The convenience channel has seen rapid growth, with the soft drinks category alone now worth an impressive £2.8bn. A recent review conducted by Britvic has identified an enormous growth potential for the sector and uncovered exciting opportunities for nearly 48,000 convenience stores operating in the UK today, amounting to a potential £8,400 boost for each one.
Energy drinks were the most significant contributor to the growth of the soft drinks category in 2022, responsible for an impressive £96.9m (28%) out of the £347.4m growth, followed by cola and plain water, which generated just over £70m each. Sales of plain water experienced an astounding surge of +39.4% to £250.3m due to the heatwave in the same year.
New and intriguing flavour profiles and eye-catching products played a significant role in attracting consumers. Pepsi MAX’s trio of flavoured colas, Cherry, Raspberry, and Lime, expanded by £6.3m (+16.9%) in 2022, delivering more growth for convenience retailers than all other flavoured colas combined.
According to Ben Parker, GB retail commercial director at Britvic, “Soft drinks constituted nearly one in four (22.9%) c-store shopping baskets last year, whereas all other impulse categories suffered purchase declines.” The soft drinks category continues to create an enormous opportunity, especially during challenging times, and it is crucial for retailers to capitalize on it by offering the right range of products.
Britain’s resumption of on-the-go activities is also changing the dynamics of packaging formats, with on-the-go single-serve items outperforming take-home across all channels. However, tighter budgets are making the convenience channel less attractive for 52% of consumers. Hence the need for retailers to offer a compelling range of soft drinks that meet consumer needs and occasions and increase soft drink sales value in the convenience retail channel by £400m a year by 2025.
The Britvic Soft Drinks Review highlights five critical drivers that retailers can leverage to tap into the opportunity and increase sales growth, including recruiting Generation Z, winning with food, maximizing health, simplifying shopping experiences, and evolving energy.
Overall, the Review indicates the continued importance of delivery for retailers, with delivery still accounting for 6.7% of convenience occasions. Soft drinks are one of the top ten categories purchased using delivery apps, ahead of hot drinks and confectionery.
For more information about the Britvic Convenience & Impulse Soft Drinks Review, please click here.