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Carbonated Soft Drinks - Canada - July 2014

Published By :

Mintel

Published Date : Jul 2014

Category :

Soft Drinks

No. of Pages : 244 Pages


Natural sweeteners such as stevia may help to reduce these perceptions of artificiality and help to boost consumption among Millennial females.
Table of Content

Introduction
Definition
Excluded
Abbreviations

Executive Summary
The market
Figure 1: Forecast of Canada value retail sales of carbonated soft drinks, 2009-19
Figure 2: Forecast of Canada volume retail sales of carbonated soft drinks, 2009-19
Market factors
Ongoing negative media focus on sugar and sugary drinks
Government regulations and rising material costs provide challenges for operators
Summer provides growth opportunities
An ageing population poses some challenges
The consumer
CSDs drunk by the majority of Canadians
Figure 3: Usage of different types of carbonated soft drinks in the past month, May 2014
CSDs are most likely to be drunk with a meal or as a thirst quencher
Figure 4: Occasions for drinking CSDs, May 2014
Flavour has a large influence in CSD decisions
CSDs are perceived as an artificial treat
The majority of CSD users now check the packaging
Figure 5: Attitudes towards CSDs, May 2014
What we think

Issues and Insights
Lower/no-calorie CSDs continue to provide growth opportunities
The facts
The implications
Boosting CSD usage among Millennial females
The facts
The implications
Increasing product transparency can also benefit CSD brands
The facts
The implications
Food-based consumption occasions can boost sales
The facts
The implications

Trend Application
The Big Issue
Prove It
Experience Is All

Market Drivers
Key points
CSDs are being linked to growing health problems
Figure 6: Body mass index, self-reported rate of being overweight or obese among Canadian adults, by gender, 2009-13
Alternative sweeteners
Government regulations and rising material costs provide challenges for operators
The 2014 ‘summer of sport’ provides sales opportunities
Consumer confidence and disposable income remain resolute
Figure 7: Consumer Confidence Index, monthly, January 2008-May 2014
Figure 8: Household disposable incomes and savings in Canada, 2008-14
Figure 9: Consumer Price Index in Canada, 2008-14
An ageing population poses potential issues
Figure 10: Projected trends in the age structure of the Canada population, 2014-19
Tapping into the growth of spirits

Strengths and Weaknesses
Strengths
Weaknesses

Competitive Context
Key points
CSDs continue to lead the way in the soft drinks landscape
Figure 11: Value retail sales ($ millions) in selected beverage categories in Canada, 2009-12
Figure 12: Volume retail sales (million litres) in selected beverage categories in Canada, 2009-12

Who’s Innovating?
Key points
Private labels challenge the CSD companies with a natural proposition
Figure 13: Share of new product launches within the Canada CSD market, by ultimate company, 2010-13
Canada Dry Mott’s launches slim and tall cans
Coca-Cola launches several special edition cans
Coke is set to move into DIY territory
PepsiCo looks to naturally derived stevia sweetener with Pepsi Next launch
Coca-Cola expected to respond with a naturally sweetened variant
Private labels and smaller companies launch CSDs positioned as natural

Market Size and Forecast
Key points
Warmer weather creates uptick in volume consumption, but also a competitive sales environment
Figure 14: Canada retail value and volume sales of carbonated soft drinks, 2009-19
Health concerns look set to impact sales of CSDs
Figure 15: Forecast of Canada value retail sales of carbonated soft drinks, 2009-19
Figure 16: Forecast of Canada volume retail sales of carbonated soft drinks, 2009-19
Competition from at-home soda machines could affect sales of CSDs
Forecast methodology

Segment Performance and Market Share
Key points
Colas remain the largest segment, but other carbonates are driving growth
Figure 17: CSD retail market segmentation, by value, 2012 and 2013
Figure 18: CSD retail market segmentation, by volume, 2012 and 2013
Coca-Cola and Pepsi dominate
Figure 19: CSD retail market share, by value and volume, 2013
Figure 20: CSD retail market share, by value and volume, 2011-13

Companies and Products
Coca-Cola Limited Canada
PepsiCo
Canada Dry Mott’s
Boylan

Brand Research and Social Media
Key findings
Market overview
Key social media metrics
Figure 21: Key social media metrics, June 2014
Brand usage and awareness
Figure 22: Brand usage and awareness for selected carbonated soft drinks brands, May 2014
Interaction with CSD brands
Figure 23: Interactions with selected carbonated soft drinks brands, May 2014
Leading recent online campaigns
Coca-Cola leads the way
Campaigns from other selected CSD brands
What we think
Online conversations
Figure 24: Online conversations for selected carbonated soft drinks, by day, 4 June 2013-4 June 2014
Where are people talking about carbonated soft drinks brands?
What are people talking about?
Figure 25: Topics of conversation around selected carbonated soft drinks brands, 5 June 2013-4 June 2014

