Britvic case study - maintaining growth in the downturn by focusing on value soft drinks categories

SUMMARY 1
ANALYSIS 2
The recession has impacted the sales of premium soft drinks as consumers switch to cheaper alternatives 2
Smoothies and bottled water were buoyed by the health trend up to 2008, but have been hit by the recession 2
Carbonates and juice drinks are faring better as consumers switch to cheaper and familiar alternatives 2
Brands are forecast to remain strong in the downturn as consumers continue to be loyal to brands they know and trust 3
Britvic is performing well in the downturn, boosted by consumer demand for value soft drinks 3
Britvic reported strong sales for 2008, despite the recession taking hold 3
The company's portfolio of value drinks in carbonates and fruit drink categories are attractive to recession-hit consumers 4
The company has focused on marketing its value brands, promoting low prices as well as good health and environment credentials 5
Robinsons and Fruit Shoot focus on appealing to families with low priced healthy offerings 6
Fruit Shoot is designed to appeal to kids and parents with a healthy personalized product 7
Robinsons is a well established brand that has been extended to address consumer demand for natural products 7
Pepsi is a key performer which has strong brand equity 8
Tango's poor health profile almost led it to be axed, but nostalgia-led campaigns have facilitated growth 9
Britvic also operates in slower growth categories, but is attempting to raise its game through health-focused product extensions and advertising campaigns 10
The company has attempted to counter falling water sales by producing a fun looking Drench campaign and adding a fruit flavored sub-brand 10
The company has acquired the UK rights to Lipton Ice, but faces an uphill battle in promoting it to a society that has a lack luster response to RTD tea 10
The sports drinks sector is forecast weak growth, but Britvic aims to defy this by purchasing the UK rights to Gatorade 11
Britvic's future sales could be more off-trade focused and it has potential to move into new distribution areas 11
The on-trade remains a problematic sales area, as UK pubs continue to lose popularity 11
School sales could be a growth area, with healthier brand marketing potential 12
APPENDIX 13
Case study series 13
Methodology 13
Secondary sources 13
Further reading 13
Ask the analyst 14
Datamonitor consulting 14
Disclaimer 14
List of Tables
Table 1: Size of select Britvic brands by volume, as a proportion of the UK soft drinks market, 2008 6
Table 2: Soft drink sales in the UK by brand, £m, in the grocery and impulse sector, 2008 6
Table 3: Leading brands in the UK on-trade, 2008, £m 12
List of Figures
Figure 1: Price and health have a high amount of influence in consumers' food and beverage choices 4
Figure 2: Britvic brands cover a range of soft drink sectors 5
Figure 3: Sales of Tango were revitalized in 2009 thanks to a tongue-in-cheek Save Tango campaign 9
Figure 4: Britvic intends to tap into the potential of the UK energy drinks market with the launch of Gatorade 11