2018 - British Soft Drinks Association · Bottled water Carbonates Dilutables Fruit juice Still &...

2018Annual report

Leading the way

Report methodology & background

Introduction

Overall soft drinks consumption

Bottled water

Carbonates

Dilutables

Fruit juice

Still & juice drinks

Sports & energy drinks

Our contribution

About BSDA

02

03

04

06

08

10

12

14

16

18

20

Contents

Report methodology & backgroundIn line with its European colleagues, the British Soft Drinks Association commissioned food, drink and retailing data analyst Global Data to produce its 2018 report.

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.

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

Regular: 31 and over kcal per 100ml

Mid-Calorie: 21-30 kcal per 100ml

Low- & No-Calorie: 0-20 kcal per 100ml*

Industry terms

*Nutrition Claims Annex of Regulation (EC) 1924/2066

IntroductionThis year has definitely seen the fruits of the soft drinks industry’s labour. Not only has the industry robustly responded to the public health obesity issue - it has gone further than any other food or drink category to help tackle this.

In 2015, soft drinks became the only category to set a

calorie reduction target of 20% by 2020 – this was a year

in advance of any announcement regarding the Soft Drinks

Industry Levy, more widely known as the ‘sugar tax.’ Fast

forward to today and the soft drinks industry is firmly

on track to surpassing this target. In fact, by 2017 sugar

intake from soft drinks was down by 18.7%.

The serious commitment to calorie reduction has seen

manufacturers undertake a variety of initiatives, including:

Every soft-drink category has significantly reduced sugar

intake, most notably still and juice drinks (26%), dilutables

[24%] and carbonates [19%]. In addition to this, low- &

no-calorie beverages now account for 64% of the total

soft drinks market – more than double what is available in

regular drink varieties (29%).

As the industry continues to set a positive example to other

parts of the food and drink sector around sugar and calorie

reduction, it also plans to do so in other areas such as R&D,

training and employment, and the environment.

New product development

Reformulation of existing recipes

Widening the availability of smaller pack sizes

Increasing advertising spend on low- & no-calorie drinks

BSDA Director

General

Gavin Partington

Overall soft drink consumptionCarbonated drinks, still and juice drinks, dilutables, fruit juices, bottled waters, sports and energy drinks.

Calorie split

1 Low- & No-Calorie 64%2 Regular 29%3 Mid-Calorie 7%

Category split

1 Carbonated Soft Drinks 38%2 Bottled Water 21%3 Dilutables 20%4 Still & Juice Drinks 8%5 Fruit Juice 7%6 Sports & Energy Drinks 6%

Packaging split

1 PET/Plastic 72%2 Metal 12%3 Carton 6%4 Glass/Other 6%5 Dispense 4%

2012 2013 2014 2015 2016 2017

Volume M Litres 13,385 13,474 13,414 13,402 13,569 13,540

YOY Growth (%) -1.3 0.7 -0.4 -0.1 1.3 -0.2

Litres Per Capita 210.1 210.2 207.7 205.8 206.9 205.1

Value M GBP 14,474 15,090 15,424 15,317 15,552 15,737

Value YoY Growth (%) 2.5 4.3 2.2 -0.7 1.5 1.2

Value Per Capita (£) 227.2 235.4 238.8 235.2 237.2 238.3

2017 statistics

Volume M Litres YOY Growth (%)

13,540 -0.2Litres Per Capita Value M GBP

205.1 15,737Value YoY Growth (%) Value Per Capita (£)

1.2 238.3

Source: Global Data

Six-year comparison

18.7%Sugar intake from overall soft drink

consumption is down 18.7% since 2013

source: Kantar Worldpanel

Bottled water

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

Six-year comparison

Category split

1 Mineral 65%2 Spring 30%3 Bottled Drinking Water 5%

Water type split

1 Still 75%2 Sparkling 14%3 Still Water Cooler 11%

Packaging split

1 PET/Plastic 95%2 Glass 5%

2012 2013 2014 2015 2016 2017

Volume M Litres 1,960 2,066 2,263 2,465 2,694 2,816

YOY Growth (%) 1.0 5.4 9.6 8.9 9.3 4.5


Value M GBP 1,194 1,300 1,451 1,577 1,711 1,820

Value YoY Growth (%) 4.4 8.9 11.6 8.7 8.5 6.4

Value Per Capita (£) 18.7 20.3 22.5 24.2 26.1 27.6

Share of Total Soft Drinks (%) 14.6 15.3 16.9 18.4 19.9 20.8

20.8

2017 statistics


2,816 4.5Litres Per Capita Value M GBP


6.4 27.6Share of Total Soft Drinks (%)

