Cott Beverages Ltd Citrus Grove Side Ley, Kegworth Derby DE74 2FJ Tel: 01509 674915 Fax: 01509 673461 E-mail: iharrison@cott.co.uk Website: www.cott.com Key CONTACTS EVP & managing director Europe Neil Thompson Supply chain director Chris Birrell Customer development director Jason Greenway Human resources director Barbara Harris Business development director Ivor Harrison Finance director David Main Chief operating director Gary Saunders Customer development director Nick Whitley Manufacturing director Mark Wilkinson Key Brands Retailer brands - Asda (including Blue Charge) - Booker (Happy Shopper, Tuckshop) - Co-opl Lidll Marks & Spencer - Safeway (including Select) - Sainsbury's (including Classic) - Somerfield - Spar - Tesco - Waitrose Cott brands - Edge - Red Rooster - Red Rooster Light - fruitfull - Carters Customer brands - Ben Shaws - D&G - One-Cal Volume growth in the soft drinks sector has been driven by price wars, consumer interest in healthier drinks, and the craving for excitement, according to Ivor Harrison, business development director of Cott Beverages, brand owners of number two in the health drinks market, Red Bull Stimulation. "Aside from health, a major trend is for consumers to experiment and seek drinks that work' ­ Red Bull has driven this and has been followed by a plethora of similar products," says Harrison. But it was Cott which introduced the first low calorie variant to the sector in the form of Red Rooster Light, launched alongside Red Rooster and Edge earlier this year. Light relief "The Red Rooster brand offers all the expected stimulation at a great price, and in the case of Light, with only 15 calories per can," says Harrison. "Edge was launched in recognition of the fact that not all consumers like the acquired taste of the main energy brands and prefer the widely popular taste of cola ­ which Cott has been able to provide, given its leading expertise in this area." While energy drinks ­ and in particular Red Bull Stimulation ­ have shown massive growth in the past year, Harrison predicts that the ever rising tide of bottled waters will continue to swell simply because of increased health awareness ­ although, he says, there is the opportunity to drive profitable growth further through innovation in added value waters. "Cott Beverages is well placed to take advantage of this opportunity through its experience in North America," says Harrison. Healthy benefits As demand grows for organic products at mainstream prices, Cott has launched fruitfull, a range of high quality organic fruit carbonates without a premium price tag. But, outside of organics, Harrison believes that there may still be opportunities for mainstream manufacturers to add value to carbonates by making them healthier or tastier, particularly in the light of concern over dental health. "If children are going to drink sweet, coloured liquid, we should seek to make that a healthy, tasty experience. Today, we are beginning to see the transformation of our standard soft drinks, but I think there is some way to go. "Cott, as the largest own label supplier in the UK, is determined to drive this by working closely with our customers and to ensure that this is done without price premiums." He also believes the industry needs to be aware of the issues relating to sugar substitutes and be sure of the facts regarding their impact on health. "The industry has a duty to provide consumers with the facts and take their concerns seriously. Each manufacturer should do their bit, including providing clear information on all packaging, he says. "Cott works with its retail customers to provide such information and carries such diligence over onto its branded packaging. In addition, we are seeking to develop more natural products in all categories." Elsewhere the company is working hard at improving the image of dilutables ­ including packaging, liquid and promotional ideas ­ in an attempt to refresh a failing sector. Liquid asset It welcomes the opportunities created by e-tailing, where, Harrison predicts, new brands that have gained some recognition outside the retail space will do particularly well. "If products are compared purely on price ­ as is easy and common over the internet ­ and not have the benefit of pack shots, where design drives emotional desire strongly, then products that have some name recognition up front will do well. "But brands will only compete effectively, if they offer a real benefit (tangible or intangible) and it is this challenge that branded manufacturers have to meet in the face of retailer branded competition." {{Z SUPPLEMENTS }}