2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global...

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2020 Annual Report Meeting The Challenge

Transcript of 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global...

Page 1: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

2020Annual ReportMeeting The Challenge

Page 2: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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Report Methodology & Background

Introduction

Overall Soft Drinks

Bottled Water

Carbonates

Dilutables

100% Juice

Sports & Energy Drinks

Still & Juice Drinks

Member Initiatives

Contact

03

04

05

07

09

11

13

15

17

19

22

Contents

Page 3: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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The key strength of Global Data’s methodology is that it works in industry partnerships across the value chain, from suppliers to brand producers and both on- and off-premise channels. The research is built from brand data upwards. The ‘brick-by-brick’ approach ensures that the research gives insights from all angles; from brand volume through to corporate volume, flavour segmentation, packaging splits and channel distribution. The companies featured in the company profiles and those whose brands are featured in the individual market categories are selected through regular market observation based on the size of their output and/or their dynamism. The data included in this report covers the 2019 calendar year.

In line with its European colleagues, the British Soft Drinks Association (BSDA) commissioned food, drink and retailing data analyst Global Data to produce its 2020 report

Report Methodology & Background

Sources» Official production and trade statistics» Face-to-face interviews with leading soft drinks producers» Interviews with retailers, distributors and associated industries» Consumer surveys» Quarterly monitoring of product offered in all trade channels in selected markets

Industry terms» Regular: 31 and over kcal per 100ml» Mid Calorie: 21-30 kcal per 100ml» Low/No Calorie: 0-20 kcal per 100ml*

*Nutrition Claims Annex of Regulation (EC) 1924/2066

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Amid a continuing global pandemic and the sunniest spring in the UK since records began, it is easy to forget that 2019 was one of the wettest summers ever registered in the UK by the Met Office. Little surprise, then, that our report shows volume sales of soft drinks were slightly down last year.

But, sales values continued to rise in 2019, spurred on by the growing trend for premium (‘less but better’). This shift has also highlighted the innovation in a sector responding to changing consumer tastes, including continuing signs younger adults are drinking less alcohol.

Of course, COVID-19 has, temporarily at least, radically transformed how we live our lives. The closure of pubs, restaurants and nightclubs this spring presents a huge challenge for the food and drink sector as it prepares for the realities of Brexit.

And, it’s not the only challenge the soft drinks industry is addressing.

Consumers want to see less plastic waste and more recycling. Our members’ products are 100% recyclable but we know more can be done. That is why we are working with the Scottish Government to develop its deposit return scheme (DRS), which is currently due to be introduced in July 2022, one year before England and Wales get their DRS.

In due course, we hope to have a DRS in operation across Great Britain, alongside much-needed reform of the packaging producer responsibility system.

For now, though, the challenge facing the sector is to rebuild as we emerge from lockdown and the impact of its unprecedented closure of customer businesses. The soft drinks industry is renowned for its resilience. Let’s hope it bounces back this summer.

Gavin PartingtonBSDA Director General

Introduction

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Overall Soft Drinks MarketBottled Water, Carbonated Drinks, Dilutables, 100% Juice, Sports & Energy Drinks, and Still & Juice Drinks

13,659Volume M Litres

16,329Value M GBP

-2.9%YOY Growth

0.1%YOY Growth

2019 statistics

Six-year comparison

Source: Global Data

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

2014

13,414

- 0.4

14,515

1.6

2015

13,402

- 0.1

14,377

- 1.0

2016

13,569

1.3

14,695

2.2

2017

13,545

- 0.2

15,112

2.8

2018

14,071

3.9

16,306

7.9

2019

13,659

- 2.9

16,329

0.1

2019 channel split

Off-Premise

86.5%On-Premise

13.5%

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Overall Soft Drinks 2019

Source: Global Data

Source: Kantar Worldpanel

28.1%Sugar intake from consumption of Overall Soft Drinks fell by 28.1% between March 2016 and March 2020

Calorie split

1 Low/No Calorie 68.2%2 Regular 25.1%3 Mid Calorie 6.7%

Category split

1 Carbonated Soft Drinks 38.6%2 Dilutables 20.8%3 Bottled Water 20.6%4 Still & Juice Drinks 7.1%5 100% Juice 6.5%6 Sports & Energy Drinks 6.3%

