It is still well behind Pepsi in terms of its value contribution, but could be set to challenge it for the runner-up spot within a few years if the current shift to energy drinks is maintained. The brand was one of the fastest growing in the top 10 with a value surge of 20.4% and annual earnings of £469m. However, even these two big beasts of the category are feeling the growing challenge of energy drink Red Bull, which moves up one place in the rankings to third this time around. Between them, the big two now generate annual business of almost £2.2bn, so are must-stocks for retailers looking to cater for the needs of soft drinks purchasers. Pepsi outperformed its bigger rival in terms of value sales growth – with an annual rise of 7% – to earn revenue of £696m during the 12-month period. It stays well ahead of its nearest challenger in terms of value sales across all grocery trade sectors. Coca-Cola and Pepsi have spearheaded category development for decades and continued to generate category momentum this time around.Ĭoca-Cola remains very much top of the tree, with annual business of £1.48bn, which was 5.6% up on the previous year. They also need to make sure they are stocking the low-sugar and low-calorie options that are increasingly in demand.ĭespite all the category changes and the evolving tastes of shoppers, the big two cola brands remain the mainstay of soft drinks business for most retailers. The challenge for impulse operators is staying in touch with category changes and ensuring their range remains relevant to an emerging audience of shoppers who are more adventurous in terms of tastes than previous generations. Of course, for every launch success, there are many other arrivals that just don’t survive in what is a highly competitive category dominated by big companies with massive marketing resources. However, this is a category that is being driven by a high level of product innovation, which is why retailers need to make sure they stock the emerging brands that are making an impact with shoppers.įor example, more than 70% of growth in the energy drinks sector over the last year came from new products. Many of the brands in the Top 25 have been established for years and are must-stocks for every convenience operator.
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One key factor in the buoyant performance of the majority of Top 25 brands is undoubtedly the series of national lockdowns over the past 12 months, which helped boost demand as consumers spent more of their leisure time at home. What the government action did was to spur suppliers to introduce a new generation of low-sugar and low-calorie variants to provide greater choice for shoppers and many of these are performing very well during an era when more consumers are health-conscious. It indicates that the category has recovered from issues related to the introduction of the government’s ‘sugar levy’ a few years back, which some feared could undermine sales for some time. The resilience of the category is evident from the fact that all but five of the Top 25 brands achieved value growth during the 12-month period to 10 July and there were several very strong sales performances. One example of this is Starbucks, which enjoyed a very good year in terms of sales growth to move up two places in the rankings and could be set for bigger things in years to come. Lower down the rankings, there are also some notable shifts in terms of popularity as shoppers discover new tastes. Red Bull, the brand that spearheaded the energy drink revolution, moves up to third place this time around following strong sales growth.Īnother major energy brand, Monster, achieved the highest sales growth of all the Top 25 contenders and is just two places behind in fifth position. The energy drinks boom of the last decade has transformed the nature of the category and the key brands continue to make progress. This is a category forever being shaped by new drinking trends, product and packaging innovation. They have geared up for these shoppers in recent years through massive investment in chilling to ensure a good selection of brands is always available. The star names that generate valuable sales week in, week out, they are the ones operators can put their faith in.Ĭonvenience retailers retain a significant share of this business because they are well placed to cater for thirsty shoppers looking for instant refreshment. The mega-brands that have made it into the latest Top 25 Soft Drinks table, which has been compiled by NielsenIQ exclusively for Independent Retail News, are the big players in a highly competitive category.
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