THE 2011

REPORT

UK SOFT DRINKS

By popular demand

BSDA 2011
INTRODUCTION
The 2011 UK Soft Drinks Report reports on a year of growth for the soft drinks industry in the UK, and it also reports on a year of activity by its trade association, BSDA. I believe that BSDAs active programme of communicating and representing the interests of the soft drinks industry, along with its work in setting standards and providing services, helps create the right environment for innovative and consumer-focused companies to ourish.
This is not a time for complacency, however. Public expectations of business, in the soft drinks industry as much as in any other, are rising, and the economic pressures have not gone away. BSDA will continue to be active in helping the industry to put its consumers rst. May I thank all BSDA members for their support and participation in the past year, and may I invite any soft drinks companies that have not yet joined, to consider doing so. Jill Ardagh Director General

Jill Ardagh

REPORT METHODOLOGY AND BACKGROUND

Specialist food and drink consultancy, Zenith International, has been commissioned to produce this 2011 BSDA UK Soft Drinks Report. All data and insights contained in this report were produced using Zeniths internal market databases and primary research.
In compiling its research, Zenith relies on the goodwill and cooperation of companies active in the marketplace. During Zeniths annual research into the UK soft drinks industry, over 250 soft drinks producers are regularly contacted. This includes larger branded operators, retailer own label specialists, contract packers and a signicant number of smaller independent companies. Based on individual producer volumes for the year, market, sector and segment totals are calculated from the bottom up. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for unauthorised soft drink imports sold through the grey market are also included. This is more pronounced in categories such as energy drinks rather than dilute to taste drinks, for example. A complete picture of the UK soft drinks market across all sales channels is produced, through Zeniths extensive study of the largest soft drinks companies, alongside small to medium sized operators and own label specialists. The market gures presented therefore encompass all aspects of the market including: take home, impulse and on premise; water cooler volumes for the ofce; home dispense carbonated soft drinks; and pump dispense carbonates in the licensed trade. Following a detailed review of all data les received, with all operators, certain adjustments have been made to historic volumes. Volume shipped in large pack formats, via pallets for example, had previously been submitted to Zenith using an incorrect conversion rate. This has now been corrected for the years 2005 to 2009. To produce this report, a considerable amount of time and effort is spent contacting industry players and striving to analyse the complexities of the UK soft drinks arena. Zenith would like to express its sincere gratitude to BSDA and the entire UK soft drinks industry for its continued help and support during the research process.

2 The 2011 UK Soft Drinks Report BSDA

THE 2011 UK SOFT DRINKS REPORT BY POPULAR DEMAND

CONTENTS
4 6 8 10 12 OVERALL SOFT DRINKS CONSUMPTION BOTTLED WATER CARBONATES DILUTABLES FRUIT JUICE AND SMOOTHIES STILL AND JUICE DRINKS SPORTS AND ENERGY DRINKS SETTING INDUSTRY STANDARDS LEADING IN THE BUSINESS COMMUNITY SUSTAINABILITY ABOUT BSDA

BY POPULAR DEMAND
In April 2010 Britvic launched a 600ml PET format across its no and low sugar portfolio. This was the biggest pack innovation that the market had seen in over fteen years and a rst for the UK. The new bottle format offered consumers a bigger bottle and better value for money in tough economic times, whilst to invigorating the on-the-go inv soft drinks category. Available so across Pepsi Max, Diet Pepsi, ac 7Up Free, and Tango, the 7U 600ml format has dramatically 60 increased the rate of sale of in every variant (25 per cent to ev 45 per cent increase) with the 4 star performer being Pepsi s Max, which nearly doubled M its rate of sale since the launch in April. The 600ml format added 9.8million to the on-the-go carbonates sub-category, helping grow s the category from an 8.7 per cent decline to up 3.8 per cent in just ve months. Data sources: Nielsen, Total Coverage, MAT Volume sales August 2010; Nielsen scantrack (Total Impulse) data to 28.08.10

14 16

18 20 22 23

BSDA The 2011 UK Soft Drinks Report 3

BSDA 2011

BY POPULAR DEMAND
OVERALL SOFT DRINKS CONSUMPTION
STATISTICS
UK soft drinks consumption, 2004 - 2010
Year
Million litres % change Litres per person Value, million % change Value per litre,
Source: Zenith International

2004
13510 -1.4 224.8 11955 -1.4 0.88

2005
13565 +0.4 224.5 12155 +1.7 0.90

2006
13985 +3.1 230.3 12525 +3.0 0.90

2007
13865 -0.9 227.1 12595 +0.6 0.91

2008
13725 -1.0 223.6 12720 +1.0 0.93

2009
14005 +2.0 226.9 13120 +3.1 0.94

2010
14585 +4.1 235.1 13880 +5.8 0.95

All market gures have again been fully reviewed and revised historically, where appropriate.

UK soft drinks sectors annual percentage change, 2004 - 2010

Source: Zenith International

12 Bottled water 10 8 6 4 Fruit juice 2 0 -2 -4 -6 Still & juice drinks Carbonates

Dilutables

Total

2004

2005

2006

2007

2008

2009

2010

4.1

INCREASE IN CONSUMPTION SINCE LAST YEAR

DEFINITION
Soft drinks Carbonated drinks, still and dilutable drinks, fruit juices, smoothies and bottled waters, including sports and energy drinks.

