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BRAND OVERVIEW: DRINK - UK - MAY 2018

Published By :

Mintel

Published Date : May 2018

Category :

Alcoholic Beverages

No. of Pages : N/A

Category blurring is becoming more commonplace within the drinks sector as brands seek to utilise positive attributes from outside their immediate categories. Energy drinks brands are already putting greater emphasis on the water aspect of their drinks in a bid to distance themselves from the more negative perceptions that pervade the category. However, this is likely to be met by water brands adding greater functionality to their drinks as they seek to help consumers meet their potential beyond hydration.

Table of Contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
Brand leaders
Drinks with universal appeal dominate on usage
Figure 1: Most widely drunk brands in the drinks sector, January 2015-January 2018
CSD brands go against trust and quality relationship
Figure 2: Top ranking of brands in the drinks sector, by agreement with “A brand that I trust”, January 2015-January 2018
Drinks sector gives opportunity for constant evolution
Figure 3: Top ranking of brands in the drinks sector, by agreement with “A brand that is innovative”, January 2015-January 2018
Tea and coffee brands seen as offering value
Figure 4: Top ranking of brands in the drinks sector, by agreement with “A brand that offers good value”, January 2015-January 2018
Coca-Cola’s universal appeal drives high preference
Figure 5: Top ranking of brands in the drinks sector, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
Smaller brands compete on satisfaction
Figure 6: Top ranking of brands in the drinks sector, by overall satisfaction (net of “Good” and “Excellent” responses), January 2015-January 2018
Brand personality
Fruit-based drinks considered refreshing
Figure 7: Top ranking of brands in the drinks sector, by agreement with “Refreshing”, January 2015-January 2018
Alcohol brands among most likely to possess premium traits
Figure 8: Top ranking of brands in the drinks sector, by agreement with “Stylish”, January 2015-January 2018
Brands boost tradition with geography, but proximity is key
Figure 9: Top ranking of brands in the drinks sector, by agreement with “Traditional”, January 2015-January 2018
Innocent top scores for ethicality
Figure 10: Top ranking of brands in the drinks sector, by agreement with “Ethical”, January 2015-January 2018
Opportunities and threats
Low/no/reduced sugar claims grow
Figure 11: Proportion of L/N/R claims across new product launches in the drinks sector, 2014-17
Brands responding to demand for functionality
Figure 12: Proportion of functional claims across new product launches in the drinks sector, 2014-17
Energy drinks brands considered unethical and overrated
Figure 13: Top ranking of brands in the drinks sector, by agreement with “Unethical”, January 2015-January 2018
Bottled water brands’ purity offers potential to extend reach
Figure 14: Top ranking of brands in the drinks sector, by agreement with “Pure”, January 2015-January 2018
Drinks promotional activity
Adspend stays static in 2017
Figure 15: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, Q1 2014-Q4 2017
Coca-Cola is biggest spender by some distance
Figure 16: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, by top brands, 2017
What we think
BRAND LEADERS – WHAT YOU NEED TO KNOW
Drinks with universal appeal dominate on usage
CSD brands go against trust and quality relationship
Drinks sector gives opportunity for constant evolution
Tea and coffee brands seen as offering value
Coca-Cola’s universal appeal drives high preference
Smaller brands compete on satisfaction
BRAND USAGE
Drinks brands have above-average penetration
Figure 17: Most widely drunk brands in the drinks sector, January 2015-January 2018
Sugar-free soft drinks growing in popularity
Figure 18: Proportion of consumers who have ever drunk the brand, by proportion who have drunk it in the last 12 months, January 2015-January 2018
Big name brands investing more in current low-sugar sub-brands
