Soft drink sub-categories
Cola Pepsi surges ahead
Cola maintained its position as the licensed trade's largest sub-category, with value growth of 4% to £982m lifting its market share to 41% as consumers looked for value in cash-strapped times.
The two leading brands, Coke and Pepsi, accounted for 94% of value sales. Once again, Pepsi had the better year, taking 2.8 share points to knock Coke off the No1 spot. Pepsi's £475m sales included good performances from both regular and diet variants.
Draught cola grew significantly ahead of packaged cola, with 5% value growth taking 82% of the cola market, highlighting the demand from both licensees and consumers for draught soft drinks.
Lemonade Market turns around
Lemonade − the second largest sub-category, with an 18% value share − was in good shape in 2009. Sales were up 4% to £437m, turning around the previous year's 6% decline.
No1 brand R Whites further strengthened its leadership, with sales up 9% to £209m, and increased its share of the sub-category to 48%. By comparison CCE Schweppes grew sales by just 1% and saw its share slip to 36%.
While diet variants represent just 1% of the market, sales of diet lemonade are growing swiftly – 39% in 2009 – reflecting consumer desire for healthier soft drinks options.
Juice drinks Feeling the squeeze
While the increased emphasis on providing meals in a family-friendly environment has done much to boost the soft drinks market, sales of juice drinks fell by 2% to £228m. J2O continued to lead the field, with a bold flavours portfolio and sales of £174m, but still declined in line with the market. Fruit Shoot saw strong gains as pubs focused on the family occasion to up spend, growing 9% in value to just over £14m as did Capri Sun, growing 55% off a small base to just over £1m.
Squash Schweppes edges up on Britvic
Juice drinks' loss was probably squash's gain as consumers sought more value within their leisure spend. As a result squash returned to growth – up 5% to £178m – after declining 1% in 2008.
Britvic Cordial and CCE Schweppes Squash both saw increased sales. Brand leader Britvic Cordial grew 6% by value to £68m, but lost market share marginally to 38%. Schweppes Squash sales were up 7% to £38m, retaining a 21% share of the market.
Mixers Just the tonic
Mixers picked up in 2009, transforming 2008's 4% decline into a 1% increase in sales value to £160m. Britvic’s star performance, with sales of £75m – 7% up against a decline of 4% in 2008 – put the brand in No1 position ahead of Schweppes, which saw sales drop 4% to £68m.
Fruit juice A fruitful performance
Pure juice turned its performance around, with sales up 1% to £153m, driven by 20% growth in managed pubs. Mixers, rather than free pour led the growth in this sector as licensees looked to packaged products for a premium serve.
Britvic juices held on to their No1 position with sales up 4% by volume and 6% by value to £54m. By contrast, second-placed CCE Schweppes juices saw declines in value (5%) and volume (8%).
Energy and sportWings clipped
Energy drinks continued to run out of steam although at a slower rate. Sales followed 2008's 7% decline with a 2% fall to £107m. Red Bull still leads the field with an 87% market share, but the brand is declining ahead of its peer group at 5%, as the "vodka and Red Bull" trend slides further out of vogue.
Mineral water Water levels down
Sales of bottled water continued their downward trend, as budget-conscious consumers turned to tap water to save money. Water dropped 6% by value to £67m and 10% by volume. The biggest loser was Highland Spring, which declined by a massive 25%. Strathmore and Abbeywell – the sub-category's key players − declined by 5% and 1% respectively. Requests for tap water vs bottled water may to some extent reflect consumer confidence; if so, demand for bottled water might improve in line with economic recovery, as suggested by its return to value growth (+5%) in the last quarter 2009.
Flavoured carbonates Bubbling up
With sales up 10% to £57m, this was the top performing sub-category. Its startling turnaround after the previous year's 1% decline could be the result of flavoured carbonates' growing popularity as an accompaniment to meals in food-focused establishments.
Irn Bru achieved a creditable 5% growth in sales value, but this was no match for its 10% performance in 2008. The big success story was 7UP − up 26%.
2009 was a good year for smaller brands as Ben Shaw’s grew 19%, a 2% increase on the previous year, taking the brand to sales of £817k. Dispense soft drinks supplier Cabana also saw good growth, with sales up 74% to £7.2m.
Chart: On-Premise Sub Category Performance

On-Premise Brands
Value |
£ millions |
% change |
|---|---|---|
| 1 Pepsi Cola | 475 | 10 |
| 2 Coca-Cola | 446 | -1 |
| 3 R Whites Lemonade | 209 | 8 |
| 4 Britvic J2O | 174 | -2 |
| 5 Schweppes Lemonade | 158 | 1 |
| 6 Red Bull energy | 92 | -5 |
| 7 Britvic mixers | 75 | 7 |
| 8 Schweppes mixers | 68 | -4 |
| 9 Britvic squash/cordials | 68 | 6 |
| 10 Britvic pure juice mixers | 54 | 6 |
Volume |
litres millions |
% change |
|---|---|---|
| 1 Pepsi Cola | 115 | 10 |
| 2 Coca-Cola | 114 | -9 |
| 3 R Whites Lemonade | 50 | 4 |
| 4 Schweppes Lemonade | 40 | -11 |
| 5 Britvic J2O still juice drinks | 29 | -6 |
| 6 Red Bull energy | 12 | -5 |
| 7 Britvic mixers | 12 | 6 |
| 8 Schweppes mixers | 10 | -11 |
| 9 Britvic pure juice mixers | 15 | 8 |
| 10 Britvic squash/cordials | 7 | 6 |
Chart: HORECA and Leisure Sub-Channel Performance – Value

Chart: HORECA and Leisure Sub-Category Performance – Value

PUBS AND BARS
Managed sector leads the way
The growing emphasis on food may explain why soft drinks sales increased most strongly in managed pubs − up 6%, reversing the 4% loss in 2008. In leased and tenanted outlets sales increased
more slowly, by 2% − but this was still a marked improvement on the previous year’s 7% decline. Sales in the independent sector grew slightly at 1%, turning around last year’s slight decline.
BRANDS
Pepsi overtakes Coke
Pepsi overtook Coca-Cola to become the top-selling brand. The brand grew 10% in value to £475m while Coke saw a decline of 1%. R Whites beat J2O into third place, while Britvic mixers and
squash both lifted sales by 6%.
SUPPLIERS
Britvic still No1
Britvic remained the top supplier to the licensed channel: sales grew 6% to £1.1bn, representing a value share of 47%. Volume share was 46%, an increase of five percentage points.
Second placed CCE lost market share to 33%, with sales and volume down by 1% and 6% respectively.
HORECA (HOTELS, RESTAURANTS AND CATERING)
Cafés make the running
After seeing sales growth slow to 1% in the previous year, the HORECA channel slipped into reverse in 2009 as sales reduced by 3%.
Some outlets fared better than others. Fast food outlets and cafés performed well, with sales rising 10% to £30m. But the largest channel, workplace catering, had a real reversal of fortune − after 8% growth in 2008, sales fell to a 5% loss in 2009. This marked decline was driven by an increase in people bringing packed lunches to work to save money.
Cola, enjoying a great year all round, was the channel's fastest growing sub-category with sales up 8%. It strengthened its hold on the No3 position behind fruit juice and fruit drinks, while fourth-placed still water saw a heavy decline of 11%.
