2020 annual report - british soft drinks association...06 overall soft drinks 2019 source: global...
Post on 19-Jul-2020
7 Views
Preview:
TRANSCRIPT
2020Annual ReportMeeting The Challenge
02
Report Methodology & Background
Introduction
Overall Soft Drinks
Bottled Water
Carbonates
Dilutables
100% Juice
Sports & Energy Drinks
Still & Juice Drinks
Member Initiatives
Contact
03
04
05
07
09
11
13
15
17
19
22
Contents
03
The key strength of Global Data’s methodology is that it works in industry partnerships across the value chain, from suppliers to brand producers and both on- and off-premise channels. The research is built from brand data upwards. The ‘brick-by-brick’ approach ensures that the research gives insights from all angles; from brand volume through to corporate volume, flavour segmentation, packaging splits and channel distribution. The companies featured in the company profiles and those whose brands are featured in the individual market categories are selected through regular market observation based on the size of their output and/or their dynamism. The data included in this report covers the 2019 calendar year.
In line with its European colleagues, the British Soft Drinks Association (BSDA) commissioned food, drink and retailing data analyst Global Data to produce its 2020 report
Report Methodology & Background
Sources» Official production and trade statistics» Face-to-face interviews with leading soft drinks producers» Interviews with retailers, distributors and associated industries» Consumer surveys» Quarterly monitoring of product offered in all trade channels in selected markets
Industry terms» Regular: 31 and over kcal per 100ml» Mid Calorie: 21-30 kcal per 100ml» Low/No Calorie: 0-20 kcal per 100ml*
*Nutrition Claims Annex of Regulation (EC) 1924/2066
04
Amid a continuing global pandemic and the sunniest spring in the UK since records began, it is easy to forget that 2019 was one of the wettest summers ever registered in the UK by the Met Office. Little surprise, then, that our report shows volume sales of soft drinks were slightly down last year.
But, sales values continued to rise in 2019, spurred on by the growing trend for premium (‘less but better’). This shift has also highlighted the innovation in a sector responding to changing consumer tastes, including continuing signs younger adults are drinking less alcohol.
Of course, COVID-19 has, temporarily at least, radically transformed how we live our lives. The closure of pubs, restaurants and nightclubs this spring presents a huge challenge for the food and drink sector as it prepares for the realities of Brexit.
And, it’s not the only challenge the soft drinks industry is addressing.
Consumers want to see less plastic waste and more recycling. Our members’ products are 100% recyclable but we know more can be done. That is why we are working with the Scottish Government to develop its deposit return scheme (DRS), which is currently due to be introduced in July 2022, one year before England and Wales get their DRS.
In due course, we hope to have a DRS in operation across Great Britain, alongside much-needed reform of the packaging producer responsibility system.
For now, though, the challenge facing the sector is to rebuild as we emerge from lockdown and the impact of its unprecedented closure of customer businesses. The soft drinks industry is renowned for its resilience. Let’s hope it bounces back this summer.
