Cordials and Squashes - UK - October 2013
“Health should be near the forefront of producers’ strategies, appealing to not only health-conscious adults but also those looking for suitable soft drinks for their families.”
Chris Wisson, Senior Drinks Analyst
Some questions answered in this report include:
How can cordials/squashes tap into the lucrative on-the-go occasion?
Which factors can producers use to offer added value?
How can cordials/squashes grow in the on-trade?
Can cordials/squashes leverage the functional message?
The cordial and squash market’s associations with refreshment and reliance upon the weather became evident in 2012 as the market saw sales decline, particularly in the on-trade. The warm summer of 2013 has rejuvenated the market’s fortunes, with sales returning to growth and expected to reach £772 million as hydration became the watchword for consumers. Meanwhile, volumes continue to decline largely due to the growing popularity of double concentrates.
The category’s strong associations with family use, healthiness and value for money have helped cordials/squashes to remain a regular feature in shopping baskets. Double-concentrate variants have emerged as a lucrative extension for brands in recent years, being seen widely as better value for money than single concentrates by users. Flavour innovation has scope to keep engagement high in the coming years and help to boost value sales.
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 1:8 ratio.
Cordials tend to have a thicker consistency than squashes and require more water to dilute, typically with a ratio of 1:10. They tend to be made from natural ingredients, eg fresh fruit and no additives. 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 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, these figures can paint a confusingly negative picture of volumes, as the switch to more concentrated variants has seen volume sales decline, while the higher dilution ratio of these allows the consumer to make twice the number of servings per bottle.
Juice drinks which are defined as ready to drink (RTD) and carry the same brand names as cordial and squashes, eg Ribena, are excluded from the market size.
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