Packaging split

1 PET Bottle 69.2%2 Metal Can 12.9%3 Board Carton 5.5%4 Board Bag in Box 4.3%5 Glass Bottle 3.9%6 Polycarbonate Bubble Top 2.2%7 Other 2.0%

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Bottled WaterPackaged Water Still, Packaged Water Sparkling and Bulk/Home or Office Delivery Water

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2014

2,263

9.6

1,319

10.2

16.9

2015

2,465

8.9

1,422

7.8

18.4

2016

2,694

9.3

1,513

6.4

19.9

2017

2,816

4.5

1,634

8.0

20.8

2018

2,986

6.0

1,711

4.7

21.2

2019

2,811

-5.8

1,635

-4.5

20.6

Source: Global Data

2,811Volume M Litres

1,635Value M GBP

-5.8%YOY Growth

-4.5%YOY Growth

20.6%Share of TotalSoft Drinks

2019 statistics

2019 channel split

Off-Premise

82.0%On-Premise

18.0%

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Bottled Water 2019

On-Premise consumption of Bottled Water grew by 0.6 percentage points in 2019

Water source split

1 Mineral 64.6%2 Spring 30.2%3 Table 5.3%

Packaging split

1 PET Bottle 84.5%2 Polycarbonate Bubble Top 10.8%3 Glass Bottle 4.6%4 Metal Can 0.1%

Sales split

1 Packaged Water Still 75.0%2 Packaged Water Sparkling 14.0%3 Bulk/HOD Water 10.9%

0.6%

Source: Global Data

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Carbonated DrinksCarbonates (96.4% of category sales in 2019), Carbonated Flavoured Water (3.4%), Carbonated Enhanced Water (0.1%) and Carbonated RTD Iced Tea (0.1%)

Source: Global Data

2014

5,240

- 2.1

6,748

- 0.1

39.1

2015

5,201

- 0.7

6,706

- 0.6

38.8

2016

5,192

- 0.2

6,809

1.5

38.3

2017

5,173

- 0.4

7,183

5.5

38.2

2018

5,324

2.9

8,105

12.8

37.8

2019

5,271

- 1.0

8,230

1.5

38.6

5,271Volume M Litres

8,230Value M GBP

-1.0%YOY Growth

1.5%YOY Growth

38.6%Share of TotalSoft Drinks

Off-Premise

82.4%On-Premise

17.6%

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2019 statistics

2019 channel split

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Carbonated Drinks 2019

Low/No Calorie Carbonated Drinks grew by 3.0 percentage points in 2019

Calorie split

1 Low/No Calorie 62.0%2 Regular 30.1%3 Mid Calorie 7.9%

Flavour split

1 Cola 55.2%2 Clear Lemonade 8.8%3 Tonic, Mixers & Bitters 5.8%4 Orange 5.5%5 Lemon/Lime 4.1%6 Other 20.5%

Packaging split

1 PET Bottle 58.3%2 Metal Can 24.6%3 Board Bag in Box 10.6%4 Glass Bottle 4.5%5 Metal Tank 1.6%6 Polypropylene Cartridge 0.4%

3.0%

Source: Global Data

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DilutablesPredominantly Squashes & Syrups, plus a very small percentage of Fruit Powder products

2014

3,041

- 4.2

855

2.3

22.7

2015

2,882

- 5.2

753

- 11.9

21.5

2016

2,827

- 1.9

778

3.3

20.8

2017

2,768

- 2.1

751

- 3.5

20.4

2018

2,947

6.4

865

15.2

20.9

2019

2,847

- 3.4

845

- 2.2

20.8

Source: Global Data

2,847Volume M Litres

845Value M GBP

-3.4%YOY Growth

-2.2%YOY Growth

20.8%Share of TotalSoft Drinks

Off-Premise

95.6%On-Premise

4.4%

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2019 statistics

2019 channel split

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Dilutables 2019

Low/No Calorie Dilutables grew by1.5 percentage points in 2019

Calorie split

1 Low/No Calorie 89.3%2 Mid Calorie 6.1%3 Regular 4.5%

Flavour split

1 Orange 34.3%2 Flavour Mixes 31.7%3 Apple 13.1%4 Berries 5.8%5 Other 15.1%

Packaging split

1 PET Bottle 94.5%2 Glass Bottle 3.7%3 HDPE Bottle 1.6%4 PVC Bottle 0.1%5 Paper Sachet 0.1%

1.5%

Source: Global Data

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100% Juice100% Juice, including Smoothiesand Coconut Water

