Suntory Beverage & Food GB&I (SBF GB&I) has launched its category vision for 2021, which outlines how retailers who take advantage of latest trends and cater for key purchasing occasions can grab their share of a more than £1bn sales opportunity over the next five years.
This means a potential £8,992 in soft drink sales could be unlocked by the UK’s 46,388 convenience, symbol, and independent stores.
SBF GB&I’s category vision breaks down the soft drink category into four consumer need states. Each of these is based on insights and trends that highlight the headroom for growth and relies on three simple focuses. To increase relevance and expand consumption occasions requires the right pack, in the right place, for the right occasion.
Alpesh Mistry, Sales Director at SBF GB&I, said: “The trends we’ve seen develop during the Covid-19 crisis, such as increased in-home consumption, are set to continue. We also know that in recessionary times, people buy smaller packs more frequently. It is crucial that retailers understand these trends and make room for products that cater for these changing habits to continue to see category growth.”
The four consumer need states identified by SBF GB&I are:
1. Enjoyable Refreshment
Retailers can inspire shoppers to consider a drink with or without food at key moments throughout the day by activating ‘meal for tonight’ options and flagging cross-category links. Disrupting and exciting shoppers with PoS materials and reminding shoppers to visit the chiller is key to unlocking an extra £340m of growth of this category – equivalent to £2,529 for each of the UK’s 46,388 convenience, symbol and independent stores over the next five years.
Category signifiers
- 20% of all soft drinks are bought to deliver against refreshment and hydration needs
- 55% of bottled water drinkers now carry and drink from a refillable water bottle
2. Uplift & Energise
Retailers can bring in new shoppers by increasing the visibility and presence of ‘better for you’ energy options, and championing sugar-free, natural and emerging segments through merchandising and in-store activation. A destination aisle to cater for those with sporting and active lifestyles in one was of helping to unlock an extra £244m of growth in this category – equivalent to £1,815 for every store.
Category signifiers
- 54% of people exercise to improve their health
- 75% of people are concerned about their levels of tiredness and stress
3. Special Moments
The biggest potential category win for retailers comes from encouraging shoppers to choose a favourite soft drink when they are taking a moment in their day to enjoy a little treat, or by enhancing mealtime occasions. Retailers can help deliver £343m of category growth – £2,551 per store – by better catering for drinks to accompany ‘meals for tonight’ and delivering drink options to lift the mood of consumers.
Category signifiers
- 9% of people buy soft drinks to accompany their evening meals
- 33% of 18-24-year-olds describe themselves as non-drinkers
- 55% of people are expecting to enjoy more friends-and-family celebrations in the future
4. Positive Choices
By supporting shoppers’ wellbeing by helping them to find more balanced and natural drink choices, with a positive force on society, retailers can help unlock an extra £235M in category sales – equivalent to £1,748 per convenience store, per year. Educating shoppers and targeting the right formats and flavours to unlock new drinks occasions to tap into these trends are crucial.
Category signifiers
- There was a 43% rise in sales of ethical food and drink between 2013 and 2018
- 47% of people say they have cut back on their alcohol intake for health reasons
NAM Implications:
- This report represents the fruits of a drinks company living through…
- …a 1-year lockdown and its impact on consumption.
- A must-read for anyone in the category!
