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231 posts categorized "Soft Drinks"

April 15, 2014

Using Health and Wellness to Target the Ageing Global Population

 

The age of the global population is on the rise, opening up massive opportunities for global food and drink companies offering products with health and wellness benefits to older consumers. These benefits fall into four major positions: cardiovascular health, bone and joint health, brain health and vision health. By targeting these four positions, food and drink companies can help boost the stagnant fortified/functional segment and help aging consumers live healthier lifestyles.

See Diana Cowland at Vitafoods Europe, 14-16 May 2013

Read the global briefing, "Opportunities to Target the Ageing through Functional Food and Drink"

Watch on Youtube

April 11, 2014

FUSE 2014: Can Better Design Translate into Better Sales for CPG?

Howard TelfordAnalyst Insight by Howard Telford - Beverages Analyst

View Howard Telford's profile on LinkedIn

This week, Euromonitor International’s Beverages Analyst Howard Telford attended the FUSE 2014 brand strategy and design conference in Chicago, a premier global conference for the design profession. Below, he shares his thoughts on the growing role of design in the food, beverages and food service sectors.

Pepsi’s high profile rebranding of its US Tropicana orange juice in 2009 was an unmitigated disaster, with a US$35 million investment in new packaging scrapped in favour of the original design after just one month of consumer complaints and shrinking sales. While the formula of the orange juice remained unchanged, the company failed to appreciate the extent to which the package and logo of the brand resonated with its loyal consumers.

Clearly, design matters in soft drinks, food service and packaged foods. Amid the important questions of how healthy a product is - or how much it costs – it is important to remember that the question of brand design can play a similarly vital role in shaping consumer experiences. At this year’s FUSE 2014 conference in Chicago, consumer goods took a front seat in the discussion of how better design can strengthen brands and improve sales.

Continue reading "FUSE 2014: Can Better Design Translate into Better Sales for CPG?" »

March 31, 2014

Rethinking Carbonates: Potential in Un-Soda

Dana LaMendolaAnalyst Insight by Dana LaMendola - Beverages Analyst

View Dana LaMendola's profile on LinkedIn

In 2013, US carbonate consumption decreased by 902 million litres, marking the tenth consecutive year of declining soda volume. Health and wellness concerns regarding the high sugar and artificial sweetener content of soda are the most highly publicized drivers behind this decline. Yet as US soda sales flounder, other carbonated beverages including energy drinks and enhanced bottled waters are increasing, in spite of the fact that many of these beverages also contain sugar or sweeteners. This shift reveals that while the perception of soda is growing increasingly negative, US consumer demand for flavoured, fizzy beverages persists. Consequently, there is still plenty of potential for carbonates, so long as they are positioned as something distinctly different from traditional "soda".

 

Sweeteners: Culprit or Scapegoat?

Between 2008 and 2013, US retail carbonate sales contracted by nearly 3 billion litres. Much of this decline has been blamed on the negative perceptions regarding soda’s nutritional properties, or lack thereof. While the high sugar content of full-calorie carbonates is the most-cited offender, in recent years there has also been increasing backlash against artificial sweeteners. Indeed, in 2013 reduced sugar carbonates, which include diet and mid-calorie sodas, declined by 2% in volume and 3% in value as compared to full-calorie carbonates, which decreased by just 1% in both retail volume and value. This decline in low calorie carbonates demonstrates that an increasing number of consumers view low calorie sodas as unhealthy due to their inclusion of artificial sweeteners.

Continue reading "Rethinking Carbonates: Potential in Un-Soda" »

March 30, 2014

China’s Functional Beverage Market Thrives as Brands Zero In on Key Demographics

JonasFelicianoAnalyst Insight by Jonas Feliciano - Beverages Analyst

View Jonas Feliciano's profile on LinkedIn

The well-documented growth of disposable income amongst Chinese consumers presents a wealth of opportunity for regional and global beverage manufacturers. An examination of China’s fastest growing soft drinks from 2010-2013 reveals that targeted marketing, featuring beverages with a targeted function, can lead to tremendous growth. As Chinese consumers gain access to more beverage options, manufacturers are flourishing by narrowing their focus and giving consumers soft drinks with function rather than flavour alone.