2014

1,012

- 7.6

1,828

- 5.6

7.5

2015

960

- 5.1

1,722

- 5.8

7.2

2016

940

- 2.0

1,743

1.2

6.9

2017

923

- 1.8

1,693

- 2.9

6.8

2018

928

0.5

1,623

- 4.1

6.6

2019

891

- 4.0

1,591

- 2.0

6.5

Source: Global Data

891Volume M Litres

1,591Value M GBP

-4.0%YOY Growth

-2.0%YOY Growth

6.5%Share of TotalSoft Drinks

FromConcentrate

56.9%

Not From Concentrate

43.1%

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2019 statistics

2019 juice type split

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100% Juice 2019

Orange Juice’s share of this category grew by 1.7 percentage points in 2019

Flavour split

1 Orange 62.7%2 Apple 12.4%3 Berries 3.3%4 Pineapple 3.3%5 Other 18.3%

Packaging split

1 Board Carton 66.7%2 PET Bottle 27.4%3 HDPE Bottle 4.2%4 Glass Bottle 1.7%5 Board Bag in Box 0.5%6 Metal Can 0.1%

Shelf state split

1 Chilled 69.5%2 Ambient 30.5%

1.7%

Source: Global Data

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Sports &Energy DrinksSports Drinks enhance physical performance before, during or after physical/sporting activity by replacing fluids and electrolytes/minerals lost by sweating and by supplying a boost of carbohydrate

Energy Drinks include traditional glucose-based energy drinks and functional or stimulation drinks which claim a particular energy boost from caffeine, guarana and taurine, among others

2014

772

4.3

2,159

6.4

5.8

2015

794

2.8

2,207

2.3

5.9

2016

802

1.0

2,237

1.3

5.9

2017

802

0.1

2,270

1.5

5.9

2018

844

5.2

2,425

6.9

6.0

2019

866

2.6

2,529

4.3

6.3

Source: Global Data

866Volume M Litres

2,529Value M GBP

2.6%YOY Growth

4.3%YOY Growth

6.3%Share of TotalSoft Drinks

Off-Premise

91.6%On-Premise

8.4%

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2019 statistics

2019 channel split

Page 16: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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Sports & Energy Drinks 2019

Volume sales of Energy Drinksgrew by 3.9% in 2019

Category split

1 Energy Drinks 84.4%2 Sports Drinks 15.6%

Calorie split

1 Regular 64.9%2 Mid Calorie 18.9%3 Low/No Calorie 16.2%

Packaging split

1 Metal Can 53.1%2 PET Bottle 46.8%3 Glass Bottle 0.1%

3.9%

Source: Global Data

Page 17: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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Still & Juice DrinksHigh Juice Drinks with a fruit content of 25-99%, Still Drinks with a 0-25% fruit content, Still Flavoured Waters, Still Enhanced Waters and Still/Iced RTD Tea Drinks

2014

1,087

3.6

1,605

4.3

8.1

2015

1,100

1.2

1,566

- 2.5

8.2

2016

1,114

1.3

1,615

3.1

8.2

2017

1,063

- 4.6

1,583

- 2.0

7.8

2018

1,043

- 1.9

1,577

- 0.3

7.4

2019

974

- 6.6

1,500

- 4.9

7.1

Source: Global Data

974Volume M Litres

1,500Value M GBP

-6.6%YOY Growth

4.9%YOY Growth

7.1%Share of TotalSoft Drinks

Off-Premise

86.0%On-Premise

14.0%

Volume M Litres

YOY Growth (%)

YOY Growth (%)

Value M GBP

Share of Total Soft Drinks (%)

Six-year comparison

2019 statistics

2019 channel split

Page 18: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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Still & Juice Drinks 2019

