar 328.0 9.4%Yoghurt 343.2 7.3%Butter & margarine 1,265.3 -0.3%Toilet tissue 1,106.2 -0.3%Instant coffee 752.0 8.4%Tea 624.3 -1.1%

Source: Nielsen Scantrack, MAT 29 Dec 2012

The pubs and clubs soft drinks market in context

Total Brewers£

millions%

change

Beer 11,150.2 -0.4%Spirits 3,979.8 8.2%Soft drinks 2,728.8 1.5%Wine 2,216.3 4.8%Cider 1,507.6 6.7%Fabs 404.5 5.6%Champagne and sparkling wine 153.7 13.2%Fortified wine 23.1 3.7%Perry 4.2 2.3%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29 Dec 2012

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grocery, convenience and impulse

dataTotal grocery, convenience and impulse sub-category performance

Value£

millions%

share %

change Cola 1,568.0 21.8% 2.0%Cold hot drinks 34.0 0.5% 42.3%Dairy and dairy substitute 418.0 5.8% 3.9%Fruit carbonates 541.0 7.5% 1.3%Glucose stimulant drinks 860.0 11.9% 9.9%Juice drinks 582.0 8.1% 1.6%Lemonade 156.0 2.2% 1.6%Non fruit carbonates 167.0 2.3% 0.3%Plain water 507.0 7.0% 4.0%Pure juice 1,196.0 16.6% 1.0%Smoothies 160.0 2.2% -2.0%Sports drinks 174.0 2.4% -5.3%Squashes 515.0 7.1% 1.8%Traditional mixers 130.0 1.8% 4.4%Water plus 199.0 2.8% 7.4%Total soft drinks 7,206.2 100.0% 2.8%

VolumeLitres

millions%

share %

change Cola 1,698.0 24.3% -0.4%Cold hot drinks 11.0 0.2% 22.1%Dairy and dairy subsitute 193.0 2.8% 3.8%Fruit carbonates 559.0 8.0% -0.5%Glucose stimulant drinks 396.0 5.7% 9.7%Juice drinks 427.0 6.1% 0.6%Lemonade 382.0 5.5% -7.3%Non fruit carbonates 211.0 3.0% -3.4%Plain water 1,128.0 16.2% 2.3%Pure juice 921.0 13.2% -5.8%Smoothies 52.0 0.7% -9.2%Sports drinks 115.0 1.6% -7.1%Squashes 449.0 6.4% -5.0%Traditional mixers 166.0 2.4% -2.6%Water plus 267.0 3.8% 7.7%Total soft drinks 6,974.8 100.0% -0.8%

Source: Nielsen Scantrack, MAT 29 Dec 2012

Total carbs v still

Value£

millions%

share %

changeCarbonated 3,422.2 47.5% 3.7%Still 3,783.9 52.5% 2.1%

VolumeLitres

millions%

share %

change Carbonated 3,412.3 48.9% -0.5%Still 3,562.6 51.1% -1.1%

Source: Nielsen Scantrack, MAT 29 Dec 2012

The grocery, convenience and impulse channel

Value£

millions%

share %

change Grocery multiples 5,426.1 75.3% 3.3%Impulse 1,780.1 24.7% 1.6%Total coverage 7,206.2 100% 2.8%

VolumeLitres

millions%

share %

change Grocery multiples 5,874.6 84.2% -0.6%Impulse 1,100.3 15.8% -1.9%Total coverage 6,974.8 100% -0.8%

Source: Nielsen Scantrack, Retail View, MAT 29 Dec 2012

The grocery, convenience and impulse split

Value£

millions%

share %

change Out of town 3,251.2 45.1% 2.0%High street 1,456.5 20.2% 0.9%Convenience 2,507.0 34.8% 5.0%

VolumeLitres

millions%

share %

change Out of town 3,787.3 54.3% -1.2%High street 1,455.3 20.9% -3.4%Convenience 1,739.4 24.9% 2.5%

Source: Nielsen Scantrack, MAT 29 Dec 2012

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grocery, convenience and impulse

dataThe impulse channel split

Value£

millions%

share %

change Independents 429.0 24.1% -4.1%Multiple impulse 1,351.2 75.9% 3.6%Total impulse GB 1,780.1 100.0% 1.6%

VolumeLitres

millions%

share %

change Independents 266.7 24.2% -5.9%Multiple impulse 833.5 75.8% -0.5%Total impulse GB 1,100.2 100.0% -1.9%