 

Functionality Key for Top Growing Beverages

The long tradition of homeopathic remedies in Chinese culture has created a consumer base more accepting of functional beverages. Herbal teas that can help digestion or remove heat from the body have long been popular. Asian speciality drinks such as peanut milk and almond juice are also popular due to a belief that vegetable protein from the beverages can prevent obesity. These consumer beliefs have opened the doors for functional and health-focused beverages. RTD teas such as President, Master Kong and Jiaduobao, as well as bottled waters Nongfu Spring, C’estbon and Wahaha, have all flourished in light of consumers searching for healthier products. However, functional drinks such as energy drink Red Bull, functional water Mizone, and walnut milk Yangyuan have seen tremendous growth thanks to a combination of functional positioning and on-point advertising.

Continue reading "China’s Functional Beverage Market Thrives as Brands Zero In on Key Demographics" »

March 20, 2014

Catering to Local Preferences Key for Ready-to-Drink Tea Brands

Ready-to-drink tea is one of the world’s fastest growing soft drinks categories, driven by consumers giving up carbonates for healthier beverages. Although companies like Coca-Cola produce both carbonates and ready-to-drink tea products, the marketing of these brands are vastly different. For instance, Coke is seen as a brand that can be bought globally and will taste the same no matter where it is purchased. However, Coca-Cola promotes different tea brands across the world, with each brand catering to local tastes and preferences. Soft drink manufacturers should consider their target market when introducing a new tea drink rather than relying on brand name alone.

Watch on Youtube

RtdTea_ppt-v1.0

March 10, 2014

Euromonitor to Speak at Ausdrinks 2014

AusdrinksEvent Name: Ausdrinks Conference & Exhibition 2014

Location: Q1 Resort, Surfers Paradise, Gold Coast, Australia

Date: 24-25 March 2014

Event Description: Hosted by the Australian Beverages Council, the Ausdrinks Conference and Exhibition is the premier event for the non-alcoholic refreshment beverage industry in Australia.  The event brings together key personnel involved in soft drink, water, and juice based manufacturing, as well as representatives of supplier companies, industry related bodies, and members of the trade media.  

Presentation Title: “Fizzle or sizzle: What’s next for the Australian beverages industry?”

Presenter: Erika Sirimanne, Senior Research Analyst

Presentation Details: Monday 24 March 2014, 4.15pm, Session B

Presentation Description: Health and wellness, convenience, technology and foodservice – these are the four chief factors that Euromonitor International Senior Research Analyst Erika Sirimanne believes will characterise the beverage industry in Australia over the next five years. During “Fizzle or sizzle: What’s next for the Australian beverage industry?”, Erika will briefly debate the current and future status of the Australian soft drinks industry, discussing categories such as carbonates and coconut water. Erika will then examine the four factors in depth, providing insight into new product development (including the use of stevia), innovative packaging trends, smartphone and internet usage, and the evolving Aussie palate. 

For more information, please visit the event website

Continue reading "Euromonitor to Speak at Ausdrinks 2014" »

March 7, 2014

Thin Wall Packaging Key to Affordable Beverages in Indonesia

JonasFelicianoAnalyst Insight by Jonas Feliciano - Beverages Analyst

View Jonas Feliciano's profile on LinkedIn

Indonesia is one of the fastest growing soft drink markets in Asia Pacific, trailing only China and India in terms of absolute off-trade volume growth during 2008-2013. Strong GDP growth, which resulted in 31% growth in disposable income over the last five years, fuelled this consumption, as newly enriched consumers turned more and more to packaged beverages to quench thirst brought on by the tropical temperatures. However, economic uncertainty amidst rising inflation, coupled with rising production and distribution costs, is threatening Indonesian soft drink growth. As manufacturers examine ways to cut costs, thin wall plastic containers present a successful compromise between the returnable glass bottle model and the more expensive PET plastic bottles that have gained in popularity.

Rising Inflation could Burst Soft Drink Bubble

As soft drink consumption becomes a larger part of Indonesian life, struggles in the country’s economy are creating problems. Growing inflation has increased unit prices for many consumer goods and services across the island nation. Fuel has become increasingly expensive in the face of the depreciating rupiah – an important expense considering the near 1,000 islands inhabited across the Indonesian archipelago. Costs of imported raw materials such as sugar and packaging supplies have also created a burden. All have had a hand in the 31% unit price increase for soft drinks over 2008-2013. Furthermore, Indonesia's Gini coefficient (which measures the statistical dispersion intended to represent income distribution of a nation’s residents, with zero being perfect equality and 100 complete inequality) increased from 35.0 in 2008 to 41.4 in 2013 underscoring a rising disparity between the country’s rich and its poor. To maximise access to all Indonesians, manufacturers have turned to packaging costs as a way to lower unit price.

