Pulse Report Drinks Q1 2011

8/4/2019 Pulse Report Drinks Q1 2011

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Drinks SymphonyIRI Pulse Q1 2011

www.SymphonyIRI.eu

About the Report

This Drinks report is one of 12 super category reports designed to show

high-level comparison and analysis for retail markets across major countries

in Europe.

This report contains data gathered from around Europe. This market was

split into the following categories: Soft Drinks, Juices Squashes & Syrups,

Mineral Water, Coffee, Tea, Cocoa.

The report highlights key metrics such as total sales figures, market trends,

category shares, winners and losers for Europe and for individual countries.

The data has been sourced from Symphony IRI Group retail databases and

Eurostat the statistical branch of administration for the EuropeanCommission.

The countries included in the report are: France, Germany, Italy,

Netherlands, Spain and the UK.

The market channels used for each country in this report are as follows:

For analytical purposes the data sourced from available retail databases has

been consolidated to provide consistent results. However, for some countries

it has not been possible to source data pertaining to certain categories. When

this has occurred it has been documented in the Notes section found at the

end of the report.

Hypermarkets and SupermarketsFR

Hypermarkets, Supermarkets, Small Self Service,

Hard Discounters and DrugstoresIT

Hypermarkets, Supermarkets, Hard Discounters

and DrugstoresNL

Hypermarkets, Supermarkets, Hard Discounters,

Drugstores and Beverages Specialty StoresDE

Hypermarkets, Supermarkets, Hard Discounters,

Drugstores and includes the Canary IslandsES

Hypermarkets, Supermarkets, Drugstores and

Impulse OutletsUK

Channels usedCountry


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In the Radar

Economic figures influencing consumer behaviour

The economic crisis in some of the southernEuropean countries is influencing private

consumption and dividing Europe into prospering

Northern and declining Southern markets, not only

for Drinks, but also Alcohol and the majority of

other FMCG categories.

Wolfgang Kappler

Director Client Solutions, Cold Beverages, SymphonyIRI Group

Germany Contact: [email protected]

Tel : +49 (0) 211 / 361 19 - 193

Source Eurostats, May 2011

* February 2011

+3.5

+1.8

+0.9

+2.0

+1.6

+1.9

Dec.

2011

+3.3

-2.6

+1.4

+1.6

+1.2

+1.7

Average

2010

Average 12 Months

Inflation Rate

1,779,8881,694,5077.6*7.862.062.0United

Kingdom

1,051,3291,081,89420.720.146.046.0Spain

614,324591,4774.24.516.616.6Netherlands

1,588,8931,548,8168.38.660.360.3Italy

2,588,8882,498,8006.37.181.881.8Germany

2,001,5571,932,8019.59.764.764.7France

2011

(Estimate)2010

Dec.

2011

Average

2010

January

2011

January

2010

GDP in Millions ()Unemployment (%)Population in Millions


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Global Trends

-0.3%

+1.5%

+3.7%

+6.3%

TOTAL EUROPE +2.3%

2,399NL

3,824ES

5,951IT

6,803FR

6,945*UK

15,465DE

41,388Total EU

Value Sales in Millions ()

