Focus on soft drinks: Giant leaps

Soft drinks have a problem. With the health lobby claiming efforts to get us to switch to healthier versions of sugary pop have so far amounted to small steps at best, the sector is struggling to reinvent itself fast enough.

Pop has lost out to a wide range of rivals, with 1.6% value growth hardly anything to write home about and volumes remaining flat. Bottled water has cashed in partly by marketing itself as a healthier alternative to carbonates and sports drinks; squash is soaring thanks in part to innovative new formats; and now the next generation of functional, health-orientated and exotic drinks (including coconut, of course) is moving in.

So why the sluggish growth? How are the giants fighting back? And what are now the brightest stars in the soft drinks firmament?

As in other categories, the economy - and in particular the low growth of the big four and the stellar performance of the more limited (and cautious) discounters - continue to be a huge challenge. That’s not all: the renewed attack on sugar since the start of the year is having a material impact.

Just last month chief medical officer Dame Sally Davies called for an education programme on the risks relating to “calorie-packed” soft drinks. For some soft drinks players this has been an opportunity to be seized. Giles Brook, CEO of coconut water brand Vita Coco puts growth at 127% over the past year, for example.

And it’s accelerating.”In the last eight weeks since the anti-sugar media really gathered momentum, we’ve seen base rates increase by 21% against our normal index levels,” says Brook. “This is definitely down to the ‘sugar effect’ with more consumers choosing Vita Coco as a healthier alternative.”

Sugar-free

“Since the anti-sugar media gathered pace we’ve seen base rates increase by 21%…” Giles Brook, Vita Coco

No wonder carbonates players have been ditching the sugar from their recipes and pouring millions into marketing sugar-free variants of their key brands. And some have made giant leaps in driving sales of these ‘healthier’ alternatives, a feat that’s all the more impressive given the flat nature of the market at present.

Look no further than Coke Zero for a pop hero of the past year. The brand - marketed as a sugar-free cola with the same taste as its sugary stablemate and now being backed by the Just Add Zero TV ad campaign - has enjoyed growth of 20.5% on volumes up 21.2%, worth £15m in sales [IRI 52 w/e 1 March].

“We’ve had a strong year with Coke Zero,” says Caroline Cater, operational marketing director at Coca-Cola Enterprises (CCE). “Despite the fact the sparkling category is currently challenged, more than one million new households bought into Coke Zero in 2013 thanks to the extra focus we’ve given it.”

But even Zero has been overshadowed by sugar-free rival Pepsi Max, which has added £19.1m (10.6%) to its top line in the past year on volumes up 7.6% [IRI]. Max was aided by the launch of 600ml bottles with flashes highlighting the fact the format is 20% bigger than 500ml bottles in January 2013, and marketing tie-ups with street magician Dynamo and The X Factor throughout the year.

Getting down with the kids has been key for Max, says Jonathan Gatward, marketing director at Pepsi bottler and distributor Britvic, pointing to last month’s launch of a new social media campaign, complete with a new YouTube channel, inviting drinkers to upload videos of themselves achieving the ‘unbelievable’. “Opting for a low or no-sugar cola does not have to mean compromising on taste,” says Gatward. “That’s why we’re focusing on the two strongest messages: maximum taste, no sugar.

But not all ‘healthier’ brands are in such great shape. Despite a surge in ads, Sprite has nosedived since stevia was added to its recipe, cutting sugar content by 30%, in March last year. In the year to 2 February 2013, Sprite was down 6.4% on volumes down 7.3%; in the past year it’s slumped 9.4% and volumes fell 9.2%. A cut in deals hasn’t helped. Diet Coke has also suffered, down 2.4% on volumes down 3.8% [IRI].

Their poor performance adds fuel to claims the industry is not doing enough to wean drinkers off sugary pop in favour of something healthier. Nor does it help that standard Coke has enjoyed the joint-strongest absolute growth in carbonates of the past year (matched by Max), with sales up £19.1m; in percentage terms, Pepsi has enjoyed even stronger growth .

The industry can point to the fact that five of the 10 bestselling carbonates are now zero or low-sugar, with combined sales of £886.3m. However, their value has grown more slowly than the rest of the top 10 in the past year - 2.5% versus 3.3% - and volumes have grown more or less in line with the combined performance of their more sugary rivals, up 1.3% compared with 1.1% [IRI].

Nevertheless, lower-sugar versions of the big carbonate brands look set to remain a focus. For example, in January, CCE launched a raspberry & passion fruit Fanta variant that for the first time in the brand’s history uses stevia, bringing its calorie count per can to below 100.

Stevia

“When it doesn’t compromise on taste we will look to reformulate our drinks with ingredients such as stevia. The new Fanta is a mid-calorie product and has performed strongly in consumer testing with teens and mums,” says CCE’s Cater. As to Sprite’s poor performance, this is as much down to the competitiveness of the category, she adds, promising a ‘refreshment campaign’ for 2014.

CCE isn’t alone. “The whole industry is focusing on low-sugar and sugar-free variants,” says Adrian Troy, head of marketing at AG Barr. Sugar-free is proving one of the brightest spots, he adds: “Irn-Bru Sugar Free now accounts for 36% of our drinks sales and 45% of our sales in grocery.”

Bottled water

Cutting sugar content isn’t just vital in terms of appeasing the health lobby. With some predicting that bottled water will be worth more in sales than cola as early as 2017, it’s clear drinkers also want reassurance on health.

In 2013, value sales of bottled water rose 10.5% on volumes up 8.2% [Kantar Worldpanel 52 w/e 8 December 2013], well ahead of total soft drinks, and in the four weeks ending 20 July 2013 Nestlé Waters claims bottled water sold more volume in the total market than cola for the first time ever.

“Bottled water is now the fastest-growing category in the soft drinks market,” says James Cain, MD of Harrogate Water, which has spent £8m on a state-of-the-art bottling plant at its Harrogate factory, which will quadruple its output when it opens in May. “We’re seeing a significant shift in consumer behaviour. People are becoming disillusioned with sugary soft drinks as they become more aware of the importance of healthy hydration without the unnecessary calories, and bottled water provides the perfect solution.”

For Joanna Watling, marketing director at Aqua Pura, it’s clear which sector is suffering the most as a result of the boom in bottled water: “One of the most significant switches in the last year has been from carbonates to water, which represents an estimated £4m worth of sales to the market.”

It’s not just plain old H2O that’s sending sales of water sky high. Premium fizzy water brand San Pellegrino has successfully boosted sales by developing orange- and lemon-flavoured cans that contain more sugar than a can of Coca-Cola. Overall, sparkling flavoured water is up 6% on volumes up 2.7% [Kantar].

But it’s still flavoured water that’s making the most gains with value up 10.5% on volumes up 8.2% [Kantar]. Danone Waters, for example, says its Volvic Touch of Fruit and Juiced variants have been major drivers of the overall Volvic brand’s 17.5% growth on volumes up 15.2% in the past year [IRI]. A growing number of rivals are looking to cash in, too. Ethical water brand One Water will enter Holland & Barrett for the first time in May with its low-calorie, four-strong flavoured range of waters.

“People are disillusioned with sugary drinks and more aware of the need for healthy hydration” James Cain, Harrogate Water

“There’s a clear trend towards flavoured water,” says Troy at Barr, which relaunched its sugar-free Strathmore Twist sub-brand with new still and sparkling variants in February. Two further variants - raspberry & apple and orange & peach - were launched exclusively into Tesco in the same month. “We recognise we have a role to play in helping our consumers exercise choice in their calorie consumption and this is just one of a number of initiatives we are undertaking to achieve this with Tesco.”

Functional water

Bottled water is also benefiting from marketing that makes much of the functional benefits of water over other soft drinks, a trend that is also playing to the strengths of a glut of new products fortified with specific functional ingredients.

“There’s been a huge retailer focus on enhanced water offering vitamins and minerals” Maurice Newton, CBL Drinks

For example, zero-calorie, ketone-enhanced flavoured water brand Skinny Water has enjoyed success after winning shelf space for its orange and pomegranate flavours in 400 Tescos in January. “There has been huge retailer focus on enhanced waters that are often flavoured but in addition are offering consumers vitamins and other minerals,” says Maurice Newton, sales & marketing director at brand owner CBL Drinks.

CCE is looking to use the forthcoming World Cup, of which it is a major sponsor, to drive sales of functional flavoured water brand Glaceau Vitamin Water with a high-profile ad campaign and on-pack Shoot to Win promotion, offering the chance to win a trip to Brazil to watch a quarter-final match. “Glaceau Vitamin Water had a hugely successful Olympic year in 2012, when it grew 34%,” says CCE’s Cater. “We aim to build on this growth in 2014 by driving trial of the brand and encouraging repeat purchase.

With continuing negative press on soft drinks and the role they’re playing in our expanding waistlines, brands that can provide refreshment without the calories are booming. Even better if they can provide additional, naturally derived nutritional benefits. Enter the growing number of coconut-based products that are hoping to steal share from more conventional soft drinks.

“The coconut water market has developed enormously in the last five years and more people now choose to rehydrate and refresh the natural way instead of using water or chemical-based sports drinks,” says Per Nilson, product developer at Eau Coco, which launched in the UK in January in 1-litre Tetra bottles and 250ml cans.

“It’s low in calories, naturally fat and cholesterol-free, more potassium-rich than a banana and full of electrolytes. Drinking coconut water is nothing but advantageous. Coconut water is expected to be worth £100m in the UK by the end of 2015.”

Coconut water

There are two key factors driving this growth, say brand owners: growing health concerns; and the sheer weight of new products containing coconut water currently hitting the market. To maintain momentum, market leader Vita Coco, marketed on its ‘mega electrolyte’ credentials, is extending its range with a sixth flavour: lemonade. Even Levi Roots is getting in on act with the launch of the brand’s first still drink this month: Coconut Water ‘n’ Lime in 500ml on-the-go bottles.

Customers with a craving for coconut certainly will be spoilt for choice in 2014 as coconut water continues to break into the mainstream. Chi Coconut water has won a contract to supply own-label coconut water to Pret A Manger, accounting for 30,000 units a week during the summer. And in January Tropical Sun bolstered its drinks portfolio with the addition of 1-litre resealable bottles of 100% natural coconut water.

AG Barr is also hoping to reverse sliding sales of its Rubicon brand with the launch of coconut water this month. Value sales of Rubicon are down 1.3% on volumes down 11.3% [IRI], and Barr says the NPD is the first available at an ‘accessible price point’ (rsp: 99p/330ml) and will open up the coconut water market to all shoppers. “The UK’s coconut water market has grown fivefold in the last 12 months,” says Barr’s Troy. “However, it’s still very small as many consumers are priced out of the market at present.”

With the soft drinks aisle awash with new coconut offerings, manufacturers are busy identifying the next big health flavour. “Aloe Vera is set to become the next big drinks phenomena,” says Jag Singh, brand manager at Tropical Sun, which launched an aloe vera drink containing aloe vera gel, vitamin C and calcium in February. “Our aloe drink has already proved to be one of our fastest-selling NPDs of the last few years.”

This month Grace Foods launched a three-strong range of original, strawberry and mango-flavoured aloe vera drinks, which have secured listings in Tesco and Asda nationwide and will see aloe vera drinks merchandised in the supermarket soft drinks aisle for the first time. “We believe that ready-to-drink aloe vera has as much potential as coconut water in the UK and we’re delighted to be leading the way with innovative NPD,” says Giuseppe Vullo, brand manager at Grace Foods.

Natural energy

Ingredients such as aloe (rich in vitamins, minerals and fatty acids and one of the few plants to contain vitamin B12) and coconut (rich in calcium, potassium, magnesium and electrolytes among other health boosting properties) are chiming with the times partly because of the wider trend for ingredients perceived as more natural, rather than processed, in food and drink at present.

Another brand looking to tap this trend is Scottish fruit energy drink brand Super!Natural, which launched a combination of the juice of apples, blueberries and grapes, natural flavourings and caffeine from green coffee beans in March 2013, marketing the products as a 100%-natural carbonated energy drink with no added sugar.

“Our mission was to provide a new, natural alternative energy drink without high sugar levels and unwanted chemicals,” says Noeli Chambers, founder of Super!Natural, which has won listings in independents in Scotland and Whole Foods Market in Glasgow and London. “The response since we launched has been extremely positive.”

And they’re not the only ones combining coffee and fruit. Bottlegreen launched a limited-edition blackcurrant & coffee cordial in Waitrose in October. It is preparing to roll out the line to other retailers this autumn when the variant’s year-long exclusivity deal comes to an end, proof that the unusual combination has struck a chord with consumers.

“We believe RTD aloe vera has as much potential as coconut water here in the UK” Giuseppe Vullo, Grace Foods

“We believe this distinctive new line is the first cordial to be launched in the UK containing coffee,” says Bottlegreen’s Speers. “The blend of sweet intense blackcurrants and the complex infusion of dark roasted coffee delivers a delicious combination of flavours that will enthuse the palate.”