Source: Global Data

4.5%Bottled water remains the fastest

growing soft drinks category. In 2017,

sales increased by 4.5%

hhh

Carbonates

Ready-to-drink carbonates, including draught and home dispense; regular-, mid- and low- & no-calorie; sparkling juices; cola; lemon, including lemonade; lemon-lime; mixers, including tonic and bitter drinks; orange; shandy; others including various carbonated fruit flavours, sparkling flavoured water, health drinks and herbal drinks.

Calorie split


Flavour split

1 Cola 58%2 Other 19%3 Lemonade 8%4 Orange 6%5 Tonic, Mixers & Bitters 5%6 Lemon/Lime 4%

Packaging split

1 PET 59%2 Metal 26%3 Carton 11%4 Dispense 4%

2012 2013 2014 2015 2016 2017

Volume M Litres 5,360 5,351 5,240 5,201 5,192 5,167

YOY Growth (%) -1.5 -0.2 -2.1 -0.7 -0.2 -0.5


Value M GBP 7,126 7,375 7,379 7,376 7,330 7,450

Value YoY Growth (%) 2.1 3.5 0.1 -0.0 -0.6 1.6

Value Per Capita (£) 111.9 115.0 114.2 113.3 111.8 112.8


38.2

2017 statistics




1.6 112.8Share of Total Soft Drinks (%)

Source: Global Data

Six-year comparison

19%Sugar intake from carbonates is

down almost 19% since 2013


Dilutables

Squashes, cordials, powders and other concentrates for dilution to taste by consumers, expressed as ready to drink (RTD). Typically adding four parts water to one part product for single concentrates, nine parts water to one part product for double concentrates and varying amounts for super concentrates with 50-70ml making 5-7 litres RTD.

Calorie split

1 Low- & No-Calorie 87%2 Mid-Calorie 7%3 Regular 6%

Flavour split

1 Orange 33%2 Blends 32%3 Apple 14%4 Other 8%5 Blackcurrant 7%6 Lemon/Lime 6%

Packaging split

1 PET/Plastic 96%2 Glass/Other 4%

2012 2013 2014 2015 2016 2017

Volume M Litres 3,194 3,173 3,041 2,882 2,827 2,768

YOY Growth (%) -2.4 -0.7 -4.2 -5.2 -1.9 -2.1


Value M GBP 712 744 779 665 675 646

Value YoY Growth (%) -3.1 4.4 4.7 -14.6 1.4 -4.3

Value Per Capita (£) 11.2 11.6 12.1 10.2 10.3 9.8


20.4

2017 statistics



41.9 646Value YoY Growth (%) Value Per Capita (£)

-4.3 9.8Share of Total Soft Drinks (%)

Source: Global Data

Six-year comparison

24%Sugar intake from dilutables is

down 24% since 2013


Fruit juice

100% fruit content equivalent, sometimes referred to as pure juice or 100% juice. Chilled juice comprises four main types: freshly squeezed juice; not from concentrate juice; chilled from concentrate which can be from concentrate or part from concentrate; and smoothies. Ambient or long-life juices are mainly from concentrate.

FC/NFC Split

1 From Concentrate 60%2 Not From Concentrate 40%

Flavour split

1 Orange 66%2 Apple 13%3 Other 15%3 Pineapple 4%5 Grapefruit 2%

Packaging split

1 Carton 69%2 PET/Plastic 29%3 Glass/Other 2%

2012 2013 2014 2015 2016 2017

Volume M Litres 1144 1079 996 945 918 898

YOY Growth (%) -3.0 -5.7 -7.7 -5.1 -2.9 -2.2


Value M GBP 1,809 1,824 1,777 1,626 1,611 1,587

Value YoY Growth (%) 4.8 0.9 -2.6 -8.5 -0.9 -1.5

Value Per Capita (£) 28.4 28.5 27.5 25.0 24.6 24.0


6.6

2017 statistics


898 -2.2Litres Per Capita Value M GBP



Source: Global Data

Six-year comparison

5 A DAYOnly 8% of children and 29% of adults

currently reach their 5 A Day

source: Kantar National Diet and Nutrition Survey

Still & juice drinksHigh fruit juice (25-99% fruit content); juice drinks including juicy water (5-30% fruit content) and other still drinks (0-5%) including iced tea, still flavoured water and non-fruit drinks.

