New Drinks Category Introductions in European Forecourt Retailing

Table of Contents

• DATAMONITOR VIEW
  • CATALYST
  • SUMMARY
  • SOURCES
• ANALYSIS
  • The energy-replacing nature of functional drinks make them highly appropriate for retail within forecourt shops
    • In the majority of European markets, growth in sales of functional drinks through service stations have outstripped that of convenience stores
    • Sales of functional drinks through service stations are forecast to be strongest in Portugal and Belgium
    • Within functional drinks, nutraceutical drinks are predicted to grow at the strongest rates
    • Demand for an energy boost is likely to be accentuated amongst motorists
    • Forecourt retailers should stock functional drinks products which promote well-being
  • Smoothies should be stocked by forecourt retailers as they provide motorists with a healthy, fresh snack on-the-go
    • The growth of smoothie sales has been particularly strong in the UK
    • Forecourt sales of smoothies are expected to grow at the fastest rates in the UK, Belgium and Italy
    • Fruit-based smoothies are forecast to grow at around four times the rate of dairy-based smoothies
    • Smoothies offer service stations a strong opportunity to benefit from the increase in healthy on-the-go drinking occasions
    • Given their limited shelf space, forecourt retailers should focus on the best known brands
  • Fuel retailers should seek to benefit from the growing popularity of premium hot beverages
    • European forecourt retailers are placing a growing focus on hot beverages
    • Some fuel retailers have launched premium private label hot beverage offerings
  • Fuel retailers should not neglect carbonates, as despite their weak growth, they still account for the majority of soft drinks sales
    • The strongest growth in forecourt sales of carbonates is predicted to be in Belgium, Ukraine and France
    • Of the main types of carbonates, sales of diet cola are expected to grow at the fastest rate
    • Forecourt retailers can generate growth from carbonates by focusing on healthier options
    • Across Europe there are numerous examples of ' healthier' carbonated beverage launches
  • Forecourt shops offer a strong retail platform for bottled water as it is consumed throughout the day
    • In Western Europe, sales of bottled water through service stations have been growing at a quicker rate than convenience stores
    • Going forward, forecourt sales of bottled water are forecast to experience the strongest growth Belgium and France
    • Still flavored water is predicted to continue its robust growth over the next four years
    • Due to the large amount of space required to store bottled water, forecourt retailers need to be innovative with storage
    • Manufacturers have launched a number of products to ' de-commoditize' bottled water
• APPENDIX
  • Definitions
  • Methodology
  • Product selection
    • Sales of fruit-based smoothies have been growing at a rapid rate across Europe
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
  • List of Figures
    • Figure 1: Service station sales of functional drinks have grown at a quicker rate than sales through convenience stores
    • Figure 2: Sales of functional drinks through Portuguese service stations are expected to grow at 12% annually
    • Figure 3: At the European level, nutraceutical drinks subsegment is expected to grow at an average annual rate of 5%
    • Figure 4: The sugar-free variant of Red Bull
    • Figure 5: The Vitaboost Activator
    • Figure 6: In the UK, sales of smoothies through service stations increased at an average annual rate of 50% between 2000 and 2006
    • Figure 7: Sales of smoothies through UK forecourt shops are expected to grow at an annual rate of 60% between 2006 and 2011
    • Figure 8: At the European level, fruit-based smoothies are expected to grow at an average annual rate of 25%
    • Figure 9: Healthy on-the-go drinking occasions across Europe are expected to grow at an average annual rate of 3.5%
    • Figure 10: Innocent' s superfoods smoothie
    • Figure 11: Traktor Getraenke' s mango and passionfruit smoothie
    • Figure 12: Sales of carbonates through convenience stores have grown at a quicker pace than through service stations in Western Europe
    • Figure 13: Sales of carbonates through Belgian service stations is predicted to grow at an average annual rate of 12%
    • Figure 14: On a year-on-year basis, European sales of diet cola are expected to grow 0.5% higher than regular cola
    • Figure 15: In Europe, 94% of respondents believed that carbonates are either very unhealthy or unhealthy
    • Figure 16: Coca-Cola' s Light Plus
    • Figure 17: Organic drink from Bionade
    • Figure 18: The Bononi Vital-Drink
    • Figure 19: Between 2000 and 2006, UK sales of bottled water grew at an average annual rate of 12%
    • Figure 20: Belgian sales of bottled water through service stations are forecast to grow at an annual rate of 14%
    • Figure 21: At the European level, sales of still flavored water are expected to grow at an annual rate of over 7% between 2006 and 2011
    • Figure 22: In the UK bottled water can occupy half of service stations' fridge space
    • Figure 23: It is common to see the shop floor being used to store bottled water
    • Figure 24: All of the profits from ' One water' go to charity
    • Figure 25: Groupe Danone' s Vitalinea
    • Figure 26: At the European level, fruit-based smoothies have been growing at the quickest pace