For those consumers not so enthused by such an unusual flavour combination, the NPD comes with a ‘taste guarantee’ neck collar, in which consumers can swap the bottle for an alternative Bottlegreen cordial flavour if they don’t like the taste.

The concept of more natural energy drinks often based on fruit juices is certainly gathering pace. The beginning of a trial of Tropicana Energy - a blend of juices with guarana, naturally sourced caffeine and vitamins - in Tesco late last year and the launch earlier this month of the Innocent Super Smoothies range, which includes an Energise variant fortified with guarana and flax seeds, suggests conventional energy drinks are facing competition from an emerging new sector.

Energy drinks

It’s important to note that energy drinks of the ilk of Relentless or Red Bull are primarily aimed at a much younger demographic than Innocent and Tropicana’s core target drinker, but any challenge to the sector will not be welcome at present.

In the past year growth in energy drinks, a key area of growth in total soft drinks for some years now, has slowed significantly, from 10.6% on volumes up 9.7% in the previous year, to 4.8% on volumes up 2.8% [Kantar]. While bright spots remain, the slowdown is a symptom of the market’s maturation, says Troy.

“Growth levels have dropped in sports & energy but that was always going to be the case at some stage,” he says. “It’s still the fastest-growing part of carbonates but the market is just maturing. People want more choice than the usual flavour varieties.”

Such NPD is striking a chord with consumers. Within three months of the launch of apple and bubble burst flavours of the Rockstar brand in January 2013, Troy says the new flavours established themselves among the company’s top five bestsellers, helping the brand’s value sales rocket an astronomical 78.2% on volumes up 81.4% [IRI]. This year Barr has added a fruit punch sugar-free variant to the range.

“The main trend driving the market is the ever-expanding range of flavours, which is becoming a motivating factor for shoppers,” says Neal Haworth, brand manager at No Fear Extreme Energy, which added a cherry flavour to its line-up in January and is preparing to launch a citrus variant in time for summer.

Distribution gains and ramping up functional claims in the marketing of Mountain Dew has helped the PepsiCo brand turn around the previous year’s dismal performance (value fell 11.8% on volumes down 12.7%) to deliver a value increase of 30.2%, on volumes up 26.1% [IRI].

The brand - bottled by Britvic - added extra caffeine, B vitamins and taurine to AMP Energy powered by Mountain Dew, launched in June 2013. “This is the perfect product to unlock the energy opportunity further, as it breaks down perceived barriers in the stimulant subcategory by being tasty, refreshing and yet effective,” says Gatward. The brand also became the first energy drink to launch a sugar-free variant in PET bottles in April 2013.

Sports drinks

While energy drinks have lost momentum overall in the past year, sports drinks have actually showed tentative signs of recovery.

Sales are still down 8.5% on volumes down 5.8% but that represents an improvement on the previous year’s 11.1% value decline on volumes down 13.9% [Kantar]. And while CCE’s Powerade may still be in deep water, having suffered a 33.7% decline on volumes down 36.8%, market leader Lucozade is back in growth, with its Sport and Energy variants in combined value growth of 6.3% and volume growth of 5.5% over the past year [IRI].

The Hydrates Better than Water campaign for Lucozade Sport has helped the sub brand avoid losing more share to the bottled water market over the past year, says new brand owner Suntory, which is now seeking inspiration from Brazil and the upcoming World Cup to motivate shoppers in 2014. In January, a Brazilian guava flavour of Lucozade Sport hit chillers, following the December launch of a mango & mandarin Energy variant, dubbed ‘The Brazilian’. The launches are backed by a £12m ad campaign.

“Flavour is at the top of the purchase decision hierarchy for soft drinks and the fastest-growing flavour profile is exotic, experiencing 10% year-on-year value growth,” says Lucozade brand development director Dave Stratton. “This has contributed to the successful launches of Lucozade Energy Caribbean Crush and Lucozade Sport Caribbean Burst, which is now worth over £7m.”

Squashes & cordials

Flavour innovation, particularly the development of drinks with more exotic ingredients, also goes some way to explaining squash & cordial’s strong growth in the past year. For example, Belvoir Fruit Farms added a coconut & lime pressé to its canned range in March after a year in which sales surged 42% on volumes up 37.1% [IRI].

“This is an exciting new route for us,” says Pev Manners, MD of Belvoir Fruit Farms. “This more exotic pressé recipe uses coconut water, which we haven’t used before. Sales of coconut water have been soaring, so it seemed like the perfect new ingredient for us to work with.”

