nisi Lemonade (Blueberry)

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There’s lots to play with from an economic perspective in soft drinks in terms of price and value. And brands like Pepsi and Coca-Cola have fantastic ranges covering all formats and price points. We are likely to see more,” confirms Britvic’s Graham. “However, I do expect the level of inflation to drop broadly, because we are starting to lap the higher prices of the previous year. Inflation will persist but the price moves will be lower than in the past 16 months or so.” One that they needn’t worry too much about is the implementation of HFSS rules in October. This had a muted impact on soft drinks, which had already begun the process of reformulating and focusing on low-sugar options ahead of the sugar tax hitting the industry in 2018. The answer to this lies in the difference between the UK and US versions of a soda. For example, Coke is often sweeter in the US than it is in the UK due to differences in ingredients used.

Among factors are “unfavourable weather conditions in Brazil”, which have hurt the country’s orange production levels. Whether it’s the sound of fizz escaping as you open the lid, or the wholly anticipated ‘Ahhh’ moment after you take your first sip - there’s something special about fizzy pop that sparks memories of pure joy. That’s why at Iceland, we’re so dedicated to providing our signature value across all your favourite flavours, including cola, lemonade, orange and fruit-infused. Clearly there are limitations to how much brands can use shrinkflation, though. And there are further pressures on the horizon. The soft drinks sector is also having to contend with regulatory developments that could complicate matters.Things aren’t much better in Europe’s apple juice market, where spot prices are elevated due to higher energy, labour and transport costs. Further evidence of downtrading across grown-up soft drinks can be seen in value growth for bargain stores (40.9%), Iceland (40%), Lidl (15.4%) and Aldi (10.5%). Such problems may well get worse. According to a Rabobank report from March, hedges that have protected beverage companies from input cost inflation are now running out, as are savings that households may have dipped into over the past year.

Food and drink inflation hit a 45-year high of 19.2% at the end of March [ONS]. One in four British shoppers say they are struggling financially [Kantar]. In response, they’re switching to cheaper own label products in record numbers. The UK version uses high fructose corn syrup as its primary sweetener, while the US version relies on sugar cane and beet sugar for sweetness. Sugar Cane In fact, EU apple prices have grown since October 2022, “despite forecasts of higher production for apples for the 2022/23 marketing year”, the Mintec spokesman says.Shifting around production facilities is less of an option for other areas of the sector, though. This is particularly true for suppliers of bottled water, which frequently trade on their provenance. These are typically non-alcoholic and sweetened with sugar or artificial sweeteners. Why does soda taste different in the UK? Some, like Fanta, Monster and Red Bull, are up by double digits in value and volume. Meanwhile, unit sales of own label carbonates fell 10.5% last year [NIQ 52 w/e 10 September 2022].

Not only is it popular for its original flavour, but also for its wide range of flavours such as Vanilla, Cherry, Diet Coke, Coke Zero Sugar, and more.

What is America’s soda?

That’s why we’re so dedicated to providing our signature value with soft drinks offers across all your favourite flavours, including cola, lemonade and orange. Some brands are looking at innovative means of reducing their cost bases. Belvoir, for example, has installed solar panels at its Leicestershire facility to help lower the company’s carbon footprint and offset the soaring cost of energy. In recent years, 250ml cans and bottles have also become increasingly common currency for brands such as Coke and Pepsi.