Figure 19: Example launches of flavoured variants of no/low/reduced sugar sub-brands, 2017-18
BRAND TRUST AND QUALITY
Usage and trust linked
Figure 20: Top ranking of brands in the drinks sector, by agreement with “A brand that I trust”, January 2015-January 2018
CSDs drive usage without as trusted an image
Figure 21: Agreement with “A brand that I trust”, by overall usage, January 2015-January 2018
Premium brands able to generate trust without usage
“Quality” is not necessarily the same as “premium”…
Figure 22: Top ranking of brands in the drinks sector, by agreement with “A brand that has consistently high quality”, January 2015-January 2018
…and it’s likely to be experience that determines it
INNOVATIVE BRANDS
Drinks sector gives opportunity for constant evolution
Figure 23: Top ranking of brands in the drinks sector, by agreement with “A brand that is innovative”, January 2015-January 2018
Innocent, Robinsons and Nescafé are frontrunners
Figure 24: Examples of product launches from Innocent, Robinsons and Nescafé, 2017
Coca-Cola stays true to innovative product
Kopparberg and Rekorderlig help redefine a category through launches…
Figure 25: Examples of Rekorderlig and Kopparberg product launches, 2017
…and marketing activity promoting Swedish heritage
Figure 26: Kopparberg Recycling Rig, August 2017
Twinings, Pukka and Fever-Tree drive premium image
Figure 27: Examples of launches from Twinings, Pukka and Fever-Tree, 2017
Glacéau Smartwater uses differentiation to boost innovative image
Figure 28: Glacéau Smartwater highlights vapour-distilled water and the benefit to taste, 2016
PRICE, COST AND VALUE
Tea and coffee brands seen as offering value
Figure 29: Top ranking of brands in the drinks sector, by agreement with “A brand that offers good value”, January 2015-January 2018
Brands specialising in the traditional fare better on value
A mixture of premium and mainstream considered worth paying more for
Figure 30: Top ranking of brands in the drinks sector, by agreement with “A brand that is worth paying more for”, January 2015-January 2018
Protection from negative impact of price rises
BRAND PREFERENCE AND DIFFERENTIATION
Coca-Cola’s universal appeal drives high preference
Figure 31: Top ranking of brands in the drinks sector, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
Big name tea and coffee brands benefit from frequent contact
Taste and preference not a concrete link
Figure 32: Agreement with “delicious”, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
Originality creates differentiation
Figure 33: Top ranking of brands in the drinks sector, by differentiation (net of “It’s somewhat different from others” and “It’s a unique brand”), January 2015-January 2018
BRAND SATISFACTION AND RECOMMENDATION
Smaller brands compete on satisfaction
Premium traits appear decisive
Figure 34: Top ranking of brands in the drinks sector, by overall satisfaction (net of “Good” and “Excellent” responses), January 2015-January 2018
Alcohol brands particularly enthuse drinkers
Figure 35: Top ranking of brands in the drinks sector, by “excellent” reviews, January 2015-January 2018
Brands noted for purity among most likely to be recommended
Figure 36: Top ranking of brands in the drinks sector, by likely recommendation, January 2015-January 2018
BRAND PERSONALITY – WHAT YOU NEED TO KNOW
Fruit-based drinks considered refreshing
Alcohol brands among most likely to possess premium traits
Premium boosting brand activity
Brands boost tradition with geography, but proximity is key
Innocent top scores for ethicality
Plastic is offering an opportunity for brands
TASTE AND REFRESHMENT
Taste as a driver of purchase
Taste less associated with drinks brands than food
Figure 37: Top ranking of brands in the drinks sector, by agreement with “Delicious”, January 2015-January 2018
Fruit-based drinks considered refreshing
Figure 38: Top ranking of brands in the drinks sector, by agreement with “Refreshing”, January 2015-January 2018
Oasis advertising highlights refreshment
Figure 39: Oasis “Refreshing stuff” out-of-home campaign, 2015