Continue reading "Thin Wall Packaging Key to Affordable Beverages in Indonesia" »

February 17, 2014

Bottled Water in 2014: Packaging, Branding, and the Search for Value

JonasFelicianoAnalyst Insight by Jonas Feliciano - Beverages Analyst

View Jonas Feliciano's profile on LinkedIn

With total volumes expected to eclipse 300 billion litres in 2014, bottled water will pass tea as the world’s most consumed packaged beverage. In examining both emerging and developed markets, the commoditisation of bottled water is at an all-time high, causing manufacturers to re-examine their products and give reasons for consumers to pay more. This search for premiumisation takes on many forms, with emerging countries in Latin America, Asia, and the Middle East and Africa focused on growth via access and single-serve packaging while North America and Europe seek to grow value with a renewed focus on branding.

Searching for Value via Serving Size in Emerging Markets

In many emerging markets, the scarcity of clean water makes bottled water a necessary staple rather than a value-added refreshment beverage like juice or soda. The price per litre of bottled water reflects this commoditisation, ranging from US$0.11 in India to US$0.27 in Mexico, whereas carbonates and juices range from US$0.61 to US$1.27. The same is true in the Middle East and Africa where still bottled water has seen double digit average annual growth, yet value cannot keep pace due to unit price remaining stagnant at US$0.24 per litre. Contributing to this low unit price and commodity positioning is how bottled water is packaged. Unlike developed markets where over 75% of all still bottled water sales came from pack sizes less than 2 litres, bottled water in containers 2 litres and over accounted for over 60% of 2013 off-trade volume in emerging markets.

Continue reading "Bottled Water in 2014: Packaging, Branding, and the Search for Value" »

February 13, 2014

Euromonitor to Speak at Foodnews Juice Africa 2014

JuiceafricaDate: 8-10 April 2014

Location: Radisson Blu Waterfront Hotel, Cape Town

Speaker: Ronald Tinashe Mapiye, Research Analyst

Topic: Juice Competitiveness: How is Juice Performing Against Other Soft Beverages Including Iced Teas?

Event Summary: Foodnews Juice Africa returns to Cape Town for its second installment and follows on from the success of 2013 by providing delegates with the only unique platform to network with industry decision makers primarily doing business in Africa’s juice markets. Keynote speakers include CHI Limited from Nigeria and Coca-Cola from South Africa.

For more information please visit www.juiceafrica.agraevents.com

Continue reading "Euromonitor to Speak at Foodnews Juice Africa 2014" »

February 12, 2014

Nutrition Podcast Series: Sugar Reduction in Food and Beverages

Diana.cowlandLauren Bandy
with Diana Cowland - Health and Wellness Analyst and Lauren Bandy - Ingredients Analyst

Reducing sugar intake is a hot topic for health conscious consumers, media campaigns and even the World Health Organisation. Food manufacturers that release low-sugar versions of their products often find these items simply do not sell. Consumers either complain about the taste of these low-sugar variants or do not buy them outright, especially in indulgent categories such as confectionary. The best way for companies to lower sugar content is through “stealth reduction” –changing the formula of a food without consumer’s knowledge. If consumers do not know a product has changed, they will be less likely to notice a difference in taste. In beverages, the tactic is easier as consumers have been purchasing low-sugar, sugar free and sugar substituted beverages for years.

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Recent Posts

Using Health and Wellness to Target the Ageing Global Population

FUSE 2014: Can Better Design Translate into Better Sales for CPG?

Rethinking Carbonates: Potential in Un-Soda

China’s Functional Beverage Market Thrives as Brands Zero In on Key Demographics

Catering to Local Preferences Key for Ready-to-Drink Tea Brands

Euromonitor to Speak at Ausdrinks 2014

Thin Wall Packaging Key to Affordable Beverages in Indonesia

Bottled Water in 2014: Packaging, Branding, and the Search for Value

Euromonitor to Speak at Foodnews Juice Africa 2014

Nutrition Podcast Series: Sugar Reduction in Food and Beverages