Calorie split


Category split

1 Juice Drinks 48%2 Still Flavoured Waters 27%3 High Fruit Juice 17%4 Juicy Water 6%5 Other 2%

Packaging split

1 PET/Plastic 69%2 Carton 18%3 Foil Pouch 7%4 Glass/Other 6%

2012 2013 2014 2015 2016 2017

Volume M Litres 1,015 1,066 1,103 1,115 1,136 1,089

YOY Growth (%) -3.4 5.0 3.5 1.1 1.9 -4.2


Value M GBP 1,688 1,784 1,844 1,832 1,961 1,953

Value YoY Growth (%) -1.5 5.7 3.3 -0.7 7.0 -0.4

Value Per Capita (£) 26.5 27.8 28.5 28.1 29.9 29.6


2017 statistics

8.0





Source: Global Data

Six-year comparison

26%Sugar intake from still & juice

drinks is down almost 26% since

2013, the biggest reduction in any

soft drinks category


Volume M Litres YOY Growth (%) Litres Per Capita

123 0.3 1.9

Sports & energy drinksCarbonated sports drinks

Drinks that enhance physical performance before, during or

after physical/sporting activity. Sports drinks replace fluids

and electrolytes/minerals lost by sweating and supply a

boost of carbohydrate: isotonic (fluid, electrolytes and 6-8%

carbohydrate), hypotonic (fluids, electrolytes and a low level

of carbohydrate) and hypertonic (a 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.

Sports/Energy split

1 Energy Drinks 85%2 Sports Drinks 15%

Calorie split

1 Regular 68%2 Mid-Calorie 19%3 Low- & No-Calorie 13%

Packaging split

1 PET/Plastic 50%2 Metal 50%

Sports drinks 2012 2013 2014 2015 2016 2017

Volume M Litres 152 145 137 128 123 123

YOY Growth (%) -6.1 -4.3 -5.5 -6.9 h -3.9 0.3


Energy drinks 2012 2013 2014 2015 2016 2017

Volume M Litres 560 595 635 666 679 679

YOY Growth (%) 8.2 6.3 6.7 4.9 2.0 0.0


2017 sports drinks statistics

Volume M Litres YOY Growth (%) Litres Per Capita

679 0.0 10.3

2017 energy drinks statistics

Source: Global Data

Six-year comparison

£300m+Sales of sports drinks grew for the

first time in five years in response

to the growing trend towards

‘functional’ beverages

source: Global Data

Our contribution

13.5bn+litres in annual sales volumes

1.2%contribution to national GDP

£30k+employees’ average wage

£26bnrevenue supported by the soft drinks market in the UK

340,000employment supported by the soft drinks industry

£126kis added to the national economy for every employee in soft drinks manufacturing

16,866farms supported by the soft drinks industry

£4.7bnin salary payments

Education and Skills The UK soft drinks industry is a major contributor to the economy and continues to support growth by investing in skills for the future, both for the people working in the industry and for those taking their first steps into employment. Our members have implemented and supported many successful education and training programmes: from school through to university and beyond.

The British Soft Drinks Industry Foundation (BSDIF) offers

educational grants to support students taking courses in

food science and technology and funds apprenticeships for

those working within the soft drinks industry.

In 2017, the Foundation awarded a scholarship to an

engineering apprentice employed by AG Barr at the

company's site in Forfar, Angus.

In 2016, four apprentices attended BSDA's Manufacturing

Soft Drinks Today course, funded by BSDIF. In 2015, the

Foundation awarded three scholarships to two engineering

and one administration apprentices employed by Coca-

Cola Enterprises at the company's site in Wakefield,

West Yorkshire, and one scholarship to an engineering

apprentice employed by AG Barr at the company's site in

Cumbernauld, North Lanarkshire.

British Soft Drinks Association

20-22 Bedford Row

London

WC1R 4EB

Telephone: +44 (0) 20 7405 0300

Email: [email protected]

Website: www.britishsoftdrinks.com

Twitter: @BritSoftDrinks

2018 - British Soft Drinks Association · Bottled water Carbonates Dilutables Fruit juice Still &...

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