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open more
business
making more from soft drinks by applying new ‘category vision’

contents
introduction
introduction by Simon Baldry 6
overview of the Soft Drinks Category 9
superstore foodhall
overview 17
opportunities and challenges 18
navigating the foodhall 21
at home consumption 22
Soft Drinks with food 23
neighbourhood
overview 29
the facts 30
the opportunities 31
Soft Drinks with food 32
energy 33
fuel
overview 39
ensuring availability 41
energy 43
Soft Drinks with food 44
bars, pubs and clubs
overview and opportunities 51
the facts 52
Soft Drinks with food 53
other drivers 54
canteen
overview 61
the facts 61
availability and visibility 62
other drivers 63
other environments
overview of other environments 69

6 introduction introduction 7
passionate about
soft drinks
Simon Baldry
0 Based Upon total ‘Off-Premise’ Soft Drinks sales of
£6.2 Billion (Nielsen Total Coverage, Latest 52 Weeks
to w.e. 13.02.10), total ‘On-Premise’ Soft Drinks sales
of £3.9 Billion (Nielsen, Total On-Premise, Latest 52
Weeks to November 2009) and a CCE internal estimate
You’d expect Coca-Cola Enterprises
Ltd (‘CCE’) to be focused on
growing Soft Drink sales. And we
are... We’re passionate about it.
But the scale of our ambition
might surprise you. The breadth of
opportunities we’ve identified might
surprise you. And the completeness
of the evidence we’ve collected to
support our goals might surprise you.
We’ve brought these three
together in this report: evidence,
opportunity and ambition. We see
an exciting future for Soft Drinks
in GB and we want to share that
vision with you in this publication.
More than that, our approach is
to partner with our customers to
capitalise on that future together.
We’ve called the report ‘open more
business’ because that’s exactly
what we think taking the right
approach to selling Soft Drinks can
achieve for all our customers.
We’re committed to providing our
customers and their shoppers with
a complete choice of Soft Drinks for
every occasion. We’re proud of our
of Cold Channel / ‘Other’ channel sales of £1.3 Billion.
1 Based Upon total ‘Off-Premise’ Soft Drinks sales of
£6.2 Billion (Nielsen Total Coverage, Latest 52 Weeks
to w.e. 13.02.10), total ‘On-Premise’ Soft Drinks sales
of £3.9 Billion (Nielsen, Total On-Premise, Latest 52
brand portfolio of Soft Drinks. We’re
committed to increasing advertising
investment significantly across this
portfolio, via both traditional and
new media.
But this report does not focus
on the CCE portfolio. ‘Open
more business’ captures the
key to unlocking the potential
we’ve identified within the Soft
Drinks Category: understanding
the shopper, their needs and
preferences and the environments
in which they shop.
We are dealing with opportunities of
significant scale. As a Category, in
GB Soft Drinks is already worth an
estimated £11.4 billion in 2009. 0
To put that in perspective across
the total market, Soft Drinks
is much larger than both
Confectionery and Biscuits in
terms of total expenditure. 1
And an increasing population will
grow the Soft Drinks Category
all by itself. The GB population is
predicted to grow by more than
four million between now and
2018. 2
Weeks to November 2009) and a CCE internal estimate
of Cold Channel / ‘Other’ channel sales of £1.3 Billion,
and using Kantar Worlpanel, Context report 52 Weeks
to w.e. 24.01.10.
2 ONS, 2008
Over time more people will mean
more sales. But when we measure
per capita consumption rates, we
see that GB is behind countries like
Ireland and Belgium 3 who have
similar weather patterns. We see
this as a clear indication of further
growth potential in GB.
Consider this... if we can succeed
with our customers in persuading
every existing Soft Drinks
consumer to buy just one more
Soft Drink every fortnight, then
within five years the Soft Drinks
Category could be worth an extra
£1.4 billion. 4
‘Open more business’ is designed
to provide you with the insight
that can make that theoretical
possibility into a commercial reality.
We know that shoppers are
changing. What influences
them is changing. Their habits
are changing. Communication
technology has meant that
shoppers today are better informed
than ever before.
3 INforM Global Industry estimate 2008
4 CCE internal estimate based upon Category Vision
research
total off-trade soft drinks proportionate sales
total soft drinks sales by sector
value % change YA
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
7.3%
9.1%
9.1%
soft drinks
9.1%
27.7%
cola
flavours
21.9%
lemonade
9.1%
mixers
adult
pure juice
fig: 1 Nielsen, Total Coverage value sales, 52 Weeks
w.e. 06.02.10
fig: 2 Nielsen, Total Coverage value sales, 52 Weeks
w.e. 06.02.10
• colas
£1,357m
• flavours
£564m
• lemonade
£138m
• mixers
£115m
• adult
£279m
juice drinks
sports
energy
•
•
squash
fruit juice
£1,721m
sports &
energy
£566m
• squash
£480m
• water
£566m
• other
£566m
water
other
fig: 1
fig: 2

