Annual report and accounts 2023 - Flipbook - Page 15
Strategic Report
efficiency from the bottom up, and by providing
great brands that offer real value to consumers, we
are in a strong position to accelerate our growth
both organically and through further acquisition,
in turn creating long-term shareholder value.
Soft drinks market
The UK’s high cost inflation is reflected across the total
UK soft drinks retail market, which saw value increase
by 8.8% while volumes fell by 2.2%. The impact of
higher prices and lower promotional activity, coupled
with the associated impact on volume and general
consumer caution, are mirrored across Carbonates
and Stills, both of which increased in value and
experienced lower volume. Taking a longer term view,
and comparing to the pre-pandemic soft drinks market
in 2019, soft drinks volumes have grown by 1.5%, with
carbonates the key contributor, growing by 5% over the
same period despite the significant headwinds created
by the pandemic in particular.
At a subcategory level we continue to see some of
the effects of the pandemic unwinding across the
soft drinks retail market. Lemonade, Mixers, Dilutes and
Fruit Juice have declined in both value and volume,
reflecting the normalisation of at home consumption
and the steady recovery of the on-trade hospitality
sector. By contrast, Flavoured Carbonates, Sports and
Energy are increasing in volume, supported by the
recovery of the “drink now” channel.
Against this backdrop Barr Soft Drinks has enjoyed
particularly strong market share value gains in England
and Wales balanced by a more subdued performance in
Scotland which did not benefit from the better summer
weather experienced in much of the rest of the UK.
S T R AT E G Y I N A C T I O N
can be found on pages 18 to 29
Cocktail market
The hospitality sector continued its recovery across
the year despite experiencing significant challenges.
The cocktail category in particular has proven its
strength and increasing popularity, with cocktails in the
on-trade now worth £686m, an increase of more than
13% versus 2019 pre-pandemic levels. With 9.6 million
UK consumers now drinking cocktails out of home,
1.6 million of whom joined the category since 2019,
cocktails remain a significant growth opportunity for
the hospitality sector.
The growth momentum of the ready to drink (RTD)
category in the off-trade has continued, with consumers
increasingly seeking to replicate the bar quality experience
at home. The RTD market has grown to over £500m
and continues to be driven by RTD cocktails which
have grown by more than 20% in value terms over the
past 12 months.
Within this market we are delighted to report that
FUNKIN remains the UK’s Number 1 RTD cocktail
brand, the UK’s fastest growing Top 10 RTD brand
and is now a Top 5 RTD Grocery brand.
Corporate Governance
Accounts
Our financial
performance
Revenue
The increase in value of revenue
recorded relative to the prior year.
2023
£317.6m
2022
£268.6m
+18.2%
Adjusted profit before tax
Adjusted profit before tax is reported
profit before tax after adjusting items.
(Sources: CGA Mixed Drinks Report Q3 2022; Nielsen Pre-Mixed
Alcoholic Drinks Total Coverage Data MAT 14/01/2023).
The Boost business, which became part of the Group
in December 2022, has performed exceptionally well
within the total soft drinks market across the past 12
months, with a double digit increase in its value and
volume share.
2023
£43.5m
2022
£38.4m
+13.3%
Source: IRI Marketplace Total Soft Drinks Market 52 weeks to 28 January 2023)
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