Gavin PartingtonBSDA Director General
Introduction
05
Overall Soft Drinks MarketBottled Water, Carbonated Drinks, Dilutables, 100% Juice, Sports & Energy Drinks, and Still & Juice Drinks
13,659Volume M Litres
16,329Value M GBP
-2.9%YOY Growth
0.1%YOY Growth
2019 statistics
Six-year comparison
Source: Global Data
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
2014
13,414
- 0.4
14,515
1.6
2015
13,402
- 0.1
14,377
- 1.0
2016
13,569
1.3
14,695
2.2
2017
13,545
- 0.2
15,112
2.8
2018
14,071
3.9
16,306
7.9
2019
13,659
- 2.9
16,329
0.1
2019 channel split
Off-Premise
86.5%On-Premise
13.5%
06
Overall Soft Drinks 2019
Source: Global Data
Source: Kantar Worldpanel
28.1%Sugar intake from consumption of Overall Soft Drinks fell by 28.1% between March 2016 and March 2020
Calorie split
1 Low/No Calorie 68.2%2 Regular 25.1%3 Mid Calorie 6.7%
Category split
1 Carbonated Soft Drinks 38.6%2 Dilutables 20.8%3 Bottled Water 20.6%4 Still & Juice Drinks 7.1%5 100% Juice 6.5%6 Sports & Energy Drinks 6.3%
Packaging split
1 PET Bottle 69.2%2 Metal Can 12.9%3 Board Carton 5.5%4 Board Bag in Box 4.3%5 Glass Bottle 3.9%6 Polycarbonate Bubble Top 2.2%7 Other 2.0%
07
Bottled WaterPackaged Water Still, Packaged Water Sparkling and Bulk/Home or Office Delivery Water
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2014
2,263
9.6
1,319
10.2
16.9
2015
2,465
8.9
1,422
7.8
18.4
2016
2,694
9.3
1,513
6.4
19.9
2017
2,816
4.5
1,634
8.0
20.8
2018
2,986
6.0
1,711
4.7
21.2
2019
2,811
-5.8
1,635
-4.5
20.6
Source: Global Data
2,811Volume M Litres
1,635Value M GBP
-5.8%YOY Growth
-4.5%YOY Growth
20.6%Share of TotalSoft Drinks
2019 statistics
2019 channel split
Off-Premise
82.0%On-Premise
18.0%
08
Bottled Water 2019
On-Premise consumption of Bottled Water grew by 0.6 percentage points in 2019
Water source split
1 Mineral 64.6%2 Spring 30.2%3 Table 5.3%
Packaging split
1 PET Bottle 84.5%2 Polycarbonate Bubble Top 10.8%3 Glass Bottle 4.6%4 Metal Can 0.1%
Sales split
1 Packaged Water Still 75.0%2 Packaged Water Sparkling 14.0%3 Bulk/HOD Water 10.9%
0.6%
Source: Global Data
09
Carbonated DrinksCarbonates (96.4% of category sales in 2019), Carbonated Flavoured Water (3.4%), Carbonated Enhanced Water (0.1%) and Carbonated RTD Iced Tea (0.1%)
Source: Global Data
2014
5,240
- 2.1
6,748
- 0.1
39.1
2015
5,201
- 0.7
6,706
- 0.6
38.8
2016
5,192
- 0.2
6,809
1.5
38.3
2017
5,173
- 0.4
7,183
5.5
38.2
2018
5,324
2.9
8,105
12.8
37.8
2019
5,271
- 1.0
8,230
1.5
38.6
5,271Volume M Litres
8,230Value M GBP
-1.0%YOY Growth
1.5%YOY Growth
38.6%Share of TotalSoft Drinks
Off-Premise
82.4%On-Premise
17.6%
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2019 statistics
2019 channel split
10
Carbonated Drinks 2019
Low/No Calorie Carbonated Drinks grew by 3.0 percentage points in 2019
Calorie split
1 Low/No Calorie 62.0%2 Regular 30.1%3 Mid Calorie 7.9%
Flavour split
1 Cola 55.2%2 Clear Lemonade 8.8%3 Tonic, Mixers & Bitters 5.8%4 Orange 5.5%5 Lemon/Lime 4.1%6 Other 20.5%
Packaging split
1 PET Bottle 58.3%2 Metal Can 24.6%3 Board Bag in Box 10.6%4 Glass Bottle 4.5%5 Metal Tank 1.6%6 Polypropylene Cartridge 0.4%
3.0%
Source: Global Data
11
DilutablesPredominantly Squashes & Syrups, plus a very small percentage of Fruit Powder products
2014
3,041
- 4.2
855
2.3
22.7
2015
2,882
- 5.2
753
- 11.9
21.5
2016
2,827
- 1.9
778
3.3
20.8
2017
2,768
- 2.1
751
- 3.5
20.4
2018
2,947
6.4
865
15.2
20.9
2019
2,847
- 3.4
845
- 2.2
20.8
Source: Global Data
2,847Volume M Litres
845Value M GBP
-3.4%YOY Growth
-2.2%YOY Growth
20.8%Share of TotalSoft Drinks
Off-Premise
95.6%On-Premise
4.4%
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2019 statistics
2019 channel split
12
Dilutables 2019
Low/No Calorie Dilutables grew by1.5 percentage points in 2019
