It’s gonna be a thirsty summer…

With the Euros only days away, a packed calendar of summer sport and hopefully a bit of sunshine thrown in for good measure, it should be a thirsty summer for shoppers.

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After the trials and tribulations of the last four or five years, what the local retailing sector in Scotland could be doing with is a great summer. As luck would have it, the months ahead have the makings of a banger – particularly if we see a bit of sunshine along the way too.

From the Euro Finals 24 which kick off in a matter of days all the way through to the Olympics, there’s a packed calendar of sport that should keep customers coming back for more. What would really help keep that momentum going, though, is a sustained period of sunshine and warmer temperatures. Nothing sets the tills ringing quite like ‘taps aff’ weather – and no categories benefit more than drinks, both soft and alcoholic.

Where to start?

Squeezing every penny of profit out of the summer means getting the basics in place then adding some sparkle on top – whether that’s through NPD, in-store theatre, hammering the socials or, more likely a combination of all of the above and more.

According to the latest Britvic Soft Drinks review, published just last month, soft drinks drove a whopping £3.8bn of sales through the convenience channel last year [Circana, Dec 2023].

Sales in the channel grew 15.3% over the year, well ahead of inflation. The Report also highlights that nearly two-thirds (60%) of people now use convenience stores, the majority younger and more affluent families, increasing share and driving up basket size and spend.

Not to put too fine a point on it, there’s a lot to be positive about in the world of convenience retail.

These findings are backed up by research from Suntory Beverage & Food GB&I. Channel Director Matt Gouldsmith says: “We can confidently say that the opportunities in the soft drinks category are vast. In fact, we recently released some research that looks at the last 10 years of soft drink sales and uncovers, for the first time, the true effect of Covid-19 and how this feeds into the category for the future. The outlook is bright: soft drink sales are growing faster now than they were pre-pandemic [Kantar Global].

“Sports drinks, and soft drinks as a whole, tend to see an uptick in sales throughout the summer months, so we can expect the segment to grow even further as the weather gets warmer. This was particularly noticeable during the heatwave of 2022, which saw an additional £65m (+13.4%) spent on soft drinks compared to 2021 [Nielsen, Jul 2022]. During this period of hotter weather, the same data shows Lucozade Sport saw value growth of almost 26% and just under 8% in volume growth.”

Also according to Nielsen, convenience stores benefitted the most last year when the temperatures rose, and saw 5.4% overall growth.

Spikes in sports drinks sales correlate not only with temperature increases, but also from national and international events taking place throughout the year.

“During the 2023 Women’s World Cup, the sports drinks category experienced incredible value growth of over 37% and over 16% volume growth compared to the same period in 2022 [Nilsen Sport, Jul 2023],” says Gouldsmith. The implications for the Euros and Olympics this year are clear.

Trend watch

Unsurprisingly, Gouldsmith predicts that shopper desire for low- and no-sugar soft drinks will continue to grow. BSDA data from March 2023 shows that the low/no-calorie share of the soft drinks market is almost three times that of the regular segment at 69% volume share of the total market.

Gouldsmith also highlights how a shift back to drink-now formats is evident after a sustained period of growth in larger format and multipack sales. “Drink-now formats are currently seeing 5.7% YOY growth in independent convenience stores, so retailers should ensure to stock up on these formats for shoppers looking to enjoy their favourite soft drinks on the go.”

NPD

Helping retailers cash in on the summer drinks frenzy, Ribena has unveiled a brand new on-pack promotion across its full range of formats which gives shoppers the chance to win memorable family experiences every day. Ribena will be once again providing a summer of fun for families and driving sizzling sales for retailers with this new competition.

With prizes up for grabs including UK holiday packages and experience vouchers – as well as an additional 1,000 cash prizes to reward shoppers with some summer spending money – this competition is set to grab consumers’ attention in store and drive soft drink sales for stores.

Shoppers can enter this promotion via a QR code on pack, which can be found across the brand’s squash and ready-to-drink formats.

Ribena’s iconic berries are also bouncing back onto screens this year for a second summer season after their successful return in 2023 and will be seen by 23 million people.

The Ribena berries made their return to screens last year for the first time in almost 10 years as part of the brand’s 85th birthday celebrations and ‘Summer of Fun’ campaign.

