FEATURE CARBONATED BEVERAGES
Hydration innovation A predicted summer of heatwaves is welcome news for the beverage market, particularly in the convenience channel, but brands shouldn’t rest on their laurels in this highly competitive category. Words Claire Hibbit
WHEN IT COMES to carbonated beverages, consumers are seeking flavour innovation at an accelerated speed and frequency. In fact, innovation has driven the carbonated beverages market in recent years, as it quickly adapts to consumers’ evolving tastes towards healthconscious options. And demand for these better-for-you flavour formulations and nootropic variants is showing no signs of slowing. “Our customers love innovation in beverages, no matter what the segment,” explains Rob Kirby, Product Area Lead, 7-Eleven Australia. Increasingly, consumers are wanting a functional or health benefit with their drinks. “There has been a noticeable move away from full sugar drinks, with customers shifting into the no and low sugar varieties,” says Kirby. “In fact, zero and lowcalorie drinks in most cases now sell more than their regular counterpart.” According to Simon Rathbone, Head of Sales at Noosa Beverages, the company’s growth over the past few years has been strong in all channels as consumers demand a different experience, combined with value for money. “We have also seen a shift back towards more boutique and unique brands like Wimmers Premium Soft Drinks, as well as consumers wanting to support Australian and locally made products. “Consumers are expecting manufacturers to provide the next solution, if it tastes good, is healthier for you, and ticks those boxes; a portion of the market will undoubtedly follow,” he says. 16
December 2023/January 2024
Finding the right formula Key to success in the highly competitive and impulsive carbonated beverages market is staying ahead on flavour differentiation. According to Asahi Beverages, its top-performing carbonated drinks in the convenience sector are led by Mountain Dew, which has seen a growth of around 30 per cent in value over the past year. This is followed by Solo with an increase of over 16 per cent and Pepsi Max, which has seen more than 10 per cent growth. Over the past year, Asahi Beverages has launched several innovative beverages featuring functional energy ingredients and health-conscious options across various categories, not just in soft drinks. According to the company, its most notable launches include Mountain Dew Major Melon, which it says became the number one selling innovation in total soft drinks within convenience outlets. Dew Major Melon has not only an energetic design and flavour but also zero sugar. Additionally, Asahi Beverages rolled out Solo Lemon Lime (Zero Sugar) and Solo 50th birthday packs (limited edition memorabilia packs bringing to life some of Solo’s most iconic moments over the last 50 years), catering to what the company describes as “consumers’ increasing demand for flavourful yet health-conscious options”. “While zero-sugar options are among the fastest-growing sub-segments in the soft drink industry, their adoption in convenience settings has been comparatively slow. However, we have observed higher sales volumes can