8 introduction introduction 9
We’ve tracked those changes as they happened
and invested more than £2 million in a series of
commissioned research studies over the past three
years. We’ve also invested resource and time to assess
and analyse the findings and translate them into
meaningful and simple action plans to use with our
customers.
‘ our goal is to work
with our customers
to simplify the
shopping experience’
Our goal is to work with our customers to simplify
the shopping experience and make it more engaging
for shoppers and more successful for our customer
partnerships.
And we’ve replicated this approach right across the
range of different types of customers that we work
with. We’ve articulated our insights across the full
range of shopping experiences, from Superstore
Foodhall to Neighbourhood Convenience store,
from Restaurant to Fuel Station. In total, we’ve
developed action plans across 16 different shopping
environments.
Analysis on that scale could get complicated – we’ve
worked hard to keep it simple. We’ve identified that
five of the 16 environments can deliver 69% of the
£1.4 billion. And to complete the proposition, CCE
delivers a large and motivated sales force in GB to work
with all our customers to make it easy to implement
the simple step changes that we’ve identified.
This is the first time CCE has published such a
comprehensive forward looking assessment of the
Soft Drinks Category in GB. We’ve identified a major
£1.4 billion prize to go after.
But we won’t achieve this on our own. It’s only
through working with our customers that we can
achieve our goals and successfully ‘open more business’
for us and for them.
Simon Baldry, Managing Director
understanding the
opportunity
an overview of the soft drinks
category
16 environments in total – focusing on five here
four key factors:
• Merchandising
• Range and space
• Communications
• Promotions
three main drinking occasions:
• Buy now, drink later – Future Consumption sales,
both take-home and online
• Buy and ‘fly’ – the on-the-go consumption market
• Buy now, drink now – On-Premise consumption
£2 million investment in research
Focused on 4 key areas including: consumer/shopper
understanding, shopper missions, environment
identification and the exploration of the role of Soft
Drinks within those environments.
5 CCE Category Vision research
6 FCRS Research 2009
future vision in simple terms:
• An increase of £1.4 billion5 is achievable. Reaching
this potential simply depends on applying Best
Practice in each different environment
• Through the application of basic Merchandising
and Category principles related to Soft Drinks,
our research has shown that Retailers can expect
measurable benefits:
– Sales increases of up to 8% 6
– The simplification of both their merchandising
and stock management processes 7
• The next five years also offer outstanding sportsrelated
opportunities – most immediately, the
Football World Cup in 2010 and the London Olympics
in 2012
• No other global sponsor has either a better or a
longer track record than Coca-Cola. Coke can trace
its track record right back to the 1928 Olympics
in Amsterdam, all the way through to the Beijing
Olympics in 2008 and onward to the London
Olympics in 2012
‘ an increase of £1.4
billion is achievable’
7 FCRS Research 2009

