FDBusiness.com

Confidence is Rising in Europe’s Commercial Beverage Market

 Breaking News
  • Younger British Consumers Turn Over a New Leaf on Tea New research from Mintel reveals that as many as 37% of British consumers aged 25-34 have drunk 5-6 different types of tea at home or in the workplace over the past month*, compared to just 3% of those aged 55+. Furthermore, Brits aged 25-34 are the most likely to drink every variety of tea tracked by [...]...
  • Irish Consumer Confidence Hits New High Consumer confidence in Ireland has hit its highest level since the recession and is now the fourth most confident country in Europe, according to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions. The Republic of Ireland’s Consumer Confidence Index score – which measures attitudes each quarter on topics including personal finances and job prospects [...]...
  • Fifth Acquisition For Frutarom in 2017 Frutarom Industries, one of the world’s 10 largest companies in the field of flavours and natural specialty fine ingredients, continues its momentum of acquisitions and the implementation of its rapid and profitable growth strategy by agreeing to purchase of 100% of the shares of the UK company Flavours and Essences (UK) Ltd (F&E) for approximately [...]...
  • Market-leading Food Contact Conference, Plastics & Paper in Contact with Food – 4-7 December, Berlin Over 200 experts from across the food contact industry will come together in Berlin, Germany from 4–7 December 2017 to attend Smithers Pira’s Plastics & Paper in Contact with Foodstuffs (P&P) –http://www.food-contact.com/plastics-paper. With the European Commission having recently published EU regulation 752/2017 amending EU Regulation 10/2011 on plastic materials and articles intended for food contact, all [...]...
  • Croxsons’ Stunning Black Bottle For 6 O’Clock Gin’s Limited Edition Debut Leading glass packaging company Croxsons has supplied Bristol based distiller, 6 O’Clock Gin, with a stunning black bottle for their first limited edition gin product – the Brunel Edition. Since Bramley & Gage’s partnership with Croxsons for the re-launch of their 6 O’Clock gin, the Brunel Edition is the first limited edition gin for 6 O’Clock [...]...
  • Carlsberg Group Remains on Course Carlsberg Group has announced organic and reported net revenue growth of 2% to DKr31.77 billion (€4.27 billion) for the first half of 2017 although group beer volumes fell organically by 3%, chiefly due to a decline in Russia. Operating profit was up 15% organically, with all three regions – Western Europe, Eastern Europe and Asia [...]...

Confidence is Rising in Europe’s Commercial Beverage Market

Confidence is Rising in Europe’s Commercial Beverage Market
June 30
11:43 2016

Although an early Easter was anticipated to boost European beverage sales in the first quarter of 2016, the general downward trend currently being observed in commercial beverage consumption was actually curtailed by the warmer-than-average weather which swept across the region over the period, according to leading market research firm Canadean.

According to the company’s latest Quarterly Beverage Tracker, both West and East Europe recorded flat performances versus the corresponding quarter of 2015.

Whilst not all of the economic news is positive, there are signs that some of the major European beverage markets are in more reassuring territory, with improving GDP growth projections, falling unemployment levels, and low interest rates raising consumer confidence and making for a more favorable spending environment. In East Europe, however, the ongoing economic and political upheaval in Russia and Ukraine has served to depress the regional average growth in beverage consumption, with Turkey’s muted performance also contributing as its economy and important tourism sector suffer from the latest violence.

Against this backdrop, the quarter saw increasingly aggressive pricing and promotional tactics, including sustained special offers and multi-pack promotions by the branded players in many markets. Antonella Reda, Product Development Manager at Canadean says: “This dampened opportunities for private label, but it was noticeable that brand loyalty was weakest in categories with a more commodity image such as packaged water and juice, or where the presence of discounters such as Lidl and Aldi is strong and they are offering branded products.”

Packaged water was the key driver of European soft drinks in quarter one, supported by the favorable weather and growing propensity for healthy hydration. Hot drinks were in danger of being depressed by the warmer temperatures, but the rising profile of hot coffee on the back of the coffee shop boom helped to sustain sales.

Dairy drinks saw contrasting results across the two regions, with the decline in white milk in West Europe, despite very low farm gate prices, disguising gains in flavoured milk and drinking yogurt driven by increasing innovation. Antonella Reda explains: “Dairy producers are looking to compensate for falling white milk consumption by tapping into the trend to convenience and added value products.”

In East Europe, the heaviest contraction was seen in other alcoholic drinks, attributable to the swingeing tax increases on spirits in Russia and the Ukraine.

Looking forwards, Canadean expects 2016 commercial beverage consumption in East and West Europe to remain on a par with 2015. Soft drinks and, in West Europe, beer, will be the main providers of incremental volume, buoyed by the European football championships and the Olympics. Promotional activities focused on these events by the major soft drinks and beer producers are already being witnessed, both in advertising and on packs.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements