Soft drinks innovation hampered by supply ties
Supply ties are hampering innovation among soft drinks in pubs, claims Mintel's On Trade Soft Drinks Report.
Soft drinks: report says innovation is hampered by supply ties
It says the current distribution structure of the industry is “partly to blame for the failure of many pubs to adapt and meet consumer demand”.
It says Britvic and Coca-Cola Enterprises (CCE) generate 80% of the on-trade soft drinks value and have “strong ties with managed and tenanted pubs”.
“This means that most of the value of soft drinks, not to mention the innovation, is being driven by independently-owned pubs that have a minority share of the market.”
It said more “unusual” premium soft drinks are being developed for pubs, but many suppliers have “small distribution, predominantly in independent pubs that have fewer ties with Britvic and CCE”.
CCE trade communications manager Selena Taylor said: “CCE is committed to working with our licensed customers to drive innovation across our portfolio of soft drinks brands.
“We agree with the Mintel report that consumers would be prepared to drink soft drinks more often if the proposition were better, and we’re working with our customers to respond to this and deliver value.”
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