1,585 1,515 1,738 1,772 1,695 1,598

914 874952 1,061 904 906

556 564622 604 574 598

1,384 1,3911,543

1,6651,363 1,381

3,623 3,686

3,8613,912

3,775 3,918

1,607

1,8051,829

1,624 1,6881,643

0

2,000

4,000

6,000

8,000

10,000

12,000

03-Jan-10 04-Apr-10 04-Jul-10 03-Oct-10 02-Jan-11 03-Apr-11

Millions

Period Ending

FRANCE

GERMANY

ITALY

NETHERLANDS

SPAIN

UNITED

KINGDOM

*based on an exchange rate of 1.166 to the pound

Positive Trend

Static Trend

Negative Trend

Source: SymphonyIRI Retail Databases; Period Ending 03 Apr, 11

+2.8%

-2.7%

Value sales and growth and decline in the last year

Value sales for the last six quarters


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16,368

5,941

2,114

8,1048,016

2.94.1 1.8 -0.11.0

Soft Drinks Mineral

Water

Coffee Juices,

Squashes

& Syrups

Tea

Millions

Total Sales % vs. YA

Top 5 Categories Evolution

39.5%

19.6%

19.4%

14.4%5.1%2.0%

Soft Drinks Mineral Water

Coffee Juices, Squashes & SyrupsTea Cocoa

Europe

Value Sales () and % Change vs. Yr Ago

16,368

8,104 8,016

5,941

2,114

845

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

MillionsEuros

Category Value Sales and Share of Value in the Last Year

Key trends

Due to the economic crisis in someof the southern European countries,

the story of value sales is still

divided between Northern Europe

(UK, NL, DE, FR) which experience

value growth by 1,129m (+3.7%)

and Southern Europe (ES, IT) which

contracted in the period by 176.6m

(-1.8%).

But it is not only the value sales

trend of the markets itself that isdiverging, but also the expenses the

customers are willing to take for

Drinks in the several countries.

An average European citizen is

spending 125 per annum on Drinks

in the retail trade. Whereas in DE

and NL the per capita spends at

189 and 145 per annum are wide

above, they are distinctly below the

average in IT (99) and ES (83).



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Europe

Top 5 Losers: Value Sales

chg vs. Yr Ago ()

Top 5 Winners: Value Sales

chg vs. Yr Ago ()

648.8

142.2

80.1

59.3

15.1

0 200 400 600 800

Soft Drinks

Coffee

Mineral Water

Tea

Cocoa

Millions

-5.4

-6 -5 -4 -3 -2 -1 0

Juices, Squashes &

Syrups

Millions

Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

Category Insights

The huge growth in the soft drinks market (648.8m) accounts for the bulk of the valuesales change vs. 12 months ago.

Where soft drinks are growing, it is mainly a result of an increasing high level of price

promotions for the branded business, which do have a sustainable positive impact on

volume growth.

With soft drinks, as well as most of the other Drinks categories, the gains in value sales in

the Northern countries are over-compensating for the shrinkage of the Southern Countries.

Except of juices, squashes & syrups, as this category is slightly declining in Germany, its

biggest market by far, as well.

Gains of the coffee category - in most of the countries - are due to rising prices, for roastedcoffee. Hence and due to a continuous growth of single portions and capsules, with prices

far above category average, we have a disproportionately large value growth, compared to

the development of volume sales.

Mineral water is growing (+1.0%) below Drinks average values sales change rate of

+2.3%. The reasons throughout the countries are multifarious, from consumers enhancing

their use of tap water, across a demand shift onto low price private label and non-branded

water, to a growing assortment of flavoured waters, providing a real alternative for

consumers to the classic mineral waters.



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2.037

1.250

337

1.700

1.431

0,2

4,2

1,8

-1,6

1,0

Soft Drinks Mineral

Water

Juices,

Squashes

& Syrups

Coffee Tea

Millions


29.3%

24.5%

20.6%

18.0%

4.8%2.8%

Soft Drinks Mineral Water Juices, Squashes & Syrups CoffeeTea Cocoa

France


2037

1700

1431

1250

337 191

0

500

1,000

1,500

2,000

2,500


MillionsEuros


Key trends

On this period, the total FMCG is

growing up 2.5%.

On the same time, the non alcoholic

cold beverages is growing up 3%, and

the breakfast product 2.7%

Soft drinks is still remaining the first

growth in % change.

Coffee is still the only category

decreasing. The primary reason for the

recurrent declining in value sales of the

Coffee category is the ongoing

development of the Coffee Pod

products => Pods Sales are now

equivalent at 500M.



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France


chg vs. Yr Ago ()


chg vs. Yr Ago ()

82.1

25.0

17.7

0.6

0 20 40 60 80 100

Soft Drinks

Juices,

Squashes &

Syrups

Mineral Water

Tea

Millions

-3.4

-20.4

-25.0 -20.0 -15.0 -10.0 -5.0 0.0

Cocoa

Coffee

Millions

Category Insights

All the subcategories in the Soft Drinks is increasing this time Cola and Plain Fruit Drinks

drive the growth

About Manufacturer on cold beverages:

Coca Cola Company (with the brand Coca Cola) is the primary contributor, with a

number of SKU increasing (+3 SKU).

