2023 Britvic Soft Drinks Review Licensed - Flipbook - Page 11
LICENSED CATEGORY OVERVIEW
LICENSED DEEP DIVE
LICENSED DATA TABLES
A polarising market
Greater mobility delivered big gains for convenience
retailers, which achieved the fastest growth of any
retail channel (excluding foodservice and licensed).4
Soft drinks sales surged by 14.1% and delivered the
greatest cash gain (£347.4m) of any category for c-store
operators5, more than the combined growth of beer,
wine, spirits, confectionery, crisps, nuts and snacks.6
The other big gain in grocery belonged to the
discounters, which saw soft drinks sales pass the £1bn
mark for the first time on the back of 14.6% growth.4
Mainstream supermarkets look to be facing a squeeze
as shoppers polarise between immediate consumption
formats bought from smaller format stores on the go
and value-led propositions from the discounters.
Online sales, unsurprisingly, have fallen from the heights hit
in the pandemic. 63% of people buy groceries in store and
online versus 32% who shop only in store.7 The shift online
is expected to continue. Share of soft drinks made online
fall to 11% in 2022 but is expected to recover, reaching
13% in 2023 and 16% by 2027.7
Foodservice and licensed channels outgrew grocery
as they enjoyed the first full year with no lockdowns or
social distancing rules in place since 2019. Soft drinks
sales through these channels surged by 46% year-onyear to hit £7.4bn8. That’s about £100m ahead of 2019,
although volumes were 5.3% down on pre-pandemic
levels8 as strong price inflation and waning consumer
confidence prompted fewer people to eat and drink
outside their homes.
The foodservice and licensed channels are also
polarising. The growth seen by fast food in the
pandemic has continued, with soft drinks sales up
16.7% year-on-year and 44% on 2019, thanks to
higher prices and consumers trading down from pricier
venues.8 However, there’s still a thirst for premium
experiences. With people visiting pubs, bars and
restaurants less often, many report a growing preference
for quality over quantity in terms of food & drink.9
It’s important to note that the current crisis is not
being felt equally. The Bank of England estimates that
consumers – chiefly those in white collar jobs who are
spending more time working from home – saved almost
£200m during lockdown.10 26% say they expect to be
better off due to higher interest rates,11 although it’s
arguable how much of this will re-enter the economy (the
better off tend to save more when they’re made richer).12
4 NielsenIQ RMS, Total Coverage, Value growth, Britvic Defined, MAT to 18/02/2023
5 IRI Convenience, Britvic Defined Soft Drinks Value, 52wks To 01/01/2023 vs. YA
6 Nielsen IQ RMS, Bigger picture report, Total Impulse, Value Growth YoY 52 w/e 31/12/22 vs YA
7 Nielsen Homescan/ IGD Research 2022
8 CGA, FS&L, MAT to 31.12.22
9 CGA, Cost of Living Consumer Pulse, December 2022, UK & Ireland – P14
10 Mintel Cost of Living 2023 P3
11 Mintel Cost of Living 2023 P12
12 IMF https://www.imf.org/en/Blogs/Articles/2020/11/30/how-the-rich-get-richer
CATEGORY OVERVIEW
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