Fruit Juice and Juice Drinks - UK - November 2006

Table of Contents

• Issues in the Market
• Definition
• Market in Brief
• A healthy performance from an increasingly health-oriented market
• Star performers have led growth
• Non-retail sales have enjoyed above average growth
• Health will continue to drive future trends
• Internal Market Environment
• Healthy eating
  • Figure 1: Agreement with lifestyle statements about diet and health, 2001-05
• Is the cost of soft drinks in the on trade a problem?
  • Figure 2: Agreement with statement 'Soft drinks in pubs/bars are so expensive that I often have an alcoholic drink instead', July 2006
• Parents still in control
  • Figure 3: Agreement with lifestyle statements by social class, 2006
• On-the-go snacking
• Broader Market Environment
• 5-A-Day
• Raising nutritional standards in schools
• Advertising code of conduct
• Lunchtime drinking is increasingly frowned upon
• Drink/driving
• Smoking ban expected to benefit sales of pub food
• Other factors
• Demographic trends
• Rising incomes encourage premiumisation and convenience
• Pocket money has increased too
  • Figure 4: Average weekly income of 7-14-year-olds, 2002-05
• UK work culture promotes snacking
• Travel outlets offer key opportunities
• Competitive Context
• Juice and juice drinks take increasing share
  • Figure 5: UK value sales of soft drinks, 2000-06
• Competition mainly from within
• A smoothie takeover
• A wider perspective
• Strengths and Weaknesses in the Market
• Market Size and Forecast
• Focus on health rejuvenates sales
  • Figure 9: UK on- and off-trade sales of fruit juices and juice drinks, by volume and value*, 2001-06
• Juice drinks have grown faster
  • Figure 10: UK on- and off-trade volume sales of fruit juice and juice drinks, by type, by volume, 2001-06
  • Figure 11: UK on- and off-trade volume sales of fruit juice and juice drinks, by type, by value, 2001-06
• Future potential
  • Figure 12: Forecast of the fruit juice and juice drinks market, by value, 2006-11
• Segment Performance -- Fruit Juice
• Government campaign enhances image of pure juice
  • Figure 13: UK retail sales of pure fruit juice, by volume and value, 2001-06
• On-trade sales show slower growth
  • Figure 14: UK on-trade sales of pure fruit juice, by volume and value, 2001-06
• Ambient sector in decline
  • Figure 15: UK retail sales of pure juice, by value and sector, 2001-06
• Functional juices add value
• Orange remains firm favourite
  • Figure 16: UK retail sales of pure juice, by flavour by volume, 2001-06
• Vegetable juice remains at the margins...
• ...and so do ethical juices
• Segment Performance -- Juice Drinks
• Juice drinks enjoy healthy growth
  • Figure 17: UK retail sales of juice drinks, by volume and value, 2001-06
  • Figure 18: UK on-trade sales of juice drinks, by volume and value, 2001-06
• Children's brands dominate
  • Figure 19: UK retail sales of juice drinks, by target age group, 2001-06
• Functionality offers further opportunities for growth
• Juice drinks get juicier
  • Figure 20: UK retail sales of juice drinks, by juice content, 2001-06
• Cranberry enjoys greatest growth
  • Figure 21: UK retail sales of juice drinks, by flavour, 2001-06
• Market Share
• PepsiCo brands dominate in juices
  • Figure 22: Retail sales shares of pure juices by manufacturer, by brand, 2001-06
• Britvic shoots ahead...
  • Figure 23: Retail sales share of juice drinks by manufactuerer, by brand, 2001-06
• ...while Ribena has struggled
• ...and Oasis is chugging along
• Sunny D -- make or break?
