‘Soft drinks marketers need to think added value not price’

Soft drinks makers will have to demonstrate added value in their marketing activity because increasing commodity costs are making it harder for them to compete on price, according to Britvic.

fizzy drinks

The warning comes after it emerged that the value of soft drinks sales from shops grew 6.7% to £6.98bn in 2011, driven by price increases, according to the annual Britvic Soft Drinks Report, which is compiled using Nielsen Scantrack data.

Volume growth, however, decreased to 1%, down from 3% in 2010.

Rising prices mean it is not sustainable for drinks brands to continue to compete on price and maintain margins, according to Britvic’s customer management director Murray Harris.

Brands are set to ramp up the number of on-pack promotions, CSR and digital activity, he adds, as they vie for attention in the ever competitive sector, which saw a host of new entrants in 2011, such as Vimto’s Reggae Reggae drinks range and the Pepsi 250ml can format.

Coke has just launched a 375ml bottle size for all its variants.

“[The industry] cannot support forever lowering its prices with maintaining brand value – people start to question value when they see offers for ‘buy one, get two free’.

“We must continue investing in brand building and brand quality – price is just a hygiene factor,” he says.

Earlier this year Britvic and PepsiCo launched a multi-million pound joint CSR push that sees all soft drinks they sell represent a 1cm2 (squared) piece of land that will be “transformed” into football pitches, parks, playgrounds or skate parks.

At the time of launch, Britvic said the campaign would help to transform the “visibility and credibility” of its brands in a highly competitive market.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here