Fellow posh squash brand Bottlegreen is also experimenting with coconut in the form of a mango & coconut sparkling pressé launched in the new year. “Consumers are keen to experiment with different and exciting flavour pairings,” says Simon Speers, MD of Bottlegreen Drinks, which has seen value sales climb 10.3% on volumes up 8.7% [IRI].”Glass bottled cordials are an emerging force within the soft drinks category.”

They certainly are. But many players in the category are pinning their hopes on an entirely new and innovative format for driving growth over the coming year: small, squeezable pouches that allow drinkers to pep up plain old water with a shot of super concentrated squash on-the-go.

Robinsons is hoping the new format will add pizzazz to its own sales - down 0.2%, on volumes down 8.2% [IRI] - after entering the water enhancement market with Robinsons Squash’d in March. The three-strong range of pocket-sized squash comes in palm-sized 66ml plastic bottles with capacity to make up to 20 separate drinks.

“We’re looking to transform the category with this,” says Ian Forshew, at-home commercial director at brand owner Britvic. “Innovation must be what consumers want, which is soft drinks that fit their lifestyle and on-the-go hydration, and Robinsons Squash’d is fit for purpose.”

Britvic is spending £5m on advertising the brand in 2014, including eight weeks of Robinsons Set Free TV ads from March encouraging consumers to drink Robinsons outside the home, and an online #getsquashed campaign, which includes an Oscar-winning special effects company making a glass of Squash’d at zero gravity.

Water enhancers

The super-concentrated format is working for Vimto, value sales of which are up 10.9% on volumes up 10.7% [IRI], after the squash brand launched Vimto Squeezy in January 2013. Vimto’s 50ml version comes in original, cherry and strawberry flavours.

“This is an exciting new concept in its infancy in the UK, but already established in the United States where it is worth more than $300m and set to rise to $360m by the end of 2014,” says Emma Hunt, marketing manager for Vimto. “We see this as a first step to developing the market across all channels in the future.”

US brand Go Splash certainly has high hopes for water enhancement here in the UK. In February it launched Go Splash Lightening Green after becoming the first water enhancer to launch an energy crossover product, Lightening Red, exclusively in Tesco last June. “A pocket-sized bottle of Go Splash can flavour six litres or around 30 glasses of water,” says Steve Foster, UK sales director for Heartland, which is also adding seven new flavours to its squash range. “Everybody understands the health benefits of staying hydrated and drinking lots of water, so Go Splash will help them achieve this by providing them with a fun new way to customise and enjoy water.”

A growing number of players are looking to cash in, even one specialist in the original water enhancer: tea. Last month ice tea brand Zacely launched teabags that fit into a bottle of water and allowing consumers to make chilled tea on-the-go in just 30 seconds. Teaforia Shake & Brew comes in green tea and jasmine green tea flavours and the company is currently in the process of negotiating retail listings.

“A cold tea traditionally takes four to 12 hours to brew, but these specially created high-grade teabags enable a cold tea to brew in 30 seconds when vigorously shaken with water,” says Diana Novoa, co-founder of Zacely. “Major interest has come from both the UK and abroad from well-known high-street names as well as large distributors and wholesalers.”

Formats

New formats are also a key focus for carbonates and adult soft drinks players. Britvic put J20 in 250ml slimline cans for the impulse sector in January 2013, after a three-month trial with Tesco, and in July CCE introduced 250ml cans for Coke, Diet Coke and Coke Zero, primarily for the impulse channel.

CCE says the packs were such a hit with consumers it sold almost five million cans in the first four months alone. “So much of the growth opportunity in soft drinks comes from tapping into occasions when people want soft drinks,” says CCE’s Cater. “It’s about having the right packs, such as a 250ml offering.”

“The main trend driving sports and energy drink is the ever-expanding range of flavours” Neil Haworth, No Fear Extreme Energy

The company extended the format to its revamped Schweppes brand in February to target the 51% of consumers it says drink mixers without alcohol. The new range of multipacks of four slim cans comes in three variants: slimline bitter lemon, ginger beer and elderflower tonic.

New formats alone won’t unlock growth for carbonates, however. Particularly as the market faces continued opprobrium over sugar content. Hence the growing number of players looking to make a distinction between naturally occurring and added sugar.