Nestl is the 2nd contributor : Waters (Vittel, Hpar & San Pellegrino) and Nesfluid

participate. Promotion on the waters brands and the number of SKU, with Nesfluid

launch, are the main reasons of the growth.

Eckes is the main increase on the Fruit Juices market with Joker

Only Red Bull is declining

Green Tea is the only subcategories increasing, and both roasted coffee and instant coffee

are declining

About Manufacturer on hot beverages

On tea market, Foods is compensate for the losses of Unilever

On coffee market, Kraft, Sara Lee and the private label are decreasing



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Germany


34.1%

22.1%

21.5%

17.1%1.0%

4.2%

Soft Drinks Coffee

Mineral Water Juices, Squashes & Syrups

Tea Cocoa

5,280

2,647

153

3,4223,318

646

0

1,000

2,000

3,000

4,000

5,000

6,000

5,280

3,422 3,318

646

2,647

5.21.2-0.2

5.7

2.8

Soft Drinks Coffee Mineral

Water

Juices,

Squashes &

Syrups

Tea

Millions



MillionsEuros


Key trends

The German Drinks market remains ingrowth. Due to a very good Q1 2011,

the categories are growing even faster

the latest 12 months ending 03 April

2011, than they did in the calendar year

2010.

The hot beverages, coffee and tea,

could benefit from a outstanding long

and cold German winter. In addition,

due to rising prices, the value sales of

the coffee category develop muchbetter than value sales do.

The cold beverages categories are

growing as a result of an increasing

high level of price promotions, which do

have a sustainable positive impact on

volume growth.

The one and only exception are the

Juices. Their volume sales losses are

due to increase in prices. Whereby

value sales are almost stable, because

of the price increases compensating

the volume losses.



10/2010


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Germany


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-6.3

-7.0 -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0

Juices,

Squashes &

Syrups

Millions

285.4

164.5

94.6

7.9

1.8

0 50 100 150 200 250 300

Soft Drinks

Mineral Water

Coffee

Tea

Cocoa

Millions

Category Insights

The Soft Drinks are continuing to grow as a result of an increasing high level of pricepromotions, which do have a sustainable positive impact on volume growth. Thereby the

Coca-Cola, as well as the PepsiCo brands are driving the Cola, Lemonade and the Cola

Mixes categories. However a large portion of their winnings derive from quite aggressive

price promotions primarily in the German Discounter channels.

After a longer period of de-listing of drinks in tin packaging, due to introduction of a tin

deposit by German government, the retailers started to re-list tins. This is preparing the

ground for a sustainable rise in Energy Drinks volume and value sales, since they are

preponderantly offered in tins.

Also Mineral Water value sales is primarily growing in the branded market. The growth is

again driven by price promotions. But due to the fact, that the brands still are higher pricedthan Private Label are, the average category price is increasing, which led to a almost

double value growth compared to the volume sales development.

Gains of the Coffee category are due to a outstanding long and cold German winter, in

addition with rising prices, by up to 20% especially for roasted coffee. Hence and due to a

continuous growth of single portions and capsules, we have a disproportionately large

value growth

As losses of the Juices are focused on the Private Labels and are due to increase in prices

following the cost increase for juice concentrate, whereas the branded business has

benefitted by serving new market segments, particular mild juices and juices made of

native fruits, as well as an increasing high level of price promotions, Juices volume salesare down, while the value sales remain almost constant.



