- Despite the cost-of-living crisis continuing to bite, Britvic reports that the eating out market turned over £97.3bn in 2023[1] – the first time annual sales have exceeded pre-pandemic levels, and an increase of 6% on 20222
- Britvic’s Soft Drinks Review 2024 highlights that fast food is benefitting from consumers continuing to trade down and operators expanding their estates, whereas casual dining and pubs are being squeezed more than other sectors2
- The latest report reveals opportunities for growth for foodservice outlets through soft drinks, which are punching above their weight in foodservice – with sales growing by 4.0% to hit £3.02bn in 20231 and volumes growing by 0.8%1
As the foodservice market bounces back, there are visible changes in both consumers’ reasons for visiting outlets and the type of places they’re visiting. According to Britvic’s Soft Drinks Review 2024, these shifts in consumer behaviour, combined with the changing commercial climate, present significant opportunities for the sector. Britvic says that foodservice operators can unlock new growth and stand out from the crowd by harnessing the power of soft drinks, a category which has once again demonstrated its resilience and the crucial roles it has to play in driving footfall and sales.
More people are on the move again, fewer people are going out specifically for a treat[2] and more people are choosing venues based on proximity and menu choice.[3] These are just some of the latest consumer trends that are driving the renaissance of the foodservice sector. Britvic’s report indicates that share of eating out that took place in city centre or high street locations grew by 1% pts in 2023,4 reflecting growth in demand from people looking for quick meals, snacks and drinks while they’re out and about. Fast food restaurants are naturally reaping the rewards from consumers continuing to trade down, whereas casual dining and pubs are feeling the pinch more than other sectors.
Despite these challenges, Britvic maintains that foodservice operators can take advantage of these new consumer trends which are fuelling demand for more sophisticated soft drinks. Overall sales of food and drink through foodservice grew by 6% year-on-year in 2023, but volumes fell by 3.8%.2 Soft drinks, on the other hand, continue to reign supreme within foodservice, with sales growing by 4.0% to hit £3.02bn last year and volumes growing by 0.8%.1 Britvic’s Soft Drinks Review 2024 indicates that part of the reason for the category’s success is down to consumers not being prepared to compromise on quality, despite more than three quarters (76.3%) of people identifying as being value-led.[4] In fact 73% are happy to splash out more for high quality drinks,5 illustrating the sheer scale of opportunity for foodservice operators to trade choices up to more premium drinks.
“Soft drinks are playing a more central role in many operators’ propositions,” explains Dino Labbate, GB commercial director for hospitality at Britvic. “Just look at Itsu with its range of co-branded LA Brewery kombuchas. Not to mention Indian street food operator, Mowgli, which has developed its own range of signature mocktails, lassis and low and no offerings. We’re urging more foodservice operators to follow suit and adapt their approach to selling soft drinks to stay ahead of the curve.”
Britvic’s report highlights several positive trends that will be music to the ears of foodservice operators. Firstly, daytime dining is on the rise,[5] this presents foodservice operators with opportunities to wow guests with elevated versions of everyday drinks, from coffees to milkshakes and smoothies. Second of all, soft drinks are playing an increasingly important role in lunch and snacking occasions outside the home, with nearly half (49%) of food-to-go lunch occasions featuring soft drinks in 2023,[6] and 39% of food-to-go snacking occasions including soft drinks last year.7
Labbate continues “That’s why we’ve launched the Mix with Britvic online platform – to help foodservice operators stay ahead of trends and give them the skills to make everyday drinks more memorable every single time. This could involve pepping up coffees with added kicks of flavours or adding more pizzaz to milkshakes, smoothies, lassis, or house sodas. The rewards for operators are higher margins and elevated experiences for their guests.
