Britvic Soft Drinks Britvic House Broomfield Road Chelmsford, Essex CM1 1TU Tel: 0845 7550345 Fax 01245 267147 Website: www.britvic.com KEY CONTACTS Sales and operations director Paul Moody Leading soft drinks supplier, Britvic Soft Drinks, is using its recently launched Right Choice category management programme to help retailers make the most of the profit opportunity available in the soft drinks category. If all retailers put the Right Choice strategies into action, Britvic believes they could add another £400 million revenue to total soft drink sales. Grocery Within the grocery channel, it identifies five key areas of opportunity and example strategies for each.. Adults In two years time, consumers over the age of 35 will make up 56% of the population. Increasing the consumption of 10% of adults over 35 by one additional glass per week would add £28million to the category. - Use point of sale to highlight availability of adult products in store. - Stock new products designed for their needs. Kids Children have direct control of £1.5billion consumer spending and respond strongly to brand image. Increasing kids' consumption by one more glass every week would add £97million to the category. - Stock packs which are easy for children to use, suitable for a range of occasions, such as lunch boxes. Conversion Forty-six per cent of consumers run out of soft drinks at home. Whilst the average household shops 36 times a year, soft drinks are only purchased on one shopping trip in three. Increasing the number of soft drinks purchasing occasions by one visit per year would add £53 million to the category. - Make buying as easy as possible, for example use front of store displays to convert category buyers to buy on every shopping trip, even if they don't go down the soft drinks aisle. Buy more When consumers buy more, they drink more. Increasing the value of the average transaction size of £2.29 by 5% would add £96 million to the category. - Encourage buyers to buy more soft drinks on each store visit by providing space in seasonal aisles for big packs, eg 2x2 litres, multipack cans. Immediate conversion Although the grocery channel accounts for 29% of the value of the total immediate consumption market, only one visit in seven includes such a purchase. Increasing purchase by one store visit in six will add £44million. - Offer consumers the right range, including products from at least four sub categories, eg colas, fruit drinks, water and flavoured carbonates and promote lunchtime meal deals. Impulse Within the impulse channel, Britvic suggests three key areas in which to increase profits on soft drinks. Immediate conversion Believe it or not, only 7% of shop visits involve a soft drinks purchase, so make sure that customers buying other products also take the opportunity to buy a soft drink. - Make sure the cooler is in a high traffic area, not at the back of the shop. - Put soft drinks next to products like crisps and confectionery to make the most of impulse purchase. - Have a good range of the best selling brands like Pepsi, Tango and Robinsons in stock. - Use manufacturers' planograms. - Make sure all soft drinks are cold and install another cooler if more chilled space is required. - Take advantage of POS and promotional activity. Future conversion Forty per cent of products bought in impulse stores are for home consumption. To make the most of the opportunities Britvic recommends: - Stock best selling, fast moving brands in large formats like 2 litre PET and multi pack cans. - Use a secondary display such as a bottle stand to ensure customers know these packs are available. - Have some chilled 2 litre product so customers can drink it as soon as they get home. - Place the larger packs next to other products used at home, for example family sized bags of crisps. Trade up Customers will drink more if it is available in larger sizes. Make sure that customers who already buy soft drinks on impulse to drink immediately buy the largest pack or buy a premium priced product. - Stock a full range of 500ml PET. - Capitalise on extra free' promotional activity such as the Pepsi 600ml pack. - Encourage customers to make quality purchases at a premium price to maximise your cash margin. - Make soft drinks a part of your seasonal promotions, eg Christmas and school holidays. {{Z SUPPLEMENTS }}