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Gloomy future for fizzy drinks

Friday 17 March 2006 10:34

Drinks companies must make products healthier or perish, soft drinks giant Britvic said today, as it revealed pure juices had outsold full-sugar colas in 2005.

Companies need to react quickly to the “sea change of public opinion” as consumers seek out low and non-sugar drinks as part of a healthier lifestyle, said Britvic chief executive Paul Moody, speaking at the launch of the drinks giant’s Soft Drinks Category Report 2006.

The drinks industry is struggling to keep up with the change in consumer drinking trends as the fruit flavoured carbonates category – traditionally by far the biggest earner for drinks companies – declined by 12% in 2005.

“It is quite clear the industry should not look at these changes as threats, but as a real opportunity,” said Moody. “The changes to school vending laws, as well as the increase in pub opening hours, is something we should take advantage of.”

Soft drinks value in the UK increased by 5% in 2005 with sales of £7.8b, according to the Britvic report. But while full sugar drinks sales have been falling, healthy drinks saw biggest-ever sales last year.

In terms of value, smoothie brands grew by 100% in 2005, with dairy drinks up 35%, mineral water rising 16% and pure juice and mineral water up 7%.

By Jim Butcher

This article originally appeared on mad.co.uk, the website which delivers business insight to professionals in marketing, media, new media, advertising and design. To subscribe to mad.co.uk and receive full access to their database of articles on these industries, click here.

Source: mad.co.uk

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