4 The 2011 UK Soft Drinks Report BSDA

UK soft drinks, low calorie & no added sugar vs regular, 2010

UK soft drinks sectors 2010

UK soft drinks, packaging, 2010

Low calorie 62% Regular 38%

Carbonates 44% Dilutables 24% Bottled water 14% Fruit juice 8% Still and juice drinks 10%

Plastic / PET 64% Can 11% Carton 11% Glass / other 9% Dispense 5%
Source: Zenith International

BY POPULAR DEMAND
When the SHS Group purchased Merrydown plc and the Shloer brand in 2005, the grape-based sparkling adult soft drink was a smaller player in a category dominated by market leaders. The Drinks Division of the Group then took on the brand management and prioritised consumer insight, which revealed the unique role that the brand delivers as a premium wine alternative with adult appeal. A signicant investment package was rolled out, including a pack redesign and an above the line campaign, along with category development and sales callage. This support has allowed the brand value to grow by 35 per cent*over the last 5 years and 2010 saw the introduction of the Ros variant which has added incremental sales to the brand. Every aspect of the brand plan is now focused on the consumer relationship with the brand which has resulted in Shloer becoming the number one adult soft drink in the market. Data source: Nielsen Value MAT April 06 Jan 11

Source: Zenith International

Source: Zenith International

000 million litres 15

UK soft drinks consumption, 2004 - 2010

Source: Zenith International

12

2004

2005

2006

2007

2008

2009

2010

COMMENTARY
2010 was a year of resilience and recovery. Despite a long winter and tough economic conditions, the UK soft drinks market bounced back readily. Consumers remain concerned with value. Affordable, large pack sizes have helped drive growth, alongside convenient packs in the on-the-go channel.
The market registered an impressive 4.1% growth in volume and 5.8% increase in value to stand at 14,585 million litres and 13,880 million respectively in 2010. Bottled water showed a gradual recovery driven by strong promotional activity. Carbonates once again showed resilience, led by cola. Dilutables saw another year of growth, repositioning the sector through new innovation and double concentrated variants.

On the back of a tough couple of years, fruit juice and smoothies stepped into recovery mode. Meanwhile, still and juice drinks continued to provide a healthy alternative both on-the-go and at leisure. Soft drinks remain an affordable treat in these times of economic hardship. Consumers buy into soft drinks because of their indulgence, fun and health qualities. This places the UK soft drinks industry on a sound footing.

235
LITRES

AVERAGE CONSUMPTION PER PERSON

BSDA The 2011 UK Soft Drinks Report 5

BSDA 2011
BOTTLED WATER
STATISTICS
UK bottled water consumption, 2004 - 2010
Year
Million litres % change Litres per person % of all soft drinks Value, million % change Value per litre,
Source: Zenith International

BY POPULAR DEMAND

2004
2060 -0.5 34.3 15.2 1380 -1.8 0.67

2005
2140 +3.9 35.4 15.8 1470 +6.5 0.69

2006
2240 +4.7 36.9 16.0 1550 +5.4 0.69

2007
2125 -5.1 34.8 15.3 1460 -5.8 0.69

2008
2005 -5.6 32.7 14.6 1385 -5.1 0.69

2009
2040 +1.7 33.1 14.6 1425 +2.9 0.70

2010
2055 +0.7 33.1 14.1 1440 +1.1 0.70

Million litres 2500

UK bottled water consumption, 2004 - 2010

Source: Zenith International

2000

1500

1000

500

2004

2005

2006

2007

2008

2009

2010

UK bottled water categories, 2010

UK bottled water types, 2010

UK bottled water packaging, 2010

UK bottled water origins, 2010

Still bottled 72% Sparkling bottled 14% Still water cooler 14%

Natural mineral water 61% Spring water 28% Bottled drinking water 11%

Plastic 93% Glass / other 7%

UK produced 76% France 18% Others 6%

Source: Zenith International

Source: Zenith International

Source: Zenith International

Source: Zenith International

6 The 2011 UK Soft Drinks Report BSDA

LITRES

33

AVERAGE CONSUMPTION PER PERSON

BY POPULAR DEMAND
Last year Princes Limited stepped up its investment in Aqua Pura natural mineral water with a major relaunch focusing on the brands water source in the heart of the Cumbrian Countryside. The relaunched Aqua Pura range includes a new logo and brand livery as well as a refreshed pack design featuring striking imagery of its heartland in the Cumbrian countryside. A new strapline 100% Pure Cumbrian was also introduced after research showed that Aqua Puras provenance provides a real resonance with shoppers who associate this outstanding area of natural beauty with purity and natural products.

COMMENTARY
In 2010, and for the second consecutive year, the UK bottled water market continued to recover momentum, growing by 0.7% in volume, compared to 2009. Sales reached 2,055 million litres, whilst pricing remained under pressure, as both raw material and distribution costs continued to rise.
Promotional activity and a couple of lucky breaks in the weather kept bottled water aoat. Consumption of water in smaller retail pack sizes (of 10 litres and below) increased by 2.4% to 1,765 million litres as opposed to water coolers in ofces, which witnessed an 8.3% decline. Across take home outlets and on-the-go retail, promotional activity is a crucial tool for driving sales. In the on-trade channel conditions remain tough, as more and more consumers take the dine-in option. Despite the ongoing challenges, with per person consumption of bottled water in the UK still far below the West European average of 115 litres, manufacturers are looking forward to turning the tide for bottled water in the UK.

