Bottles of Diet Pepsi, Pepsi Max, 7Up Free and Tango will be increased in size from 500ml to 600ml, in a bid to boost interest in the Pepsi brands, which are distributed in the UK by Britvic. Full sugar Pepsi and 7Up bottles will reman in 500ml sizes.
The move is a permanent change to the UK on-the-go market and will also see the introduction of the new Pepsi logo in the UK. Britvic Soft Drink’s senior brand manager for Pepsi, Noel Clarke, says the move will offer “bigger and better value”. The distibutor has set a recommended retail price of 99p.
The launch of its new 600ml format will be supported by a multi-million pound marketing campaign. From April, a fully integrated five week national TV ad and a two week outdoor ad will run with digital advertising to drive mass awareness. Further point of sale, price marked packs and cash and carry promotions will be run from June, along with 3 million money-off coupons.
The aim of the new packs is to encourage consumers to make a savvy switch to no sugar variants with the same great taste, promoting healthier lifestyles.
The launch comes off the back of researchthat found that the new 600ml format highlights an increase in consumer purchase intent for a 600ml product, with consumers stating that they were 84% more likely to purchase the new range of 600ml bottles ahead of existing products.
Marketing efforts will play on the ideas that “size does matter” and “we’re giving you more” in an effort to force increased awareness. Consumer advertising will be backed by a heavyweight trade-focused campaign, including targeted press ads. AMV.BBDO and Euro RSCG KLP have helped with advertising efforts.
The company estimates the profit oppotunity for retailers is around 46% through the launch of 600ml bottles, which are already available in countries including Australia, India and Canada, and maximise competition with its rivals
Clarke says: “The new 600ml format will play a major role in reinvigorating the on-the-go carbonates category and presents an excellent opportunity for retailers to make bigger profits from Britvic’s great range of carbonated soft drink brands. Pepsi Max, Tango and 7Up already command a higher rate of sale than other similar brands in the market and consumer research shows that the move to the new larger size format will grow this further. Consumers prefer the new 600ml range for its great value and better fit with their lifestyles and it is set to become a must-stock for all on-the-go outlets ranging from convenience stores and forecourts to workplace canteens and coffee shops.”
“We’re really excited about the new range of products and looking forward to consumers and retailers finding out for themselves that when it comes to soft drinks: size really does matter.”
Garrett Quigley, CEO, Pepsi-Cola UK & Ireland, adds: “We’re set to shake up the category with this new pack format. By offering even greater value on our no-sugar variants, Pepsi Max, Diet Pepsi and 7Up Free, we want to encourage consumers to make a savvy switch to our no sugar varieties, as part of a healthier lifestyle choice.With this launch, we are reshaping the cola category. By offering better value on Pepsi Max and Diet Pepsi, we are shifting consumer preference and making it easier to switch from regular soft drinks to our no-sugar colas.”
“This latest initiative is a nudge in the right direction for our consumers. We want to use our influence in the marketplace to encourage consumers to go for no-sugar options, as part of a healthier lifestyle.”
Since 2004, the UK business has spent no money on advertising full-sugar Pepsi in the UK. During the same period, Pepsi UK has invested over £20million in marketing Pepsi Max and Diet Pepsi in the UK. Pepsi Max has over the last few years driven growth in the cola category – growing 20% in 2009 alone.
Yesterday, PepsiCo revealed that it earned $1.43bn (£0.91m), in the fourth quarter, up from $719m (£458m) a year earlier. This helped to increase full-year profits by 16%, driven by healthy gains in its international beverage and worldwide snacks businesses.