Why soft seltzers are making a big splash

Flavoured sparkling water is bubbling up. Its value is rising faster than other water types, having grown by 14.8% to hit take-home sales of £135m [Kantar 52 w/e 27 November 2022].

While units shrank by 4.4%, Kantar says flavoured sparkling is attracting new shoppers who are prepared to pay more. That’s good, because it’s pricier than standard water, at 77p a litre.

This is partly because flavoured water naturally commands a premium. And partly because brands are driving that growth. Branded sales have risen 17.8% to £65.2m on volumes up 12.7%, with prices averaging £1.57 a litre.

That’s triple the own label price of 52p a litre. And while own label flavoured sparkling lines grew 12.2% to £69.5m, units fell by 8.7%.

Britvic commercial director Ben Parker says brands are catering to shoppers “on the lookout for refreshing options to take home or on the go”. That has made infused water “the fastest-growing segment” in hydration.

Britvic’s soft seltzer Aqua Libra has been key, he adds. “With its consumer base being both younger and more affluent, growth has been driven by strong online performance and increased distribution.”

Rivals such as Dash Water report similar success, but warn of consolidation in the category. “Grocers are looking to reduce the number of seltzer brands to grow space for the best ones,” says Dash Water head of brand Georgie Bolton Carter.

She claims retailers are switching out poorly performing seltzers in favour of more Dash lines. “The category is going through a period where there are clear category winners the grocers are getting behind.”

That is one perspective, at least. “Although canned seltzers have grown from a small base in the market, they are still a relatively small part of the category,” notes Susanne Wright, marketing and strategy director at Clearly Drinks.

Initial market interest was strong, she adds, but launches have lately “lost significant distribution” as shoppers choose full-flavoured products instead.

One example is Ugly Drinks. Launched in 2016 and backed by BrewDog co-founder Martin Dickie, it withdrew from the UK in 2021. Alongside Cott’s La Vie and Barr’s Le Joli, it shows the risk of falling flat in this emerging category.