1. Soft drinks sales in December 2023 were +17% greater than the average month
2. With 45% of consumers trying to moderate alcohol intake, Christmas is a time for premium flavoured soft drinks
3. Multipacks and larger formats grow in share in December
4. Energy drinks gained share within the category last year, up by +1.6ppt
5. Retailers sell more products on promotion in December than at any other time of the year
1. Soft drinks sales in December 2023 were +17% greater than the average month
With Halloween and Bonfire Night now behind us, all eyes turn to the countdown to Christmas with brands, wholesalers and retailers laser-focused on ending the year in the strongest position possible.
Summer is traditionally thought of the as the biggest time of the year for soft drinks, but getting December right is arguably just as crucial for the category. Last year, sales were up by +17% vs the average month in 2023, with profits driven by shoppers buying for parties or to refuel as they hurtle through their seasonal plans.
Retailers are already preparing to make the necessary changes they need to their range throughout the season. “Mixers, multipacks and big, famous household soft drinks brands all become even more popular from November. Coca-Cola is the must-buy brand at Christmas, so we make sure we stock it in as many formats as possible,” says Priyesh Vekaria of One Stop Carlton Convenience, Greater Manchester.
“We make sure to offer value prices to drive volume sales. We are also aware of more innovations coming into the market this quarter, such as the Coca-Cola Cinnamon flavour. We’ll make sure we have plenty in and encourage our customers to try it.” Coca-Cola Cinnamon is returning to shelves as a limited edition for the first time in four years.
“Soft drinks are small affordable luxuries. During the winter months of the year, people will be making more plans, with soft drinks playing a key role during these occasions. It’s a huge opportunity for retailers,” Ben Parker, Britvic commercial director tells Convenience Store.
2. With 45% of consumers trying to moderate alcohol intake, Christmas is a time for premium flavoured soft drinks
Christmas is the perfect time to encourage your shoppers to try something new. While the cola category has the highest penetration out of all soft drink categories – with 73% of UK consumers buying into it – that doesn’t mean that consumers won’t be adding interesting, premium flavours to their seasonal repertoire.
“Premiumisation is very important at this time of year. We try to satisfy most people’s tastes and desires, and provide the opportunity to purchase premium options and try new things,” says Jack Matthews of Bradley’s Supermarket, Quorn, Leicestershire.
“We help our customers get their essentials and then use premium soft drinks to drive those extra 10-15% of sales on top. There’s an emerging market with premium options for the non-alcoholic trade.”
Brands know this and that’s why there’s a raft of innovation around this time. This year, this includes the return of J2O Glitterberry and the launch of Red Bull Winter Edition Iced Vanilla Berry, offering a mix of blueberry, vanilla, cotton candy and icy-fresh notes of eucalyptus.
“Christmas is a key time for shoppers to experiment with flavours. Last year just over a third of Red Bull shoppers bought a Red Bull Edition over Christmas (+3pts vs the rest of the year). The range saw strong growth and delivered £4m over Christmas last year (+68% vs YoY),” says Red Bull.
With so many new seasonal products it can be easy to get overwhelmed, so retailers should make sure they are disciplined with their ranging. “Try and keep the core lines across soft drinks and allow more space for the bigger brands as they’ll be the ones advertised,” advises Britvic’s Ben Parker.
That said, if you’re in the right area, there’s no reason why you can’t introduce unique products. “Shoppers are increasingly experimenting beyond the energy drinks, colas and carbonates they’re drinking day in, day out,” says Ash Chadha, Mogu Mogu sales & marketing manager. Mogu Mogu is a range of drinks that contain soft, chewy nata de coco pieces. “It’s a USP that has helped us drive intrigue and soar in popularity to become the fastest-growing soft drinks brand in 2023 with a total sell out of 41 million bottles,” he says.
With 71% of 18–24-year-olds buying soft drinks on impulse, stocking lines like these are critical to winning long-term loyal shoppers.
3. Multipacks and larger formats grow in share in December
Larger sizes are certainly the area to back at this time of year, with energy drink multipacks increasing share by +2.6pts in December vs the rest of the year.[9]
“Tonic water and mixers tend to be a strong soft drinks sub-category for us at Christmas, but we find the season does tend to be more about the classics, like larger-format Coca-Cola and Schweppes,” adds Jack Matthews. “A lot of our older customers come in and buy for visiting family members. In terms of formats, all large take-home bottles and cans are in demand.”
To win over the winter months, make sure your range caters to larger group occasions. According to Red Bull: “Forty per cent of sports and energy occasions over Christmas feature three or more people (+3pts more than over the rest of the year).”
“Even outside of Christmas, over a third of our shopper base would now prefer to buy multipacks,” says Mogu Mogu’s Ash Chadha. “There’s been an increase in consumption occasions when sat relaxing in front of the telly and shoppers want quick, easy access to their favourite soft drinks in the comfort of their own home, so they’re stocking up.
4. Energy drinks gained share within the category last year, up by +1.6ppt
It’s not just for parties, hosting and mixers where soft drinks see sales rises. Whether it’s Christmas shoppers or people just in need of a boost after all the socialising, energy drinks play a key role this time of year.
Last year Red Bull launched Red Bull Winter Edition Spiced Pear, which sold 2 million serves within in its first six months[13] and was responsible for 35% of Edition’s growth within the first 12 weeks of launch into independent and symbols.
To capitalise on the rise in energy drinks this time of year, it’s essential to get in there as early as possible. “We’ve already started stocking our festive soft drinks range,” says Priyesh. “We had it delivered the first week of September. We did this because with soft drinks, there’s such a seasonal crossover, that it helps sales.”
5. Retailers sell more products on promotion in December than at any other time of the year
Money remains tight for many people going into December, but with soft drinks considered an affordable luxury, retailers can use the category to give their customers a boost at a fair price.
“Retailers sold more products on promotion last December than at any other time in 2023,” says Britvic’s Ben Parker. “Last year, we saw Christmas shopping start much later than usual, as people worked to balance their spending. As a retailer, you need to have the availability ready to meet your shoppers’ needs when the demand hits.”
Red Bull says as shoppers spend less on non-essential items – such as alcohol and tobacco – soft drinks, and energy drinks particularly, continue to play an important role in customers repertoire. “As a way to show value for consumers, it’s important that we offer them larger sizes through multipacks. Forty per cent of consumers say that the best thing brands and retailers can do to mitigate rising prices is to offer larger volume packs with a lower price per serving[15] so it is essential to allow space for multipacks, particularly at Christmas.”
But for some shoppers, value doesn’t just mean low prices. On-pack promotions, such as Robinsons’ tie-up with the cinematic release of Wicked, offer customers something different at this time of year. The brand is giving away Wicked merchandise and a trip to New York.
Similarly, value can also mean offering interesting and innovative new products, which shoppers might not expect. “Branded drinks, particularly those with unique appeal and exotic flavours, offer an experience that own label may copy, but will never equal. We’ve always championed exotic flavours, including Passion Fruit, Pink Guava and even Lychee – which today, is our bestseller,” says Mogu Mogu’s Ash Chadha
With so many opportunities at this time of year, the challenge can be to know where to focus. “Make some choices about where you point of difference will be and then execute it the best in your local area,” advises Britvic’s Ben Parker.
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