The Key Stats
UPDATED Jan 2020: How much are low-sugar drinks growing ahead of the market in 2019? What are new products worth? Does England, Wales or Scotland sell more soft drinks? Check out the latest exclusive research here!
Soft drinks can be a difficult category to get right, but if you do, the rewards are great. To help understand it, Lucozade Ribena Suntory invests heavily in tracking and monitoring what your shoppers are actually doing in store.
1. Regionality Matters!
Soft drinks see very different growth in different regions. In 2019, for example, soft drinks sales grew at 1.1%1 in England and Wales, while in Scotland sales grew at 3.1%2. Have you tailored your range to suit your region?
2. Incrementality is Key
A strong core range is crucial to maintaining soft drink sales, with the best sellers displayed in the key areas so shoppers can easily find them. However, new product development contributed to 12%3 of total soft drink sales in 2019. You need to be on top of the latest new launches and brand extensions to stock alongside your core range to keep driving excitement to the category.
3. Flavour Saviours
35% of new buyers to the soft drink category buy a flavoured drink. Flavour is the number one driver of repeat purchase4 – 17.7% of Energy shoppers have bought 3 or more flavours of the brand in the last year, up from 8% in the previous 52 weeks5. Make sure that you’re helping customers buying into the category for the first time by offering a full range of flavours.
4. The New Generation
27%6 of shoppers aged between 16-24 say they always buy a soft drink when in store7. It is essential you keep this younger generation excited by stocking new flavours and new product launches.
5. Health is ImportantSince November 2018, a higher volume of low- and no-sugar drinks are being bought than regular soft drinks8. No added sugar soft drinks have contributed £16.8M9 thus far in 2019, 4.7% more than in the same time period in 2018. Sales are growing ahead of full sugar variants (4.7% growth, vs 1.5% growth for full sugar variants10).
6. Crossing the Aisle
Cross-category merchandising can increase basket spend. 22%11 of soft drink shoppers also purchase crisps and snacks, while 18%12 also purchase confectionery. You can grow shopper spend in your store by locating these products next to each other.
7. Back to the Future
‘Drink later’ large serve drinks including multipacks are growing by 1.8%13 ahead of ‘drink now’ single-serve drinks (growing at 1.2%). Focus on the back of your store as well as your chiller to drive soft drink success!
8. The Big Segments
The five must-stock highest-value segments – Carbonates, Energy, Water, Juice and Sport – contribute to more than 90%14 of soft drink sales. Lucozade Energy, for instance, sells 8 bottles per second15. Make sure your range reflects this!
2 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
3 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
4 Kantar Worldpanel TH Panel – Drink Later – 52 w/e 29th December 2019
5 Kantar Worldpanel 2-year continuous panel – Drink Later – 52 w/e 29th December 2019 vs. 52 w/e 30th December 2018
6 HIM 2018
8 Kantar Worldpanel TH Panel – 52 weeks ending data
9 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
10 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
11 EXT IRI Symbols & Indies, latest 52 wks to 26.06.19
12 EXT IRI Symbols & Indies, latest 52 wks to 26.06.19
13 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
14 EXT IRI Symbols & Indies, latest 52 wks to 24.11.19
15 IRI – Total Market – Units Sold – Lucozade Energy – L52wks to 24.11.19