Our Soft Drinks Review 2024 emphasises the importance of focusing on innovative drinks menus to target spend growth.[7] Exciting flavour innovations are proving especially important to win over Gen-Zers, who are more likely to buy new flavours. At Britvic, earlier this year we launched Tango Editions Mango to build on the success of 2022 limited editions Tango Editions Berry Peachy and 2023’s Tango Editions Paradise Punch, which have generated sales with £16.8m between them across the total market.[8] We’re also looking forward to seeing Pepsi Electric – a zesty, refreshing, citrusy, electric blue cola – rolling out into independent fast-food outlets this month.”
He adds “Our report also shines a light on the continued importance on value. With more than a third (38.1%)[9] of people citing good value for money as a motivator for their choice of soft drinks (a rise of 2.1% pts)10 and 13.8% citing special offers or discounts as a motivator (a rise of 1.2% pts),10 we’re seeing operators upping the ante on meal deals and sales events. In order to stand out from the crowd, operators will also need to step up their efforts by investing in building digital loyalty and improving customer experience.”
At a time when the soft drinks category continues to prove itself as highly versatile and relevant to changing consumer needs, the value it can bring to the sector shouldn’t be underestimated.
Britvic’s Top Tips for foodservice operators
- Make sure your menus stand out from the crowd:
- Teisseire, Robinsons Cordials and the London Essence Company Range of Mixers and Crafted Sodas are perfectly positioned to help operators add value to their drinks ranges.
- Health, indulgence and specialisation are all tools that foodservice operators are using to stand out from the crowd. Go one step further than juices and smoothies and think health shots and indulgent hand-spun shakes.
- Opt for food and soft drink pairings that go beyond the classic burger and Pepsi MAX combo. For example, London Essence Company Spiced Ginger Beer pairs perfectly with spicier Asian dishes, Tango Editions Mango Sugar Free complements and cuts through the richness of dishes such as fried chicken.
- Workplace operators can tap into the “water plus” opportunity, (flavoured, infused and functional water products) which is worth £16.6m and growing at 19.5% year-on-year.[10] Britvic is helping workplace caterers tap into this opportunity with the Aqua Libra Flavour Tap. The system serves pure filtered water, either plain or infused with a choice of flavours (all containing zero calories, sugar or preservatives), at the touch of a button.
- Invest in delivery apps – by the end of this year, orders made on delivery apps will have grown share of leading foodservice brands’ turnover by an expected 7% pts compared to 2019.[11] But only 26.7% of orders through delivery aggregators include a soft drink,[12] suggesting operators are missing a trick to maximise order value.
Download the Britvic Foodservice Soft Drinks Review
Notes to Editors:
For further press information or to request any infographics from the report, please contact the Britvic team at Cirkle via britvic@cirkle.com
All reader enquiries should be directed to: Customer Services, Britvic Soft Drinks on 0345 7581781
[1] IGD – UK eating out forecast 2023-2028 – P7
[2] Mintel - https://drinksretailingnews.co.uk/the-future-of-alcoholic-drinks-in-the-uk-mintel-analysis/
[3] Lumina UK Eating Out Market Report, May 2023
[4] Lumina Intelligence Eating and Drinking Out Panel, data collected 52WE 25/12/22 & 52WE 24/12/23
[5] Lumina Intelligence Eating and Drinking Out Panel, data collected 52WE 25/12/22 & 52WE 24/12/23
[6] Lumina Intelligence Eating and Drinking Out Panel, data collected 12WE 22.01.23 and 12WE 21.01.24
[7] Lumina Intelligence UK Menu & Food Trends Report Dec 23
[8] NielsenIQ Retail Measurement, GB Total Coverage, Berry Peachy & Paradise Punch combined RSV 2023 Sales w/e 30.12.23
[9] CGA by NielsenIQ Brandtrack 2022 Q3 sample size 1,582-1,715
[10] CGA by NielsenIQ, Foodservice & Licensed Report, Workplace Catering, Water Plus segment RSV 2023
[11] Lumina Intelligence UK Food to Go Market Report 2024
[12] Lumina Intelligence, MAT data to 21.1.24, Total Soft Drinks, Delivery Lumina defined