The Consumer – Usage of CSDs
Key points
CSDs drunk by the majority of Canadians
Figure 26: Consumption of carbonated soft drinks in the past month, May 2014
Standard/Regular cola leads the way
Figure 27: Usage of different types of carbonated soft drinks in the past month, May 2014
Figure 28: In-home and out-of-home usage of different types of carbonated soft drinks in the past month, May 2014
Low/no-calorie colas have potential to expand
Opportunities also exist for low/no-calorie flavoured CSDs
A quarter of Canadians drink regular fruit-flavoured CSDs
Tonic/soda water and other carbonates drunk by three in 10
One in five Canadians adopt a wide CSD repertoire
Figure 29: Repertoire of usage of types of CSDs, May 2014

The Consumer – Occasions for Drinking CSDs
Key points
CSDs are most likely to be drunk with a meal or as a thirst quencher
Figure 30: Occasions for drinking CSDs, May 2014
More than two in five drink CSDs to quench thirst and for refreshment
Many consumers also drink CSDs as a treat
The relationship between CSDs and alcohol
CSDs may also be able to grow in the exercise category

The Consumer – Reasons for Choosing Different Types of CSDs
Key points
Flavour has a large influence in CSD decisions
Figure 31: Reasons for drinking CSDs, May 2014
Price also plays a large part in shaping purchase trends
The importance of lower calorie and portability

The Consumer – Perceptions of Soft Drinks
Key points
CSDs are perceived as an artificial treat
Figure 32: Attributes associated with carbonated soft drinks, May 2014
Refreshment cited by two in five adults
CSDs remain competitive on price
Correspondence mapping of soft drinks
Figure 33: Attributes associated with different types of soft drinks, May 2014
Figure 34: Correspondence analysis, July 2014

The Consumer – Attitudes towards CSDs
Key points
Summary of attitudes towards CSDs
Figure 35: Attitudes towards CSDs, May 2014
Over half of CSD drinkers check the ingredients
Figure 36: Health and taste-related attitudes towards CSDs, May 2014
A third prefer the taste of ‘lighter’ CSDs
CSDs can further leverage functionality
Figure 37: Functionality-related attitudes towards CSDs, May 2014
CSDs can tap into the popularity of alcoholic drinks
Figure 38: Attitudes towards CSDs in pubs/bars/restaurants, May 2014
Recommendations can entice a quarter to try something new
Figure 39: Innovation and newness-related attitudes towards CSDs, May 2014

The Consumer – CSDs and Chinese Canadians
Key points
A third of Chinese Canadians drink five or more types of CSDs
Figure 40: Number of types of CSDs consumed – Overall vs Chinese Canadians, May 2014
Figure 41: CSD consumption among the overall population vs Chinese Canadians, May 2014
New flavours, high fruit content and functional benefits all resonate among Chinese Canadians
Figure 42: Significant difference in CSD purchase motivation – Overall vs Chinese Canadians, May 2014

The Consumer – Target Groups
Key points
Four target groups
Figure 43: Target groups for CSDs, May 2014
Fanatics (30%)
Conflicted Indulgers (26%)
Disengaged (23%)
Moderators (21%)

Appendix – Who’s Innovating?
Figure 44: New product launches in the Canada CSDs market, by claim, 2010-14

Appendix – Market Size and Forecast
Figure 45: Best- and worst-case forecasts for the Canada CSD retail market, by value, 2014-19
Figure 46: Best- and worst-case forecasts for the Canada CSD retail market, by volume, 2014-19

Appendix – Brand Research and Social Media
Brand usage or awareness
Figure 47: Brand usage or awareness, May 2014
Figure 48: Coca-Cola usage or awareness, by demographics, May 2014
Figure 49: Pepsi usage or awareness, by demographics, May 2014
Figure 50: Dr Pepper usage or awareness, by demographics, May 2014
Figure 51: Sprite usage or awareness, by demographics, May 2014
Figure 52: Mountain Dew usage or awareness, by demographics, May 2014
Figure 53: Canada Dry usage or awareness, by demographics, May 2014
Activities done
Figure 54: Activities done, May 2014
Brand analysis
Figure 55: Brand name key social media metrics – Coca-Cola, June 2014
Figure 56: Brand name key social media metrics – Pepsi, June 2014
Figure 57: Brand name key social media metrics – Dr Pepper, June 2014
Figure 58: Brand name key social media metrics – Mountain Dew, June 2014
Figure 59: Brand name key social media metrics – Sprite, June 2014
Figure 60: Brand name key social media metrics – Canada Dry, June 2014