11/2011


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Italy

30.3%

29.2%

20.4%

14.8%1.2% 4.0%

Soft Drinks Mineral Water Coffee Juices, Squashes & SyrupsTea Cocoa

1,803 1,739

1,215

882

240

73

0

200

400

600

800

1000

1200

1400

1600

1800

2000



1,8031,739

1,215

882

240

-4.6-1.7 -4.6-0.6

1.6

Soft Drinks Mineral

Water

Coffee Juices,

Squashes

& Syrups

Tea

Millions


MillionsEuros


Key trends

Data ending MAT March 2011 shows a negative

trend across all majors beverage categories due toa negative season (in terms of weather effects,

average temperatures were lower than Year2009) Positive is first quarter 2011 where temperatures

higher than average (in February and end March)

and an increasing promotional pressure help

volumes increase

Rtd Tea, Energy Drink and Colas are the categories

most dynamic: Rtd Tea more sensitive to hot

temperatures, Energy supported by advertising and

Colas driven by the leader with important

investments both in promotional activities and

advertising Mineral Water and Juices continue to showstructural negative trends affected by tap water

competition and new emerging segment in juice

called Smoothies.

In Hot Beverages: Tea and Herbal Tea show the

only positive value trend driven by functional

product (slimming, relaxing, diuretic, laxative,

digestive...)

Coffee: in 2010 value and volume sales is slightly

negative, while in YTD 11 the market starts

increasing in value, due to a significant inflation

(+7,9%), while volume decrease by -3,9%: In YTD 11 Capsules and Pods strengthen their

competitive weight, by growing double digits both

in value and in volume



12/2012


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Italy


chg vs. Yr Ago ()


chg vs. Yr Ago ()

3.9

0 1 2 3 4 5

Tea

Millions

-7.8

-31.8

-42.3

-84.6

-0.3

-100.0 -80.0 -60.0 -40.0 -20.0 0.0

Cocoa

Coffee

Soft Drinks

Juices, Squashes

& Syrups

Mineral Water

Millions

Insights and recommendations

In first three months of 2011 some phenomena influence categories trends:- Weakness of consumer demand due to economic crisis- Increase of inflation rate driven by price increase of several raw material(eg. coffee) and petrol that impact: costs of transport and packaging (eg PET)

The bad performance of Mineral Water is driven by some structural phenomena: anincreasing number of supporter of sink drinkable water: people drinking Tap water that isgaining consensus popularity during the recent current economic crisis (available, cheapand low environmental impact) and a increasing diffusion carafes for filtering drinkingwater supported by strong investment in communication and advertising.

Winter season was positive for Hot Beverages in particular Herbal Tea Category whereconsumer demand for products that meet their health, wellness is driving the growth offunctional product with specific benefit: slimming, relaxing, diuretic, laxative, digestive.

Coffee is the category most influenced from price increase (+6,7%) of raw material withnegative trend in volume compared with last year: the loss is explained by two factors:

25% of the loss explained by lower base volume sales (lower rotations per SKU),75% of the loss explained by lower incremental sales, due to lower promo intensity(to avoid margin erosion).

Next months will be very important for beverage markets with season start: speed of

introduction of new products and promotional plan will be crucial for be prepared and takethe opportunity in case of hot temperatures (early season): but everything depends onweather conditions that can give a booster to sell out.



13/2013


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46.1%

26.4%

18.0%5.3%

3.6%0.6%

Soft Drinks CoffeeJuices, Squashes & Syrups TeaMineral Water Cocoa

1,106

634

432

12685

150

200

400

600

800

1000

1200

Netherlands



1,106

634

12685

432

5.10.41.0

3.2

-5.9

Soft Drinks Coffee Juices,

Squashes

& Syrups

Tea Mineral

Water

Millions


MillionsEuros

Key trends

While Cola remain the most important

segment in the Softdrinks category,

orange has and Ice Tea show a more

significant growth in the last quarter. This

is due to increase promotional volume;

Energy Drinks are still by far the fastest

growing segment within Softdrinks in

value as well as in volume;

Another important shift within Softdrinks

is the decrease of volume within Still

Drinks due to a fall back in promotional

volume;

Coffee shows a significant growth and

this is entirely due to increase in base

prices. In the latest quarter kg prices have

increased by 15% for coffee;




14/2014


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Netherlands


chg vs. Yr Ago ()


chg vs. Yr Ago ()

-5.3

-0.5

-6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0

Cocoa

Mineral Water

Millions

34.6

30.9

4.5

0.5

0 10 20 30 40

Soft Drinks

Coffee

Juices,

Squashes &Syrups

Tea

Millions

Category Insights

The most important contributors to the growth of Softdrinks is Cola, Orange and Ice Tea. CocaCola is the main contributor in the Cola segment.