10 introduction introduction 11
Today’s shoppers have changed and are continuing to
change considerably. They are more complex and more
demanding than their counterparts in years gone by.
Within the next decade, the UK population, which
currently stands at 61.4 million, is expected to increase
by a further 4.3 million by 2018. 8
The Office of National Statistics recorded the biggest
new increase in births in almost 50 years – with
791,000 live births in 2008. 9
In this market, virtually everybody can enjoy Soft
Drinks, in different situations, at every age and every
stage of their lives.
Another significant fact is that life expectancy
continues to increase, little by little, year on year.
In the UK, average life expectancy at birth now stands
at just over 79 years. 10 With virtually every household
regularly buying some Soft Drinks, we can safely
predict a massive market opportunity across a variety
of occasions throughout the foreseeable future. 11
population estimates
uk population grows to 61.1 million
100
males
90
80
70
60
50
40
30
20
10
females
500 250
0
250 500
population (thousands) population (thousands)
8 ONS, 2008
9 ONS, 2008
10 ONS, 2008
age
population by gender and age, mid-2008
fig: 3
population estimates
uk population to exceed 65 million by 2018
100
2033
90
80
70
60
2033
males
50
40
30
females
2008 20
10
2008
500 250
0
250 500
population (thousands) population (thousands)
11 ONS, 2008
fig: 3 ONS, 2008
age
estimated and projected UK population
mid-2008 and mid-2033
‘ in retailing, as in
any specialist area,
knowledge is power’
Communication technology has meant that shoppers
today are better informed than ever before. Mobile
phones and social media mean that all news now
travels incredibly fast, good or bad, big or small.
We’ve tracked those changes as they’ve happened and
recently invested in four major pieces of independent
research. This investment in both time and money,
has given us a fresh, in-depth understanding of both
the behaviour and the motivations of consumers,
in different situations and different shopping modes.
In retailing, as in any specialist area, knowledge
is power.
fig: 4
ageing
fastest increase in the ‘oldest old’
percentages
100
80
60
40
20
0
1983
• under 16 • 16 – 64
•
fig: 4 ONS, 2008
fig: 5 ONS, 2008
2008 2033
65 – 84
85 and over
•
fig: 5
a diversity of stateof-the-art
research
techniques
These included face-to-face
‘conversations’ with shoppers
selected to provide a true reflection
of changing consumer attitudes
and behaviour, plus desk research,
as follows :
• Shopper focus groups
• Decision trees and
substitutability analysis
• Consumer trends analysis
• NPD and future trends analysis
the commercial objective of
these enquiries was prioritised
as follows:
• To refresh our knowledge
in order to reinvigorate the
Category
• To simplify the shopping
experience and make it more
engaging
• To make it easier and more
convenient for Retailers to
implement
• To explore ways to broaden
consumers’ repertoire across the
Category
• And finally, of course, to increase
the consumer’s spend on Soft
Drinks
The research identified no fewer
than 16 relevant shopping
environments.
however, these can be divided
into three main groups:
1. Future Consumption. The
point of purchase could be a
supermarket Foodhall or it could
occur in the virtual world, online
through a Grocery Retailer.
The differentiating factor is the
transaction’s ‘buy now, drink
later’ aspect.
2. ‘On the go’ This covers the
customer on the move, probably
in a bit of a hurry at a petrol
station, in a canteen or in a
Neighbourhood store. It’s the
‘buy and fly’ opportunity.
3. On-Premise consumption. This
is the familiar ‘buy now, drink
now’ scenario. Typically, it’s
happening right now in a bar
or a café or in the Canteen.
the key strategic soft drinks
category drivers which we
identified are these:
• How to improve Category
availability?
• How to stimulate greater
frequency of ‘on-the-go’
purchases?
• How to encourage more
consumption with food?
• How to engage with teenagers?
• To fully realise Energy Sector
growth, through highlighting
more ‘revive me’ and ‘stimulate
me’ sales opportunities to a
broader base of Soft Drinks
consumers.
• Soft Drinks that are relevant for
all social occasions
• Never running out at home
• Soft Drinks that kids love and
mums love to buy
• Wellness made simple
• Better quality of serve on tap
the key commercial variables
can be listed and addressed as
follows:
• How many people visit the
outlet?
• What mission are they on?
• How many actually purchase
a Soft Drink?
• How many units do they buy?
• How much do they spend?
• And most important of all, why?
Let’s take a closer look at five
examples of different outlets,
starting with the largest…

