...THE 2010 UK SOFT DRINKS REPORT INVESTING IN REFRESHMENT SOFT DRINKS – INVESTING IN REFRESHMENT REPORT METHODOLOGY/BACKGROUND Specialist food and drink consultancy, Zenith International, has been commissione to produce commissioned enith this 2010 BSDA UK Soft Drinks Report. All data and insights contained in this report were produced using Zenith’s internal market databases and primary research. In compiling its research, Zenith relies on the goodwill and cooperation of companies active in the marketplace. During Zenith’s annual research into the UK soft drinks industry, over 250 soft drinks producers are regularly contacted. This includes larger branded operators, retailer own label specialists, contract packers and a significant number of smaller independent companies. Based on individual producer volumes for the year, market, sector and segment totals are calculated from the ‘bottom up’. At a sector and segment level, adjustments are then made for any double counting of contract and licensed bottling. Estimates for unauthorised soft drink imports sold through the ‘grey market’ are also included. This is more pronounced in categories such as energy drinks rather than dilute to taste drinks, for example. A complete picture of the UK soft drinks market across all sales channels is produced, through Zenith’s extensive study of the largest soft drinks companies, alongside small to medium sized operators and own label specialists. The market figures presented therefore encompass...
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...of soft drinks, including lemonades, mineral waters, tonics and non-alcoholic ales. It wasn’t until 1938 that the Britvic range of juices that we know today were first produced — thanks to Ralph Chapman, owner of the British Vitamin Products Company. Recognising that the Great Depression in the UK meant that many of his poorest customers needed an affordable source of Vitamin C, he found a way to bottle fruit juices so that they stayed fresh for longer without the addition of preservatives. His juices were sold in small glass bottles which ensured easy transportation. The idea was immediately successful but it was only in 1949 that the Britvic brand was formally launched into the marketplace. In the years following the Second World War, Britvic went from strength to strength, building a modern factory in its hometown of Chelmsford. In 1971, the British Vitamin Product Company formally changed its name to Britvic in recognition of its leading brand’s appeal. In 1986, Canada Dry Rawlings came together with Britvic to form Britvic Soft Drinks. The company went on to buy the Tango brand from Beechams and acquire the UK franchises of Pepsi and 7UP. In 1995 Britvic added Robinsons to the fold and acquired Orchid Drinks, famous for its Amé, Aqua Libra and Purdey’s Brands in 2000. Britvic acquired the UK and Irish rights of the energy drink Red Devil in 2002. In 2004, Britvic acquired Pennine Spring. Britvic is now the number two branded soft drinks business in the UK after...
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...research will focus on the soft drink industry in the UK, especially on the two major carbonated, cola drinks producers Coca-Cola and Pepsi. Brief Background Soft drinks sector is a £11.5 billion industry. A report by Mintel (2008) shows that the soft drinks market is represented by five categories such as: carbonated drinks, bottled water, fruit juices and fruit drinks, smoothies and premium soft drinks. Carbonated soft drinks, or known in the UK as 'fizzy drinks', account for over half of the soft drinks market, with sales worth £6.038 billion in 2008. They are usually described as being sweet, with great amount of sugar or artificial sweeteners, and containing carbon dioxide, which makes them 'fizzy'. The leading flavours are cola and lemon. More than half of the UK market value is shared between two international giants: Coca-Cola and Pepsi. Both companies are based in the US. In the UK, Coca-Cola is produced by Coca-Cola Enterprises Ltd., and Pepsi by Britvic Soft Drinks PLC. (Keynote, 2008) By far, Coke holds the strongest position within the market with 48% of the retail sales. Holding the second place Pepsi is far behind with only 12% of the sales. For the past few years, due to health awareness, the demand for carbonated drinks has decreased. It was especially noticeable within the cola drinks such as Coca-Cola and Pepsi, hence the release of the low-sugar, healthy versions such as Coca-Cola Zero and Pepsi Raw. According to Carbonated Soft Drinks report (Mintel, 2008)...
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...findings 8 Data analysis 9 Study of correlation 9 Task 3 10 Report to senior manager 10 Health and wellness issues in the beverage industry 11 Task 4 14 Project Plan for the development of a new product 14 Resource Allocation 15 Project Costing 15 Business Analysis on the projected revenue and cash flow 16 Conclusion 17 References 17 Appendix 18 Introduction Star Bottling and packaging company is a medium sized business which is working for years in the UK market. Recently Star has decided to follow the diversification growth strategy by introducing a new product in a new market. The opportunity exists outside the current market. The beverage industry of UK is highly attractive and Star is planning to launch new drinks in the UK market. As the coordinator of the new product development it is important to analyze the customer profile and the customer preference and the consumer buying behavior and attitude about the soft drinks. This report focuses on data collection about the UK beverage industry, the current trends in the market, the major competitors and the size and...