By emphasising Aqua Puras British credentials on-pack, it has given consumers a clear reason to buy. This message appears to have struck a chord with consumers and year on year Aqua Pura is one of the UKs fastest growing water brands by volume.

Data source: Nielsen MAT w/e 19/02/11

DEFINITION
Bottled water Still, sparkling water and lightly carbonated water; natural mineral water, spring water, bottled drinking water; packaged water in sizes of 10 litres and below; water for coolers in sizes of 10.1 litres and above.

0.7

INCREASE IN CONSUMPTION SINCE LAST YEAR

BSDA The 2011 UK Soft Drinks Report 7

BSDA 2011
CARBONATES
STATISTICS
UK carbonates consumption, 2004 - 2010
Year
Million litres % change Litres per person % of all soft drinks Value, million % change Value per litre,
Source: Zenith International

BY POPULAR DEMAND

2004
6195 -5.1 103.1 45.9 6930 -1.8 1.12

2005
6015 -2.9 99.6 44.3 6795 -1.9 1.13

2006
5875 -2.3 96.8 42.0 6755 -0.6 1.15

2007
5810 -1.1 95.2 41.9 6850 +1.4 1.18

2008
5920 +1.9 96.4 43.1 7120 +3.9 1.20

2009
6100 +3.0 98.8 43.6 7515 +5.5 1.23

2010
6400 +4.9 103.1 43.9 8000 +6.5 1.25

Million litres 8000

UK carbonates consumption, 2004 - 2010

Source: Zenith International

7000 6000 5000 4000 3000 2000 1000 0 2004 2005 2006 2007 2008 2009 2010

UK carbonates regular vs low calorie, 2010

UK carbonates avours, 2010

UK carbonates packaging, 2010

DEFINITION
Carbonates Ready to drink including draught dispense; home dispense; regular including sparkling juice; low calorie and zero calorie; cola; lemon including lemonade; lemon-lime; mixers including tonic and bitter drinks; orange; shandy; others including other carbonated fruit avours, energy drinks, sparkling

Regular 63% Low calorie 37%

Cola 53% Fruit 14% Lemonade 14% Energy 7% Other 12%

PET 57% Can 26% Dispense 11% Glass 3% Other 3%

Source: Zenith International

avoured water, health drinks and herbal drinks.

Source: Zenith International

Source: Zenith International

8 The 2011 UK Soft Drinks Report BSDA

4.9

BY POPULAR DEMAND
IRN-BRU appealed to the men and women of Brazil last summer to help Scotland create the next generation of Scottish football legends. The BRUzil: Road to 2034 was a simple yet potentially revolutionary idea: to unite Scots and Brazilians last summer forever to enhance the Scottish footballing gene pool and creating phenomenal future players for the worlds biggest football tournament in 2034. IRN-BRU kicked off the campaign in Rio de Janeiro, with lonely hearts adverts and billboards appealing to single Brazilians to consider a Scottish mate. Back in Scotland, the quest was championed by football legend Archie Gemmill, whose never-to-beforgotten wonder goal in 1978 had Scots dreaming of global glory. The campaign not only increased IRNBRU sales but also collected a number of awards including the 2010 Scottish Advertising Awards for best viral, best low budget campaign and best integrated campaign. It also won a Campaign Magazine Media Award in 2010.

INCREASE IN CONSUMPTION SINCE LAST YEAR

COMMENTARY
The nations favourite, with the largest share of total soft drinks, carbonates saw strong growth in 2010. Consumption registered a 4.9% gain to reach 6,400 million litres. Retail value shone at 8,000 million, up 6.5% on 2009.
Driven by cola and energy drinks, carbonates continued to be the most popular soft drinks sector. Cola put a sparkle into the category with new pack choices for the consumer and held its dominant avour share. Other variants such as fruit avours and lemonade gave further shine to the strong momentum for carbonates in 2010, boosted by a little help from in-store promotions. Low calorie colas remained popular and have ourished over the years as an easy treat. A wide range of pack choices are popular for consumption throughout the day. All consumers, keen to get value for money, picked up larger pack sizes for in-home indulgence. Multipacks, carrying smaller bottle and can formats, added zz to the lunchbox and future consumption occasions. Carbonates epitomise the affordable treat qualities that have sustained UK soft drinks for so many years. From refreshment on the go, or as an alternative to alcohol, carbonates have a strong place in the hearts and minds of British consumers.

43.9%
PERCENTAGE OF ALL SOFT DRINKS

BSDA The 2011 UK Soft Drinks Report 9

BSDA 2011
DILUTABLES
STATISTICS
UK dilutables consumption, 2004 - 2010
Year
Million litres % change Litres per person % of all soft drinks Value, million % change Value per litre,
Source: Zenith International

BY POPULAR DEMAND

2004
3125 -1.6 52.0 23.1 780 -1.3 0.25

2005
3100 -0.8 51.3 22.9 775 -0.6 0.25

2006
3350 +8.1 55.2 24.0 805 +3.9 0.24

2007
3350 0.0 54.9 24.2 805 0.0 0.24

2008
3250 -3.0 52.9 23.7 795 -1.2 0.24

2009
3350 +3.1 54.3 23.9 850 +6.9 0.25

2010
3500 +4.5 56.4 24.0 910 +7.1 0.26

Million litres 3500

UK dilutables consumption, 2004 - 2010

Source: Zenith International

3000 2500 2000 1500 1000 500 0

2004

2005

2006

2007

2008

2009

2010

UK dilutables regular vs low calorie, 2010

UK dilutables avours, 2010

UK dilutables packaging, 2010

DEFINITION
Dilutables Squashes, cordials, powders and other concentrates for dilution to taste by consumers, normally adding 4 parts water to 1 part product; high juice (minimum 40% fruit content as sold); regular including squashes and cordials (minimum 25%); low sugar including no added sugar and sugar free; (dilutables