“After being seen by over 13 million people last summer, the iconic berries will have even more screen time for 2024,” comments Gouldsmith. “Running for one month longer than last year, the ad is live until July across TV, video-on-demand, and YouTube, helping generate top-of-mind awareness and boosting visibility for the drinks as retailers prepare for the summer selling season.”

Britvic brand Tango is ramping up focus and relevance around its core orange flavour with a multi-million pound ‘Outrageously Orange’ campaign. Showcasing the ‘outrageously bold’ side of Tango Orange, the TV ad is designed to resonate with young adults through a mischievous tone, driving reconsideration, footfall and purchase in-store.

As the third-biggest fruit flavoured carbonates brand, Tango has seen its sales triple over the last five years [Nielsen, Apr 2024], solidifying the brand as a firm favourite already. With orange being the number one flavour in this category, the ‘Outrageously Orange’ campaign will ensure that Tango Orange is front of mind over the summer months, a key sales period for soft drinks.

Ben Parker, Retail Commercial Director at Britvic, comments: “Our Outrageously Orange campaign represents an opportunity for retailers to maximise their fruit-flavoured carbonate sales with a well-known and trusted brand like Tango. It’s been a great start to the year, with big limited-edition launches like Tango Mango and Tango Blast. The Outrageously Orange campaign marks the next step in the brand’s support for the trade, with Tango Orange’s bold flavour and personality helping to drive footfall and sales in-store.”

Bigger profits

While drink-now formats are back in growth, Coca-Cola Europacific Partners (CCEP) urges retailers not to miss out on the power of sharing packs around major events.

Amy Burgess, Senior Trade Communications Manager at CCEP, says: “This summer people will be coming together in Scotland to enjoy their favourite sporting, musical and cultural events, presenting retailers with more opportunities to boost sales.

“Soft drinks often play a key part in these experiences so, to tap into this opportunity, retailers should ensure they stock up on sharing packs from leading brands like Coca-Cola, still the number one soft drink in GB [Nielsen, Dec 2023], led by Coca-Cola Zero Sugar, the fastest-growing major cola brand by both value and volume. Retailers should also stock up on sharing packs of Fanta, the number-one flavoured carbonates brand in GB, accounting for one in every five flavoured carbonates sold, and Dr Pepper, the number-two flavoured carbonates brand, in value and volume growth.

“Research shows merchandising food and drink together can double shopper engagement and increase sales by up to 32% [Connecta 2023], so retailers can boost sales by setting up sports or other themed displays ahead of summer’s many major events and cross-merchandising soft drinks with snacks and nibbles. This will allow customers to find everything they need for their event of choice this summer.”

Burgess also recommends that retailers take advantage of the fresh new look and taste of Fanta Orange Zero, unveiled last month.

A new and improved taste and a bolder pack design across all Fanta flavours has been geared to drive growth of the leading brand. The reformulated Fanta Orange Zero now tastes more like Fanta Regular Orange and will help drive sales for retailers.

A striking new packaging design has also been rolled out across all Fanta flavours featuring clearer differentiation between regular and zero-sugar variants and bolder colours to deliver maximum standout on shelf.

New-look 500ml rPET bottles of Fanta and Fanta Zero will also more clearly highlight that the bottles are made from 100% recycled plastic and can be recycled again. This on-label ribbon communication is being rolled out across all CCEP’s sparkling 500ml rPET portfolio.

Boost sales

Boost is aiming to boost retailers’ sales this summer by continuing to leverage its unique position as the only brand to hold a top-three position in three distinct categories within the Functional Drinks market – Energy Stimulation, Sports Drinks and RTD Iced Coffee.

Adrian Hipkiss, Commercial Director at Boost Drinks, explains: “Within this, Boost is the third-largest brand in the Energy Stimulation category and the second-largest brand In the Sports Drink category [Circana Jan 2024], something we’re incredibly proud of.”

Boost offers shoppers access to quality products at great-value prices at a time when value is more important than ever, believes Hipkiss.

The company offers a range of lines from large format one-litre bottles of Boost Original Energy to 250ml cans of Boost Red Berry and from its 500ml Juic’d range which features 5% real fruit juice to its range of RTD iced coffees.

“Retailers should prioritise stocking Boost as a leading brand within the Soft Drinks category and leverage its diverse range of affordable priced-marked pack formats, flavours and take-home offerings,” says Hipkiss.

“Boost’s vast and carefully curated offering will ensure retailers are meeting the needs of all of their core consumer groups, resulting in trusted relationships with their customers.”