superstore
foodhall
FUEL
CAFE/COFFEE SHOP
RESTAURANT
GENERAL STORE
FAST FOOD
FOOD TO GO
VENDING
NEIGHBOURHOOD CONVENIENCE
STORE
PUBS, BARS AND CLUBS CANTEEN
CONCESSIONS
SUPERSTORES
FRONT OF STORE
SUPERSTORES
FOOD HALL
ONLINE
BULK BUYING
foodhall
superstore

superstore foodhall,
all under one roof
For our purposes, a Grocery Superstore Foodhall is
defined as the area past the Front of Store where
the main food aisles of the supermarket are located.
Typically this is where most shoppers will conduct their
main weekly household shop.
However, a major supermarket operator can typically
offer a number of different environments, all under
the one roof:
• The supermarket Front of Store (FOS) which has a
focus on Convenience, offering shoppers purchases
for immediate consumption
• The second environment is online. Online sales
are expected to double to £7.2 billion by 2014. 12
Purchases are made via the Internet, with no need
to visit the supermarket itself and goods ordered are
delivered later, straight to the customer’s door
• The third and the largest of the three environments
is the Superstore Foodhall. This is still the most
popular environment for the main weekly shop,
where products are purchased here for consumption
later, back home
12 UK Grocery Outlook, IGD 2009
13 CCE Shopper Missions Research 2009,
Kantar Worldpanel
superstore foodhall 17
let’s focus first on the superstore
foodhall
Today there are over 5,500 of these larger outlets,
currently accounting for 12% of all shopping trips for
food and drink. 13 Superstore Foodhalls are expected to
represent £122 billion worth of sales by 2013. 14
Soft Drinks are the sixth biggest Category within
Superstore Foodhall, worth £2.8 billion. 15 Those bought
for Future Consumption – Take Home drinks – make
up the majority of this figure at £2.6 billion. Drinks
bought for immediate consumption constitute the
balance, at £200 million. 16
‘ online sales are
expected to double
to £7.2 billion by
2014’
14 IGD Research 2009
15 Kantar Worldpanel, 52 w/e 09 Aug. 2009
16 Kantar Worldpanel, 52 w/e 09 Aug. 2009

18 superstore foodhall superstore foodhall 19
four key routes to increased
growth:
1. Increase the frequency of purchase.
2. Increase the number of occasions on which
Soft Drinks are bought.
3. Increase the volume bought per trip.
4. Increase the ability of consumers to shop the
fixture quickly.
opportunities and challenges
• The current economic climate has increased the
consumer’s focus on price and promotion. However,
this makes it harder for Retailers to achieve longterm
sustainable growth. What good is there in
increasing the volume purchased and trip frequency,
if you’re not making any profit on those sales? How
can we work together to ensure continued Category
growth and increased profitability?
• As always, outstanding sales success depends on
better shopper understanding. The more we know,
the more we can hope to grow!
– What occasions/needs are driving Soft Drinks
purchases and are there any barriers to purchase?
fig: 6 nVision/Experian forecast, August 2009-based
projection (based on Q1 2009 data)
real household expenditure – annual % change
nVision/Experian forecast, August 2009-based projection
(based on Q1 2009 data)
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
-4.0%
-5.0%
2001
2002
2003
2004
2005
2006
– What other categories are most often bought with
Soft Drinks and therefore what are the best types
of promotion to reflect those different occasions?
– How is the shopper profile changing over time and
how can we best satisfy the shopper’s changing
requirements?
2007
2008
2009
2010
2011
soft drinks segmentation
grouping products by consumer need
• sports
• hydration
• wellness
fig: 6 fig: 7
let’s look at these opportunities in
more detail:
the changing demographics
• The UK is witnessing enormous demographic
changes. The population is ageing and household
sizes are shrinking. 17 There are now more people
over the age of 65 than under the age of 16 for the
first time in UK history. Women are delaying the
17 ONS, 2009 / Kantar Worldpanel 2009
• stills
• energy
refreshment • adult socialising
•
birth of their first child or choosing not to start
a family. Marriage is in decline. Divorce is on the
increase. Everyone can expect to live longer and
more people are living alone. These changes are
directly affecting consumer behaviour in relation to
both the purchase and consumption of Soft Drinks.
Consequently suppliers and Retailers alike need to
ensure that their sales activities are sensitive to
these changes
Broadly this can be done in a number of ways:
• Specific pack formats for specific occasions. Stock
larger Future Consumption packs for at home
entertaining or family meal solutions, and smaller
packs for lunches and Out of home consumption
occasions
• Have a broad set of cross Category promotions
(promoting Soft Drinks alongside complementary
categories, e.g. Snacks) that will appeal to different
shoppers. Your stay at home mum will be attracted
to something that appeals to her family while the
time pressured single young professional may like
something for her/himself right there, right now
‘ what occasions are
driving soft drinks
purchases?’