Low sugar / NAS 70% Regular 23% High juice 7%

Blends 51% Orange 29% Blackcurrant 11% Lemon 5% Lime 2% Others 2%

Plastic up to 1 litre 56% Plastic over 1 litre 35% Others 9%

are expressed as ready to drink for ease of comparison where measuring overall soft drinks market gures/shares).

Source: Zenith International

Source: Zenith International

Source: Zenith International

10 The 2011 UK Soft Drinks Report BSDA

4.5

BY POPULAR DEMAND
In March 2010, Coca-Cola Enterprises Ltd (CCE) launched the Open More Business report. Following 2m investment and three years of extensive research, Open More Business shares new evidence-based insights on how consumers approach the soft drinks category. It gives detailed insight into how customers can unlock the huge opportunity soft drinks present by understanding shoppers, their needs and preferences, and the environments in which they shop. The report identied an exciting future for the soft drinks category, including a 1.4 billion growth opportunity which CCE is looking to target over the next ve years. In simple terms, this equates to existing soft drinks shoppers buying just one extra soft drink a fortnight each. Since launching last year, the Open More Business initiative has continued to develop. Retailers across Great Britain are now able to take CCEs Open More Business soft drinks MOT, a ve minute self-assessment scorecard that can help them maximise sales from their existing soft drinks range.

INCREASE IN CONSUMPTION SINCE LAST YEAR

COMMENTARY
Dilute to taste drinks registered a steady growth in 2010 with consumed volume increasing by 4.5% to 3,500 million litres. The retail value of concentrate was up 7.1% to stand at 910 million.
By volume consumed, the sector continued to hold the second largest share in the UK soft drinks market. Classic dilutables are typically mixed with four parts water to one part syrup. Double concentrate, a strong driver of overall consumed volume in recent years, is typically mixed nine parts water to one part squash. Double concentrate, from its retailer own label origins, has added even more affordability to dilutables and has stayed popular with British consumers. The UK recession has brought consumers back to basics, with traditional products and childhood favourites becoming a preference. It is therefore no surprise that squash has ourished during the main recessionary years of 2009 and 2010. Dilutables offer a low cost, easy to carry and reliable standby in the kitchen. Low and no added sugar variants dominate the sector and provide lower calorie refreshment on tap for both adults and children.

3500
MILLION LITRES

CONSUMED IN 2010

BSDA The 2011 UK Soft Drinks Report 11

BSDA 2011

BY POPULAR DEMAND
FRUIT JUICE AND SMOOTHIES
STATISTICS
UK fruit juice consumption, 2004 - 2010
Year
Million litres % change Litres per person % of all soft drinks Value, million % change Value per litre,
Source: Zenith International

2004
1040 +3.0 17.3 7.7 1540 +0.7 1.48

2005
1120 +7.7 18.5 8.3 1675 +8.8 1.50

2006
1210 +8.0 19.9 8.7 1820 +8.7 1.50

2007
1230 +1.7 20.1 8.9 1830 +0.5 1.49

2008
1190 -3.3 19.4 8.7 1760 -3.8 1.48

2009
1145 -3.8 18.6 8.2 1670 -5.1 1.46

2010
1180 +3.1 19.0 8.1 1760 +5.4 1.49

Million litres 1500

3.1

UK fruit juice consumption, 2004 - 2010

Source: Zenith International

1200

900

INCREASE IN CONSUMPTION SINCE LAST YEAR

600

300

2004

2005

2006

2007

2008

2009

2010

UK ambient vs chilled fruit juice, 2010

UK fruit juice avours, 2010

UK fruit juice packaging, 2010

DEFINITION
Fruit juice 100% fruit content equivalent, sometimes referred to as pure juice or 100% juice. Chilled juice comprises four main types: smoothies (based predominately on whole crushed fruit, chilled and with a short shelf life); freshly squeezed juice (not pasteurised, chilled with a shelf life of a few days);

Ambient 45% Chilled not from concentrate 27% Chilled from concentrate 21% Chilled smoothies 5% Chilled freshly squeezed 2%

Orange 54% Apple 13% Blends 16% Pineapple 5% Grapefruit 2% Others 10%

Carton 76% Plastic 16% Glass / other 8%

not from concentrate juice (squeezed then pasteurised, chilled with a shelf life of a few weeks); other chilled from concentrate (from concentrate or part squeezed and part from concentrate). Ambient or long life juice is mainly from concentrate and heat treated; shelf life of up to 18 months.