Calorie split
1 Low/No Calorie 89.3%2 Mid Calorie 6.1%3 Regular 4.5%
Flavour split
1 Orange 34.3%2 Flavour Mixes 31.7%3 Apple 13.1%4 Berries 5.8%5 Other 15.1%
Packaging split
1 PET Bottle 94.5%2 Glass Bottle 3.7%3 HDPE Bottle 1.6%4 PVC Bottle 0.1%5 Paper Sachet 0.1%
1.5%
Source: Global Data
13
100% Juice100% Juice, including Smoothiesand Coconut Water
2014
1,012
- 7.6
1,828
- 5.6
7.5
2015
960
- 5.1
1,722
- 5.8
7.2
2016
940
- 2.0
1,743
1.2
6.9
2017
923
- 1.8
1,693
- 2.9
6.8
2018
928
0.5
1,623
- 4.1
6.6
2019
891
- 4.0
1,591
- 2.0
6.5
Source: Global Data
891Volume M Litres
1,591Value M GBP
-4.0%YOY Growth
-2.0%YOY Growth
6.5%Share of TotalSoft Drinks
FromConcentrate
56.9%
Not From Concentrate
43.1%
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2019 statistics
2019 juice type split
14
100% Juice 2019
Orange Juice’s share of this category grew by 1.7 percentage points in 2019
Flavour split
1 Orange 62.7%2 Apple 12.4%3 Berries 3.3%4 Pineapple 3.3%5 Other 18.3%
Packaging split
1 Board Carton 66.7%2 PET Bottle 27.4%3 HDPE Bottle 4.2%4 Glass Bottle 1.7%5 Board Bag in Box 0.5%6 Metal Can 0.1%
Shelf state split
1 Chilled 69.5%2 Ambient 30.5%
1.7%
Source: Global Data
15
Sports &Energy DrinksSports Drinks enhance physical performance before, during or after physical/sporting activity by replacing fluids and electrolytes/minerals lost by sweating and by supplying a boost of carbohydrate
Energy Drinks include traditional glucose-based energy drinks and functional or stimulation drinks which claim a particular energy boost from caffeine, guarana and taurine, among others
2014
772
4.3
2,159
6.4
5.8
2015
794
2.8
2,207
2.3
5.9
2016
802
1.0
2,237
1.3
5.9
2017
802
0.1
2,270
1.5
5.9
2018
844
5.2
2,425
6.9
6.0
2019
866
2.6
2,529
4.3
6.3
Source: Global Data
866Volume M Litres
2,529Value M GBP
2.6%YOY Growth
4.3%YOY Growth
6.3%Share of TotalSoft Drinks
Off-Premise
91.6%On-Premise
8.4%
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2019 statistics
2019 channel split
16
Sports & Energy Drinks 2019
Volume sales of Energy Drinksgrew by 3.9% in 2019
Category split
1 Energy Drinks 84.4%2 Sports Drinks 15.6%
Calorie split
1 Regular 64.9%2 Mid Calorie 18.9%3 Low/No Calorie 16.2%
Packaging split
1 Metal Can 53.1%2 PET Bottle 46.8%3 Glass Bottle 0.1%
3.9%
Source: Global Data
17
Still & Juice DrinksHigh Juice Drinks with a fruit content of 25-99%, Still Drinks with a 0-25% fruit content, Still Flavoured Waters, Still Enhanced Waters and Still/Iced RTD Tea Drinks
2014
1,087
3.6
1,605
4.3
8.1
2015
1,100
1.2
1,566
- 2.5
8.2
2016
1,114
1.3
1,615
3.1
8.2
2017
1,063
- 4.6
1,583
- 2.0
7.8
2018
1,043
- 1.9
1,577
- 0.3
7.4
2019
974
- 6.6
1,500
- 4.9
7.1
Source: Global Data
974Volume M Litres
1,500Value M GBP
-6.6%YOY Growth
4.9%YOY Growth
7.1%Share of TotalSoft Drinks
Off-Premise
86.0%On-Premise
14.0%
Volume M Litres
YOY Growth (%)
YOY Growth (%)
Value M GBP
Share of Total Soft Drinks (%)
Six-year comparison
2019 statistics
2019 channel split
18
Still & Juice Drinks 2019
Low/No Calorie Still & Juice Drinks grew by 2.5 percentage points in 2019
Calorie split
1 Low/No Calorie 54.7%2 Regular 29.3%3 Mid Calorie 16.0%
Category split
1 Still Drinks 42.5%2 Still Flavoured Waters 30.4%3 High Fruit Juice (Nectars) 15.0%4 Still Enhanced Waters 7.4%5 Still Iced/RTD Tea Drinks 4.6%
Packaging split
1 PET Bottle 68.1%2 Board Carton 16.4%3 Foil Pouch 5.8%4 Glass Bottle 4.8%5 Board Bag in Box 2.1%6 HDPE Bottle 1.7%7 Metal Can 0.8%8 PVC Cup 0.2%9 Polypropylene Cartridge 0.1%
2.5%
Source: Global Data
19
AG Barr, manufacturer of leading soft drinks brands including IRN-BRU and Rubicon, has introduced fossil-free electricity to power its operations across the UK.
