Forecourt Trader - 30 years at the heart of the fuel retailing community
Shop » Soft drinks

In full flow

Not a week seems to go by without another soft drink being launched onto the market as manufacturers are keen to cash in on the latest trends.

Sugar's beat

You can't talk about soft drinks at the moment without mentioning the sugar levy, which was announced in March's Budget. In his speech, Chancellor George Osborne announced the new tax as the "right thing for the next generation". He said it would not come into force until 2018 to give companies time to make changes to their ranges and there would be two bands covering drinks with more than 5g of sugar per 100ml and more than 8g sugar per 100ml. It is expected the levy will add 18p per litre and 24p per litre respectively.

Positive energy

It seems that Red Bull really does have wings. Last year, the brand grew at a rate of 5.7%, while the sports and energy category remained flat at 0.4% (IRI data), but even that latter figure was ahead of the total soft drinks category. And growth in the forecourt sector was better. According to IRI, sales of sports and energy drinks were up 2% in forecourts last year and Red Bull's sales through this sector were up 5.8%.

On the go

Two-thirds of on-the-go soft drinks sales occur between March and October so it's a crucial time for the category. And although it's obviously too early to comment on this year's sales, Britvic reports a couple of good years last year its sales of on-the-go drinks were up 14%. And forecourts are doing well too. Indeed IRI total forecourts value data to August 2 (MAT versus last year) has sales of on-the-go drinks up 11.6%.

Drinking up

While sales of tea and instant coffee dropped by 2.2% and 3.5% respectively last year, soft drinks sales through grocery and convenience outlets actually grew by 0.4%. However, if you drill down further, you find that the convenience sector experienced stronger value growth in 2014 (+2.8%) than the grocery multiples (-0.4). That 0.4% overall growth might not sound like much, but when you consider soft drinks is a multi-billion pound category, that 0.4% adds up to quite a sum. In all, according to Britvic Soft Drinks Review, UK consumers spent £11.8bn, on soft drinks last year, £7.6bn of which was through the grocery and convenience sectors.

Power aids

Life less sweet

Sugar is the latest food to be demonised by the health brigade. It's addictive and damages your health, the headlines cry. Typically these stories are accompanied by a picture of a can of Coke and the amount of sugar it contains. Indeed, in a story last month on the Mail Online it said just half a can of Coke exceeds the new daily sugar guidelines. Apparently experts now recommend just three cubes a day and a 330ml can of 'red' Coke contains seven.

Thirst rate

Last year, for the first time in what seemed like years, we actually had a hot summer, which helped boost soft drinks sales no end.

Go energy, go

Energy is a category with a ballsy edge: you only have to look at some of the macho brand names Relentless, Red Bull, Extreme, Monster and their packaging to see that they appeal, in particular, to young men; therefore a perfect product for forecourts.

Thirst aid

What a summer the warmest, driest and sunniest since 2006. According to figures from the Met Office, from June 1 to August 28, we basked in 588 hours of sunshine making it the seventh sunniest summer since records began in 1929. Such sunshine is, of course, good news for the soft drinks' manufacturers and retailers.

My Account

You are not logged in.
  • Weekly
    Retail
  • Weekly
    wholesale
  • Daily
    Average
Weekly retail fuel prices: 20 January 2020
RegionDieselLPGSuper ULUL
East133.4167.40141.10128.52
East Midlands132.93141.67128.44
London133.0565.90142.23128.80
North East131.55139.57126.67
North West132.1066.90140.54127.58
Northern Ireland129.82134.61125.46
Scotland132.65139.08127.50
South East133.80141.93129.03
South West132.9567.90139.13128.12
Wales132.1064.90137.03127.13
West Midlands132.7866.57142.07128.26
Yorkshire & Humber131.9963.90141.14127.34

Most read

As Brexit day finally arrives at the end of January, are you expecting any negative impact on your forecourt business through leaving the EU?

Digital Edition