Source: Zenith International

Source: Zenith International

Source: Zenith International

12 The 2011 UK Soft Drinks Report BSDA

UK smoothies consumption, 2004 - 2010

Year
Million litres % change Litres per person % of all soft drinks
Source: Zenith International

2004
23 +15.0 0.4 0.2

2005
35 +52.2 0.6 0.3

2006
55 +57.1 0.9 0.4

2007
79 +43.6 1.3 0.6

2008
64 -19.0 1.0 0.5

2009
47 -26.6 0.8 0.3

2010
51 +8.5 0.8 0.3

BY POPULAR DEMAND
The Del Monte brand has great heritage and trust with consumers and has been in existence since 1892 selling high quality fresh fruit, tinned fruit and juices around the world. The current market environment has consumers considering even more seriously what products they spend their hard-earned cash on, and Del Montes juice range provides consumers with high quality juice at great value. The juice range was relaunched during 2010, including a re-formulation of the range recipes to ensure that it offered the best taste, as well as a brand new packaging design and integrated support plan to re-establish the brand as the number one brand in ambient juice. Throughout February 2011, a regional TV test, door drop and radio campaign has had great success in the South West region and included a taste test so that consumers could nd out for themselves. The results of the relaunch were fantastic with Del Monte growing at 15.9 per cent in 12 weeks compared with 5.7 per cent for the ambient category as a whole.

COMMENTARY
The fruit juice sector has had a tough couple of years as consumers traded down to cheaper alternatives during the recession. However, in 2010, the category registered 3.1% volume growth to 1,180 million litres. Retail sales value increased by 5.4% to 1,760 million.
Orange has retained its place as most popular juice avour, although the dominance of orange has been squeezed by blends, tropical and other avours gaining a following amongst consumers keen to try a new taste experience. Smoothies have been the hardest hit juice category in the last couple of years, with a price premium battling against an economic storm. Yet, in 2010, smoothies registered a strong recovery, up 8.5% in volume to reach 51 million litres. This equates to 0.8 litres per person and a total value of 141 million. With on-going 5-a-day messages and health virtues, smoothies provided consumers with an on-the-go alternative for one or two of their 5-a-day. As consumers disposable income is expected to be strained further in 2011, due to the VAT increase and rising living costs, promotions and nding an appropriate price point will remain key. The uctuation in global juice commodity prices may yet take some zest out of fruit juice in this year and beyond.

Data source: IRI market data to 22 Jan 2011

8.5%

INCREASE IN CONSUMPTION OF SMOOTHIES LAST YEAR

BSDA The 2011 UK Soft Drinks Report 13

BSDA 2011
STILL & JUICE DRINKS
STATISTICS

BY POPULAR DEMAND

UK still and juice drinks consumption, 2004 - 2010

Year
Million litres % change Litres per person % of all soft drinks Value, million % change Value per litre,
Source: Zenith International

2004
1090 +10.7 18.1 8.1 1325 +9.1 1.22

2005
1190 +9.2 19.7 8.8 1440 +8.7 1.21

2006
1310 +10.1 21.6 9.4 1595 +10.8 1.21

2007
1350 +3.1 22.1 9.7 1650 +3.4 1.22

2008
1360 +0.7 22.2 9.9 1660 +0.6 1.22

2009
1370 +0.7 22.2 9.8 1660 0.0 1.21

2010
1450 +5.8 23.4 9.9 1770 +6.6 1.22

Million litres 1500

UK still and juice drinks consumption, 2004 - 2010

Source: Zenith International

1200

900

600

300

2004

2005

2006

2007

2008

2009

2010

UK still and juice drinks regular vs low calorie, 2010

UK still and juice drink categories, 2010

UK still and juice drink packaging, 2010

DEFINITION
Still & juice drinks Nectars (25-99% fruit content); juice drinks (5-25% fruit content); other still drinks (0-5%) including iced tea, sports drinks, still avoured water and non-fruit drinks.

Regular 57% Low calorie 43%

Juice drinks 63% Nectars 12% Still avoured water 14% Sports 11%

Carton 48% Plastic 25% Glass / other 27%

Source: Zenith International

Source: Zenith International

Source: Zenith International

14 The 2011 UK Soft Drinks Report BSDA

5.8%
INCREASE IN CONSUMPTION SINCE LAST YEAR

BY POPULAR DEMAND
Volvic Touch of Fruit, the avoured water range under the Volvic megabrand, has been the key driver of growth for avoured still water and now commands over 50 per cent share of the category. 2010 was a particularly strong year for Touch of Fruit with 8.4 per cent growth in value and 5.1 per cent in volume sales, driven by consumer demand for the existing range and new avour innovation. The launch of Limited Edition Touch of Blackcurrant in 2010 was such a success that the avour has now become a permanent part of the range, and 2011 will see the introduction of a new Limited Edition - Touch of Summer Fruits. The brand has grown rapidly in impulse over the last two years by tapping in to the need for tasty, on-the-go hydration and Volvic will build on this insight by launching a new 75cl sports cap bottle. This year, Danone Waters UK will drive mass awareness of Touch of Fruit with its rst TV advert for over four years, supported by outdoor media and extensive sampling.

COMMENTARY
Encompassing nectars and juice drinks with less than 25% fruit content, alongside sports drinks, iced tea and still avoured water, the still and juice drinks sector grew 5.8% in volume last year, to reach 1,450 million litres. In value terms, still and juice drinks registered a 6.6% increase to 1,770 million.
This sector is designed for a wide range of consumers from children to grown ups, providing an array of product choice. Still and juice drinks continue to offer a taste alternative to plain bottled water or carbonates, and remain a popular choice for all health-minded consumers. The grab and go virtues of still drinks have seen the category pass a number of milestones. Barring a slower gain in the tough economic backdrop of 2008 and 2009, still and juice drinks have hit the high notes of growth in every year of the past decade. Diversity is the name of the game for the sector. Chilled juice drinks in 1 litre cartons provide refreshment and gluggability. Sports drinks, typically in sports cap bottles, deliver hydration and electrolytes for a before, during and after sport occasion. While, from juice drinks to new avoured waters, the lunchbox can be crammed with healthy options!

