Carbonated drinks are losing their sparkle as shoppers turn to healthier options such as still drinks, smoothies and juices

Carbonated soft drinks look as though they might be losing their fizz.
Still drinks overtook carbonates for the first time in 2003 and now colas have lost their lead in the take-home market to fruit juice as people turn to healthier alternatives.
It would seem that the government’s five-a-day message is making an impression on the nation’s drinking habits.
Colas are down 3.7% year-on-year and account for 20% in value of the take-home market. Meanwhile, fruit juices have grown 4.6% in value to hold a 25% share [TNS 52 w/e January 30, 2005].
The market leaders, Coca-Cola Great Britain and PepsiCo, have been ploughing money into new product development in an attempt to stem the decline in colas, and fruit-flavoured carbonates - down 3.2% [TNS 52 w/e January 30, 2005] - are also getting attention.
Having identified the potential of the convenience sector, where fruit carbonates hold the third largest share, the sector will build on consumers’ demands for innovative, feelgood flavours.
A recent addition to the colas sector, Diet Coke with Lime, is being targeted at adult men and women through its new Tort the tortoise TV and nationwide poster advertising campaign.
According to Coca-Cola GB, the adverts reached 98% of adults on average 39 times
in the first three months of 2005. John Band, managing analyst at Datamonitor, believes that Diet Coke with Lime should do well in the UK, following its successful launch across the pond in January last year, where it is the number one flavoured diet cola.
He says: “It has carved out a niche in the US, and Diet Coke with Lemon has worked in Britain. Particularly if we have a hot summer this year, this could mean an upturn in overall UK carbonate sales.”
Lime is certainly the ‘in’ flavour. PepsiCo kicked off the trend with Pepsi Max Twist. The sugar-free lemon and lime cola, which it launched in January to join its lemon-flavoured variant Pepsi Twist, falls into the better-for-you/ no-sugar category, which accounts for more than half of overall carbonated soft drink sales.
In fact, no-sugar colas are expected to add an extra £246m to the carbonates category over the next three years.
PepsiCo is also believed to be introducing Pepsi Lime and Diet Pepsi Lime in the US, with a possible UK roll-out to follow.
CCGB is also reinvigorating the diet carbonated soft drinks category. Diet Coke’s value sales were up more than 4% on 2004 [TNS 52 w/e January 30, 2005].
Flavoured colas represent a significant profit opportunity. Both Diet Coke with Lemon, which was launched in the UK in 2002, and Diet Coke with Vanilla, introduced in 2003, have been well received, according to the company. Coca-Cola with Lemon is scheduled as a limited edition this summer.
Julia Goldin, marketing director at CCGB says: “We believe that it will appeal not only to regular Coca-Cola drinkers, but will also bring in new consumers to the brand.”