A major soft spot

Lucozade is introducing new price-marked packs this month

Research shows that for every degree the climate increases above 15 degrees, impulse bottled water sales increase by 4.6%. Gillian Hamill reports on how to capitalise on soft drinks as temperatures begin to rise

Brand Central

16 April 2013

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AT A GLANCE: SOFT DRINKS

The impulse soft drinks category is trending at -4% year-on-year
The price difference between impulse drinks in convenience stores and multiple channels was as much as 47% in 2012 (Source: Nielsen)
The total soft drinks category indexed at +11% over the 2012 summer period in the UK despite the fact that temperatures and hours of sunshine fell and rainfall rose versus the previous year*
57% of overall soft drinks growth has been driven by PMPs**
The bottled water category has enjoyed 4.8% value growth since 2011***

*(Source: Nielsen Scantrack, Value Sales, 2012, Total UK Coverage – Summer months versus rest of the year)
**(Source: Nielsen Scantrack, Value Sales Growth, Soft Drinks, MAT to 13.10.12, Total UK Impulse, PMP vs Plain Pack)
***(Source: Kantar Worldpanel ROI, Mineral Water Value Sales, 52 w/e 20 Feb 2011 to 52 w/e 17 Feb 2013)

Sales of regular soft drinks in Ireland have declined during the past ten years, although sales of ‘low-cal’ and ‘no-cal’ drinks have increased by 36% and bottled water sales have risen by 46%, according to Beverage Council of Ireland (BCI) figures.

Demonstrating the continued importance of the industry, a 2010 survey of BCI members showed the soft drinks industry spends €106.5 million every year on the purchase of Irish goods and services. With summer quickly approaching, now is a key time for retailers to stock up as research shows consumers drink 15% more soft drinks in summer than in winter (Source: Nielsen Scantrack, Total Coverage, Total UK 2011).

Lucozade is introducing new price-marked packs this month

Powering the market

In 2013 Lucozade aims to fuel the impulse drink category with the launch of price-marked packs (PMPs). This month, Ireland’s number four FMCG brand, Lucozade, will roll out a range of PMPs across its core-selling impulse lines on the brand. GlaxoSmithKline’s head of marketing, Claire Kearns, outlines why they have decided to do so.

"We knew from research that over one third of consumers perceive the convenience channel to be substantially more expensive than major grocers," says Kearns.

"This has been reflected in a decline in footfall in the convenience sector over the past number of years. Figures from Nielsen also indicate that the price difference between impulse drinks in convenience stores and multiple channels was as much as 47% in 2012. So in the face of this data, and the decline in value, we believe a step-change is required to bring consumers back to the impulse drinks category in convenience channels. Our PMPs will do just that."

In 2011, GlaxoSmithKline launched a number of PMPs across non-core packs. The Lucozade Sport 750ml pack was in double digit decline when the group launched the €2 PMP in 2011. Today, this pack is now worth twice what the non-flashed pack was in 2011 and is now the sports drink category’s second highest selling SKU.

Earlier this year, the company conducted in-market trials with the Lucozade PMPs, and the results exceeded its high expectations and surprised retailers too. The rate of sale increased by as much as 172% and the value of the category increased in every trial store.

Why PMPs work

"As a shopper, I know that when something is price-marked it offers me better value and I also like knowing, at a glance, exactly what it’s going to cost me," says Kearns. "Our research and our experience of PMPs prove that this is the case for customers: an impressive 44% of convenience shoppers are more likely to buy a product on impulse when it is price-marked."

Kearns explains that the brand’s ultimate goal is not to just stem the decline but to deliver increased value to the retailer through an improved rate of sale. "The fact that the soft drinks category is the number two category in convenience retail behind tobacco highlights its importance in this channel. With packs flashed at €1.50, we believe we have struck the right balance between providing an attractive price point for consumers and also maintaining category value."

She believes Lucozade’s in-market trials with PMPs represented "a fantastic result considering the impulse soft drinks category is trending at -4% year-on-year".

The trial also proved popular with participating retailers. Aaron Massey of Costcutter, Taylors Lane, observed "a positive knock-on effect to my overall category."

Subsequently, PMPs will be available to retailers from April. The range consists of Lucozade Energy Original and Orange 500ml as well as Lucozade Sport Orange, Raspberry and Sparkling Orange 500ml. Point of sale material is available for both wholesalers and retailers to highlight the new price point.

Capri-Sun is shining

Capri-Sun is Ireland’s number one on-the-go juice drink with over 22% share of the total market (twice its nearest branded competitor)*. This means that over the last 12 months enough Capri-Sun pouches were consumed in Ireland to run the length of the country more than six times.