Data source: Total Coverage Nielsen

23.4
LITRES AVERAGE CONSUMPTION PER PERSON IN 2010

BSDA The 2011 UK Soft Drinks Report 15

BSDA 2011

BY POPULAR DEMAND
SPORTS & ENERGY DRINKS
STATISTICS
UK sports and energy drinks consumption, 2004 - 2010
Year
Million litres % change Litres per person % of all soft drinks

2004
320 +16.4 5.3 2.4

2005
365 +14.1 6.0 2.7 95 +11.8 1.6 0.7 270 +14.9 4.5 2.0

2006
405 +11.0 6.7 2.9 110 +15.8 1.8 0.8 295 +9.3 4.9 2.1

2007
455 +12.3 7.5 3.3 125 +13.6 2.0 0.9 330 +11.9 5.4 2.4

2008
505 +11.0 8.2 3.7 135 +8.0 2.2 1.0 370 +12.1 6.0 2.7

2009
532 +5.2 8.6 3.8 142 +4.8 2.3 1.0 390 +5.4 6.3 2.8

2010
600 +12.9 9.7 4.1 160 +13.1 2.6 1.1 440 +12.8 7.1 3.0

Sports drinks, million litres 85 % change +13.3 Litres per person 1.4 % of all soft drinks 0.6 Energy drinks, million litres 235 % change +17.5 Litres per person 3.9 % of all soft drinks 1.7
Source: Zenith International

Million litres 600

UK sports and energy drinks consumption, 2004 - 2010

Source: Zenith International

500 400 300 200 100 0

2004

2005

2006

2007

2008

2009

2010

UK sports and energy drinks, 2010

UK sports drink types, 2010

UK energy drink types, 2010

DEFINITION
Sports drinks Drinks that enhance physical performance before, during or after physical/sporting activity. Sports drinks replace uids and electrolytes/minerals lost by sweating and supply a boost of carbohydrate: isotonic (uid, electrolytes and 6 to 8% carbohydrate), hypotonic (uids, electrolytes and a low level of

Sports 27% Energy 73%

Isotonic 91% Hypotonic 9% Hypertonic <1%

Glucose 58% Stimulant 42%

carbohydrate) and hypertonic (high level of carbohydrate). Energy drinks Traditional glucose-based energy drinks; functional or stimulation energy drinks which claim a particular energy boost from caffeine, guarana, taurine and ginseng or other herbs or some combination of these ingredients.

Source: Zenith International

Source: Zenith International

Source: Zenith International

16 The 2011 UK Soft Drinks Report BSDA

12.8 %

13

INCREASE IN CONSUMPTION OF SPORTS DRINKS SINCE LAST YEAR

INCREASE IN CONSUMPTION OF ENERGY DRINKS SINCE LAST YEAR

BY POPULAR DEMAND
In January 2011, CocaCola Enterprises Ltd (CCE) extended its Relentless portfolio with the launch of a new variant, Libertus. The sugar-free stimulation product also unveiled a new look across the rest of the range with an eye-catching insignia on one side of the pack and the original Relentless logo on the other. Libertus contains just 20 calories per 500ml can, with the same great avour and the same amount of caffeine, taurine and B6 and B12 vitamins of Relentless Origin. The sugar-free variant has been developed to meet the consumer needstate for mental renewal and recharging without the sugar, and to offer consumers more choice when shopping the sector. Always innovative, Relentless continues to push the boundaries of cutting edge on-pack design. Libertus and the existing range deliver striking on-shelf stand out allowing retailers to alternate display with either a facing of the Relentless insignia or the original logo.

COMMENTARY
The buzz around sports and energy drinks is here to stay. This has remained the fastest growing sector in the UK soft drinks market in recent years. The combined category saw another year of high growth in 2010 to reach 600 million litres. In value terms, sports and energy drinks continue to command a premium, surpassing a total value, across all sales channels, of 1,500 million in 2010.
Sports drinks comprised predominantly of isotonic and hypotonic drinks and energy drinks with glucose and stimulant drink variants again saw their respective segment shares remain effectively unchanged in 2010. Those of us with longer working hours and more stressful lives are increasingly using energy drinks to help get through the day and the night. In 2010, energy drinks registered 12.8% growth, reaching 440 million litres. This pushed consumption to 6.8 litres per head, and generated total category value of 1,260 million. Sports drinks provide replenishment and hydration for modern lifestyles and resonate with a wide range of consumers, whether in the gym or as active refreshment on-the-go. Overall, sports drinks grew by 13.1% in volume to stand at 160 million litres in 2010. This equates to 2.6 litres per person and a total category value of 260 million.