However, Private Label shows a significant growth in volume due to increase promotional volumesbut also growth of the base volume line. This is due to introduction of Private Label multipacks butalso introduction of a Private Label basic line. This results in a high volume increase but a limitedincrease in value;

The growth in Orange is almost entirely due to the re-launch of Capri Sonne. It is rebranded toCapri Sun and gained in distribution. But also the prices have been increased at the re-launch.Another contributor is Sisi which has increased promotional pressure significantly in Orange;

In Ice Tea the major brand Lipton has increased promotional volumes but has also added new

items like Ice Tea Zero and Ice Tea Superfruit. But also the existing range is increasing basesales.

Roosvicee, a Heinz brand, is increasing it sales in Juices by changing the ingredients of theirrange and claiming light for a wide range of their product line, introduction of a new range withFruit & Rozenbottel and increased promotional level has led to more sales for this major Brand;

However, also Private Label and the main Brand within Juices, Appelsientje, have increased theirsales due to increased promotional volumes;

The growth in Coffee is entirely due to price increases. Volume sales are stable. Coffee beans stillshow significant growth due increased penetration of high tech coffee machines in-home. This isalso the case for Capsules which are showing the same trend as coffee beans.

Mineral water is losing value due to a shift to lower priced products like Private Labels andnobrands.



15/2015


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Spain

54.9%

20.2%

14.9%

6.9%2.9%0.3%

Soft Drinks Mineral Water Coffee CocoaTea Juices, Squashes & Syrups

2,098

771

570

262110

130

500

1000

1500

2000

2500



2,098

771

570

262110

5.3-3.7 4.8-1.4 8.9

Soft

Drinks

Mineral

Water

Coffee Cocoa Tea

M

illions


MillionsEuros


Key trends

Soft drinks and Mineral water arehaving a negative evolution during

the last quarter due to the crisis that

Spain is suffering last two years.

Categories with a lower market

weight reduced products prices last

year and they have a positive value

trend.

Not only in modern distribution

drinks has been a sales drop but

also foodservice decrease their

sales. The Economic confidence

drops in Spain.



16/2016


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Spain


chg vs. Yr Ago ()


chg vs. Yr Ago ()

26.0

13.2

9.1

0 5 10 15 20 25 30

Coffee

Cocoa

Tea

Millions

-1.0

-29.6

-30.8

-35.0 -30 .0 -25.0 -20 .0 -15 .0 -10.0 -5 .0 0.0

Juices, Squashes

& Syrups

Mineral Water

Soft Drinks

Millions

Category Insights

Sales in Cola Cero and Normal Tonic have gone up steadily in soft drinks.

PepsiCo and Red Bull manufacturer sales rose slightly the last quarter ( +5.1% and 3.5

%) driven by coke (Pepsi) and energetic drinks (Red Bull).

Sales in Minute Maid went down sharply (-27.4%).

The mineral water market is suffering a fall in sales because the Spanish government are

improving water public infrastructure.

Private Label Mineral Water had a sales increased of 1.6%.

Special water like Mineral Flavoured Water with gas has been a decrease of -25%.

For coffee, Cocoa and Tea the positive trend is due to presence in Supermarket (over to

1001 m2)

Coffee volume prices increased from 8,01 to 8,60.



17/2017


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United Kingdom

59.5%

13.6%

9.6%

7.9%2.2% 7.2%

Soft Drinks CoffeeTea Juices, Squashes & SyrupsMineral Water Cocoa

4,045

925 655 536 492151

0

500

1000

1500

2000

2500

3000

3500

4000

4500



925655 536 492

4,045

2.82.16.0

3.78.3

Soft Drinks Coffee Tea Juices,

Squashes

& Syrups

Mineral

Water

Millions


MillionsEuros


Key trends

Soft drinks are in strong year on yeargrowth in terms of both value & volume.

There are four categories driving the

bulk of growth: Crushes, Cola,

Functional Energy and Sports Energy.

