1. ’Tis the season for soft drinks
2. Cashing in on cutting down
3. Go big over the festive season
4. Seasonal flavours can be a big opportunity
5. Merry merchandising this Christmas
1. ’Tis the season for soft drinks
Known as the golden quarter, Christmas is one of the most profitable times of year for retail, an excuse for shoppers to indulge, opting for more premium products versus their everyday purchases. This presents a huge opportunity for retailers to drive sales, with the four weeks of December 2024 delivering £13.7bn in fast moving consumer good (FMCG) sales and shoppers increasing their household spend by 10% on average (Kantar Worldpanel, take home, four weeks to December 24, 2024).
Not only does Christmas deliver more sales, but it is also a highly incremental time of year, delivering increased volume and frequency. Around 35% of promotional volume at Christmas is incremental to the average store, compared to just 25% during the rest of the year. This impact is felt across categories, and functional energy is one of them, with shoppers making an additional 3.2 million trips, compared with the average month in the year.
Red Bull explains that “soft drinks are integral during the festive period” and within this, energy is a key category to deliver value, accounting for 17.9% of all soft drink sales over the festive period and gaining share each year (NIQ Scantrack, total coverage, 12 weeks to December 28, 2024).
2. Cashing in on cutting down
With nearly half (46%) of adults moderating their alcohol consumption (Kantar), there is a big opportunity for premium offerings and ready-to-drink mocktails for shoppers that still want to party.
Carlsberg Britvic VP sales – off trade, Ben Parker, explains that “these drinks provide interesting alternatives that enhance the at-home experience, offering both flavour and flair without the alcohol for Christmas celebrations”. He cites brands like J2O as important for retailers looking to offer something in that sub-category. “After a successful launch into the ready-to-drink mocktail category in 2023, this year we announced the latest addition – Tropical Punch, a nod to the Piña Colada with a taste of pineapple and coconut. Joining Strawberry & Orange Blossom Mojito, Blackberry & Blueberry Martini and White Peach & Mango Daiquiri, the J2O ready-to-drink mocktails, available in the 250ml can format, are a delicious drink for a festive Christmas occasion, elevating the at-home experience,” he says.
3. Go big over the festive season
With budgets tightening and weather worsening, people will be partying at home more so retailers will need to stock accordingly. The lipstick effect will also come into play on these occasions. With consumers spending more time at home and catering to guests they are influenced to try larger, more premium pack formats. As a result, multipacks see a notable lift in rate of sale over those four weeks – an increase of +16% against the average week in the year (NIQ Scantrack, total coverage, four weeks of December (2023 & 2024) versus the average month over two years).
“Retailers shouldn’t underestimate the power of take-home formats, which last year grew by 4.1% to nearly £1.7 billion, accounting for 30.9% of total soft drink sales (Nielsen IQ RMS),” Parker explains. “At Carlsberg Britvic, we offer a variety of pack formats to suit different shopper needs. When braving the cold for a top-up shop isn’t an option, larger formats like our two-litre bottles and multipacks of Pepsi MAX, Tango, and 7UP Zero are the perfect festive fix for at-home celebrations.”
He adds: ”While many people are mindful of their spending due to economic pressures, for some, Christmas remains a time for giving – whether through thoughtful gifts or shared moments over food and drink,” adds Parker. ”Interestingly, even in tighter times, shoppers often seek out small luxuries for themselves or others, like a premium treat or a festive favourite, as a way to celebrate the season. This balance between value and indulgence creates a powerful opportunity for retailers to offer products that feel special without breaking the bank – whether it’s through competitions, in-store activations or promos.”
4. Seasonal flavours can be a big opportunity
When it’s the festive season and everyone is in a party mood, it’s time to try something new, particularly when it comes to soft drinks. Retailers need to find a balance and stock both a strong mix of core products and new flavours to suit every shopper. More than half (53%) of consumers aged 18 to 44 say they typically choose traditional flavours when buying soft drinks and 31% say they go for unusual flavours, which is up from 26% in 2022 (GlobalData Flavours and Functions report Sept 2024).
Last year, Red Bull Editions accounted for 49% of all flavoured functional energy growth in the four weeks of December (NIQ Scantrack, total coverage, four weeks to December 28, 2024). To continue this success, retailers can get their hands on the latest Red Bull Winter Edition, with the taste of Fuji Apple and Ginger, available with and without sugar.
Irn-Bru has also unveiled a limited edition spiced cinnamon and ginger flavour in a bid to help retailers maximise soft drinks sales this winter. It is available in a 330ml single can (RRP: £1.09) and 8x330ml multipack formats (RRP: £4.50). It is also available in a 79p price-marked can.
Irn-Bru brand director Kenny Nicholson explains the success of limited editions. “Retailers have sold more than nine million cans of Irn-Bru XTRA limited editions in the last two years, with almost half attributed to new category shoppers,” he says.
“Sales of ginger flavoured drinks are also increasing by 27%, so we know that this is the perfect time for Winter BRU. A spicy hit in every sip, we’ve combined our iconic Irn-Bru taste with a truly delicious festive flavour that we know will have shoppers running back for more before it’s gone.”
5. Merry merchandising this Christmas
If you’re still struggling to get into the festive spirit, Carlsberg Britvic offers some merchandising advice to help independent retailers have a happy holiday.
It believes retailers can draw shoppers in with bold, seasonal displays while using festive colours, signage, and lighting. Place popular picks like soft drinks and snacks in high-traffic spots to grab attention and drive impulse buys.
It also suggests that retailers create themed zones like ‘Christmas Morning Essentials’ or ‘Party Picks’ to inspire shoppers and make navigating the store easier. Bundling complementary items – like mixers with spirits or coffee with breakfast foods -– encourages cross-category purchases and boosts basket spend.
Carlsberg Britvic also advises retailers to stock up on multipacks and large bottles near seasonal food to drive bulk buys. It says to mix trusted favourites with bold new flavours to suit every shopper, and don’t forget family-friendly options to make your store the go-to festive stop.
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