BSDA The 2011 UK Soft Drinks Report 17

SETTING INDUSTRY STANDARDS

BSDA 2011

SOFT DRINKS INDUSTRY LAUNCHES HIGH CAFFEINE CODE OF PRACTICE

Because high caffeine soft drinks are growing in popularity, BSDA has published a code of practice covering how they are labelled and marketed in order to ensure that consumers have all information needed to make informed choices about purchasing and enjoying high caffeine content soft drinks safely. (The word high compares them with other soft drinks, not with other beverages more generally they contain no more caffeine than a typical cup of coffee.)
The code was drawn up following discussion among manufacturers of high caffeine drinks (including non-members of BSDA, one of whom subsequently joined), with the benet of advice from retailer trade bodies and ofcials at the FSA. It has been complemented by a similar code adopted at European level by UNESDA. The code of practice requires that all drinks with a high caffeine content carry the additional labelling statement Not suitable for children, pregnant women and persons sensitive to caffeine. In addition, such drinks may not be promoted or marketed to persons aged under 16.

NEW EDITION OF

GUIDE TO GOOD BOTTLED WATER STANDARDS

Bottled water producers now have an up-to-date handbook to help them with their production: the Guide to Good Bottled Water Standards.
BSDA revised and updated its denitive guide to the rules and methods followed in producing natural mineral water, spring water, and bottled drinking water. The Guide covers everything from the permissible sources of water and extraction and bottling processes to the labelling and presentation of the water when it is sold. For anyone who is already a water bottler, or if you are thinking of setting up a bottling business of your own, the newly updated BSDA Guide to Good Bottled Water Standards is a must-have. Over 80 pages in length, this guide will provide you with up-to-date advice on everything you need to know in order to set up or stay in business. Members of BSDA get free access to the latest edition of the Guide to Good Bottled Water Standards via the members section of the BSDA website.

18 The 2011 UK Soft Drinks Report BSDA

TECHNICAL EXPERTISE CALLED INTO ACTION

BSDAs technical expertise has been called upon repeatedly in the past year to ensure that the industrys interests are taken into account in the framing of new legislation. It is not in the interests of consumers if rules are drawn up in a way which makes it unnecessarily expensive or even impossible to comply. This work requires regular engagement with the regulatory authorities the Food Standards Agency and its European equivalent, EFSA and active participation in the three European trade associations, UNESDA (for carbonates, dilutables, still and juice drinks), EFBW (for bottled waters) and AIJN (for fruit juices and smoothies).
For example, in the review of the use of additives being conducted by the European Food Safety Authority, BSDA has ensured that up-to-date data is provided on their use and consumption, so that decisions on usage levels can be based on the most accurate information possible. Parts of the industrys code of practice on fruit juice have been recognised in the annex to the EUs fruit juice directive, which provides assurance to consumers about the authenticity of the juices they are buying. This is the central theme of BSDAs representational work: that the industry exists to serve consumers and that regulation should be consistent with this objective and not contrary to it.

BSDA The 2011 UK Soft Drinks Report 19

LEADING IN THE BUSINESS COMMUNITY

AWARDS SUCCESS FOR LIQUIDS MEAN LIFE

BSDA 2011

BSDA and Britvic receive the award from Maggie Philbin (second left)

The BSDA education project Liquids Mean Life won the award for Enterprise & Innovation at the IEBE Business Awards 2010. This prestigious award recognises enterprise and innovation in business involvement in education, and was presented to the British Soft Drinks Association and Britvic Soft Drinks by the Institute for Education Business Excellence.
Over 150 businesses, education partners and guests attended the awards ceremony at Londons Design Museum on Friday 1 October 2010. It was hosted by broadcaster and IEBE Patron Maggie Philbin. The IEBE judge, Jane Samuels, Project and Operations Manager of Edge, said: This is an excellent example of a trade association and a major corporate working in partnership with local education business partnership organisations across the country to provide valuable resources and support for teachers. Particularly impressive is the long term commitment to education demonstrated by Britvics Learning Zone provision at its Beckton site and the plans to expand this provision to two other sites in Leeds and Norwich. The curriculum materials, industry visits and competition programmes are all highly praised by teachers and students who have benetted from them. The current plans to develop links with PGCE students at universities is especially innovative and a great example of maximising the potential of a programme from every angle.

RECORD ATTENDANCE AT BSDA INDUSTRY LUNCH

Roger White

The annual BSDA Industry Lunch on 8 June 2010 saw a record number of guests gather to hear a keynote address by Olympic hero Lord Sebastian Coe KBE. An audience of over 200 listened to an inspiring, motivating and entertaining speech, drawing from Lord Coes career as an athlete, a politician, and most recently chair of the London 2012 Organising Committee of the Olympic and Paralympic Games.
Newly-elected president of BSDA, Roger White, Chief Executive of A G Barr, introduced Lord Coe, and also took the opportunity to speak about the industrys wider concerns. On the economy: I do not envy the new Government their task however, I would strongly oppose any further short term tax rises which would penalise consumers and jeopardise our fragile economic recovery. On healthy lifestyles: the message is clear: voluntary, industry-led action blended with increased education is far more effective than legislation and coercion from Government. On sustainability: this is not an industry which sits back but one which has an on-going commitment to sustainability.

