News

SDI 2012: Private label "threat" to soft drinks brands

Most popular

just-drinks speaks to Beam Suntory CEO - Part II

just-drinks meets Beam Suntory CEO Albert Baladi

Lift our heads out of our drinks - Trends

What does the future hold for Champagne? - Focus

Why drinks companies will struggle to break Gen Z

MORE

Global retailers, such as Tesco, will become an increasing “threat” to international soft drinks brands as consumers turn to own label products, an expert has warned.

//i2.aroq.com/1/95663925.jpg

Speaking at the Soft Drinks International Conference in central London today (17 May), Andrew Dixon, Canadean's global commercial director, said that “private label” brands will look to take on corporate brands, pointing out that last year 25% of Tesco's business was from international markets.  “Private label is starting to eat into international brands and we see that as a threat,” said Dixon. 

He added: “There's a big opportunity for the retailers and as they expand, they will take their private label offering with them as well.”

However Dixon said it was not always about “better value” for consumers and suggested indulgence was more important than health for many, as evidenced by the success of the confectionary industry during the global downturn.  He said despite the drop in volume consumption in Western Europe and North America, there was still a lot of value in the marketplace. “Value, value, value, it's not just about volume,” he said. 

On emerging markets, particularly Asia, Dixon said China was a "key" region, even though it as an ageing popualtion. 

Meanwhile, Ratna Sita of Euromonitor International suggested growing consumer concerns over ageing and obesity are likely to drive further innovation in the soft drinks market as volumes drop in developed markets.

In North America, she said products that address “weight management” would prosper, while in Western Europe the “ageing process” was of interest to consumers. “Health and wellness products have even done well in the recession years,” she said.      

Innovations in packaging such as PET bottles and pouches would also drive growth, she added. 


Sectors: Soft drinks

Related Content

Why the soft drinks category is trapped in a plastic corner - Sustainability Spotlight

Why the soft drinks category is trapped in a plastic corner - Sustainability Spotlight...

How can organic juice grow its share of the global soft drinks market? - Research in Focus

How can organic juice grow its share of the global soft drinks market? - Research in Focus...

UK drinks producers risk rules of origin 'Hard Brexit' - research

UK drinks producers risk rules of origin 'Hard Brexit' - research...

Plain packaging - A clear and future danger to drinks? - Focus

Plain packaging - A clear and future danger to drinks? - Focus...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?