Sprite extends refreshment with cucumber launch
PREMIUM BRANDS
Alcohol brands among most likely to possess premium traits
Figure 40: Top ranking of brands in the drinks sector, by agreement with “Stylish”, January 2015-January 2018
Lavazza and Peroni focus on associations with fashion
Figure 41: The Prontissimo coffee trike at London Fashion Week, February 2017
Sipsmith uses craft for sophistication
Figure 42: Sipsmith Tweet celebrating the 9th birthday of Prudence the copper still, March 2018
Fever-Tree draws close comparisons with alcohol brands
Figure 43: Fever-Tree’s The Art of Mixing book, March 2018
Twinings and Taylors use differentiated product range
Figure 44: Royal-themed launches from Twinings and Taylors of Harrogate, 2016-17
Exclusivity judged on a category basis
Figure 45: Top ranking of brands in the drinks sector, by agreement with “Exclusive”, January 2015-January 2018
PREMIUM BOOSTING BRAND ACTIVITY
Coffee brands going deeper into origin
Brands in other categories following suit
Figure 46: Example product launches with details of origin, 2017-18
Pushing flavour and taste expertise
Figure 47: Kenco, Cofficionados since 1923, 2018
Bottlegreen and Belvoir experiment with food pairing recommendations
Designer packaging reaches water bottles
Figure 48: Examples of Evian limited edition designer packaging, 2016-17
Opportunity for designer packaging in different categories
Figure 49: Examples of limited edition packaging in the drinks sector, 2017
TRADITION, HERITAGE AND AUTHENTICITY
Brands boost tradition with geography…
Figure 50: Top ranking of brands in the drinks sector, by agreement with “Traditional”, January 2015-January 2018
…but proximity appears to be key
Figure 51: Jack Daniel’s tweets highlighting heritage, January 2018
Gordon’s changes packaging to emphasise heritage
Tea brands among most traditional
Alcohol brands dominate on authenticity…
Figure 52: Top ranking of brands in the drinks sector, by agreement with “Authentic”, January 2015-January 2018
…but non-alcohol brands can take inspiration
Figure 53: Example of Fever-Tree and Fentimans launches, 2018
SOCIAL RESPONSIBILITY
Innocent top scores for ethicality
Figure 54: Top ranking of brands in the drinks sector, by agreement with “Ethical”, January 2015-January 2018
Kenco and Fever-Tree initiatives drive ethical image
Figure 55: Fever-Tree #MalariaMustDie campaign, April 2018
Clipper focuses on the environment
Figure 56: Clipper tea as the official tea of the National Trust, March 2018
Plastic demonisation presents an opportunity
BrewDog ‘stands up to The Man’
ETHICAL BRAND ACTIVITY
Ethicality of brands improving
Figure 57: Proportion of ethical claims across new product launches in the drinks sector, 2014-17
Rising watermark for recycled plastic
Figure 58: The Co-operative’s pledge to use 50% recycled plastic in own-label water bottles, March 2018
PG Tips and Tetley brands go biodegradable
Figure 59: PG Tips’ announcement of biodegradable tea bags, February 2018
Wider array of charities being represented
Figure 60: Examples of product launches in the drinks sector carrying ethical – charity claims, 2018
Smirnoff and Absolut continue to fight for human rights
Figure 61: Examples of vodka brands supporting LGBT+ causes with limited edition packaging, 2017
Tea and coffee brands encourage talking
Figure 62: PG Tips’ promotion of Time to Talk Day, February 2018
OPPORTUNITIES AND THREATS – WHAT YOU NEED TO KNOW
L/N/R sugar claims grow
Brands responding to demand for functionality
Fruit juice and tea brands well placed to add health benefits
Energy drinks brands considered unethical and overrated
The reduced alcohol trend means opportunities to innovate
Bottled water brands’ purity offers potential to extend reach
REFORMULATION OF DRINKS
Response from consumers to sugar levy is mixed
Not just the sugar levy which is influencing healthier habits
L/N/R sugar claims grow
Figure 63: Proportion of L/N/R claims across new product launches in the drinks sector, 2014-17
Naturally sweetened drinks hold potential for growth
Figure 64: Examples of product launches including honey as an ingredient, 2017-18