Appendix – The Consumer – Usage of CSDs
Figure 61: CSDs consumed in the past month, May 2014
Figure 62: CSDs consumed in the past month – Any cola (net), by demographics, May 2014
Figure 63: CSDs consumed in the past month – Any flavour (net), by demographics, May 2014
Figure 64: CSDs consumed in the past month – Any low calorie (net), by demographics, May 2014
Figure 65: CSDs consumed in the past month – Standard/regular cola, by demographics, May 2014
Figure 66: CSDs consumed in the past month – Low or no-calorie/diet cola, by demographics, May 2014
Figure 67: CSDs consumed in the past month – Regular flavoured soft drink, by demographics, May 2014
Figure 68: CSDs consumed in the past month – Low or no-calorie/diet flavoured soft drinks, by demographics, May 2014
Figure 69: CSDs consumed in the past month – Other standard fruit-flavoured carbonated soft drinks, by demographics, May 2014
Figure 70: CSDs consumed in the past month – Other low or no-calorie/diet fruit-flavoured carbonated soft drinks, by demographics, May 2014
Figure 71: CSDs consumed in the past month – Carbonated fruit juice and juice drinks, by demographics, May 2014
Figure 72: CSDs consumed in the past month – Tonic/soda water, by demographics, May 2014
Figure 73: CSDs consumed in the past month – Other carbonated soft drink, by demographics, May 2014
Repertoire
Figure 74: Repertoire of CSDs consumed in the past month, by demographics, May 2014

Appendix – The Consumer – Occasions for Drinking CSDs
Figure 75: Occasions for drinking CSDs, May 2014
Figure 76: Most popular occasions for drinking CSDs, by demographics, May 2014
Figure 77: Next most popular occasions for drinking CSDs, by demographics, May 2014
Figure 78: Other occasions for drinking CSDs, by demographics, May 2014

Appendix – The Consumer – Reasons for Choosing Different Types of CSDs
Figure 79: Reasons for choosing different types of CSDs, May 2014
Figure 80: Most popular reasons for choosing different types of CSDs, by demographics, May 2014
Figure 81: Next most popular reasons for choosing different types of CSDs, by demographics, May 2014
Figure 82: Other reasons for choosing different types of CSDs, by demographics, May 2014
Figure 83: Perceptions of different types of beverage categories, May 2014
Figure 84: Most popular attributes associated with carbonated soft drinks, by demographics, May 2014
Figure 85: Next most popular attributes associated with carbonated soft drinks, by demographics, May 2014
Figure 86: Attitudes towards CSDs, May 2014
Figure 87: Agreement with the statements ‘I like to check the ingredients on the packaging of carbonated soft drinks’ and ‘Carbonated soft drinks with less sweet flavours would complement a meal better’, by demographics, May 2014
Figure 88: Agreement with the statements ‘Carbonated soft drinks are acceptable as an occasional treat for children’ and ‘I would be interested in buying carbonated soft drinks that aid digestion’, by demographics, May 2014
Figure 89: Agreement with the statements ‘I\'d be interested in buying carbonated soft drinks containing botanical extracts’ and ‘I prefer the taste of diet/light carbonated soft drinks to regular/standard variants’, by demographics, May 2014
Figure 90: Agreement with the statements ‘Bars/pubs/restaurants should make carbonated soft drinks more visible to customers’ and ‘I am interested in buying high-quality mixers to go with spirits^’, by demographics, May 2014
Figure 91: Agreement with the statements ‘Recommendations from friends/family encourage me to try new types of carbonated soft drinks’ and ‘Carbonated soft drinks which are less fizzy appeal to me’, by demographics, May 2014
Figure 92: Agreement with the statements ‘I like to make my own carbonated soft drinks at home’ and ‘I would be interested in trying a carbonated soft drink with a thicker texture’, by demographics, May 2014

Appendix – The Consumer – CSDs and Chinese Canadians
Figure 93: Selected demographics, by total population against Chinese Canadians, May 2014

Appendix – The Consumer – Target Groups
Figure 94: Target groups, May 2014
Figure 95: Target groups, by demographics, May 2014
Figure 96: CSDs consumed in the past month, by target groups, May 2014
Figure 97: Occasions for drinking CSDs, by target groups, May 2014
Figure 98: Reasons for choosing different types of CSDs, by target groups, May 2014
Figure 99: Attributes associated with soft drinks, by target groups, May 2014
Figure 100: Attitudes towards CSDs, by target groups, May 2014

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