Source: Nielsen Scantrack, MAT 29 Dec 2012

Top grocery, convenience and impulse brands

Value£

millions %

change

Private label 1,538.0 0.1%Coca-Cola (all variants) 1,153.9 0.8%Lucozade 387.3 2.7%Pepsi (all variants) 352.3 7.4%Tropicana 272.7 -10.0%Red Bull 235.8 6.7%

Robinsons squash 219.3 4.1%

innocent 213.5 36.3%Ribena 150.0 -0.6%Schweppes 137.4 4.0%

VolumeLitres

millions %

change

Private label 2,306.2 -3.6%Coca-Cola (all variants) 1,061.4 -3.3%Pepsi (all variants) 471.2 10.0%Lucozade 225.4 3.1%Robinsons squash 187.2 -2.7%Schweppes 158.4 -4.7%Tropicana 138.3 -2.7%

innocent 98.5 60.9%Ribena 75.5 -8.1%

Red Bull 48.2 7.8%

Source: Nielsen Scantrack, Total Coverage, MAT 29 Dec 2012

Total grocery, convenience and impulse top suppliers

Value£

millions %

change CCE 1,991.5 1.5%Private label 1,538.0 0.1%Britvic 812.7 -0.1%GlaxoSmithKline 537.4 1.6%Danone 342.8 5.1%PepsiCo 322.8 -4.6%Red Bull 235.8 6.7%innocent 225.7 32.4%AG Barr 209.3 7.6%Nestlé Waters 99.0 13.7%

VolumeLitres

millions %

change CCE 1,712.9 -3.1%Private label 2,306.2 -3.6%Britvic 851.7 1.3%GlaxoSmithkline 300.9 -0.1%Danone 347.2 0.3%PepsiCo 168.5 -9.3%Red Bull 48.2 7.8%innocent 104.1 53.2%AG Barr 209.9 5.2%Nestlé Waters 183.2 15.7%

Source: Nielsen Scantrack, MAT 29 Dec 2012

Deferred v immediate

Value£

millions%

share %

change Deferred 4,873.2 67.6% 2.0%Immediate 2,333.0 32.4% 4.6%

VolumeLitres

millions%

share %

change Deferred 5,866.5 84.1% -1.1%Immediate 1,108.2 15.9% 1.0%

Source: Nielsen Scantrack, MAT 29 Dec 2012

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grocery, convenience and impulse

dataGrocery multiples sub-category performance

Value£

millions%

share %

change Cola 1,132.5 20.9% 2.9%Cold hot drinks 25.3 0.5% 41.7%Dairy and dairy substitute 361.5 6.7% 4.2%Fruit carbonates 364.5 6.7% 1.9%Glucose stimulant drinks 400.8 7.4% 12.5%Juice drinks 437.8 8.1% 3.0%Lemonade 128.2 2.4% 2.8%Non fruit carbonates 110.4 2.0% 0.1%Plain water 367.1 6.8% 4.8%Smoothies 147.0 2.7% -2.7%Sports drinks 92.1 1.7% -6.4%Squashes 477.1 8.8% 2.1%*Still juice 1,118.4 20.6% 1.4%Traditional mixers 116.7 2.2% 5.3%Water plus 146.8 2.7% 8.9%Total soft drinks 5,426.1 100.0% 3.3%

VolumeLitres

millions%

share %

change Cola 1,394.5 23.7% 0.8%Cold hot drinks 7.2 0.1% 18.8%Dairy and dairy substitute 169.1 2.9% 4.5%Fruit carbonates 438.5 7.5% 0.0%Glucose stimulant drinks 220.8 3.8% 8.8%Juice drinks 361.4 6.2% 1.8%Lemonade 335.1 5.7% -7.4%Non fruit carbonates 159.8 2.7% -5.2%Plain water 982.2 16.7% 3.2%Smoothies 49.4 0.8% -10.0%Sports drinks 69.1 1.2% -11.5%Squashes 419.6 7.1% -4.7%*Still juice 880.1 15.0% -5.6%Traditional mixers 155.0 2.6% -2.5%Water plus 232.8 4.0% 8.7%Total soft drinks 5,874.6 100.0% -0.6%