The ten-year contract provides 100% renewable electricity to AG Barr facilities including factories in Cumbernauld (pictured), Milton Keynes and Forfar as well as regional sites in Bolton, Newcastle, Sheffield, West Midlands and Manchester.
Aa a result of the move, AG Barr now uses 22GwH of renewable electricity per year from UK wind farms – the equivalent electricity used by 6,000 UK homes annually.
Roger White, CEO of AG Barr, said: “We take our environmental responsibilities seriously and strive for opportunities to play our part in reducing the effects of climate change.
“Introducing 100% renewable electricity across all our UK sites is a big step towards reducing our carbon footprint and delivering our ambitious sustainable business goals.”
AG Barr has introduced 100% renewable electricity across UK sites
Member Initiatives
20
Coca-Cola European Partners (CCEP), in partnership with Coca-Cola GB, has launched a number of new packaging innovations to work towards a ‘World Without Waste’.
In Great Britain, GLACEAU smartwater bottles are now made from 100% recycled plastic, which removes more than 3,000 tonnes of virgin plastic from the system and replaces it with recycled plastic every year.
Furthermore, the Sprite brand has also seen its iconic green bottle made clear in order to make it easier to recycle.
In 2019, CCEP committed a £20 million investment to its site in North London to open a new sustainable production line, which will save the equivalent of 48,400 tonnes of CO2.
The company’s goal is to collect and recycle the equivalent of every bottle or can it sells in Great Britain by 2025, whilst also continuing to increase the percentage of rPET in its bottles to 50% and replace its plastic shrink with sustainable cardboard across all multipacks in 2020.
Coca Cola’s drive to create a ‘World Without Waste’
Member Initiatives
21
In 2019, Lucozade Ribena Suntory (LRS) parent company Suntory announced its intention to become the first global drinks company to use 100% sustainable plastic bottles, with fully recycled or plant-based materials in use across its entire portfolio by 2030.
LRS’s brands have been working towards this long-term ambition by achieving incremental milestones over the last 12 months.
Also in 2019, the manufacturer launched an ambitious redesign project for its Ribena brand, with the aim of promoting bottle-to-bottle recycling within the UK’s recycling infrastructure.
By reducing the full-print sleeves on the bottles and increasing their transparency, automated sorting machines in UK recycling centres are now better able to identify the packaging and ensure that each bottle has the optimum chance of being recycled back into plastic bottles.
By 2025 all of our packaging will be 100% recyclable
By 2030 we aim for all of our plastic bottles to be 100% sustainable
By 2025 at least 50% of plastic that makes our bottles will be fully sustainable
LRS bid to achieve a global drinks first with packaging innovations
Member Initiatives
LRS pledges:
British Soft Drinks Association20-22 Bedford RowLondonWC1R 4EB
Telephone +44 (0)20 7405 0300Email bsda@britishsoftdrinks.comWebsite www.britishsoftdrinks.comTwitter @BritSoftDrinks
top related