UK soft drink sales up 7.5% last year

London: Sales of soft drinks in the UK rose by 7.5 per cent to £9.4 billion (Dh55.33 billion) last year, despite tough economic conditions and a long, cold winter, a new report revealed.

Convenience retailers such as corner shops, garages and small supermarkets benefited from a surge in the popularity of "single serve" cans and bottles for thirsty people "on the move", according to a report by soft drinks company Britvic.

The most notable trend was a huge rise in the popularity of glucose and stimulant drinks such as Red Bull and Gatorade in the take-home market, with a 19 per cent increase in both volume and value. With many people facing longer working hours, it said, glucose and stimulant drinks proved a handy way to boost flagging energy levels.

Big winners

The curious US-style concept of cold hot drinks were another surprising favourite in 2010, reversing the previous year's 8 per cent decline into an impressive 93 per cent value growth.

The big winners here were Lipton Ice Tea and newcomers Starbucks Discoveries and Starbucks Double Shot.

Although the economy improved slightly in 2010, many consumers continued to try to make savings. Out-of-town supermarkets remained the choice for the big weekly shop, the report noted.

Overall, take-home sales grew by 6.6 per cent to £6.6 billion. Murray Harris, Britvc's customer management director, commented: "2010 was another a tough year for UK consumers, but soft drinks remained resilient.

"Although people were watching their pounds, they were still willing to spend a comparatively small amount on a soft drink, whether it's at the train station on the way to work or at their local retailer on the way home from school."

"The increase in ‘top up' shopping and single serve soft drinks sales has been great news for convenience retailers after they endured a difficult 2009."

Cola brands remained by far the largest in the take-home sector, recording 9 per cent growth to take sales to 1.46 billion.

Consumers have begun to trade up again for a "treat fix", especially within the smoothie and cold hot drinks sub-categories, which saw a decline last year, the report said.

Overall, increases in alcohol duty last year led many pubs and clubs to increase their prices, the report notes. With the rise in VAT and consumers tightening their belts, the report suggests that pubs will need to target consumers more aggressively this year by offering more events and special deals.