Soft Drinks Review

Polarisation of soft drinks market unveiled

The brand says consumers’ contrasting personal finances present new opportunities for convenience retailers.

Britvic’s annual Soft Drinks Review 2022 has revealed opportunities for the convenience channel to grow soft drinks sales by appealing to shoppers at both ends of the value spectrum.

The report found consumers on average are £1,200 worse off this year than last, with one-in-five feeling squeezed due to inflation. However, the easing of restrictions means overall consumer spend is expected to be higher in 2022 compared to the previous two years, with one-in-five consumers claiming they are better off financially.

Britvic said this polarisation in personal finances presents new opportunities for convenience retailers to maximise customer spend from soft drinks that cater to ‘premium’ and ‘value’ shopping occasions.

With consumers increasingly looking for new ways to treat themselves during lockdown, the soft drinks category saw a move towards premiumisation. This was primarily driven by the resurgence of on-the-go drinks and the accelerated growth of the energy drinks segment – two trends that are predicted to continue throughout 2022.

Chris Newman, Head of Category Management for Convenience and Impulse at Britvic, said: “It’s vital that retailers stay on top of these trends by updating their soft drinks ranges and merchandising to cater for different need states and missions.”

Larger numbers of consumers are looking to make their money go further. A total of 43.9% of sales in the convenience market now come from PMPs. Pressured shoppers are also expected to move toward smaller transactions and smaller pack sizes in a bid to make their money stretch further.

Newman added: “Convenience retailers must be alert to the budget pressures of these customers and adapt their soft drinks ranges accordingly.”