“There’s an unstoppable switch to soft drinks that are healthier and free from any artificial ingredients,” says Dan Broughton, sales director at Cawston Press, which last month made its first move into the canned carbonates market with a fruit-based offering. “There’s a major opportunity to fulfil this growing consumer demand with a more natural soft drink offering.”

Broughton hopes to triple sales to £18m by the end of 2017 following the NPD, which comprises either rhubarb or cloudy apple with sparking water. “Preservatives and additives have, for so long, been associated with canned soft drinks,” adds Broughton. “There is little opportunity for consumers to choose a sparkling can with genuinely high-quality natural ingredients and decent amounts of NFC fruit. The time is right for retailers to capitalise on a major change in consumer need states and habits for better-quality soft drinks.”

Cawston Press isn’t alone. In February Radnor Hills relaunched its Heartease Farm sparkling drinks range with new flavours and recipes including elderflower pressé, lemonade pressé and blackberry crush in new-look plastic and glass bottles.

“Our new range reflects the heritage of the farm and our passion for great flavours, using the best available ingredients from the countryside blended with our own spring water on our farm, to traditional British recipes,” says William Watkins, founder of Radnor Hills.

Belvoir hopes the time is right after spending almost a year perfecting its Elderflower Pressé Light, which has 30% less sugar than its original version. “The pressé has a more delicate taste but still with the same floral aromas of freshly picked elderflower and gentle sparkling water,” says Belvoir’s Manners. “Key to our success has been the decision to only use natural ingredients; fruits, flowers and spices and no preservatives, flavourings, sweeteners or colours.”

‘Move over elderflower’

But elderflower had better watch out: soft drinks brand Qcumber thinks cucumber could be the next big flavour after winning listings in 750 Tesco stores nationwide from January. “Move over elderflower we say,” says Graham Carr-Smith, founder of the ‘gently sparkling’ brand, which launched in July 2012. “It’s going to be all about cucumber this summer. Qcumber is made from 100% natural ingredients and contains around a quarter of a cucumber per 750ml bottle.”

“Since 2008 the depth and frequency of price cuts surged… now they seem to be easing off” Dan Broughton, Cawston Press

There’s another factor that could be to the advantage of more premium soft drinks, however. “Since the recession in 2008 the depth and frequency of price-cutting surged to an all-time high in the UK,” says Broughton. “However, these seem to be easing off a little now as retailers are seeing that huge amounts of volume sold on deal can erode brand loyalty and dilute the value out of the market. We are now seeing much more sensible pricing levels, linked to seasons, which help to drive trial while maintaining a premium position.”

But there are still signs of price sensitivity in the soft drinks market. Diet Coke’s decline can be partly explained by a 4.9% cut in deals, and the development of smaller formats such as the 250ml can and 375ml pocket pack has partly been inspired by the need to hit key price points.

Pricing

Price has played a key part in squash’s growth over the past year too, according to Joanna Watling, marketing director at Princes, owner of the Jucee brand, which has enjoyed 20.4% value growth on volumes up 16.7% over the past year thanks in part to a significant fall in average price per litre.

“The strong performance of squash and cordials in the last year is due to a combination of both innovation and value,” says Watling. “The great value price point and cost per portion of squash help to keep it a staple item. Own label and brands like Jucee are the main drivers of growth in squash.”

Hence the fact that many brands are looking to innovate their way back into growth with higher-value offerings that own-label and budget brands cannot provide. For example, Suntory-owned Ribena is pushing its added vitamin with no added sugar Ribena Plus range to reverse its decline, launching an orange & mandarin variant in February and backing it up with an orange & guava flavour in March.

“Orange with a secondary flavour is driving performance of the overall orange flavour segment at 41%, so these new variants are set to underpin growth even further and will present an incremental sales opportunity for retailers,” says Georgina Thomas, category director at Lucozade Ribena Suntory.

Enlisting the help of Oscar-winning animators is another way to underpin growth. Vimto is spending £6.5m on the next phase of its Seriously Mixed Up Fruit campaign with a cheeky northern toad created by Aardman Animations, which will be introduced to the nation tonight [26 April] in a prime time slot next to ITV’s Britain’s Got Talent.

“We’ve created a campaign that helps to define the character of the brand, create a buzz and increase sales,” says Clare Brown, brand manager at Vimto. “Vimtoad and our new packaging will continue to appeal to our young consumers while also attracting a wider audience, especially mums.”

A toad selling squash? Talk about a giant leap!