Raise the Barr

Boost owner AG Barr will also be praying for sunshine this summer, along with the rest of the trade and has unveiled some new NPD to drive excitement over the next few months.

Jonathan Kemp, Commercial Director at AG Barr, says: “Soft drinks are one of the biggest opportunities for retailers throughout summer, worth £12.3bn and growing by 8% YOY in a challenging economic market [Circana Mar 2024].

“The key driver in soft drinks is taste. Shoppers are looking for products packed with flavour and unique flavour combinations continue to win sales. Flavour innovation added £29m to the category last year [Circana Aug 2023].”

To help retailers capitalise on this, AG Barr recently released a new variant of Rubicon Spring – Pink Grapefruit Blood Orange.

“Rubicon Spring has been the no.1 flavoured sparkling water five years in a row [IRI], it is six times bigger than its nearest branded competitor and growing penetration five times faster than the category itself [IRI, May 2023],” says Kemp. “This latest addition will be building on that momentum this summer.”

Limited-edition flavours are another “guaranteed sales driver” according to Kemp, as they generate excitement and engagement with shoppers across all demographics.

“The limited aspect means that shoppers can’t wait to grab it whilst they can, and we know that seeing something different to the usual range always creates a distinct buzz around the fixture,” he adds.

That’s why AG Barr unveiled two new limited-edition variants of Irn-Bru Xtra in March: Raspberry Ripple and Wild Berry Slush. Backed by a high-impact media plan that is aiming to reach 93% of 16–24-year-olds, the bold new flavours come with vibrant pack designs to attract shoppers’ attention in the chiller.

“This launch follows the success of Ice Cream and Tropical limited editions last summer, which delivered £29m in sales to the category and led to a 30% uplift in the core Irn-Bru Xtra variant [IRI], concludes Kemp.

Summer edition

It wouldn’t be summer, of course, without a Summer Limited Edition from energy drinks giant Red Bull. A spokesperson from the company says: “Sports and Energy has been the fastest growing category of the last 12 months, adding an additional +£411m to Soft Drinks and contributing 47% of all category value growth [Nielsen, Mar 2024].

“Innovation has been vital to the success of Energy Drinks growth this year, with particular engagement around new flavours, which has helped broaden the category’s appeal to new groups of shoppers, where taste was previously a barrier. As a result, the demand for Flavoured Energy Drinks has never been stronger, acting as an entry point for consumers.”

Red Bull has been a driving force behind flavours in the market and NPD has been largely incremental.

“Forty-five per cent of shoppers that bought into the Red Bull flavoured Editions range are new to the brand. Editions have recruited shoppers fast, with 2.8 million buying the brand, growing seven-fold in just two years [Kantar, Jan 2024].

“This was reinforced last year, by the launch of our most successful NPD yet, the Summer Edition with the taste of Juneberry, which sold 9.4 million 250ml cans, and has now been made permanent in the range as The Blue Edition along with The Red Bull Ruby Edition, which was introduced in September as The Red Bull Winter Edition with the taste of Spiced Pear.”

Aiming to replicate the success of the Blue Edition, Red Bull has recently launched its Summer Edition for 2024, Curuba Elderflower, which offers a blend of exotic curuba, rounded off with floral notes of elderflower to excite shoppers and drive trial.

Available in 250ml, 250ml PMP, 355ml Sugarfree and 250ml Sugarfree 4-pack, the new Red Bull Summer Edition will be supported with a range of tailored POS to raise awareness in-store across all key touchpoints.

Also new from Red Bull is Pink Edition Sugar Free, available widely from the start of July. The line combines the tastes of raspberry and other forest fruits, complemented by herbal notes of verbena and is available in 250ml, 355ml and 4 x 250ml (£5) can pack formats.

Electric blue

Certainly worth giving some chiller space to this summer is Pepsi’s new limited-edition electric blue cola. Following a successful rebrand earlier this year and longstanding flavour innovation within the market, the new launch challenges what consumers expect from a cola – boasting a zesty, citrus taste with a striking blue liquid, available for 12 months.

Pepsi Electric is available exclusively in a 500ml bottle format, offering shoppers more choice when they’re on the go. The new product is also sugar free, designed to enable retailers to cater to growing preferences for zero sugar soft drink options, without having to compromise on taste.

