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Attitudes towards Premium Soft Drinks - UK - February 2015

Published By :

Mintel

Published Date : Mar 2015

Category :

Soft Drinks

No. of Pages : 62 Pages


Sugar attracted negative media coverage in 2014, also affecting soft drinks. That half of premium soft drinks users are interested in reduced sugar versions of these signals room for growth in this area.

Introduction
Definition
Abbreviations

Executive Summary
Market factors
Recovering economy should support spending
Media spotlight on sugar affects soft drinks
Younger cohorts are core users
Falling alcohol sales support premium soft drink usage
New product trends
Premium soft drinks enjoy rise in new launches in 2014
Figure 1: New product launches with a premium claim in selected UK soft drinks markets*, 2010-14
Innovation around flavour
Own-label takes an interest in premium soft drinks
Figure 2: Share of branded and private-label premium product launches in the UK soft drinks market*, 2014
Limited activity in lower-calorie premium soft drinks
Premium soft drinks mimic alcoholic drinks
The consumer
All-natural ingredients enjoy strong premium connotations
Figure 3: Factors seen as defining premium soft drinks, November 2014
Premium soft drinks enjoy higher usage at home
Figure 4: Frequency of premium soft drink usage, by location, November 2014
Premium soft drinks are most widely seen as a treat
Figure 5: Occasions associated with premium soft drink usage, November 2014
Most premium drink buyers would pay more for superior taste
Figure 6: Attitudes towards premium soft drinks, November 2014
Reduced sugar premium soft drinks appeal to half of users
Figure 7: Interest in selected premium soft drinks concepts, November 2014
What we think

Issues and Insights
Reduced sugar drinks appeal to half of premium soft drink users
The facts
The implications
Decline in alcohol consumption presents opportunity for soft drinks manufacturers
The facts
The implications
Growth opportunity for premium soft drinks in the on-trade
The facts
The implications

Trend Application
Trend: Guiding Choice
Trend: Mood to Order
Mintel Futures: Human

Market Drivers
Key points
Consumers find themselves in a better financial situation in 2014
Figure 8: Consumers’ financial health index, February 2009-October 2014
Negative media focus on sugar content of soft drinks continues
Slowing growth in core premium soft drinks users poses challenges for the market
Figure 9: Trends in the age structure of the UK population, 2009-14 and 2014-19
Declining alcohol consumption could benefit premium soft drinks
Figure 10: Trends in UK per capita consumption of 100% alcohol, 2000-13

Strengths and Weaknesses
Strengths
Weaknesses

Who’s Innovating?
Key points
Premium soft drinks enjoy new launches in 2014
Figure 11: New product launches with a premium claim in selected UK soft drinks markets*, 2010-14
Innovation around flavour attracts new launches
Ginger spices up the soft drinks market
Cordial ranges expand with interesting flavour combinations
Figure 12: New premium product launches in the UK soft drinks market*, by category, 2010-14
Own-label takes an interest in premium soft drinks
Figure 13: Share of branded and private-label premium product launches in the UK soft drinks market*, 2014
Lower-calorie premium soft drinks are well placed to appeal
Premium soft drinks mimic alcoholic drinks

The Consumer – Attributes Associated with Premium Soft Drinks
Key points
Ingredient attributes are most important in defining premium soft drinks
Figure 14: Factors seen as defining premium soft drinks, November 2014
All-natural ingredients enjoy strong premium connotations
Interest in naturalness extends to sweeteners
A tangible difference in taste rates highly as a premium characteristic
Taking cues from the grocers to prove the difference
Helping consumers to taste the difference
Mass production deemed acceptable in premium soft drinks
Packaging matters most to the under-35s

The Consumer – Usage of Premium Soft Drinks
Key points
Premium soft drinks enjoy higher usage at home
Figure 15: Frequency of premium soft drink usage, by location, November 2014
Premium soft drinks are most widely seen as a treat
Figure 16: Occasions associated with premium soft drink usage, November 2014
Scope to better capitalise on premium soft drinks’ associations with meal
Premium soft drinks enjoy niche appeal as an alcohol alternative

The Consumer – Attitudes towards Premium Soft Drinks
Key points
Consumers willing to pay more for superior taste
Figure 17: Attitudes towards premium soft drinks, November 2014
Lightly sparkling drinks enjoy strong appeal
Visibility is an important driver for choice of soft drink in the on-trade
Branded glassware can boost visibility and image
Scope for garnishes to drive interest
Majority of buyers would like to see more choice in the on-trade
Minority interest in smaller brands in the on-trade
Less sweet premium soft drinks appeal to half of buyers
Spice notes can support a less sweet positioning

The Consumer – Premium Soft Drinks Enticements
Key points
Reduced sugar premium soft drinks appeal to half of users
Figure 18: Interest in selected premium soft drinks concepts, November 2014
Naturally lower-sugar versions without added sweeteners appeal to one in three users
Plant-derived sweeteners favoured over artificial versions
Shloer is among the few brands adopting stevia
Limited edition flavours attract interest from consumers
Limited editions offer a platform for engaging customers
Spices and coffee/tea flavours tap into multiple interest points
Spices can offer a ‘twist’ on established drinks
Scope for spices to drive an indulgent image
Botanical extracts also appeal
Premium mixers tailored to alcoholic drinks appeal to one in four
Communication focused on taste profile should resonate

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