Capri-Sun is available in eight flavours and comes in both 200ml (10 pack) and 330ml (re-sealable) variants.
Not only is it the brand number one in the total market* but the Orange 10 pack is the number one multi-pack juice SKU in grocery** and the 200ml and 330ml pouches are the number one and two impulse SKUs in the convenience sector***, making them a must have for all retailers.

Capri-Sun’s taste has long been a favourite with Irish consumers. The unique foil pouch has always kept the product chilled but now Capri-Sun comes with a new Super-Easy-Open pouch.

Capri-Sun is distributed in Ireland by Grocery Brand Solutions and it has some great plans for the brand over the next 12 months including a partnership with a major cinema release, new products and more.

* (Source: AC Nielsen, Total Scantrack ROI, Total Ready to Drink Juice 500ml and less, Feb 24/13 Ltr Sales MAT)
** (Source: AC Nielsen, Multiples ROI, Total Ready to Drink Juice 500ml and less, Feb 24/13 Sales Units MAT)
***(Source: AC Nielsen, Symbol Groups and Forecourts ROI, Total Ready to Drink Juice 500ml and less, Feb 24/13 Sales Units MAT)

Finches are flying

2013 is shaping up to be an exciting year for Finches with a complete new rebrand launched across each of the product categories. The new look Finches was accompanied with some innovative new product launches, including low calorie Pink Lemonade and fiery Ginger Beer.

Finches is one of the few carbonated oranges made with pure natural spring water. Teamed with a high juice content this guarantees a refreshing recipe. Finches is delighted to have just received its second Gold Medal from the BBI for taste quality.

The continued success of Finches 500ml highlights consumer desire for quality, Irish products. With new low calorie Pink Lemonade and Ginger Beer recently added to the existing flavours of Orange, Rock Shandy, Light Orange and Lemon, the Finches 500ml range offers variety to consumers on-the-go.

Finches is available to take home in a 2L single bottle, the great value 2L twin-pack flashed at €3 and the recently launched 1.5L single bottle. Developed in response to consumer demand for value and suitable bottle sizes for their lifestyle, the new 1.5L bottle is available in Orange, Orange Light, Rock Shandy and low calorie Pink Lemonade.

Finches is also gearing up for a new product launch this summer.

Great new look for Boost Energy

Boost has launched a new look for its award-winning, flagship brand Boost Energy. A brand new sleek look for the 500ml and 1L bottles and 250ml cans has now been launched to the Irish market.

Only a few months into the year, 2013 is already set to be the biggest ever for Boost and will also see the launch of a number of new formats and flavours and an integrated marketing campaign to further drive awareness, sales and profits.

Price-marked packs continue to be a major part of Boost’s strategy to support independent retailers, as Simon Gray, managing director and founder of Boost Drinks, explained: "Our aim is to price our products at a point which offers the consumer great value for money to drive sales and increase brand loyalty, whilst at the same time ensuring great profit margins for retailers."

The new Boost Energy products are price-marked at €1.69 and €1.25 for the resealable 1L and 500ml bottles and €0.79 for the 250ml cans.

For more information, visit www.boostdrinks.com, email sales@boostdrinks.com or call +44 (0)113 240 3666.

Boost Energy drinks are benefitting from a sleek new look

Bottlegreen paves the way in flavour innovation

"Two key consumer trends are driving sales of Bottlegreen sparkling pressés and cordials," says Simon Speers, managing director of Bottlegreen Drinks. "Consumers’ quest for new flavour experiences is one thing which hasn’t been dampened by the economic recession; in fact, it’s acted as a stimulus.

"People may be cutting back on big ticket items such as holidays and luxury goods, but to make up for this they are looking to treat themselves with small indulgences and are trading up to premium quality products.

"And the second factor is the increased focus on healthier lifestyles. More consumers are seeking reduced alcohol consumption, and as part of that lifestyle change they are prepared to pay more for adult/premium soft drinks which contain natural and better quality ingredients.

"Both of these trends are contributing to the success of Bottlegreen sparkling pressés and cordials, which are performing well, helped by the fact that they are so versatile."

Distributed by SHS Sales & Marketing, the Bottlegreen portfolio is free from all artificial colours, flavours and sweeteners, and wine production techniques are used to produce Bottlegreen sparkling pressés and create adult flavour profiles such as Pomegranate & Elderflower.

