The Nielsen Company watches the consumer retail market very closely. We sat down with Kate Spencer , Client Team Leader, The Nielsen Company to find out her latest insights on the beverage market.
Why are cans continuing to experience a growth in the soft drinks market?
Total Soft Drinks tend to see growth during recessions as it’s a category that people increase their spend on for home parties and stay home occasions.
Is there a particular soft drinks sector which is showing strong signs of growth and why?
Glucose and stimulant (energy) as this is a relatively new sector that big players are investing in, lots of NPDs and there is a high consumer demand due to health/sports trends.
Have you noticed any particular pack formats or sizes performing particularly well? Why do you think this is?
Single followed by multiserve. Singles are driven by the convenience format (both impulse and grocery), which has been and continues to be a high performing channel within Total Soft Drinks. Multiserve has been driven by Squash and Carbonated Drinks. Squash has seen lots of changes over 2011; from the launch of Robinsons double Concentrate to Private Label rebranding their ranges. Carbonated soft drinks have been heavily pushing the 2L bottle with heavy promotions.
Did sporting events and the summer weather affect soft drink and canned drinks consumption?
This summer we experienced decline in June for the first time following three years of growth, due to worse weather compared to last June (2010). However we also saw “two summers season” with a peak in May, then down in June & up again in July/August. This has been driven by the strong seasonality of the category.
Overall, how did cans perform up to the end of Q3 2011?
Strong growth of 10% vs. YA with peaks up to +16% in summer.
How have consumer trends changed in 2011 when compared with 2010?
As a response to inflationary pressures, shoppers are cutting out small baskets to minimise spend on non essential items and reducing Out of Town to keep petrol consumption down: small and larger baskets are being squeezed. Within this scenario, seen at Total Grocery and reflected in Total Soft Drinks, big trolleys remain the more valuable to Total Soft Drinks, driven by stock up to take advantage of promotions.
Looking ahead, what do you think the trends for cans in 2012, in terms of design, size, etc?
Multipacks will continue to evolve: if we think 5 years ago it was all about 6 pack and singles, now we have 8,10,12,24,30. Pepsi just launched a 12 mini cans pack. They will dominate on shelf space even more, although we are starting to see promotions shifting from multipack to big bottles (2L). It might be that cross brands strategy will start to be implemented more often vs. new pack formats strategy.