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...Industry Analysis: Soft Drinks Meghan Deichert, Meghan Ellenbecker, Emily Klehr, Leslie Pesarchick, & Kelly Ziegler Strategic Management in a Global Context February 22, 2006 Industry Analysis: Soft Drinks Barbara Murray (2006c) explained the soft drink industry by stating, “For years the story in the nonalcoholic sector centered on the power struggle between…Coke and Pepsi. But as the pop fight has topped out, the industry's giants have begun relying on new product flavors…and looking to noncarbonated beverages for growth.” In order to fully understand the soft drink industry, the following should be considered: the dominant economic factors, five competitive sources, industry trends, and the industry’s key factors. Based on the analyses of the industry, specific recommendations for competitors can then be created. Dominant Economic Factors Market size, growth rate and overall profitability are three economic indicators that can be used to evaluate the soft drink industry. The market size of this industry has been changing. Soft drink consumption has a market share of 46.8% within the non-alcoholic drink industry, illustrated in Table 1. Datamonitor (2005) also found that the total market value of soft drinks reached $307.2 billion in 2004 with a market value forecast of $367.1 billion in 2009. Further, the 2004 soft drink volume was 325,367.2 million liters (see Table 2). Clearly, the soft drink industry is lucrative with a potential for high profits, but there are several...
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...Marketing: Investors adapt to consumer trends By Jenny Wiggins When the world’s biggest soft drink company starts changing its marketing tactics, investors would be foolish not to ask why. Coca-Cola, which has traditionally promoted itself via its iconic Coke brand, using slogans such as “Coke is it,” now wants to make it clear to consumers that Coke is not the only drink it sells. Its most recent campaign, called “Make every drop count,” says: “You’ve always known us as Coca-Cola, the soft drink. Now it’s time you knew us as Coca-Cola the company.” The television, print and internet advertisements – which started in February in the US and in April in the UK – come as consumers ditch foods and drinks that are perceived as unhealthy (such as sugary fizzy drinks and salty crisps) for products that appear to offer some kind of health benefit, such as probiotic yoghurts that claim to regulate the digestive system. Coke, which also recently launched “Coke Zero” (a diet version of Coke aimed at men), is using the new campaign to impress upon consumers the fact that it sells all kinds of drinks, including bottled water, juices and teas. The campaign is important for the company, because it risks losing money if it does not sell the kinds of drinks consumers now want to buy. Analysts say that growing demand for healthier kinds of foods and drinks is not a fad, but a long term trend that increasingly affects corporate profits. Arnaud Langlois, equity analyst at JPMorgan, says:...
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...first established in 1886 by Dr John Styth Pemberton. Since then the company has become the world’s leading manufacturer in the soft drink industry, offering more than 500 brands in over 200 countries. TCCC provides 1.7 billion servings every day ,78% of these being Coke branded products. Over the past decade carbonated drinks have been increasingly criticised for their high sugar content or the health risks of artificial sweeteners and their impact on obesity. As a result we observe that the market for carbonates is shrinking significantly. Health awareness linked to alimentation is expected to grow exponentially over the next decade and it is safe to assume that the target market in 2 years will be much larger than today. People will tend to act more responsibly and be more careful about the chemicals they put in their bodies. In an effort to capture health-conscious customers, Coca Cola recently launched a new mid calorie alternative containing naturally occurring sugar, The Coca-cola life. This new soda takes advantage of the stevia, a natural sweetener which is calorie free and can be substituted to sugar. In this essay i will try to establish a marketing plan which will allow the company to become the leader in the “healthy” segment of the sot drink industry. Strengths -world leader in sales of soft drinks.-wide range of products and brands.-very visible and recognisable brand. The coke brand is known by 94%of the...
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...managing customers UK SOFT DRINKS MARKET Market dynamics The UK soft drinks markets has been growing steadily since recovering from the recession in 2012. The soft drinks market is comprised of retail sale of carbonates, bottle water, functional drinks, concentrates, juices, RTD tea and coffee, among other soft drinks. The industry is a key contributor to the UK economy in form of economic growth, innovation, investment in skills and job opportunities. The UK soft drinks market contributes an estimated £7.7 billion to the overall UK economy as well as about £1.4 billion in direct investment and spending. It also supports at least 135,000 jobs in the UK as a whole, about 20,000 being directly provided by soft drink companies while about 115,000 from the wider supply chain. Carbonated drinks are getting increasing universal appeal among UK consumes, with a penetration rate of about 90 percent. This is especially due to their cheap price positioning that has resulted in consistent up growth in volume since the recession. The good performance of carbonated drinks is also as a result of intense product innovation by major industry players, making the UK soft drink market a highly competitive and dynamic competitive marketplace. However, the UK soft drink market is highly sensitive to market shock waves and increasing public health concerns over the role of soft drinking in such conditions as diabetes. The industry is also negatively impacted by poor weather during the UK summer months...
