These results were flat compared to the year-ago period. PepsiCo's North American beverage business continues to struggle, even as it invests in further product innovation. Last week, the snack and beverage giant rolled out a line of sparkling water called Bubly. The zero-calorie, all-natural drink is undoubtedly meant to take some of the wind out of category heavyweight La Croix's salesand expand the company's health halo in the beverage space.
We believe that developed markets will drive health-consciousness and premiumisation trends, which will provide growth momentum for offshoot categories.
We hold a particularly positive view for Reed's Inc, which we expect will experience strong growth over our forecast period on the back of these trends.
Over our forecast period, the drinks sector will become more dynamic as offshoot categories gain momentum in developed markets. We believe that premiumisation and health-consciousness will shape consumption patterns within the drinks sector.
Premiumisation will largely encompass the trend of 'adultifying' low- and non-alcoholic beverages, particularly in the soft drinks segment. The concept of adultifying drinks has emerged in the food and drinks industry over the past year and has been characterised by two segments: Offshoot categories that are viable alternatives to alcoholic beverages Premium soft drinks distinct from mass market offerings.
We believe that low- and non-alcoholic beer, craft soda and relaxation drinks will experience rapid growth on the back of the adultifying trend.
We expect premium juice and plant-based beverages sales to benefit from health-consciousness trends throughout our forecast period.
Confronted by saturated Western markets for beer, wine and spirits and the threat of independent craft suppliers, global alcohol producers will increasingly invest in low- and non-alcoholic alternatives in order to meet growing demand from health-conscious consumers, while offsetting stagnant growth in core legacy offerings.
Our research shows that alcohol consumption in developed markets is forecast to rise only 0. BMI Strong Potential For Low-Alcohol Beer Beer is leading the way with low- and non-alcoholic alternatives, as major brewers are incentivised by stronger growth and larger margins - these products are sold at similar prices to regular offerings yet pay far lower, if any, excise tax.
First introduced to the mass market in the s with only limited success, we believe opportunities in alcohol-free beer are far greater now as improvements in quality have created a like-for-like substitute that resonates with consumer demand for natural, low-calorie alternatives.
Growing Investment In Premium Non-Alcoholic Drinks Alternatives In the wine and spirits sector, low- and non-alcoholic offerings remain underdeveloped, with substantial scope for expansion. In JulyDiageo acquired a minority stake in Seedlip, a pioneering start-up that claims to produce the world's first distilled non-alcoholic spirit.
The aim is to capture an entirely new segment of consumers, who desire the same ingredients and intensity of flavour as botanical gin or vodka without the alcohol see 'Diageo Turns to Non-Alcoholic Alternatives for Growth', July We expect wine makers to follow suit by launching premium alcohol-free alternatives designed to replicate the flavour and appearance of popular grape varieties.
We hold a positive outlook for the relaxation drinks segment, which we expect to gain traction as consumers increasingly seek viable alternatives to alcoholic beverages.
Relaxation drinks are non-alcoholic beverages that contain natural ingredients, which are claimed to reduce stress and anxiety. These beverages mimic the relaxation effects of alcohol. As consumers become aware of this attribute, they will increasingly substitute alcoholic beverages with relaxation drinks.
Furthermore, these beverages contain less sugar than conventional carbonated soft drinks and use natural ingredients, which will be attractive to health-conscious consumers.
We expect Tranquini to outperform in the segment as the company has a large global presence in the functional relaxation drinks segment.
Premium Fruit And Vegetable Juice To Support Growth In the Segment Per capita consumption of fruit and vegetable juice will experience positive growth on the back of the rising popularity of the premium juice segment.
Premium juice can be defined as juice extracted using the cold-press and high-pressure processing technique. Growth in the segment will largely be driven by positive health perception towards cold-pressed and high-pressure processed juice, as consumers believe that juices extracted using these techniques contain more nutrients.
We forecast per capita fruit and vegetable juice sales to grow at a five-year compound annual growth rate CAGR of 3. Overfruit and vegetable juice consumption declined by However, from onwards consumption will experience positive growth up to Suja, a premium juice company based in the United States, and PepsiCo's Naked Juice product line will experience strong growth in this segment as premium juice gains mainstream acceptance.
Premium hydration consists of plant-based beverages, functional teas and enhanced water segments - these segments are characterised by functional isotonic beverages that have low sugar and calorie content.The soft drinks industry appears not exempted, due to cases of consumer switching especially, when changes in tastes and preferences are no longer cared for by specific product brands.
This study therefore surveyed the effect. The company can increase its market for sales of small size bottle introducing ml and ml bottle. The company should give more preference to hygienic factors and overcome rusty crowns and faded labeling The company can introduce soft drinks in various fruit flavors.
Soft Drinks company bosses are naturally less in favour and believe they have not been consulted adequately in the decision making process.
YouGov has assessed public attitudes to the issue. We found that over half (56%) agree with the tax, while almost three in ten (29%) disagree. Understanding Perceptual Maps. What is a perceptual map? A perceptual map is of the visual technique designed to show how the average target market consumer understands the positioning of the competing products in the marketplace.
In other words, it is a tool that attempts to map the consumer’s perceptions and understandings in a diagram.
1 Stagnito Publishing Company, “Beyond Colas: The Soft drink category stretches from traditional colas into flavored soft drinks, energy drinks and alternatives”. Beverage Industry, March The company then conducts a survey to collect data on consumers’ perceptions of the brand’s centrality and distinctiveness (scored on a 0–10 scale).
This data yields unique coordinates for.