skip to Main Content

Soft drinks are hardening as premiumisation drives up price

The most recent CGA Prestige Foodservice Price Index (FPI) shows that Soft Drinks as a category have inflated in cost by over 20% year on year.

For those working in the industry this cannot have come as a surprise. A multitude of new brands have burst on the scene as consumers have become bored with more traditional offerings for those choosing not to drink alcohol. And the spirits market, particularly the Gin sector has seen nothing short of a revolution of sales growth, which clever mixer brands have both driven, and exploited. Brands like Fentimans, Fever-Tree, Luscombe, Belvoir, Llanllrr, and Lamb & Watt are amongst the many that have benefited from this trend.

We should also not forget that the recent introduction of the Sugar Tax set the mainstream brands on a path of wholesale product reformulation, which has also led to significant innovation, and the introduction of yet more premium brands. In the run-up to the launch of the tax, more than half of manufacturers reduced the sugar content of their drinks, removing the equivalent of 45m kilos of sugar. Low calorie options significantly increased their market share as a result. So, the market has changed significantly. The value of soft drinks and mixers is now growing at a much faster pace than volume, showing that consumers are choosing options with higher price. And this growth is being driven by the mixer market, which is demonstrating a veritable boom in high end drinking.

We expect this trend to continue, and the basket of product to continue to reflect increasing premiumisation. If you haven’t done so already it could be a great time to review your ranging in this area. And there’s plenty more information available from our partner CGA to help you do that.

Our latest news
Back To Top