Soft drinks delivered the greatest absolute value growth of any product category in 2022 and is now worth £2.8bn to the convenience channel, according to Britvic’s Soft Drinks Review 2023.
The data shows energy drinks were the star performer last year, responsible for £96.9m (28%) of the category’s £347.4m growth. Cola and plain water added just over £70m each, due to the heatwave in 2022 sales of plain water surged by +39.4% to £250.3m.
Pepsi MAX’s trio of flavoured colas – Cherry, Raspberry and Lime – grew by £6.3m (+16.9%) in 2022, delivering more growth for convenience retailers than all other flavoured colas combined.
The research also reveals on-the-go missions rose from 13% of store visits in 2021, to 14.9% in 2022. Soft drinks’ share of these occasions also rose significantly, featuring in 48% of all on-the-go occasions, making them the number one on-the-go item bought in c-stores.
The resurgence of on-the-go trade is also changing dynamics in packaging formats, with on-the-go single-serve sales outperforming take-home across all channels.
Britvic has identified five key drivers for retailers to bear in mind as they tap into the opportunity on-the-go formats present: recruiting generation Z, winning with food, maximising health, simplifying shopping experiences, and evolving energy.
Ben Parker, GB Retail Commercial Director at Britvic, said: “Our Britvic Soft Drinks Review shows that there is a growing demand for soft drinks consumed on the go. We calculate that this occasion presents a chance to increase soft drinks sales value in the convenience retail channel by £400m a year by 2025. That equates to a sales boost of £8,400 per year for each c-store operating in the UK today.
“While single-serve formats drove the most growth in the channel, larger formats suited for at-home consumption, also achieved strong growth of +9.9% in 2022. Operators should, therefore, ensure that they are selecting their ranges accordingly depending on the space they have available. We’ve seen that linking up key categories like carbonates and juice drinks with food to create compelling snack or meal deals works well for smaller cans and bottles; while take home options can be used within big night in or meal for tonight displays – the chance to drive sales through soft drinks is there for the taking.”
The Britvic Soft Drinks Review also highlights the continued importance of delivery for retailers. Although share has fallen since the height of lockdown, delivery still accounts for 6.7% of convenience occasions. Soft drinks are one of the top 10 categories bought using delivery apps, ahead of hot drinks and confectionery. It is also a route that is particularly important in attracting affluent shoppers who spend considerably more per transaction compared to the average store visit.
In addition, soft drinks are a key category purchased on top-up and meal occasions, appearing in 20% of the former and 15% of the latter so tapping into these occasions is key.
