2023 Britvic Soft Drinks Review Convenience - Flipbook - Page 35
CONVENIENCE CATEGORY OVERVIEW
CONVENIENCE DEEP DIVE
CONVENIENCE DATA TABLES
Why immediate consumption matters
£
193
£5.7 billion
330ml cans sold
per second5
annual sales value4
65%
32
million
shoppers6
Average spend: £2.75/litre
v £1.01/litre (take home)7
category
penetration6
There are considerable hurdles to overcome first, of
course. Grocery price inflation hit a record 16.7% in
January 2023, with UK households facing an extra £788
being added to their annual shopping bills if they don’t
change their behaviour to cut costs.8 Clearly, convenience
retailers will need to continue to communicate value to
maximise the prize.
There are other challenges too. C-store operators faced
shortages of bottled water in the summer of 2022,9 a
situation exacerbated by staff shortages throughout the
supply chain and delays at ports arising from Brexit.10
Investment in stock and storage, the price of which has
risen significantly after a 30% business rate hike,11 is
needed to avoid future shortages.
Doing so is vital. Poor availability is estimated to have
cost retailers between £60m and £80m in lost sales of soft
drinks for immediate consumption in 2022.12 Addressing
these issues and developing ranges that appeal to a
wider range of people will unlock a valuable prize. Total
soft drinks attract 89.6% of consumers; immediate
consumption attracts 62.6%. This means there’s an
opportunity to attract a further 14 million people.13
We’re therefore confident about the future of soft drinks
in convenience retail. We’ve identified five key drivers
that convenience retailers should bear in mind as they try
to tap into more immediate consumption occasions and
take their rightful slice of the £400m sales opportunity
convenience retail is facing.1 These are:
Recruiting
Generation Z
Winning
with food
Maximising
health
Simplifying
shopping
experiences
Evolving
energy
Size of prize:
Size of prize:
Size of prize:
Size of prize:
Size of prize:
+£72m or
£1,504/store14
+£80m or
£1,672/store14
+£52m or
£1,086/store14
+£96m or
£2,006/store14
+£100m or
£2,089/store14
4 COMBINED: NielsenIQ RMS, Total Coverage, Value, Single Serve Soft Drinks, 52we 21/10/2022, CGA UK, Foodservice, Value, Soft Drinks (packaged), 52we 30/6/2022
5 Equivalent COMBINED: NielsenIQ RMS, Total Coverage, Volume, Single Serve Soft Drinks, 52we 21/10/2022, CGA UK, Foodservice, Volume, Soft Drinks (packaged), 52we
30/06/2022 / Number of seconds in a year
6 Kantar Worldpanel online, Out of Home, Total Single Serve Soft Drinks, Penetration, 52Wk October 2022
7 NielsenIQ RMS, Total Coverage, Single Serve Soft Drinks & Take Home Soft Drinks, Price per Litre, L52wks 03/12/2022
8 Kantar, 4w/e 22/01/2023 - https://www.kantar.com/uki/inspiration/fmcg/2023-wp-grocery-price-inflation-rises-to-record-16-7
9 The Grocer, Bottled water shortage disrupting sales for convenience retailers, 25/08/2022 https://www.thegrocer.co.uk/convenience/bottled-water-shortage-disrupting-sales-forconvenience-retailers/670812.article
10 The Grocer, How bottled water can escape the supply maelstrom: bottled water category report 2023, 16/21/2023 https://www.thegrocer.co.uk/soft-drinks/how-bottled-watercan-escape-the-supply-maelstrom-bottled-water-category-report-2023/676378.article
11 The Grocer, Why ready meals have entered a new ice age: category report 2023, 16/01/2023 https://www.thegrocer.co.uk/category-reports/why-ready-meals-have-entered-anew-ice-age-category-report-2023/675006.article
12 Britvic Internal Research 2022
13 Kantar Worldpanel online, GB OOH Panel, Soft Drinks Categories, Total Single Serve & Total Soft Drinks, Penetration, 52we 27/11/2022
14 Britvic IC Category Vision January 2023. Impulse size of prize based on NielsenIQ RMS, MAT 2022, Impulse share of soft drinks (40%) multiplied by market opportunity. Impulse
size of prize per store calculated by dividing by Lumina 2022 estimated number of impulse outlets 47,861
CONVENIENCE DEEP DIVE
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