20 superstore foodhall superstore foodhall 21
out of stock situations should be
avoided at all costs
• Out of stocks are one of the biggest barriers to
purchase in any environment and a constant focus
point. Today’s consumers have high expectations,
sometimes unrealistically high, and yet still ‘punish’
Retailers who disappoint them
• Faced with an out of stock situation, 37% of
shoppers say they will go elsewhere. This results in a
lost sale and potentially a lost customer. Shelves fully
stocked with the right type and amount of products
are therefore the golden key to Category growth and
shopper satisfaction 18
‘ the correct range,
space and layout
all contribute to a
quick and easy sale’
18 IGD Availability UK Perspective Blue Book (2004)
19 IGD Availability UK Perspective Blue Book (2004)
the 80/20 range rule
roughly 20% of the SKUs deliver 80% of the value
% value contribution
100%
80%
60%
40%
20%
0%
0
20
40
• The 80/20 rule really does apply across Retailers, so
by ensuring you have the optimal range to give you
the widest market coverage and the shortest ‘tail’ of
non-performing products will help you give space to
faster moving SKUs
• In Soft Drinks, it’s serious money talking – out of
stocks in Grocery add up to £200 million worth of
lost sales every year! 19
60
% of SKUs
fig: 8 Total FC Soft Drinks excl. chilled pure juice/juice drinks; ACN 52 weeks to w/e 21.03.09
80
100
retailer A
retailer B
retailer C
fig: 8
clear category communication
the implications for each driver on communication
clearly communicating how the category fulfils shoppers’ needs will attract people
into the aisle, improve ease of shop and motivate them to buy more
navigating the
foodhall
The pace of life has increased out of
all recognition in the last 50 years.
As the New Yorker Woody Allen
once put it: “Instant gratification
isn’t fast enough for me!”
fig: 9
• Shoppers want to find what they
want quickly. So, on the main Soft
Drinks fixture, the correct range,
space and layout all contribute to
a quick and easy sale
• Ideally, the fixture should be
segmented to reflect a shopper’s
understanding of the Category:
for example, Soft Drinks are
drunk by people for refreshment,
energy and hydration etc. This is
how people nowadays naturally
find their way around the aisle
• Good signage will help guide
them to the products and
formats they are looking for as
fast and as clearly as possible
• Ideally, everything should be
directly linked to satisfying your
customer’s needs as quickly and
efficiently as possible