Cox’s Apple – which has a crisp, fresh, slightly tart flavour suited to the Irish palate – is the best-selling Bottlegreen pressé flavour in Ireland, followed by Elderflower; while the flagship Elderflower variant is the most popular Bottlegreen cordial, with the Strawberry & Elderflower flavour ranked second.

For sales enquiries contact: SHS Sales & Marketing on +353 (0) 1 401 6200 or email info@shs-sales.ie.

Pepsi

Pepsi Max a hit with Beyoncé fans

Beginning on 1 April and continuing every day through April, Pepsi Max will offer fans in Ireland the unique opportunity to win highly coveted tickets to the sold out "Mrs. Carter Show World Tour" (coming to Dublin on Saturday, 11 May and Sunday, 12 May) by entering promotional codes which will be found on special promotional packs of Pepsi and Pepsi Max, at www.pepsimax.ie. Pepsi Max will also be partnering with a number of radio stations to offer Irish consumers a number of VIP trips to see Beyoncé play at the O2 Arena in London.

Pepsi’s support of "The Mrs. Carter World Tour" is the next phase in the new creative and wide-ranging global collaboration with Beyoncé, which includes content co-creation, innovative fan engagement, the unique ‘Pepsi Opening Act’ platform and a new visionary advert entitled ‘Mirrors’.

To find out more on Pepsi’s 2013 campaign visit youtube.com/pepsi, Beyonce.com or www.pepsimax.ie or visit Pepsi Max Ireland on Facebook.

The Robinsons Rip n’ Run partnership puts Robinsons at the heart of sporting get-togethers as part of a healthy lifestyle for secondary school kids

Robinsons gets set for a slam dunkin’ summer

Robinsons has come together with Rip n’ Run, Ireland’s premier basketball camp, to bring the Robinsons Basketball Roadshow to the schools of Ireland. A competition running in April on the 2FM Breakfast Show with Hector will offer second level students the chance to bring the Robinsons Rip N Run Roadshow to their school – an action-packed, day-long training session, with some of Ireland’s best basketball coaches.

On the day, students will have the chance to shoot for €2,000 worth of sports equipment for their school. Two runners up prizes of €1,000 of kit will also be available to play for.

"Robinsons Rip n’ Run Roadshow offers students a fun way to get together and stay active. All they need to do to enter is tell us what creative name they would come up with if they were to name their school basketball team," said Caroline Hyde, brand manager, Robinsons Ireland. The selected schools will then go live on air to answer a series of sports related questions to determine the schools that will win the Roadshow.

Schools that win will also receive a visit from the Robinsons Roadcaster, an interactive bus, and also enter a competition to win tickets to the Robinsons Rip n’ Run Festival of Basketball, which takes place in August.

Shloer launches summer sales sparkler

Shloer, Ireland’s number one adult soft drinks brand*, is set to make summer sales sparkle with the launch of a brand new Raspberry & Rhubarb Punch Limited Edition which is being rolled out by distributor SHS Sales & Marketing this spring as part of the €18.5 million marketing investment behind the Shloer brand this year.

The latest line in the Limited Edition series will be available throughout the summer months and offers a refreshing blend of red and white grape juices and raspberry and rhubarb flavours.

Awareness and sales of the new Raspberry & Rhubarb Punch Limited Edition are being driven through a high profile multi-media campaign which is expected to be seen by around five million consumers.

Activity will be focused on highlighting the new flavour and the 70,000 visitors expected to attend Ireland’s Pregnancy and Baby Fairs in Dublin and Cork this month (April) will be amongst the first to have an opportunity to sample the new Raspberry & Rhubarb Punch. Shloer will also be spreading word in women’s lifestyle and pregnancy magazines and via digital activity with 52,000 fans on Facebook and the Shloer website (www.shloer.com).

Consumers who have signed up to receive regular updates from Shloer will also receive a Summer e-newsletter featuring details of the new Shloer Raspberry & Rhubarb Punch along with tips for summer entertaining, BBQ recipes and competitions.

Tailormade price promotions and deals will be running across the Shloer range during the summer and stockists can also highlight the promotions in-store by ordering free POS items from the Shloer POS Hotline on +44 (0)800 917 3450.

*(Source: Kantar Worldpanel Republic of Ireland, Adult Soft Drinks MAT 25.12.11)

Vit Hit, an Irish success story

Vit Hit is the best-selling health drink in the country with many people having already discovered its multiple health benefits.

Each bottle contains less than 35 calories, with 100% recommended daily amounts of eight vitamins, plus health giving teas. People all across Ireland are making the switch to Vit Hit and saving themselves hundreds of calories daily, but also gaining important health giving vitamins and teas. As a 100% Irish owned brand, success here has now been mirrored across the globe, with Vit Hit being exported to over 10 countries internationally. Vit Hit deliveries are available direct from the Gleeson Group.

Driving summer sales

AG Barr’s popular brands continue to thrive within the soft drinks market

Summer is key to the entire soft drinks market and an ideal time for retailers to ensure they are generating maximum profits from the fixture, according to soft drinks specialist A G Barr. The total soft drinks category indexed at +11% over the 2012 summer period* despite the fact that temperatures and hours of sunshine fell and rainfall rose versus the previous year.

In order to boost soft drinks profits, retailers should ensure their summer soft drinks offering reflects the current market trends.

A key trend for 2013 is ‘Living better for less’ (Source: IGD, 2013) and shoppers are becoming increasingly professional in their approach to shopping – making their money go further, planning their shop and broadening their store choice.

"Price marked packs are growing in importance as they clearly indicate value for shoppers, and therefore represent an important profit opportunity for retailers. 57% of overall soft drinks growth has been driven by price marked packs"** says Adrian Troy, head of marketing for AG Barr.

"Shoppers have come to expect promotions as a key part of their hunt for value with 58% buying more when products are on promotion" (Source: IGD, September 2012). Sales of AG Barr’s popular brands, which are available in price marked packs, are continuing to thrive and outperform the soft drinks category which is growing at +3%"***

Irn-Bru, Rubicon, Barr and Rockstar are examples of the positive effect that price marked packs can have on sales. The use of long-term PMPs has delivered year-on-year sales increases of +7% for Irn-Bru, +14% for Rubicon, +7% for Barr and +75% for Rockstar.***

Irn-Bru

In 2012 AG Barr launched Irn-Bru 500ml 99c PMP in Ireland which has been hugely successful. To build on this value message it will be launching the Barr range in a 500ml plain pack in April 2013 with a RSP of €1 and Rubicon Mango 1Ltr €1.59 PMP.

Retailers should ensure they take advantage of the continued growth of energy drinks. Rockstar was the fastest growing big can energy brand in 2012, growing at 74% year on year**** and delivering incremental profits for retailers.

NPD has been the key driver of growth in the energy category. In 2012, Rockstar launched Fruit Punch, under the successful Rockstar Punched brand, Xdurance Berry and most recently a new flavour range – Rockstar SuperSours.

The range, comprising two ‘tongue-tingling’ variants, BubbleBurst and Green Apple, taps into a growing consumer trend for sour flavours.

*(Source: Nielsen Scantrack, Value Sales, 2012, Total UK Coverage – Summer months versus rest of the year)
**(Source: Nielsen Scantrack, Value Sales Growth, Soft Drinks, MAT to 13.10.12, Total UK Impulse, PMP vs Plain Pack)
***(Source: Nielsen Scantrack, Value Sales, MAT to 13.10.12, Total UK Impulse)
****(Source: Nielsen Scantrack, Value Sales, MAT to 02.02.13, Total UK Impulse)
*****(Source: LVQ Research, 525 16-30 yr olds, July 2012)

Volvic

Startling volcanicity

Volvic is the number one bottled water brand, with a share of 20.2%***** in Ireland. It plays a key role in the development of the bottled water category.

Volvic Natural Mineral Water is sourced in the French Auvergne region, where it is filtered through six layers of volcanic rock which gives it a unique volcanic mineral composition.

Volvic2

Volvic is sold in more than 60 countries and includes Volvic natural mineral water, Volvic Touch of Fruit and Volvic Juiced.

Volvic Juiced is a new addition to the Volvic motherbrand, Volvic Juiced combines Volvic Natural Mineral Water with fruit juice and is available in 50cl and 1.5L bottles in Berry Medley, Cloudy Lemon and Orchard Apple flavours.

Volvic Juiced contains fruit juice from concentrate and also contains sugar. See pack for full ingredients.

Volvic3

Volvic Touch of Fruit is available in 50cl and 1.5l bottles in Strawberry, Lemon & Lime, Summer Fruits and Orange and Peach flavours. Volvic Touch of Fruit also comes in sugar-free Strawberry and Lemon & Lime flavours as well as new Tropical Fruit Flavour.

*****(Source: Combined sales of Volvic plain and Volvic Touch of Fruit, Nielsen Scantrack ROI data to 24/02/2013)

Live young with Evian

Evian

Each drop of Evian Natural Mineral Water falls as rain or snow high on the pristine peaks of the French Alps. It then travels through a vast mineral aquifer deep within the mountains before emerging at the spring in Evian-Les-Bains. This amazing journey is the secret to Evian’s purity and it takes over 15 years.

