Soft drink volumes fall three per cent

Soft-drink sales have withstood tough conditions and recorded slight growth in the on-trade, according to Britvic's annual report into the category's performance.

Soft drinks outperformed ale, lager and stout with one per cent value growth to £2.8bn, though volume fell by three per cent, suggesting that consumers are trading up.

Cola remained both the largest and the best-performing soft drink in pubs, with sales growth of nine per cent to £987m and three per cent volume growth. Pepsi was the top-selling brand for the second year running, ahead of Coca-Cola.

Murray Harris, customer management director, said: "2010 was another a tough year for UK consumers, but soft drinks remained resilient. Although people were watching their pounds, they were still willing to spend a comparatively small amount on a soft drink."

Paul Linthwaite, director of on-premise at Britvic, said: "The on-trade continues to be a challenging trading environment. The inclement weather certainly had a negative impact of on-trade sales, particularly for destination pubs.

"There's always demand for innovation. This year our focus will be on investing in reviving J20, which now requires a level of re-energising, with point-of-sale, bar towels, glassware, and TV advertising."

Lemonade was again the second-biggest sub-category for pubs, with sales up six per cent in value. Flavoured carbonates grew five per cent. However, sales of energy drinks fell, with a five per cent decline in value and 10 per cent drop in volume.

Soft drinks on draught grew three per cent in value, whereas packaged soft drink sales declined by 1.5 per cent. Britvic continued to command five of the top 10 best-selling brands in the on-trade, including R Whites, J2O and Britvic Pure Juice Mixers.