2023 Britvic Soft Drinks Review Licensed - Flipbook - Page 20
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SUSTAINABILITY
Soft drinks, therefore, are being reborn. They are already
crucial to the licensed sector, accounting for 27% of
volume and 17% of value;4 as operators try to keep
pace with consumers’ changing needs, this looks set
to grow. With mixers and soft drinks (dispense) offering
the highest average margins after wine, of 81.4% and
79.6% respectively,5 this offers operators with the right
strategies in place a lucrative opportunity.
Of course, there are plenty of challenges too. Operators
are not immune to the chronic staff shortages affecting
all industries right now. The on-trade has lost an
estimated 16% of its revenue due to understaffing.6
Overall, 35% of
consumers say
they are drinking
fewer drinks when
they go out.10
71% say they’re
opting for the
same quality as
they were before
the crisis.10
Everyone – from high-end city centre bar operators
to neighbourhood pub chains – is facing the same
challenges and opportunities right now. Their paths to
success, however, may be vastly different. So how should
CATEGORY OVERVIEW
What’s more, with the cost-of-living crisis continuing to
bite, 38% of Brits report that they are going out to eat
and drink less often;7 72% cite cost-of-living concerns,
58% cite price increases in venues and 53% cite a
decline in their disposable income.8
Unsurprisingly, higher earners (£50k+ per household) are
least likely to have changed their behaviour. Just 19% of
higher earners say they are going out less, compared to
35% of mid-earners (£30k-£50k per household) and 46%
of lower earners (less than £30k per household).9 Hence
the shift to quality over quantity in terms of drinks.9
Just 11% say
they have
compromised
on quality.10
11% say they are
quaffing higher
quality drinks.10
they respond to the changes in consumer behaviour in
post-pandemic Britain and make the most of the rebirth
of the soft drinks and mixers category?
4 Rethink Drink P2/CGA, 12 w/e 18 June 2022
5 Rethink Drink P2/CGA summary data, MAT average RSP per serve and average wholesale selling price from a leading wholesaler on a sample of products
6 Rethink Drink P3/UK Hospitality BBPA and BII member survey
7 CGA, Cost of Living Consumer Pulse, December 2022 UK & Ireland – P13
8 CGA, Cost of Living Consumer Pulse, December 2022 UK & Ireland – P14
9 CGA, Cost of Living Consumer Pulse, December 2022 UK & Ireland – P7
10 CGA, Cost of Living Consumer Pulse, December 2022 UK & Ireland – P16
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LICENSED CATEGORY OVERVIEW