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...further classified as carbonated drinks, fruit drinks and energy drinks Indian soft drink market is expected to be the fastest growing global market Coca-Cola and PepsiCo are leaders in the soft drink segment Red Bull dominant in the energy drinks segment Beverage Industry : An overview Consumers have started to be more inclined towards healthier options Fruit Drinks segment expected to grow in the future Industry giants customizing products by focusing more on nutritional values Porter’s 5 Forces : Beverage Industry Porter’s 5 Forces : Beverage Industry Hector Beverages : An overview FMCG company in the functional beverages industry Launched by former Coca Cola executives Neeraj Biyani, Neeraj Kakkar, Suhas Mishra and James Nutall Launched its first energy drink Tzinga in 2011 Entered the non energy drink segment with Paperboat Market Offering Product Features and Quality Features Sells classic Indian drinks in hygienic and attractive plastic pouches, and also the energy drink Tzinga Wide range of drinks such as chilled rasam, aamras, jaljeera Quality Marketing campaigns equate the brand with childhood memories thus creating a sense of nostalgia Strong brand perception of Paperboat as pure and innocent Products Offered Marketing Mix : 4 P’s Paperboat : Nostalgia Marketing Lj Tzinga : Taking the Bull by its horns Red bull is the dominant market leader in the energy drinks category Tzinga is priced at...
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...Cola Visit Notes 22nd February 2012 Coca Cola Enterprises Edmonton (North London) Founder/ Inventor John Pemberton Year 1886 (May) Occupation: Pharmacist Location: Atlanta (Georgia) Brand History 150 Years 50 Brands in the UK Main Objective Keep cost under control and maintain costs low to retain value for money Having a good sustainable relationship with suppliers is a main importance at all times and particular within the economic downturn. To keeping and maintaining costs low and margin at a good level, keeps the company at an edge to the market. Sales Forecast 2.5 Billion (2011) Statistics 98% of the words population recognise the coca cola brand 1.4 Million Drinks a day and millions of business partners 44% share soft drinks market Challenges Increased advertisement during the winter months such as Christmas. Due to the effect of low sales received compared to the summer period of high sales and promotions of events. High ratio of complaints within the month of December Ingredients / Raw Materials Water Syrup Glass (Imported from Saudi Arabia) Expensive Material: Carbon Foot print higher Minimum storage (No more than a week) UK Statistics 30 % recycle plastic (Reduce Footprint) 27% share of UK soft drinks 4,650 fte employees 7 Manufacturing Sites 4 other major sites (HQ) 25,000 products of coca cola are stored within the warehouse Takes half an hour to load trucks with the advanced technology of the machinery that hands picks specific...
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...Coca Cola Enterprises Company: Coca-Cola is one of the most powerful brands. The company has dominated the soft drink market for more than a century, continued the company’s 17-year reign at the top in 2016. Such achievements are byproducts of vision and an operating framework which is completely build on excellence. Coca-Cola Enterprises (CCE) has made a top priority to replace its outdated systems with advanced platform across markets to create an organized view of metrics and modernized processes Manufacturing Process of Coca Cola: . Life Cyle of Coca Cola Bottle: Coca Cola Supply Chain Process: Suppliers and Customers of Coca Cola: Suppliers: 1. Monster Beverage Corp: Monster Corporation is a beverage company that manufactures energy drinks, natural soft drinks, and fruit drinks. On November 10, 2008, distribution of the Monster Energy and Monster Java products was turned over to Coca-Cola Enterprises. Headquarters: Corona, California, United States Employees: 1K Relation Value with Coca Cola: 17.52M (USD) Revenue Percentage Company gets from Coca Cola: 2.23% 2. Eaton Corporation: It is a multinational power management company, founded in the United States and providing solutions to its customers to manage electrical, hydraulic and mechanical power efficiently, safely and sustainably. In 2007, Coca-Cola received its first installment of trucks in North America with Eaton's hybrid electric system. Headquarters: Dublin, Ireland Employees: 97K ...
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...Specifications 4 Product and Parent Company 4 Target Market 4 Product’s Lifecycle 5 Development 6 Strategies and Product Mix 6 Pricing 7 Distribution 7 Branding 8 Promotion 8 Observations and Conclusions 9 References 10 Appendix 11 Executive Summary Being frequent consumers of soft drinks and having two members from Brazil in our group, we realized that even though the market for soft drinks can be considered saturated, it also shows some opportunities for different and innovative products that can add something extra to the current range of options for consumers. For this reason, we have decided to bring to the U.S. the most famous soda in Brazil, called “Guaraná Antarctica” that will bring a unique and surprising taste to those like us, who appreciate a tasteful and refreshing soda. Our project will give insight and provide details about how we plan to make our product one of the major competitors in the soft drink market. Our main objective is to provide a soda completely different from anything that can be found in the U.S. market, while we bring a product that is directly related to the Brazilian culture and could add some new perspectives on how we look at the soft drink market. We will look forward to present our idea to some beverage distribution companies in order to make it possible to bring the product in a large scale to the U.S., as we plan to partner with AmBev (the Brazilian company that produces the Guaraná) and create a direct supply chain to diminish...