Opportunity to push real sugar as indulgent
Figure 65: Coca-Cola, “They don’t make ‘em like they used to”, April 2018
Diet Coke pushes freedom in a world of regulation
Figure 66: Diet Coke’s “Because I can” campaign, March 2018
Taste replication vital after reformulation
ADDING FUNCTIONALITY TO DRINKS
Brand responding to demand for functionality
Figure 67: Proportion of functional claims across new product launches in the drinks sector, 2014-17
Fruit juice and smoothies’ health advantage makes them natural candidates
Figure 68: Examples of juice/smoothie launches carrying functional claims, 2017-18
Figure 69: Tropicana “Little Glass” ad, April 2016
Tea’s association with health means it is a target for functionality
Figure 70: Examples of launches in the tea category carrying functional claims, 2017-18
Tetley uses expertise in tea to move into squash
Energy drinks incorporating vitamins to improve image
Consumers unwilling to compromise on taste
CHANGING THE IMAGE OF ENERGY DRINKS BRANDS
Energy drinks brands considered unethical…
Figure 71: Top ranking of brands in the drinks sector, by agreement with “Unethical”, January 2015-January 2018
…and overrated
Figure 72: Top ranking of brands in the drinks sector, by agreement with “Overrated”, January 2015-January 2018
Natural energy sources as an alternative
Figure 73: Examples of energy drinks with natural claims, 2017-18
An opportunity for coffee brand to up on-the-go efforts
CAPITALISING ON THE REDUCED ALCOHOL TREND
Consumers are drinking less alcohol
Brands responding with alcohol-free launches
Figure 74: Examples of alcohol-free product launches, 2017-18
Brands with similar image to alcohol may benefit
The reduced alcohol trend means opportunities to innovate
Figure 75: Examples of product launches being pushed as alternatives to alcohol, 2017
BOTTLED WATERS EXTENDING REACH
Bottled waters are noted for purity
Figure 76: Top ranking of brands in the drinks sector, by agreement with “Pure”, January 2015-January 2018
Water as a base of healthiness
Using positive perceptions of water to extend reach
Figure 77: Examples of waters adding functionality, 2017-18
Drinks brands focusing on hydration
Figure 78: Examples of natural waters claiming to offer intense or natural hydration, 2016-18
Figure 79: Evian tweet promoting its hydrating ability, February 2018
Figure 80: Capri-Sun Fruity Water, December 2017
Hydration theme taken outside of immediate water category
DRINKS PROMOTIONAL ACTIVITY – WHAT YOU NEED TO KNOW
Adspend stays static in 2017
Coca-Cola is biggest spender by some distance
Active brands tend to be leaders across measures
ADSPEND IN THE DRINKS SECTOR
Adspend stays static in 2017
Figure 81: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, Q1 2014-Q4 2017
Coca-Cola is biggest spender by some distance
Figure 82: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, by top brands, 2017
Coca-Cola maintains advertising tradition…
Figure 83: Break free with a Coke that’s sugar free, January 2018
…while Pepsi Max encourages a new tradition
Figure 84: Pepsi Max, “Try a new tradition this Christmas”, November 2017
Guinness continues iconic advertising to create differentiation
Figure 85: Guinness, The Cowboys of Compton, September 2017
Smirnoff uses advertising to highlight brand values
Figure 86: Smirnoff presents We Are Open campaign, November 2017
Red Bull marketing makes it representative of the category
Lucozade attempts to unlock potential
Figure 87: Lucozade Energy, Unstoppable Bottles in Oxford Circus, May 2017
Yorkshire Tea highlights locality
Figure 88: Yorkshire Tea, “Where everything’s done proper”, March 2017
Bud Light relaunches with nostalgic campaign
Figure 89: Bud Light frogs, May 2017
Gordon’s drives impulse drinking occasions
Figure 90: Gordon’s Gin, Grand National Facebook post, April 2017
L’OR shows off premium credentials
Figure 91: Discover the L’OR gold standard in coffee, December 2017
Nielsen Ad Intel Coverage
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
APPENDIX – BRANDS COVERED

 

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