What’s Trending in Non-Alcoholic Beverages
Lockdowns and restrictions are fast becoming all but a distant memory for Victorians and it’s reassuring to see consumers returning to their local clubs with great enthusiasm. But it’s not only beer and wine they’re reaching for as they pull up a bar stool – non-alcoholic beverages are also enjoying the spotlight, prompting club operators to rethink their product offerings.
When it comes to unlocking the growth potential of non-alcoholic beverages in your club, there are a few key trends that are worth bearing in mind. The most significant of these is Australians’ increasing focus on health and nutrition. This is having a strong influence over their beverage of choice, with consumers taking advantage of the explosion of diet and no-sugar beverage options across categories like soft drinks, energy, and mixers.
Looking closely at cola, which continues to be the number one mixer within on-premise, the statistics speak for themselves. Diet and no-sugar colas are the major driver of growth in the cola category, evidenced by the performance of Coke No Sugar which has increased by 15% vs. YA, delivering 91% of total category growth. In addition, venues that activated Coca-Cola post-mix promotions during key selling weeks across 2021 – which mostly focused on Coca-Cola No Sugar – saw on average, a sales uplift of 9% vs. outlets that did not activate. This is compelling data that should give confidence to venues that are considering dual-ranging both regular and no-sugar offerings to maximise sales.
Another segment of the non-alcoholic beverage category that is benefitting from Australia’s obsession with health and wellness is sparkling water, which has increased value gain by 84% in the last year alone. Driven by the increasing popularity of flavoured variants like lemon, lime, mango, and raspberry, sparkling water is the fastest growing water category and is well-placed to recruit new patrons, particularly those who have previously purchased flavoured soft drinks and are seeking a healthier alternative. Coca-Cola Europacific Partners offers a plethora of plain and flavoured sparkling water products in glass, recycled PET bottles, and cans that can help your club capitalise on this category growth.
Finally, we are seeing an influx of consumers opting for more premium mixers to accompany their alcoholic beverage of choice. This is supported by grocery channel insights which indicate that traditional mixers are expected to grow at 2.1% and deliver 2.7% to the total beverage growth, with retail sales value peaking during festive periods, like Easter and Christmas. Premiumisation on-premise is also evident with consumers more frequently choosing glass mixers, along with the continuing popularity of, lemon lime and bitters. Classics such as lemonade, lemon and orange flavour soft drinks are not to be overlooked, however, as these continue to dominate the flavours category and are responsible for driving 75% of the category growth.
Coca-Cola Europacific Partners has one of the largest no-sugar offerings across cola, energy, and flavour and several premium sparkling water brands. To find out more details on our product portfolio and how we can support your business to grow, reach out to your Coca-Cola Europacific Partners representative or call our National Sales Centre on 13 COKE (13 2653). You can also visit our website: www.mycca.com.au
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