Refreshing uplift

With the warm weather beckoning, the strong soft drinks category is expected to supercharge sales once again.

By Elena Dimama

The soft drinks category is a constant positive sales driver for the independence channel and this is projected to continue as the warmer weather approaches.

The total category is now worth more than £12bn, according to Circana, maintaining its spot in the top three categories in convenience. Within the soft drinks category, sports & energy accounts for £1bn, with energy stimulation drinks being a significant contributor to the value growth of the sub-category, growing by 21% year-on-year and accounting for 28% of all soft drink value sales.

Energy bonanza

The sports drinks sector shows no signs of slowing down, offering retailers a rapid rate of sales. According to data to the end of January 2024, sports drinks have become the second fastest growing category within Soft Drinks, with a +57% value growth year-on-year.

“Sitting at the forefront of the category’s growth pattern with its +41% value growth YOY, Boost Sport is currently the number two sports drink brand in volume,” to Adrian Hipkiss, Commercial Director at Boost Drinks, says. “As consumers are increasingly turning to products that deliver on quality without compromising on price, it’s important for retailers to take into consideration the two main drivers influencing consumer purchase of sports drinks: ‘taste’ and ‘value’. Taste is the most important factor for consumers when choosing sports drinks.”

Energy flavours indeed continued to grow in popularity last year, with 71% of shoppers that were new to energy drinks in 2023 having bought a flavoured product, according to Kantar. “Increasingly consumers are looking for variety in flavours with 85% agreeing that they ‘want to try new and unusual flavours in energy drinks’ which has contributed to the success of Red Bull flavours in 2023,” Red Bull notes.

“For Red Bull, NPD has been largely incremental with 50% of shoppers that bought into the Edition range being new to the Red Bull brand and 75% of Red Bull Editions value was incremental to total Sports & Energy, so having them alongside their core range is likely to attract incremental shoppers.”

New and enhanced flavours have also helped Lucozade capture the category’s popularity, with Lucozade Energy having grown in value last year by 2.8%, according to Nielsen, following the introduction of a new look and taste for the brand’s Original and Orange flavours. “The changes also prompted 25% more shoppers to purchase the brand and over half of these (52% ) were light or lapsed shoppers, which suggests the drinks’ fresh new pack design and bolder flavour profiles are renewing shopper interest in the brand and driving trial,” Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, explains.

Fizz up

Flavoured carbonates is another element in the soft drinks category performing quite strongly. According to Circana, it is the third-largest category within soft drinks, worth over £357m and growing by 2% year-on-year.

“Tropical is the second-fastest-growing fruit flavour in the category, growing +22% and adding +£2.5m RSV in the last year. Rio, which contains exotic guava and passion fruit is growing +3% year on year and is in the top three ROS of all fruit carbonates,” Hipkiss notes. “According to research, 40% of fruit carbonated shoppers buy a 1.5Ltr/2Ltr drink once a week or more, showing that now more than ever, consumers are opting for drinks in take-home formats that can easily be enjoyed and shared amongst the family and friends.”

The category has also created space for growth in the flavoured sparkling water sector, fuelled by a strong emphasis on both functional health and taste. Red Star Brands, which launched Sparkling Ice to the UK market in 2016, is investing in a summer sampling roadshow and an influencer gifting campaign to support retail sales through key locations.

“Not all consumers want fizzy pop, but they are looking for something more exciting than water. This presents convenience retailers with an opportunity to offer innovative fruity sparkling soft drinks, which are available for that on-the-go moment,” Clark McIlroy, Managing Director, Red Star Brands, says.