Soft drinks market growing faster than alcohol

In 2006, the soft drinks category in on-trade grew five per cent in value sales - faster than total alcoholic beverages - to reach sales of more than £2.4billion.

Andrew Richards, sales director, Britvic said: "The soft drinks category is the third largest in the licensed trade with its strong performance in 2006 placing it just short of the spirits category in value. Cola and lemonade led the channel in terms of value and volume, but growth was driven by juice drinks, squash and bottled water.​

"With soft drinks growing faster than total alcoholic beverages, it is clear this category is growing in importance in the pub environment. As the smoking ban comes into force in 2007, soft drinks will become a more important part of the on-premise trade as licensees cater for new customers and a likely increase in the demand for food."

"While the health and well-being trend has prompted growth in bottled water and fruit juice, it is evident that customers are still seeking indulgent and premium soft drinks when they visit a pub, bar or restaurant. This is demonstrated by the continued success of cola and the growth of premium packaged soft drinks."

Coca-Cola, Pepsi and R Whites were the top three brands, while Britvic remained the number one supplier, followed by CCE.

In the hotels, restaurants and catering channel, soft drinks also performed well with value up 10 per cent. Fruit juice was the driver of growth with sales up 21 per cent to £61m. Energy, bottled water and fruit drinks also showed strong growth across this channel.

Sub-category performance summary:​Cola remained by far the largest sub-category in the on-premise, up four per cent in value to reach £969m in sales - accounting for 41 per cent of total value and 47 per cent of total volume. The second largest sub-category, lemonade, performed strongly with value sales up six per cent to £445m. Juice drinks - the third largest sub-category - grew nine per cent to £206m.Mixers grew three per cent to reach £165m in sales.Squash had an exceptional year, with value up ten per cent to reach sales of £170m.Water was the fastest growing category, up 28 per cent in value and 24 per cent in volume with sales of £75m. Energy drinks was the only sub-category in decline, dropping seven per cent in both value and volume.