Low/No Calorie Still & Juice Drinks grew by 2.5 percentage points in 2019

Calorie split

1 Low/No Calorie 54.7%2 Regular 29.3%3 Mid Calorie 16.0%

Category split

1 Still Drinks 42.5%2 Still Flavoured Waters 30.4%3 High Fruit Juice (Nectars) 15.0%4 Still Enhanced Waters 7.4%5 Still Iced/RTD Tea Drinks 4.6%

Packaging split

1 PET Bottle 68.1%2 Board Carton 16.4%3 Foil Pouch 5.8%4 Glass Bottle 4.8%5 Board Bag in Box 2.1%6 HDPE Bottle 1.7%7 Metal Can 0.8%8 PVC Cup 0.2%9 Polypropylene Cartridge 0.1%

2.5%

Source: Global Data

Page 19: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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AG Barr, manufacturer of leading soft drinks brands including IRN-BRU and Rubicon, has introduced fossil-free electricity to power its operations across the UK.

The ten-year contract provides 100% renewable electricity to AG Barr facilities including factories in Cumbernauld (pictured), Milton Keynes and Forfar as well as regional sites in Bolton, Newcastle, Sheffield, West Midlands and Manchester.

Aa a result of the move, AG Barr now uses 22GwH of renewable electricity per year from UK wind farms – the equivalent electricity used by 6,000 UK homes annually.

Roger White, CEO of AG Barr, said: “We take our environmental responsibilities seriously and strive for opportunities to play our part in reducing the effects of climate change.

“Introducing 100% renewable electricity across all our UK sites is a big step towards reducing our carbon footprint and delivering our ambitious sustainable business goals.”

AG Barr has introduced 100% renewable electricity across UK sites

Member Initiatives

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Coca-Cola European Partners (CCEP), in partnership with Coca-Cola GB, has launched a number of new packaging innovations to work towards a ‘World Without Waste’.

In Great Britain, GLACEAU smartwater bottles are now made from 100% recycled plastic, which removes more than 3,000 tonnes of virgin plastic from the system and replaces it with recycled plastic every year.

Furthermore, the Sprite brand has also seen its iconic green bottle made clear in order to make it easier to recycle.

In 2019, CCEP committed a £20 million investment to its site in North London to open a new sustainable production line, which will save the equivalent of 48,400 tonnes of CO2.

The company’s goal is to collect and recycle the equivalent of every bottle or can it sells in Great Britain by 2025, whilst also continuing to increase the percentage of rPET in its bottles to 50% and replace its plastic shrink with sustainable cardboard across all multipacks in 2020.

Coca Cola’s drive to create a ‘World Without Waste’

Member Initiatives

Page 21: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

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In 2019, Lucozade Ribena Suntory (LRS) parent company Suntory announced its intention to become the first global drinks company to use 100% sustainable plastic bottles, with fully recycled or plant-based materials in use across its entire portfolio by 2030.

LRS’s brands have been working towards this long-term ambition by achieving incremental milestones over the last 12 months.

Also in 2019, the manufacturer launched an ambitious redesign project for its Ribena brand, with the aim of promoting bottle-to-bottle recycling within the UK’s recycling infrastructure.

By reducing the full-print sleeves on the bottles and increasing their transparency, automated sorting machines in UK recycling centres are now better able to identify the packaging and ensure that each bottle has the optimum chance of being recycled back into plastic bottles.

By 2025 all of our packaging will be 100% recyclable

By 2030 we aim for all of our plastic bottles to be 100% sustainable

By 2025 at least 50% of plastic that makes our bottles will be fully sustainable

LRS bid to achieve a global drinks first with packaging innovations

Member Initiatives

LRS pledges:

Page 22: 2020 Annual Report - British Soft Drinks Association...06 Overall Soft Drinks 2019 Source: Global Data Source: Kantar Worldpanel 28.1 % Sugar intake from consumption of Overall Soft

British Soft Drinks Association20-22 Bedford RowLondonWC1R 4EB

Telephone +44 (0)20 7405 0300Email [email protected] www.britishsoftdrinks.comTwitter @BritSoftDrinks