Source: Nielsen Scantrack, MAT 29 Dec 2012

*Still juice = Pure juice

Impulse sub-category performance

Value£

millions%

share %

change Cola 435.1 24.4% -0.3%Cold hot drinks 9.2 0.5% 44.2%Dairy and dairy substtitute 56.4 3.2% 2.5%Fruit carbonates 176.2 9.9% -0.1%Glucose stimulant drinks 459.2 25.8% 7.7%Juice drinks 144.4 8.1% -2.5%Lemonade 28.1 1.6% -3.8%Non fruit carbonates 56.9 3.2% 0.7%Plain water 139.5 7.8% 1.8%Smoothies 12.6 0.7% 6.9%Sports drinks 82.2 4.6% -4.0%Squashes 37.6 2.1% -2.3%*Still juice 77.2 4.3% -3.5%Traditional mixers 13.7 0.8% -2.5%Water plus 51.8 2.9% 3.2%Total soft drinks 1,780.1 100.0% 1.6%

VolumeLitres

millions%

share %

change Cola 303.1 27.6% -5.7%Cold hot drinks 3.3 0.3% 30.1%Dairy and dairy substitute 23.7 2.2% -0.6%Fruit carbonates 120.5 11.0% -2.1%Glucose stimulant drinks 175.3 15.9% 10.9%Juice drinks 65.6 6.0% -5.8%Lemonade 46.7 4.3% -6.4%Non fruit carbonates 51.5 4.7% 2.7%Plain water 146.1 13.3% -3.3%Smoothies 2.8 0.3% 7.3%Sports drinks 45.5 4.1% 0.4%Squashes 29.6 2.7% -9.7%*Still juice 41.4 3.8% -9.1%Traditional mixers 11.5 1.1% -3.4%Water plus 33.8 3.1% 1.4%Total soft drinks 1,100.3 100.0% -1.9%

Source: Nielsen Scantrack, MAT 29 Dec 2012

*Still juice = Pure juice

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pubs and clubs

dataTotal pubs and clubs sub-category performance

Value£

millions%

share %

change

Cola 1,085.6 40% 3.2%Lemonade 389.7 14% 6.2%Fruit juice 250.0 9% -13.8%Squash 193.3 7% -14.5%Mixers 207.5 8% -4.6%Juice drinks 234.6 9% 10.5%Energy 192.7 7% 28.7%Flavoured carbs (excl. energy) 102.6 4% 19.5%Mineral water 72.8 3% -17.3%Total soft drinks 2,728.8 100% 1.5%

VolumeLitres

millions%

share %

change

Cola 240.8 47% -2.7%Lemonade 91.4 18% -2.5%Fruit juice 31.6 6% -17.1%Squash 12.8 3% -11.9%Mixers 25.8 5% -7.4%Juice drinks 36.3 7% 4.2%Energy 27.5 5% 18.7%Flavoured carbs (excl. energy) 25.6 5% 10.6%Mineral water 17.5 3% -20.1%Total soft drinks 509.4 100% -3.0%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29 Dec 2012

Fruit juice = Pure juice Mineral water = Water

Pubs and clubs suppliers

Value£

millions%

share %

change

Britvic 1,223.4 45% 0.7%CCE 958.0 35% 4.5%Other 547.5 20% -1.6%Total soft drinks 2,728.8 100% 1.5%

VolumeLitres

millions%

share %

change

Britvic 230.2 45% -2.5%CCE 179.3 35% 0.5%Other 99.8 20% -9.6%Total soft drinks 509.4 100% -3.0%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29 Dec 2012

Total brewers carbonated v still

Value£

millions%

share %

change

Carbonated 2,035.5 75% 5.2%Still 693.3 25% -7.9%

VolumeLitres

millions%

share %

change

Carbonated 421.0 83% -1.4%Still 88.4 17% -9.7%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52we 29 Dec 2012

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pubs and clubs

dataTop pubs and clubs brands

Value £

millions %

change

Pepsi 336.0 8.0%Coca-Cola 300.8 6.8%Diet Coke 191.6 8.0%Diet Pepsi 191.3 -2.8%R Whites 179.5 0.7%Schweppes 134.1 10.4%J2o 118.0 3.8%Red Bull 110.9 15.3%Schweppes 98.7 -12.8%Britvic 94.8 -14.5%

Volume Litres

millions %

change

Pepsi 73.5 1.3%Coca-Cola 63.0 -3.1%Diet Pepsi 46.7 -3.1%Diet Coke 42.3 1.9%R Whites 39.8 -7.1%Schweppes 33.2 6.6%J2o 17.3 0.3%Red Bull 12.8 11.6%Britvic 10.7 -15.5%Schweppes 8.0 -6.1%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52W/E 29 Dec 2012

