Foodservice category overviewFoodservice deep diveFoodservice data tablesPulling powerThe fact that discounters have seen the strongestgrowth of any retail channel10 is not surprising, giventhe current economic climate. By November 2023,56.6% of UK consumers reported being moderatelyor severely affected by the soaring cost of living, upfrom 53.6% in November 2022.11 The number of peoplereporting being severely affected rose from 11.4% to14.4% during this period.12Just look at the frenzied scenes15 at stores that werestocking the latest Prime Hydration launches in 2023for further proof of the remarkable pulling power ofsoft drinks. Despite a fall in sales for Prime in 2024,16retailers are still banking on the brand to create a buzz.Iceland, for example, was keen to spread the wordwhen it became the 昀椀rst UK stockist of Prime Banana &Strawberry in April.17The 昀椀nancial pressure people are under is impactingthe out-of-home market as well as retail. In November2023, 32% of people said they were going out to eat anddrink less often because of concerns about the costof-living crisis.13 As we’ve seen, the UK’s pubs, bars andrestaurants have borne the brunt of this, while fast foodoperators have proven more resilient.It’s crucial that all operators are seen to be offeringvalue. The number of people who identify as being valueled inched up from 75.7% in 2022 to 76.3% last year.14 Aswe explore in later chapters, this fact hasn’t been missedby retailers or licensed and foodservice operators, all ofwhom are upping their efforts to keep people comingthrough their doors with meal deal promotions andloyalty schemes.Operators increasingly recognise that the soft drinks theystock help determine people’s choice of store or venue.That’s why Britvic has launched ready-to-drink versionsof Tango Ice Blast 昀氀avours, Raspberry Blast and CherryBlast, exclusively into the convenience channel. But bold昀氀avours, striking colours and eye-catching packagingaren’t the only ways to attract shoppers.Despite growing value consciousness, 86% of peoplestill think that good quality has a price and 73% of peopleare happy to pay more for higher quality.14 Clearly, valuemeans different things to different people, whether it’sa sophisticated mocktail or house cooler served at theirfavourite bar or the latest offering from a social mediasensation. People are still prepared to pay for drinks thattick their boxes.10 CGA by NielsenIQ RMS - out-of-home 52 w/e 31.12.2311 NielsenIQ RMS Homescan Survey – November 2023 – Question: How much is the cost-of-living crisis impacting you at the moment?12 NielsenIQ RMS Homescan Survey – November 2023 v November 2022 – Question: How much is the cost-of-living crisis impacting you at the moment?13 NielsenIQ RMS and CGA by NielsenIQ Homescan Survey – November 202314 Lumina Intelligence Eating & Drinking Out Panel 52 w/e 25.12.22 v 52 w/e 24.12.2315 The Grocer - https://www.thegrocer.co.uk/aldi/prime-hydration-drink-back-in-aldi-stores/678341.article16 The Grocer - https://www.thegrocer.co.uk/soft-drinks/prime-sales-in-freefall-with-bottles-reduced-in-tesco-to-just-31p/689987.article17 Grocery Gazette - https://www.grocerygazette.co.uk/2024/04/02/prime-strawberry-iceland/CaTEgORy OvERvIEW17
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