22 superstore foodhall superstore foodhall 23
leisure expenditure, in and out of home
in billions, at constant 2003 prices
£160
£140
£120
£100
£80
£60
£40
£20
£0
out of home leisure in home leisure
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
‘ in home leisure expenditure
is projected to match out of
home levels by 2014’
20 nVision/Experian forecast, April 2009-based projection
(based on Q4 2008 data)
21 Kantar Usage Panel 2008
fig: 10
22 Kantar Usage Panel 2008
fig: 10 nVision/Experian forecast, April 2009-based projection
(based on Q4 2008 data)
at home consumption
MTV identifies two phases in their
audiences’ attitudes and behaviour:
• Growing up
• Settling down
At-home entertaining is involved in
both phases and is increasing!
In fact, In-home leisure expenditure
is projected to match Out-of-home
levels by 2014 (£120 billion in the
UK). 20
Popular TV programmes like “Come
Dine with Me” – combined with
the economic climate – have made
home entertaining a desirable
option, where Soft Drinks have an
important supporting role to play.
• 75% of all Soft Drinks are
consumed at home. 21 In many
social situations, Soft Drinks
are often perceived as a more
appropriate alternative to alcohol
than any hot drink. 22 This all
adds up to a massive opportunity
within Foodhall to target the
In-home shopper
• Family households can often run out of Soft Drinks
– perhaps going up to four days without any form of
Soft Drink in the cupboard or fridge 23
• Why does this happen? Reasons commonly given
include the ‘Sheer Weight Of Product’ – the SWOP
factor – which can make Take Home journeys a
struggle, particularly on public transport
• This is also reflected in the often health conscious
and sometimes cash-strapped mums’ pragmatic
attitude: “When it’s gone, it’s gone!”
• The key to resolving these problems lies in
recognising the issues that shoppers face on
different shopping missions and getting the right
combination of Soft Drinks type, pack format and
promotional offering to try and overcome them
‘ drinks in some
form are present
at 74% of all uk
evening meals’
23 Source: Greyhound Research 2004
24 Kantar Usage Panel to May 2009
the with food occasion
It probably comes as no surprise that Soft Drinks are
normally consumed with food. In practice, drinks
in some form are present at 74% of all UK evening
meals. 24
Given the strong correlation between Soft Drinks and
food, secondary sitings and promotional bundle deals
should be used wherever possible.
Simple solutions like ‘Meal for tonight’ can also serve
to remind shoppers to purchase a Soft Drink, if they
missed it as part of the main shop.
The demands of modern life continue to place
pressures on families. Suppliers and Retailers have an
increasingly important role to play in helping to ease
those pressures and in unlocking new added value for
the shopper.
With that in mind, let us look at an environment
closer to home…

neighbourhood
CAFE/COFFEE SHOP
FUEL
RESTAURANT
GENERAL STORE
FAST FOOD
FOOD TO GO
VENDING
neighbourhood
NEIGHBOURHOOD CONVENIE
STORE
PUBS, BARS AND CLUBS CANTEEN
CO
SUP
FRON

your local
neighbourhood retailer
Numerically, this is a large environment. It adds up to
almost half of all grocery outlets and includes all of the
following:
• Confectionery, Tobacco and Newspaper outlets – CTNs
• C-Stores and Off Licences. These are either
independently owned or operated as part of a symbol/
fascia group
• They include 14,630 symbol outlets and close
to 22,000 Independent outlets 25
uk convenience market,
number of stores 2000-2009
number of stores
60,000
50,000
40,000
30,000
20,000
10,000
0
55,798
2000
54,482
2001
54,780
2002
53,862
2003
25 Estimates based upon IGD Research 2009
fig: 11 IGD Research, 2009
53,653
2004
52,085
2005
51,526
2006
50,734
2007
49,530
2008
48,751
2009
fig: 11
neighbourhood 29
• Typically, these outlets tend to be under 3,000 sq. ft.
in size
• Though the retail propositions may differ, the
drivers we’ve identified within this environment
apply to all – in varying degrees
NB: This environment does not include Grocery
Multiple Convenience stores like Tesco Express,
Sainsbury’s Locals and Co-ops. It also omits Petrol
Forecourt Convenience stores.
uk convenience market,
turnover (£m) 2000-2009
turnover (£m)
30,000
25,000
20,000
15,000
10,000
5,000
0
19,181
2000
fig: 12 IGD Research, 2009
19,574
2001
20,606
2002
21,456
2003
23,023
2004
23,893
2005
24,854
2006
26,081
2007
27,423
2008
29,084
2009
fig: 12

