Cordials - UK

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2008 - 87 Pages

Table of Contents

Issues in the Market

Definitions

Four key issues

Market in Brief

Price deflation hampers growth

Cordials forge ahead

Aversion to additives

A concentrated market

A positive outlook

Internal Market Environment

Key points

Health matters

Figure 1: Agreement with selected lifestyle statements, 2003-07

Additive aware

…but prepared to accept preservatives and sweeteners

Obesity and weight control

Figure 2: Current and projected levels of obesity among UK children, by age and gender, 2003 and 2010

A functional future?

Broader Market Environment

Key points

Hot summers drive sales

Figure 3: Average summer temperature and total number of sunshine hours in the UK*, 2002-07

Advertising rules

Population is ageing

Figure 4: UK population changes in age, 2002-12

...and upwardly mobile

Figure 5: UK Population changes by socio-economic group, 2002-12

The labelling debate

Competitive Context

Key points

Super fruits

Taste advantage

Product detachment

Squashes and cordials in context

Figure 6: Competitive markets to squashes and cordials, 2008

Strengths and Weaknesses in the Market

Strengths

Weaknesses

Market Value and Forecast

Key points

Market struggles to find growth

Figure 9: Volume and value sales of squashes and cordials, 2003-08

Figure 10: Sales of cordials and squashes, 2003-07

The future

Forecast

Overall market continuing to struggle

Figure 11: Volume and value of total UK squash and cordial market, 2003-13

Squash market to fall under the £400m mark

Figure 12: Volume and value of UK squash market, 2003-13

Still niche but growing…

Figure 13: Volume and value of UK cordial market, 2003-13

Factors used in the forecast

Segment Performance

Key points

Squashes

Figure 14: Volume and value sales of squashes, 2003-08

Volume

Value

No added sugar continues to grow

Figure 15: Volume sales of squashes by type, 2006-07

Blends take increasing share

Figure 16: Volume sales of squashes by flavour, 2006-07

Cordials

Figure 17: Volume and value sales of cordials, 2003-08

Volume

Value

Elderflower is favourite cordial

Figure 18: Volume sales of cordials by flavour, 2006-07

Market Share

Key points

Robinsons take largest share

Figure 19: Market share for squashes and cordials, 2006-07

Ribena struggles with identity

Vimto holds its own

Cordial brands give mixed performance

Own labels

Product Positioning

Squashes

Figure 20: Price per litre of squash brands, 2008

Cordials

Figure 21: Price per litre of cordials, 2008

Companies and Products

Company profiles

Brand map of manufacturers and brands

Figure 22: Map of manufacturers and brands in the squashes and cordials market, 2008

Britvic

Belvoir Fruit Farms

Bottlegreen

GlaxoSmithKline

Nichols

Vimto

Belgravia & Tobago

Princes

Coca-cola

Duchy Originals

Rocks Organic

Thorncroft

Pixley Berries

Meridian

Healthy Food Brands

Brand Communication and Promotion

Key points

Ad spend dips

Figure 36: Main monitored media spend on cordials*, 2004-07

GSK dominates

Figure 37: Main monitored media advertising expenditure on squashes/cordials, by leading advertisers, 2004-07

Seasonality

Figure 38: Main monitored media spend on cordials, 2006-08

Channels to Market

Key points

Figure 39: Distribution of squashes and cordials, 2005-07

Grocery multiples dominate supply

Co-ops and independents lose out

Consumer - Who: Usage and Frequency?

Key points

Consumption of cordial/squash

Figure 40: Trends for frequency of fruit cordial/squash drinking, 2003-07

Heavy users remain loyal

Usage decreases with age

Figure 41: Frequency of consumption of fruit squashes and cordials

Usage and health

Figure 42: Usage of fruit cordial/squash crossed by health/diet lifestyle statements, 2007 (column)

Health concerns hold back consumption

The Consumer - Children’s Drinking Habits

Key points

Figure 43: In-home drinking habits of children and teenagers

Figure 44: Drinks drunk by 11-25-year-olds once a week, March 2008

Hydration and health

Squash gets squeezed out

Figure 45: Top five drinks drunk by 11-25-year-olds once a week by age, March 2008

Female bias increases with age

Appendix

Abbreviations

Appendix - Internal Market Environment

Figure 48: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Figure 49: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Figure 50: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Figure 51: Agreement with selected lifestyle statements, by demographic sub-group, 2007

Appendix - Consumer - Who: Usage and Frequency: Detailed Demographics

Figure 52: Frequency of drinking fruit squashes/cordials (in past 12 months) by demographics, 2007

Figure 53: Type of fruit cordial/squash that consumers drink most by demographics, 2007

Appendix - The Consumer - Children Drinking Habits: Detailed Demographics

Figure 54: Drinks drunk by 11-25-year-olds once a week, March 2008

Figure 55: Drinks drunk by 11-25-year-olds once a week, March 2008

Figure 56: Drinks drunk by 11-25-year-olds once a week, March 2008

Abstract

Sales of squashes and cordials were valued at £435 million in 2007 - 6% lower than in 2003 - due to deflationary price pressures and a sluggish volume performance.

The dominant squash sector has struggled to compete with ‘healthier’ juices and juice drinks, but, following reformulations to exclude artificial colours and flavours, is well placed to offer a more affordable alternative. Questions surrounding the environmental impact of drinking bottled water also offer manufacturers the opportunity to position squash diluted with tap water as a more sustainable alternative.

The far smaller cordials sector has enjoyed impressive rates of growth as discerning consumers have been attracted by superior flavours and premium, natural ingredients. Sales value increased by 50% during 2003-07 to reach £12 million.

Key report topics:

• Impact of price deflation
• Removal of artificial colours and flavours
• Greater use of artificial sweeteners
• The future growth of cordials

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