Total pubs and clubs channel split

Value£

millions%

share %

change

Managed Pub Chains 1,225.2 45% 3.3%Independents 952.5 35% -2.8%Lease / Tenanted Pubs 551.2 20% 5.4%Total soft drinks 2,728.8 100% 1.5%

VolumeLitres

millions%

share %

change

Managed Pub Chains 212.8 42% -3.5%Independents 198.7 39% -4.8%Lease / Tenanted Pubs 97.9 19% 2.1%Total soft drinks 509.4 100% -3.0%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52W/E 29 Dec 2012

Total brewers draught v packaged

Value£

millions%

share %

change

Draught 1,463.5 54% -0.2%Packaged 1,265.3 46% 3.6%

VolumeLitres

millions%

share %

change

Draught 300.3 59% -4.9%Packaged 209.1 41% 0.0%

Source: CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29 Dec 2012

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s o f t d r i n k s

i r e l a n d i r e l a n d

f r a n c e

i n t e r n a t i o n a l i n t e r n a t i o n a l

f r a n c e

s o f t d r i n k s

Designed by SG Design [sg-design.co.uk]Photography by Ben Fisher [benfisherphotography.com]

Data sources All sources are indicated in the charts and graphs, and detailed sources are available to all references in the text.

Source Nielsen Scantrack, MAT 29 Dec 2012, CGA Brand Index, Total Pubs & Clubs, MAT 52w/e 29/12/2012.

All sales figures are in £millions, all volumes in million litres.

Producers Britvic Soft Drinks Breakspear Park Breakspear Way Hemel Hempstead HP2 4TZ 0121 711 1102

For press information call the Britvic press office on 07808 098369 or email [email protected] Britvic takes care of the environment by choosing pureprint® environmental print technology. All the electricity used in the production of this report was generated from renewable sources and vegetable oil based inks were used throughout. The printer is a CarbonNeutral® company and certificated to Environmental Management System, ISO 14001 and registered to EMAS, the Eco Management and Audit Scheme. The paper used in this production is made from 100% recycled fibres.

definitions/glossary CARBONATES A drink made predominantly from carbonated water to which juice or flavourings have been added.

COLA Cola-flavoured carbonated drinks, including cola with flavours such as cherry, twist of lemon, etc. Includes all clear and coloured colas.

FRUIT FLAVOURED CARBONATES Flavours are typically orange, cherry, lime, blackcurrant, apple, pineapple and grapefruit, lemon, lemon and lime, tropical and other mixed fruit flavours. Also includes Tizer, Dr Pepper and Vimto, as these brands now contain fruit.

NON-FRUIT CARBONATES Non-fruit flavoured carbonates, excluding cola but including Irn Bru. Also includes traditionals such as cream soda, ginger beer and shandy.

LEMONADE All conventional clear and cloudy or traditional, carbonated lemonade. Flavoured with lemon juice and additional fruit flavours to produce coloured lemonade.

GLUCOSE AND STIMULANT DRINKS All ‘energy boosting’ drinks such as Red Bull, normally fizzy.

SPORTS DRINKS Drinks that are specifically designed to replace minerals, sugars, trace elements and fluids as a result of exercise. Can include dilutables and powders.

SQUASH Concentrated beverage, commonly called squash, cordial or syrup. Must be diluted prior to consumption.

TRADITIONAL MIXERS All drinks intended to dilute an alcoholic beverage, as well as being consumed as a solus soft drink.

COLD HOT DRINKS Includes cold soft drinks that are tea and coffee based such as Lipton Ice Tea.

SMOOTHIES Generally drinks described as smoothie, either in brand name or as a descriptor on the packaging. Drinks described as thickie will also be included.

DAIRY DRINKS Ready to drink milk or milk substitute to which flavouring or juice has been added. May consist of any type of milk regardless of fat content.

JUICE DRINKS A non-carbonated drink which generally contains fruit juice (some may not) plus added water or other ingredients.

PURE JUICE A non-carbonated 100% pure juice or other juice blend with no added water or sweetener, which may be chilled or long-life. Includes all concentrated juices, with the exception of frozen juice.

PLAIN WATER Still or sparkling water with nothing else added.

WATER PLUS Sparkling or still flavoured water, or functional water (excluding sports water).


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