30 neighbourhood neighbourhood 31
26 IGD The Evolution of Convenience Retailing, 2009
27 IGD The Evolution of Convenience Retailing, 2009
28 HIM CTP, 2009
‘ out of stocks remain your
biggest enemy – they cost
you money and in some
cases, customers’
Neighbourhood stores represent
almost 50% of all grocery outlets
and ring up 20.5% of the value.
They are recognised for the
service that they provide to local
communities and in most channels
(excluding Independents) continue
to grow in numbers. 26
• Soft Drinks account for around
6 – 8% of all Neighbourhood
sales 27
• Alongside Bread, Soft Drinks are
the sixth most common purchase
in your customers’ baskets
behind Confectionery, Tobacco,
Milk and Newspapers 28
our research revealed
some interesting
facts…
did you know, for example?
• At over 69% by value, ‘Drink
Now’ Soft Drinks represent
the largest single segment
of the total Category in
Neighbourhood 29
29 Nielsen, Independents + Symbols,
latest 52 weeks to 16.01.2010
30 Project Walkabout, Kantar Worldpanel 2009
31 HIM CTP, 2009
• To purchase something to Eat/
Drink now is the number one
reason to visit, followed by Topup
shopping 30
• Availability remains the
shopper’s key concern. Shoppers
say that 51% of failed purchases
are due to out of stocks, with
62% of those shoppers saying
they would either go without or
buy the item elsewhere 31
• 74% of Soft Drinks purchases are
drunk within two hours
• 18% of Soft Drinks shoppers buy
something on impulse 32
• 42% of visits are unplanned 33
• In this environment, Soft Drinks
shoppers tend to be younger. For
example, they are more likely to
be students than housewives 34
• Energy is now the second largest
Soft Drinks sector and is also the
fastest growing 35
32 HIM CTP, 2009
33 Project Mind, Touchstone / CCE research 2006
34 HIM CTP, 2009
35 Nielsen, Independents + Symbols, 52 w/e 16.01.2010
what does this mean?
availability
• Out of stocks remain your
biggest enemy – they cost you
money and in some cases,
customers
• The best advice is to “stick with
the winners” and always avoid
stocking too many products
• Make sure your Soft Drinks
Category is clearly visible and
well signposted
• Remember, shoppers who can’t
find products might easily
assume you don’t stock them
on-the-go frequency
As the name suggests, this driver is
all about providing shoppers with a
quick and easy Soft Drinks solution
whilst they’re on the move
• Most shoppers are buying
Soft Drinks to consume either
immediately or within a couple
of hours 36
• Therefore it is crucial you keep
your Soft Drinks cold!
• 18% of Soft Drinks shoppers
in this environment buy on
impulse. So where possible locate
your chiller near to the front of
the store. This makes it visible
from the street and will attract
those impulse shoppers
• To make the most of this impulse
opportunity, place secondary
chillers in high traffic areas
of your store, as something to
consider while queuing or at the
till point
‘ energy is now the second
largest soft drinks sector
and is also the fastest
growing’
36 HIM CTP, 2009
37 Hijack Research, Face 2009
cross category links
driving take home
chilled, always available
shelf trays – ease of shop
core chilled
soft drinks offering
Tune into the needs of younger
shoppers. They’re keen to try new
things, and are key to driving new
trends. More and more are going
into further education at college
or university. They form a key part
of the Soft Drinks consumer and,
always on the move, are a frequent
customer in this environment
• Teenagers and students make up
a large part of the customer base
in Neighbourhood Convenience
• They can be hard to appeal to
as they are typically both priceconscious
and promotionally
savvy 37
fig:14
• That’s why the single can appeals
most to teenagers
• It has both a lower price point
than other formats and fits their
self-image better