A clear favourite

Ballygowan Natural Mineral Water states that it is Ireland’s original and most popular water brand. All Ballygowan is bottled in a dedicated bottling facility in Newcastlewest, drawing on an exclusive source. The brand boasts an extensive range of pack formats and sizes which means that great quality, Irish water is always close to hand throughout the day. The brand believes it’s no wonder that Ballygowan is always topmost in consumers’ minds with higher purchase intent than any other water brand*.

Ballygowan will benefit from a heavyweight marketing campaign, including TV, PR, digital and in-store activity

This summer will see Ballygowan building on the success of last year’s brand relaunch with a heavy consumer communications programme. Ballygowan will be celebrating the brilliance of water and encouraging consumers to ‘Drink it in’ with TV, PR, digital and in-store activity.

Market data** shows that stocking the full Ballygowan on-the-go range (50cl Still and Sparkling, 75cl and 1L Sports bottle) delivers a higher cash rate of sale than competitor ranges. The brand advises retailers to put the full range of Ballygowan brilliance on your shelves and look forward to the results.

*(Source: Millward Brown)
**(Source: AC Nielsen Scantrack)

Q & A with…

Kerry O’Sullivan, Ireland business controller, Danone Waters UK & Ireland Ltd

What are the main consumer trends within the water category at present and how does it fulfill consumers’ demands?

Irish households are now shopping less often, but spending an average of €0.40 more per trip, as price inflation drives shopper spend.* Clearly value is a key concern for Irish shoppers, but health is also top of mind.**

Water, being perceived as a healthier option and one of the cheapest soft drink options available, is meeting both of these need states, which could explain why the category has enjoyed 4.8% value growth since 2011.***

What advice would you give to retailers in order to drive sales within their water category in-store?

It is essential that retailers stock the right range to capitalise on trends and meet consumer needs. Retailers should be selective on range, but trial new product developments (NPD) as this can drive shopper engagement and grow sales. It is also important to utilise space efficiently in the chiller by showcasing leading brands prominently and clearly segmenting types of beverages to meet shopper need states.

Maximising space during hot weather is critical to avoid out of stocks. We know that for every degree the temperature increases above 15C, impulse bottled water sales increase by 4.6%. To put it another way, when the temperature reaches 28 degrees, twice as much bottled water is sold in the UK than when the temperature is 15 degrees.**** Multi-buy promotions during the summer will therefore maximise sales by encouraging shoppers to buy more.

Within the core season, capitalising on key brand events using point of sale and displays relating to big TV campaigns will ensure retailers benefit from enhanced brand awareness.

Outside of the core season, linking bottled water with complementary products such as chewing gum, snacks or meal deals will drive relevance year round.

*(Source: Kantar Worldpanel ROI, data to 17/02/2013)
**(Source: LINKQ – KWP 12 w/e 23 Dec 2012)
***(Source: Kantar Worldpanel ROI, Mineral Water Value Sales, 52 w/e 20 Feb 2011 to 52 w/e 17 Feb 2013)
****(Source: Nielsen Unit Sales Correlation to Temperature By Day 2004 – 2008)

Aine Casserly

Q & A with…

Aine Casserly, Boost Energy brand manager

How popular is the Boost brand in Ireland?

Boost is extremely popular in Ireland and has grown from strength to strength since it first entered the market, recording growth of over 25% for 2012.

Boost’s popularity is reflected in the brand’s expanding range in the Irish market. It also meets the needs of Irish consumers and the brand is launching a sugar free variant this April.

What products are included within the Boost range and how does it stand out from rival offerings?

Boost is the only brand that covers all three sectors of functional drinks – stimulation energy, glucose and sports/isotonic.

With nearly 20 products to choose from, in a range of sizes, there’s a Boost for every taste and purpose, giving customers even more ways to enjoy Boost whilst delivering great profit margins for retailers.

Do you believe Boost manages to provide value-for-money for consumers while at the same time delivering margin for retailers?

To quote Boost’s MD and founder Simon Gray: "We take pride in being a valued brand, not a value brand and as a champion of the independent retail sector, price-marking forms a major part of our business and marketing strategy. Our aim is to price our products at a point which offers the consumer great value for money to drive sales and increase brand loyalty, whilst at the same time ensuring great profit margins for retailers."

How significant are the marketing supports in place for Boost?

To support our recent new packaging and product launches, we are embarking on our biggest ever marketing and advertising campaign to date.

The campaign will include a range of activity such as social media and sampling, to drive awareness and sales in core target markets such as students and young professionals.

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