New Drinks Category Introductions in European Forecourt Retailing

Published by: Datamonitor

Published: Mar. 5, 2008 - 34 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

SOURCES

ANALYSIS

The energy-replacing nature of functional drinks make them highly appropriate for retail within forecourt shops

In the majority of European markets, growth in sales of functional drinks through service stations have outstripped that of convenience stores

Sales of functional drinks through service stations are forecast to be strongest in Portugal and Belgium

Within functional drinks, nutraceutical drinks are predicted to grow at the strongest rates

Demand for an energy boost is likely to be accentuated amongst motorists

Forecourt retailers should stock functional drinks products which promote well-being

Smoothies should be stocked by forecourt retailers as they provide motorists with a healthy, fresh snack on-the-go

The growth of smoothie sales has been particularly strong in the UK

Forecourt sales of smoothies are expected to grow at the fastest rates in the UK, Belgium and Italy

Fruit-based smoothies are forecast to grow at around four times the rate of dairy-based smoothies

Smoothies offer service stations a strong opportunity to benefit from the increase in healthy on-the-go drinking occasions

Given their limited shelf space, forecourt retailers should focus on the best known brands

Fuel retailers should seek to benefit from the growing popularity of premium hot beverages

European forecourt retailers are placing a growing focus on hot beverages

Some fuel retailers have launched premium private label hot beverage offerings

Fuel retailers should not neglect carbonates, as despite their weak growth, they still account for the majority of soft drinks sales

The strongest growth in forecourt sales of carbonates is predicted to be in Belgium, Ukraine and France

Of the main types of carbonates, sales of diet cola are expected to grow at the fastest rate

Forecourt retailers can generate growth from carbonates by focusing on healthier options

Across Europe there are numerous examples of 'healthier' carbonated beverage launches

Forecourt shops offer a strong retail platform for bottled water as it is consumed throughout the day

In Western Europe, sales of bottled water through service stations have been growing at a quicker rate than convenience stores

Going forward, forecourt sales of bottled water are forecast to experience the strongest growth Belgium and France

Still flavored water is predicted to continue its robust growth over the next four years

Due to the large amount of space required to store bottled water, forecourt retailers need to be innovative with storage

Manufacturers have launched a number of products to 'de-commoditize' bottled water

APPENDIX

Definitions

Methodology

Product selection

Sales of fruit-based smoothies have been growing at a rapid rate across Europe

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Figures

Figure 1: Service station sales of functional drinks have grown at a quicker rate than sales through convenience stores

Figure 2: Sales of functional drinks through Portuguese service stations are expected to grow at 12% annually

Figure 3: At the European level, nutraceutical drinks subsegment is expected to grow at an average annual rate of 5%

Figure 4: The sugar-free variant of Red Bull

Figure 5: The Vitaboost Activator

Figure 6: In the UK, sales of smoothies through service stations increased at an average annual rate of 50% between 2000 and 2006

Figure 7: Sales of smoothies through UK forecourt shops are expected to grow at an annual rate of 60% between 2006 and 2011

Figure 8: At the European level, fruit-based smoothies are expected to grow at an average annual rate of 25%

Figure 9: Healthy on-the-go drinking occasions across Europe are expected to grow at an average annual rate of 3.5%

Figure 10: Innocent's superfoods smoothie

Figure 11: Traktor Getraenke's mango and passionfruit smoothie

Figure 12: Sales of carbonates through convenience stores have grown at a quicker pace than through service stations in Western Europe

Figure 13: Sales of carbonates through Belgian service stations is predicted to grow at an average annual rate of 12%

Figure 14: On a year-on-year basis, European sales of diet cola are expected to grow 0.5% higher than regular cola

Figure 15: In Europe, 94% of respondents believed that carbonates are either very unhealthy or unhealthy

Figure 16: Coca-Cola's Light Plus

Figure 17: Organic drink from Bionade

Figure 18: The Bononi Vital-Drink

Figure 19: Between 2000 and 2006, UK sales of bottled water grew at an average annual rate of 12%

Figure 20: Belgian sales of bottled water through service stations are forecast to grow at an annual rate of 14%

Figure 21: At the European level, sales of still flavored water are expected to grow at an annual rate of over 7% between 2006 and 2011

Figure 22: In the UK bottled water can occupy half of service stations' fridge space

Figure 23: It is common to see the shop floor being used to store bottled water

Figure 24: All of the profits from 'One water' go to charity

Figure 25: Groupe Danone's Vitalinea

Figure 26: At the European level, fruit-based smoothies have been growing at the quickest pace

Abstract

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