Britvic-SDR-Foodservice-v17 FV - Flipbook - Page 17
Foodservice category overview
Foodservice deep dive
Foodservice data tables
Pulling power
The fact that discounters have seen the strongest
growth of any retail channel10 is not surprising, given
the current economic climate. By November 2023,
56.6% of UK consumers reported being moderately
or severely affected by the soaring cost of living, up
from 53.6% in November 2022.11 The number of people
reporting being severely affected rose from 11.4% to
14.4% during this period.12
Just look at the frenzied scenes15 at stores that were
stocking the latest Prime Hydration launches in 2023
for further proof of the remarkable pulling power of
soft drinks. Despite a fall in sales for Prime in 2024,16
retailers are still banking on the brand to create a buzz.
Iceland, for example, was keen to spread the word
when it became the 昀椀rst UK stockist of Prime Banana &
Strawberry in April.17
The 昀椀nancial pressure people are under is impacting
the out-of-home market as well as retail. In November
2023, 32% of people said they were going out to eat and
drink less often because of concerns about the costof-living crisis.13 As we’ve seen, the UK’s pubs, bars and
restaurants have borne the brunt of this, while fast food
operators have proven more resilient.
It’s crucial that all operators are seen to be offering
value. The number of people who identify as being valueled inched up from 75.7% in 2022 to 76.3% last year.14 As
we explore in later chapters, this fact hasn’t been missed
by retailers or licensed and foodservice operators, all of
whom are upping their efforts to keep people coming
through their doors with meal deal promotions and
loyalty schemes.
Operators increasingly recognise that the soft drinks they
stock help determine people’s choice of store or venue.
That’s why Britvic has launched ready-to-drink versions
of Tango Ice Blast 昀氀avours, Raspberry Blast and Cherry
Blast, exclusively into the convenience channel. But bold
昀氀avours, striking colours and eye-catching packaging
aren’t the only ways to attract shoppers.
Despite growing value consciousness, 86% of people
still think that good quality has a price and 73% of people
are happy to pay more for higher quality.14 Clearly, value
means different things to different people, whether it’s
a sophisticated mocktail or house cooler served at their
favourite bar or the latest offering from a social media
sensation. People are still prepared to pay for drinks that
tick their boxes.
10 CGA by NielsenIQ RMS - out-of-home 52 w/e 31.12.23
11 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 2023
14 Lumina Intelligence Eating & Drinking Out Panel 52 w/e 25.12.22 v 52 w/e 24.12.23
15 The Grocer - https://www.thegrocer.co.uk/aldi/prime-hydration-drink-back-in-aldi-stores/678341.article
16 The Grocer - https://www.thegrocer.co.uk/soft-drinks/prime-sales-in-freefall-with-bottles-reduced-in-tesco-to-just-31p/689987.article
17 Grocery Gazette - https://www.grocerygazette.co.uk/2024/04/02/prime-strawberry-iceland/
CaTEgORy OvERvIEW
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