Cordials and Squashes - UK - September 2014
“There is potential for energy drinks brands such as Red Bull or Monster to enter the super-concentrate market. These brands are likely to hold more resonance among young consumers than more family-oriented brands such as Robinsons.”
– Emma Clifford, Senior Food Analyst
This report covers the following issues:
- Cordial and squash brands can look to added functionality to boost their appeal
- New packaging designs could shake up the squashes/cordials market
- Cordials should expand their ranges to tap the on-trade market more effectively
The performance of the cordials and squashes market is influenced by the weather, as with many other soft drinks categories. Following the washout summer of 2012, the exceptionally hot, dry summer of 2013 saw the market value return to growth, albeit by just 1% year on year. However, value sales of cordials and squashes are expected to fall by 2% year on year to £724 million in 2014.
One of the key trends impacting the market in the last year has been the emergence of super-concentrates, with a handful of big-hitting brands now operating in this space. Pocket-sized and designed to be easy to use anytime and anywhere, these mine the on the go trend, which is evident in many areas of the food and drink industry.
While health concerns are nothing new, the sugar debate escalated in 2014 and put this issue firmly in the media spotlight. While this debate is damaging to standard squash, scepticism over the artificial sweeteners in low-sugar variants means these are not seen as a clear-cut healthier option. This has created sizeable demand for squashes made using natural sweeteners, with seven in 10 users expressing an interest in such products.
For the purposes of this report, Mintel has defined the market for squashes and cordials in the following two ways:
- A standard squash is typically a drink requiring dilution in the ratio one part concentrate to four parts water, whereas a double concentrate dilutes in a one-to-eight ratio.
- Cordials tend to have a thicker consistency than squashes and require more water to dilute, typically with a ratio of one to 10. They tend to contain no preservatives, and often require chilled storage once opened. Brands include Bottlegreen and Belvoir.
However, this report analyses squashes/cordials together, across the UK market, which is divided into two main channels:
- Take-home includes sales through all supermarkets/shops where the cordial/squash is bought concentrated and has to be diluted to taste off-premise.
- On-premise refers to when squash/cordial is bought diluted ready to drink at pubs, bars and restaurants/cafés.
Value figures are at RSP (Retail Sale Price), ie not that of wholesalers, and therefore include VAT.
Volume figures are in litres. Due to the arrival en masse of double-concentrate variants from 2008 onwards, and super-concentrated squash in 2013 and 2014, these figures can paint a confusingly negative picture of volumes. The switch to more concentrated variants has seen volume sales decline, while the higher dilution ratio of these allows the consumer to make a higher number of servings per bottle.
Juice drinks which are defined as ready to drink (RTD), including ones that carry the same brand names as cordial and squashes, eg Ribena, are excluded from the market size.
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