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...I: Brief Background History of Britvic - Mid 19thC Chelmsford a chemist begins creating homemade soft drinks - 1986 Tango acquired - 1987 Pepsi - first 20 years bottling arrangement agreed in the UK - 1995 Robinsons acquired - 2000 Orchid Drinks acquired, inc. Amé/Purdeys - 2004 Ben Shaws acquired, inc. Pennine Water - 2006 drench launched and The Really Wild Drinks Company is established - 2007 Robinsons Smooth and Fruit Shoot 100% launched - 2008 PepsiCo awards Britvic a 15 year bottling agreement for V Water - 2008 PepsiCo awards Britvic a 7 year bottling agreement for Gatorade - 2009 PepsiCo awards Britvic a 4 year bottling agreement for Lipton Ice Tea Part II: Marketing Mix Strategies a. Market Britvic’s soft drinks become most popular drink in summer among adults and children. Major supermarkets, local shops, restaurant, pubs, hotels and cinemas are among its customer. b. Product Britvic products have a wide range variety of products in terms of their drinks. From juice drinks, energy drink, kids drink up to sports drink and etc. Britvic has it Britvic doesn’t stop from producing a quality drinks for their consumers, their design really caught the attention of every individual that sees it. Also, Britvic sees to it that each of their products is nutritional to every consumer they have, and give its customer a healthy living lifestyle. The soft-drinks market is structured into two main categories, carbonates and stills, within these there are a number...
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...Case Analysis: PEPSI-COLA UK Peter Kendall, regional vice president for northern Europe of Pepsi-Cola International, had a difficult situation where he was potentially being challenged by Coca-Cola entering the UK with the introduction of their successfully launched product “ diet coke” which was a growing segment in the US and would be in UK as well. Let us consider a SWOT analysis of PEPSI-COLA in UK as of 1982. Strengths: Pepsi-Cola definitely had a head start in the cola market in the U.K. After the worldwide recession, Europe was beginning to recover and UK had led the growth in 1982, with a 6.5% increase from 695 to 740 million cases. The Pepsi challenge, which was widely successful in the US, was also launched in the UK and was resulting in market share increase. Along with the success of the “Pepsi Challenge”, Diet Pepsi gained more market share due to the leverage of the Pepsi name along with their “upbeat” advertising techniques that essentially resonated better with consumers compared to TAB. Weaknesses: Although Pepsi had a head start in the UK, the Coca-Cola brand “Diet Coke” was a huge hit in the United States. It was increasing its hold in the diet beverage segment. Coca-Cola was also known to give huge price discounts to earn exclusive dealerships, which was also a huge threat to Pepsi-Cola. In regards to convenience, Pepsi-Cola had an unfavorable market percentage in vending machines (12% overall) compared to Coca-Cola with shares of 26% and 41%, respectively...
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...1017/S1368980010002442 Pepsi and Coca Cola in Delhi, India: availability, price and sales Fiona C Taylor*, Ambika Satija, Swati Khurana, Gurpreet Singh and Shah Ebrahim South Asia Network for Chronic Disease, C-1/52 First Floor, Safdarjung Development Area, New Delhi 110016, India Submitted 19 February 2010: Accepted 16 July 2010: First published online 6 October 2010 Abstract Objective: India is experiencing increased consumption of sugar-sweetened carbonated drinks, consumption that may be associated with increased risk of type 2 diabetes and obesity. The aim of the study was to determine the availability, price and quantity sold of ‘Pepsi’ and ‘Coca Cola’ in their ‘regular’ and ‘diet’ forms in Delhi and London. Design: A questionnaire about the availability, price and quantity sold per day of both regular and diet Pepsi and Coca Cola was devised and piloted. Using this, a survey of food and drink outlets within a 100 m radius of randomly selected Metro stations was conducted in both cities. Subjects: Store vendors, owners and staff of food and drink outlets. Setting: Delhi, India; London, United Kingdom. Results: In Delhi, of the outlets stocking regular Pepsi and Coca Cola, only 34 % sold diet versions and these were more readily available in the most affluent areas than in the poorest areas (34 % v. 6 %, Z 5 3?67, P , 0?001). This social patterning was not observed in London. Little price differential between regular and diet versions of Pepsi and Coca Cola was observed in Delhi; however,...
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