Quenching the thirst

from Packaging In Focus - November 2021 - Drinks

Drinks innovations

By Emma Verkaik, Membership & Marketing Director, BCMPA

Outsourcing partners are adapting to new and sustainable alternatives in the drinks sector.

s with so many other retail markets, the pandemic and its far-reaching effects have fundamentally changed the drinks and alcohol sector. During the lockdowns, brand owners and retailers have taken the opportunity to develop a significant number of innovative and interesting drink offerings. As a result, the need for agile and effective solutions from their third party contract partners to meet new trends and sustainability requirements has never been stronger.

The ‘New Retail’ There seems little doubt that the series of lockdowns endured by consumers in the last two years has awoken a strong preference for home delivery of drinks and alcohol, and this demand seems unlikely to dissipate. Whilst born out of necessity, the continued closure of high street outlets and increase in employees working from home has seen this trend remain both strong and at the forefront of brands’ and retailers’ thinking. In turn, BCMPA members have had to work hard and at pace to meet these new requirements, whether it be scalable production, product formulation and innovation, or packaging and sustainability. Along with many other contract packers, Ian Wright, Sales Director of Bluefrog Contract Packing, has witnessed exponential growth in brands looking for nimble contract partners, able to respond quickly to trends: “With the growth in demand for home delivery, and the greatly increased need for variety and novelty, our advanced short-run capability is in high demand, allowing clients to produce multiple new flavours at quantities that are viable and compatible with consumer market testing,” he comments.

This demand for innovation has also opened doors for thirdparty contractors who have the capability to develop new products from scratch through to production and distribution, providing brands with a fully external outsource function. Rachel Collins, Managing Director of Luton-based co-packing experts David Berryman, has seen demand develop strongly over the last 18 months. “With retailers and brands seeking to meet the rapidly changing tastes and interests of consumers, we’ve worked with many clients, both old and new, to develop and deliver a range of products and packaging options to satisfy demand. In the last year alone, we have received over 1800 new enquiries, seeking to take advantage of the agility that a ‘one stop shop’ service can provide. In some cases, the journey from concept to despatch can be as short as three months, providing our clients with the ability to react quickly and effectively to new market trends.”

Trends and innovations The transformational shift away from high street retail sales towards personal home delivery, has seen significant changes in both products and sizing, with growth in ready-to-drink (RTD) beverages forming a large part of this expanding market.

Oliver Whittington, Marketing Manager of Blends Ltd, comments, “With the increase in people working from home, we have seen the demand for alcoholic RTD products like cocktails and low-sugar alcoholic drinks rising dramatically, along with new products such as hard seltzers (alcoholic carbonated drinks). However, this extra demand is tempered with a resurgence of health consciousness and consumption awareness, and many new lines as well as focusing on their ingredients, are being produced in smaller sizes to meet this ‘portion control’ requirement.”

There seems a strong trend for end-to-end collaboration within the industry, with more and more brands seeking development partnerships from BCMPA members for complete development, manufacturing, packing, fulfilment, and logistics solutions.

Packaging developments It is not just the products that are having to adapt to new demands, but also the packaging. The importance of strong sustainability credentials has become a key driver for brands and retailers, and they are working closely with contract packers to ensure that these needs are met. BCMPA members are at the forefront of this drive.

“The trend away from plastic is pronounced, with demand for cans and glass bottles increasing significantly. Shrink sleeves containing post-consumer recycled plastic (PCR) are now becoming standard, and cans being packed in recyclable cardboard as four and six packs, rather than the larger conventional plastic wrapped packs too,” comments Wright. Shrink sleeving also provides brands with the capability to explore shorter run opportunities for their new beverages without the lead times and costs involved in sourcing pre-printed cans or bottles and helps to circumnavigate some of the current difficulties and shortages in the supply chain. Using ‘blanks’ with sleeves has grown significantly enabling everything from the testing of new products to the personalisation of drinks and even geographically specific promotional offers, further enhancing brand awareness and consumer engagement. “This capability to deliver targeted, almost bespoke, packaging has helped us develop stronger and closer commercial relationships with our clients as we work together from concept to delivery of truly innovative products,” says Whittington.

Looking ahead The requirement from brands and retailers for rapid and effective support from third-party contractors will remain at the forefront of developments, with many of them enhancing both their capabilities and expertise in order to service this growth. As an example, Blends Ltd are investing significantly in both equipment and capacity (especially within the canning sector) to provide additional services and capacity. “The provision of a new £4 million canning line and an imminent increased production capability up to 240 million cans annually, means we will be well placed to cope with this sustained increase in demand,” Whittington adds.

The trends towards strong green credentials, niche markets and products, and fast reaction to consumer interest will remain at the forefront of the alcohol and drinks industry, and whilst Brexitrelated staffing issues, the ongoing transport crisis and a shortage of CO2 supplies are presenting daily challenges, BCMPA members remain both optimistic and positive that the future is set to remain vibrant within the contract manufacturing, packing, fulfilment and logistics sector.