Britwick

DATAMONITOR VIEW

CATALYST

This case study looks at the UK soft drinks company Britvic and how it has prospered despite the economic downturn. The

company has benefited from growing consumer demand for value beverages, as they exchange their premium beverages

for cheaper alternatives such as colas and fruit drinks.

SUMMARY

• The recession has impacted consumer demand for once popular drinks choices such as smoothies, as price

becomes a bigger factor in their choices than premium healthy ingredients. This has meant that cheaper drinks

such as carbonates could benefit from the downturn.

• Britvic is performing well in the downturn, with strong sales growth for its drinks which are heavily focused on value

drinks sectors, such as carbonates and fruit drinks.

• The company's fruit drinks brands, Fruit Shoot and Robinsons, are designed for family consumption and the

company has concentrated on making them appealing to kids while also focusing on improving their health profile.

Health remains a key concern for consumers despite the downturn, so it is important for drinks companies to

continue to enhance their health credentials.

• Britvic also operates in slower growth categories such as bottled water and sports drinks, but it plans to perform

better than the market average by developing extensive marketing campaigns for its brands and focusing on key

trends such as health and wellness.

• As consumers eat and drink out less often, there will be a shift in consumption within the home. Britvic has

traditionally performed well in the on-trade, but its brands are well placed to boost off-trade sales.

ANALYSIS

The recession has impacted the sales of premium soft drinks as consumers switch to

cheaper alternatives

The UK soft drinks market is undergoing a shift in emphasis, as the global economic downturn impacts consumer beverage

choices. Once strong sectors such as smoothies and bottled water are beginning to fall out of favor with consumers due to

their higher price points, while cheaper alternatives