Of the main categories Traditional is

the only one experiencing some volume

decline.

Of the branded manufacturers Britvic

has been most successful from a

volume perspective, principally driven

by the dealing activity on Pepsi.

Heavy promotional activities are driving

up purchase for Coffee and Tea.

Sales value in both segments is also

up due to price increases.

Within Coffee, both ground and instant

have seen their volume grow but only

ground coffee is driving sales value up.



18/2018


www.SymphonyIRI.eu

United Kingdom


chg vs. Yr Ago ()


chg vs. Yr Ago ()

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Millions

309.3

37.3

19.0

17.5

14.8

0 100 200 300 400

Soft Drinks

Tea

Coffee

Mineral Water

Juices,

Squashes &

Syrups

Millions

Category Insights

In soft drinks value growth has accelerated on last quarter: price inflation for softdrinks is ahead of the market. Shoppers are not only paying a higher average

price per litre but they were buying more often and this seemed to be driven by

dealing, particularly in the Functional energy and crushes sectors.

In soft drinks promotion levels continue to increase and levels of volume sold on

deal were up to 70%. The levels of promotions are supporting volume growth, and

increasingly branded products have a higher share of that in store noise.

In soft drinks Britivic growth has been supported by NPD: King Tango and

Mountain Dew have done well. However 67% of volume growth has come fromPepsi cola, most of it from deals on 8CT Cans and the 2L plastic bottle.

Teas performance driven by tea bags and supported by tea pods growth.

Coffee driven by Super premium brands and within instant coffee, the creation of a

new segment, Microgrind, has generated interest in the category.



19/2019


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Final Notes

Notes on Category Definitions for Countries

Due to the diverse products found in individual countries across this market it was necessary to

consolidate the available data into the categories in this report. In some cases it wasnt always

possible to align products across all 6 countries hence the need to highlight any anomalies in the

report. Those exceptions are listed below:

Soft Drinks

The UK data in this report does not contain Iced Tea and other Tea Based Beverages and the other

countries do not

Juices, Squashes & Syrups

The Germany data in this report includes Smoothies and Refrigerated Fruit Juice and the other

countries do not

Mineral Water

The France data in this report includes Flavored Mineral Water whereas the other countries do not

The Italy data in this report includes Flavored Sports Drinks whereas the other countries do not


20/20


Resources

To gain insight into opportunities across specific categories, segments, channels or retailers, contact

your SymphonyIRI client service representative regarding custom analyses leveraging the following

resources:

InfoScan Census is a syndicated retail tracking service that enables manufacturers and retailers

to acquire industry insights used to make better business decisions. InfoScan Census utilizes the data

that SymphonyIRI Group collects from grocery, drug, and mass merchandise retailers to provide the

most comprehensive and accurate syndicated data offering in the Fast Moving Consumer Goods

(FMCG) sector. With access to accurate, granular detail by category, geography, measure, and time

period, clients have the tools needed to develop marketing and sales strategies based on product

performance, distribution, and promotion responsiveness. All data about frozen foods are coming

from InfoScan Census.

SymphonyIRI Consulting provide strategic insights and advice leveraging a variety of data

sources, predictive analytics, enabling technologies, and business analyses to help CPGmanufacturers and retailers address significant sales and marketing issues effectively.

Contact: SymphonyIRI Group, [email protected], Tel: +33 1 30 26 81 00

About SymphonyIRI Group

SymphonyIRI group, formerly named Information Resources, Inc. (IRI), is the global leader in

innovative solutions and services for driving revenue and profit growth in CPG, retail andhealthcare companies. SymphonyIRI offers two families of solutions: core IRI solutions for

market measurement and symphony advantage solutions for enabling new growth opportunities

in marketing, sales, shopper marketing and category management. SymphonyIRI solutions

uniquely combine content, analytics and technology to deliver maximum impact. SymphonyIRI

helps companies create, plan and execute forward-looking, shopper-centric strategies across

every level of the organization.

For more information, visit www.SymphonyIRI.eu

Pulse Report Drinks Q1 2011

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