Talking Retail Grocery and product news for independent retailers
The low and no alcohol segment has seen strong growth over the past five years, but more traditional soft drinks still play a key role. As it’s Christmas, though, many adults will be looking for something a bit more premium than usual, so they can still enjoy a sense of occasion and not feel left out.
Mindful choices
The past few years have put health and wellbeing at the forefront of our minds, says Mike Buckland, marketing controller at the Highland Spring Group.
“Many adults are more conscious of their health now than ever before and are making more mindful choices when it comes to food and drink. As such, we’re seeing a new wave of no and low alcohol drinkers, which creates a strong opportunity within the adult soft drinks category.
“The ‘low and no’ sector is showing no signs of slowing, with consumption expected to grow 31% by 2024. This poses a great opportunity for retailers in the convenience sector, as often consumers will make a trip to their local c-store to pick up an impulse buy to satisfy a craving, rather than traveling to visit a supermarket.”
Exciting flavours
Highland spring expects to see more social gatherings and parties this winter after two years of Christmases hampered by the pandemic, which in turn is expected to boost sales of adult soft drinks.
Buckland adds: “Christmas is often a time of indulgence, where people try new things and explore exciting flavours, which could be mirrored in the adult soft drinks sector.”
He recommends Highland Spring’s sparkling flavoured cans, which are available in three flavours – Blackberry, Plum & Hibiscus, Pear & Elderflower, and Rhubarb & Ginger. They are also a healthy choice, with no added sugar or artificial sweeteners and fewer than 35 calories per can. “Perfect on their own or as part of a longer festive serve, they are an ideal product to stock this Christmas,” Buckland says.
Guest appearance
Flavoured water as a whole has seen strong growth in the impulse category as consumers continue to look for products that go beyond traditional soft drinks.
Last year, Highland Spring’s sparkling flavoured cans saw a 17% uplift in volume sales in the impulse sector over the Christmas period, the company says. But it also reminds retailers not to overlook the core range.
“Highland Spring’s plain sparkling water is also a great choice for those looking for an everyday pick-me-up,” he says. “It’s an ideal way to hydrate when on the move or can be enjoyed at home. Over the festive period, retailers can maximise sales with shoppers looking for quality soft drinks for guests.”
Festive formats
When it comes to formats, multi-packs and larger packs sizes tend to perform best throughout the Christmas period. Highland Spring’s sparkling water is available in a range of pack sizes, with the 1.5-litre format the top-performing size in the c-store sector. Its flavoured sparkling cans are available in a four-can multi-pack, as well as in single formats.
Also important in format terms will be price-marked packs, particularly in light of the cost-of-living crisis and that fact that many consumers say they will be looking to rein in their spending this Christmas.
“Price and value are the second-biggest driver for consumers behind taste and flavour when selecting an energy drink from the shelf,” says a spokesperson for Red Bull. “In particular, 56% of all impulse shoppers indicated that they would be more likely to buy a price-marked pack (PMP).
Red Bull recommends stocking PMPs across best-sellers at all times, in order to demonstrate range while driving profit.
“PMPs are considered by many retailers as a promotional mechanism. Therefore, stocking PMPs will ultimately drive profit and adds growth to the overall soft drink category.”
Big beasts of Christmas
Even when looking to ‘push the boat out’ with new flavours and variants to make the Christmas period extra special, those shoppers seeking out adult soft drinks are still likely to turn to tried and trusted brands, such as J2O from Britvic and Appletiser from Coca-Cola Europacific Partners (CCEP).
Ben Parker, GB retail commercial director at Britvic, says: “As we gear up for winter celebrations, stocking J2O and its festive edition Glitterberry during the Christmas season can appeal to those looking for a great alternative to alcohol, while also encouraging shoppers to trade up over the festive period.
Ben Parker, GB retail commercial director, Britvic
“This festive blend of grape, cherry and winter spices with edible gold glitter is perfect for adding some sparkle to any Christmas drinks occasion and appeals across age categories.
“Following 35% value growth in 2021, Glitterberry looks poised to take over the Christmas season once again in 2022. J2O is key for the Christmas period, selling 25% of its value over the Christmas trading period in the convenience channel.”
Amy Burgess, senior trade communications manager at CCEP, says: “Adult soft drinks can be a popular choice for consumers looking to enjoy a more-sophisticated soft drink on social occasions, or an alternative to alcohol.
For example, sales of Appletiser were up 26% in December last year. Mixers like Schweppes – the number one mixers brand in convenience – will also be popular with those looking to enjoy a festive cocktail or mixed drink.”
Of course, that does not mean retailers should forget about core soft drinks brands, such as Coca-Cola itself, which enjoys a strong association with Christmas stretching back decades.
“Coca-Cola is the biggest soft drinks brand in GB and it has become a festive staple thanks to its iconic Christmas campaigns and of course the famous Coca-Cola truck, making it a must-stock for retailers,” Burgess says.