Ben Parker, Britvic Retail Commercial Director in Great Britain, said: “Pepsi Electric embodies shopper preferences for fresh, special edition flavours while incorporating the unmissable vibrant blue cola liquid, which will grab shopper attention at shelf and capture the next generation. The pack design echoes the electric blue and black of the recent logo rebrand, alongside the signature Pepsi pulse – bringing the brand to life, ensuring consumer recognition and encouraging shoppers to make the most of this limited-edition flavour.

Pepsi Electric is set to help retailers increase basket spend and tap into the flavoured cola segment, a market which is growing three times faster than unflavoured cola [Nielsen IQ, Apr 2024].

Available in plain pack and £1.35 price-marked bottles, Pepsi Electric will be available widely from 24 June. The launch is being supported by a widespread marketing campaign including out of home advertising, PR, digital and social media.

Bean machine

With RTD coffees continuing to drive sales and profits, Costa Coffee’s RTD range is giving consumers the chance to win tickets to major UK music festivals across its ready-to-drink (RTD) packs this summer.

More than 2,000 exclusive prizes are also up for grabs, including online shopping vouchers and Costa e-vouchers.

Until 28 July, shoppers have the chance to win tickets to events with promotional packs boldly designed to stand out on shelf, with the Latte cans featuring a lanyard which is synonymous with attending festivals.

The on-pack promotion is being supported by a consumer marketing campaign which includes social media and digital out-of-home advertising, PR and influencer activity, as well as consumer sampling and on-site activation.

The campaign kicked off Costa Coffee RTD’s new creative platform ‘Be Ready For What’s Next’ that went live on YouTube from mid-May, and refers to Costa Coffee’s partnership with the Boardmasters festival.

Retailers can request digital and POS materials via My.CCEP.com to create theatre in-store and on social media.

The promotion will help convenience retailers tap into the growing popularity of RTD chilled coffee, with sales peaking during the summer months. In fact, RTD chilled coffee is growing ahead of total soft drinks in both volume and value, and is now worth more than other segments, including adult soft drinks and mixers [Nielsen, Mar 2024].

Helen Kerr, Associate Director of Portfolio Development at CCEP, says: “By bringing together the nation’s favourite coffee brand and some of the nation’s favourite summer events, we’ll be helping retailers to engage shoppers and tap into the growing RTD coffee opportunity, particularly during the warmer months.

“The Costa Coffee RTD range is helping to drive growth, up 10.4% in value in convenience over the past year and growing ahead of the RTD chilled coffee segment in this channel [Nielsen, Mar 2024].

“We look forward to seeing how our retailing partners get behind the promotion in-store to drive engagement with shoppers, capitalising on the approaching summer festival season.”

The Costa Coffee RTD chilled coffee range is fully HFSS compliant and includes flavours such as Latte, Caramel Latte and Choc Fudge Brownie.

Harder sell

And while soft drinks might be the volume drivers over the next few months, you can be sure that demand for alcohol will grow throughout the Euros and beyond, creating more opportunities for retailers.

“The total beer market is having a good year in Scottish convenience, up in both value and volume,” says Caitlin Brown, Category Executive at BrewDog. “Contributing to that growth, Craft Beer is up 29% YOY [Circana Mar 2024], continuing to drive premiumisation into the category.

“As a category, beer is driven by brands, so what we tend to see is shoppers trading through tiers and formats, from standard lager to premium/world lager and Craft Beers to meet their budget. Kantar reported that of 34 beer, wine and spirit categories, only seven saw penetration growth in 2023, and of those leading the growth, were Low and No Alcohol (+1.3pp) and Craft Beer (+0.2), which both welcomed new shoppers. These recruiting categories had a common theme of appealing to younger and more affluent shoppers, so attracting this consumer base with your product offering is key to driving growth this summer.

“Beer continues to be popular all year round, but of course sees a significant increase in the warmer months. And with this summer full of celebratory sporting events, we expect our shoppers to be socialising even more with their favourite beer in hand.

“From a Craft Beer perspective, IPA is the most popular and best-performing style of beer all year round in Scottish convenience [Circana Mar 2024]. As an initial offering, we recommend starting with our top two products, Punk IPA and Hazy Jane New England IPA 4 can multipacks, which continue to see a lot of love from shoppers. As the number-one Craft Beer brand in Scottish Convenience, Punk IPA acts as a signpost for the category, so something that shoppers will be looking for when browsing the chiller.”