Lord Sebastian Coe

20 The 2011 UK Soft Drinks Report BSDA

PROMOTION OF VENDING CHOICE

SOFT DRINKS INDUSTRY WELCOMES RESPONSIBILITY DEAL INITIATIVE
The coalition government elected in May 2010 brought with it a new approach to public health, and in particular policy on obesity. Rather than seeking to impose changes on the composition of food and drink, the plan is to encourage companies to make their own changes in line with what their businesses can reasonably achieve, through what have been named Responsibility Deals.
This approach has been welcomed by BSDA. Jill Ardagh, BSDA Director General, said: The soft drinks industry has proved over the years that a responsible approach by industry is the right way to deal with issues of public concern. For example, people thinking about the issue of obesity should note how the soft drinks product range has changed radically. The proportion of the market made up of drinks with no added sugar is now 60 per cent, up from only 30 per cent 20 years ago. This has been achieved without regulation. Instead, it was a combination of product innovation, clear nutritional information, and a focus on the needs of the consumer that delivered. A responsible approach by industry works. BSDA published a Responsibility Report to illustrate the industrys wide-ranging actions to improve and extend choice of sustainably produced and responsibly marketed drinks.

BSDA has been an active participant in the Vending Choice Coalition, an industry initiative set up to explain the role of vending as a channel for providing food and drink. The spark was the introduction of restrictions on what could be sold through vending machines (although not other retail outlets) in hospitals in Wales, but challenges of providing choice to consumers and information about those choices can be felt more broadly.
The VCC is led by the Automatic Vending Association, but brings together vending operators and suppliers along with other trade associations. Providing the widest possible range of soft drinks through vending is an important objective. A highlight of the past year was a Vending Choice Conference held in Cardiff on 6 July 2010. The conference aimed to increase the choice of products available from vending machines, introduce new products to the vending stream, and enable vending operators to understand the changing needs of consumers.

BSDA The 2011 UK Soft Drinks Report 21

SUSTAINABILITY

BSDA 2011

THE CASE AGAINST MANDATORY DEPOSITS

The debate about mandatory deposits was revived again in September 2010 with a report from the Campaign to Protect Rural England. Never mind that deposit schemes have largely fallen out of favour with consumers over the years, the CPRE proposed that a new levy of at least 15 pence (or 30 pence for bottles larger than 500 ml) should be introduced, along with an extensive new bureaucracy to collect, administer and return the deposits and send the bottles on for recycling.
BSDA was quick to hit the airwaves in response, pointing out that household collections of plastic bottles for recycling were increasing by 20 per cent a year, progress that should be supported and not undermined. Furthermore, the airy claim that the costs of the scheme would be paid for by industry actually meant that they would be paid for by consumers in the form of higher prices. But this is not to say that the soft drinks industry is inactive in the face of litter and waste. The opposite is true. BSDA is backing the Love where you live campaign that seeks to persuade people not to drop litter and waste, and many soft drinks companies sponsor on the go collection facilities for recycling themselves. BSDA is also backing the Courtauld 2 commitment on reducing the wider environmental impact of packaging. It would be wrong for BSDA to claim all the credit for the opposition to mandatory deposits. The campaign has been a joint project with other industry bodies including INCPEN, the Industry Council for Packaging and the Environment, and the retailers trade associations, such as the British Retail Consortium and the Association of Convenience Stores. The campaign against mandatory deposits, like the campaign against litter itself, can only be won by a collective approach.

REPORTING ON THE SUSTAINABILITY STRATEGY

BSDA published the second annual report on the progress made by Britains soft drinks industry towards its sustainability goals. The sustainability strategy was adopted in 2008 with the aims of:

reducing carbon emissions reducing waste and

increasing recycling

reducing water use reducing the external impacts

of transport Examples of the efforts made by soft drinks companies and reported in the Sustainability Report include:

the use of more efcient

refrigerants and lighting in chillers

using more recycled PET in bottles redesigning the secondary

packaging of products so that less cardboard is used

reorganising road transport routes

to reduce the number of miles covered by trucks on the road

22 The 2011 UK Soft Drinks Report BSDA

ABOUT BSDA
THE BRITISH SOFT DRINKS ASSOCIATION FOR: MEDIA & PUBLIC

BSDA 2011

ABOUT BSDA
The British Soft Drinks Association is the national trade association representing the collective interests of producers and manufacturers of soft drinks including carbonated drinks, still and dilutable drinks, fruit juices and smoothies, and bottled waters. BSDA is based in central London with an experienced, professional staff and is governed by an Executive Council of directors elected from its members. It provides a central meeting point for the industry and a range of services to help the industry and its manufacturers to be at the leading edge. Main membership benets include:

AFFAIRS
REGULATORY ISSUES SUSTAINABILITY EDUCATION & SKILLS
For more information about BSDA and its activities contact British Soft Drinks Association 20-22 Stukeley Street London WC2B 5LR Telephone: +44 (0) 20 7430 0356 Fax: +44 (0) 20 7831 6014 Email: bsda@britishsoftdrinks.com

Information, advice and advance warning on all

aspects of the industry, including technical standards, best practice and legislation to ensure good compliance and planning

Participation in the development of Codes of

Practice and initiatives to promote the industrys reputation and demonstrate social responsibility

Assistance and advice on incident management Website: www.britishsoftdrinks.com and suppliers

Inclusion in BSDAs online listing of manufacturers Free access to the Members website with its
information, advice and publications

A range of training courses tailored to the industry

with substantial discounts for members

The opportunity to network with industry colleagues

at BSDA meetings and events and inuence BSDA policy-making

BSDA The 2011 UK Soft Drinks Report 23

British Soft Drinks Association 20-22 Stukeley Street London WC2B 5LR Telephone: +44 (0) 20 7430 0356 Fax: +44 (0) 20 7831 6014 Email: bsda@britishsoftdrinks.com Website: www.britishsoftdrinks.com