• Tropicana Go! set to make significant impact
• Companies and Products
• Main suppliers
• Britvic
• Juice
• Juice drinks
• Coca Cola Enterprises (CCE)
• Gerber
• GlaxoSmithkline (GSK)
• PepsiCo
• Sunny Delight
• Unilever
• Other suppliers
• The Big J
• Calypso
• Del Monte
• Feel Good Drinks Company
• Grove Fresh
• Metro Drinks
• Orchard House Foods
• Rubicon
• The Serious Food Company
• Brand Communication and Promotion
• Expenditure rises in 2005
  • Figure 24: Main media advertising spend by manufacturer, 2002-06
  • Figure 25: Main media advertising expenditure by type for juice and juice drinks, 2002-06
• Price promotion plays important role
  • Figure 26: Selected promotions on juice and juice drinks, October 2006
• Channels to Market
• On-trade experiences fastest growth
  • Figure 27: Value sales of fruit juice and juice drinks by outlet channel, 2001-06
• Multiple grocers lead the way
  • Figure 28: Value sales of fruit juice and juice drinks in the off-trade by outlet channel, 2001-06
• Forecourts forge ahead
• Greater freedom promotes growth
  • Figure 29: Value sales of fruit juice and juice drinks in the on-trade by outlet channel, 2001-06
• On-trade eating provides further opportunities
• NPD provides impetus
• Foodservice gets in on the act
• Technical developments have improved vending
• Schools offer new opportunity
• The Consumer -- Who Drinks Fruit Juice?
• Juice consumption continues to rise
  • Figure 30: Consumption of ready to drink fruit and vegetable juice in the last 12 months, 2002-05
• Targeting non-users
• Juice and juice drinks -- a favourite
  • Figure 31: Consumption of drinks, 7-14-year-olds, 2001-05
• Carbonates in sharp decline
  • Figure 32: Consumption of soft drinks, 2002, 2003 and 2005
• Consumption frequency on the rise
  • Figure 33: Number of small cartons/small bottles of fruit juice and fruit drinks drunk in the last week, 7-14-year-olds, 2001-05
• Packed lunches contribute to frequent consumption
• Home is most likely location for consumption
• On-the-go consumption -- potential for growth?
• The Consumer -- When and How Often People Drink
• Consumption a frequent habit
  • Figure 34: Frequency of consumption, June 2006
• Morning glory
  • Figure 35: Time of consumption, June 2006
  • Figure 36: Place of consumption, June 2006
• Cross analysis -- time and frequency of consumption
• Attitudes and motivations
  • Figure 37: Attitudes to health, June 2006
• Pursuing a healthy lifestyle
• Denial vs. indulgence
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Issues in the market
  • Figure 41: Distance travelled, by UK consumers, 1972/73-2004
• Broader Market Environment
• Demographic trends
  • Figure 42: Trends and projections in UK population (000s), by age group, 2000-10
  • Figure 43: PDI and consumer expenditure, at constant 2000 prices, 2000-10
  • Figure 44: Working population by gender, 2001-11
• The Consumer -- Who Drinks Fruit Juice?
• Frequency definition:
  • Figure 45: Consumption of ready to drink fruit and vegetable juice in the last 12 months, by demographic sub-group, 2005
  • Figure 46: Consumption of other drinks in the last 12 months, 2002-05
  • Figure 47: Consumption of fruit juice and fruit drinks, 7-14-year-olds, by demographic sub-group, 2005
  • Figure 48: Number of small cartons/small bottles of fruit juice and fruit drinks drunk in the last week, 7-14-year-olds, by demographic sub-group, 2005
  • Figure 49: Who buys most of the small cartons/small bottles of fruit juice and fruit drinks that 7-14-year-olds drink, by demographic sub-group, 2005
  • Figure 50: Where 7-14-year-olds drink fruit juice and fruit drinks the most, by demographic sub-group, 2005
• The Consumer -- When and How Often People Drink
  • Figure 51: Detailed demographics -- Frequency of consumption, June 2006
  • Figure 52: Detailed demographic -- Time of consumption, June 2006
  • Figure 53: Detailed demographics -- Place of consumption, June 2006
  • Figure 54: Detailed demographics -- Attitudes to health, June 2006
• The Consumer -- Where Do People Drink Fruit Juice?
  • Figure 51: Point balance between at home consumption and elsewhere, June 2006
  • Figure 52: Cross-analysis of home consumption, out of home consumption and frequency of consumpton, June 2006
  • Figure 53: Usage nets by attitudes to health, June 2006