If introducing Craft Beer for the first time, Brown recommends the BrewDog 330ml 8-can Mixed Packs which can help drive trial by including a selection of beers in one pack.

In terms of bringing new news, Brewdog recently launched a new cross-channel promotion offering consumers the chance to win up to £10,000. Special ‘Drink beer – Win cash’ promotional packs have already begun shipping with the competition promoted on 4-packs of Punk IPA and Hazy Jane and Mixed 8- and 12-packs, as well as Mixed Alcohol-Free 8-packs.

There are 22 cash prizes on offer in total, including £500, £1,000, £2,000 and £5,000, up to the top reward of £10,000. Shoppers will find out immediately if they are successful, with the prize value stickered on winning cans and instructions on how to claim it before 30 August, when the competition closes.

Lauren Carroll, Chief Marketing Officer at BrewDog, comments: “As the leading Craft Beer supplier, we have a devoted fanbase and we want to reward our shoppers for their continued loyalty. It’s well known that we have run competitions before, but none have been as clear as this: ‘Drink beer – Win cash’. It couldn’t be simpler.

“Awareness will be high, with the campaign supported in store and outlet as well as, digital and OOH activation, to drive purchase, so we encourage retailers to ensure they have stock of promotional packs on shelf to meet consumer demand”.

BrewDog also aims to shake up the beer aisle, driving excitement and additional value into Craft Beer with a new session IPA. The 4.3% ABV Wingman has now touched down in the impulse channel, following an initial launch into grocery at the end of last year.

In a shift from the brand’s headline design, the new Wingman packs have strong standout on-shelf. Taking inspiration from US craft beer brands, the new session IPA aims to cater to the modern drinker, while recruiting new ones through its casual light-hearted positioning.

Formats available include single 440ml can (RSP £2.50), 4x330ml can multipack (RSP £6.25) and 12x330ml can (RSP £16.50).

Dram fine

Whisky remains a big category in Scotland but an interesting question is whether or not Scotland’s appearance at the Euros could inspire a few more people to celebrate with a dram of Scotland’s national drink.

Matt Sinclair, Commercial Director at Whyte & Mackay, says: “Cold refreshing pints have long been the epitome of summer drinks – and this will absolutely remain true for some – but we do see consumers looking to elevate their gatherings and bring premium spirits into the mix. As this trend of drinking less, but better continues there’s a clear opportunity retailers should be ready to capitalise on.”

Sinclair says whisky is increasingly being seen as a versatile spirit with “many consumers increasingly opt for it for longer drinks”. Is there an opportunity for retailers to shift a few bottles to those planning a long and probably very difficult 90 minutes or so watching Scotland this month?

If so, Whyte and Mackay has a few options that could do the trick, including Jura, the UK’s number-one Single Malt by volume [Nielsen, Apr 2024], and Tamnavulin, the UK’s number-two malt brand.

Paint your pint

And if the thought of spending all summer in Scotland praying for sunshine doesn’t appeal to every customer, Molson Coors Beverage Company is offering fans of its Spanish-inspired lager Madrí Excepcional the chance to win exclusive prizes, including a trip to Madrid.

The ‘Paint your Pint’ promotion on the brand’s digital platform, Conectada, celebrates the launch of a new limited-edition glass designed by renowned Madrid street artist Sokram.

Live now until September, customers that buy promotional packs of Madrí Excepcional will receive one of the limited-edition glasses as a gift.

Each glass has a QR code which consumers can scan to enter the Conectada digital platform, where they can paint a Madrí Excepcional pint glass using stickers and stencils. They will then be prompted to submit their details and designs to be entered into a prize draw for a chance to win exclusive Madrí Excepcional merchandise and a trip to Madrid.

The Conectada digital platform also allows consumers to view nearby stockists of Madrí Excepcional, discover upcoming Madrí Excepcional events and even learn Spanish.

The promotions kick off a summer of marketing activity and the next phase of Madrí Excepcional’s ‘El alma de Madrid’ campaign which aims to bring the vibrancy, warmth, and progressive spirit of modern Madrid to the UK. It accompanies the brand’s return to TV screens this summer, and is supported by a social media campaign, and influencer events.

Point-of-sale materials will also create theatre in-store, including eye-catching aisle fins, shelf frames and free-standing display units to engage shoppers.