32 neighbourhood neighbourhood 33
• It’s cooler, both literally and
figuratively. Teenage shoppers
see cans as being both colder and
fizzier than other pack formats 38
• That’s why having a good range
of brands in this format is
essential to appealing to these
shoppers 39
• Promotions also need to be
simple, bold and provide instant
gratification
• Teenagers are often hungry
as well as thirsty, so you can
increase your chances of gaining
incremental purchases from
these shoppers by clearly linking
Soft Drinks with snacks
This leads us onto a key element
of profitable growth…
‘ eat/drink now’ is the
number one reason for
shoppers to visit your store’
38 Hijack Research, Face 2009
39 Hijack Research, Face 2009
40 Kantar Worldpanel w/e 12 May 2009
41 HIM CTP 2009
drinks with food.
It really can be ‘food and drink’ to
you!
• ‘Eat/Drink now’ is the number
one reason for shoppers to visit
your store – so why not provide
them with the opportunity to
do both?
• There are over four billion
Out-of-home snacking occasions
in Great Britain each year,
excluding lunches. 40 By providing
simple snack and meal deal
options, you can take advantage
of these occasions and drive
incremental spend to your till
• The Category that is most often
purchased with Soft Drinks is
Confectionery, closely followed
by Crisps 41
• There are therefore no better
places to start when looking
at snack deals!
• Try to locate complementary
categories close to the Soft
Drinks main chiller or use
cross Category display units to
highlight appropriate offers
• Even better, use secondary
sitings of Soft Drinks next
to these types of categories
‘43% of stimulation drinks shoppers are
less than 24 years of age’
cross merchandising unit
energise your sales!
• Energy Drinks are the fastest
growing Sector 42
• 43% of stimulation drinks
shoppers are less than 24 years
of age. 43 That means they
represent a significant share
of your Soft Drinks business
• Predictably, impulse purchasing
of Energy Drinks is highest first
thing in the morning 44
42 Nielsen, Multiple Forecourts, Latest 52 Weeks
to w.e. 13.02.10
fig: 15
• Ensure you have a reasonable
range of the big selling brands in
stock and in the chiller when you
first open
• Create more opportunities for
impulse purchase through
‘on-the-go’ Energy solutions
like Energy Shots
• Be sure to range these at key
impulse points like the main
walkway from the store entrance
to the till, or even better at the
till point itself
Our increasingly hectic lifestyles
are leading us to search for ever
more convenient ways of getting
the food, drink and energy
requirements we need to see us
through the day.
Meeting those requirements in an
easy-to-shop manner is the path to
success for these outlets.
43 HIM CTP 2009
44 HIM CTP 2009

fuel
FUEL
CAFE/COFFEE SHOP
RESTAURANT
GENERAL
fuel
FAST
P

soft drinks in fuel
Today, Petrol Forecourt Convenience
stores (PFCS) represent the fourth
largest channel in the Convenience
sector with a 14.1% share of the
estimated £29.1 billion Convenience
Market. 45
They have rapidly grown in
sophistication and diversity, despite
overall site numbers being in
decline until recently.
This growing diversity has led to the
emergence of three slightly differing
Forecourt Convenience formats:
• Traditional
• Developed
• Grocery
45 UK Convenience Research, IGD May 2009
forecourt convenience formats
‘ petrol
traditional
forecourt
convenience
stores
represent
developed
the fourth
largest
channel
in the
grocery
convenience
sector’
fig: 16
fuel 39

40 fuel fuel 41
‘ soft drinks
represent over
10% of sales in an
average PFCS – the
third highest
by value’
While there are differences due to slightly wider
product and service offerings, for simplicity, we will
paint a picture of them in a single broad-brush style.
Soft Drinks represent over 10% of sales in an average
PFCS – the third highest by value behind Tobacco and
non-food. They have the largest share of sales here
when compared with any other Convenience channel. 46
average sales contribution by category (%)
forecourt convenience stores (2008)
6.4%
6.5%
8.8%
7.5%
10.3%
30.6%
12.5%
• tobacco
30.6%
• non-food
12.5%
•
soft drinks
10.3%
• confectionery
•
8.8%
sandwiches
6.5%
• news
6.4%
46 The Evolution of Convenience Retailing, IGD May 2009
47 HIM CTP 2009.
48 HIM CTP 2009
•
chilled foods
4.6%
• grocery
3.4%
• alcohol
3.3%
• snacks
3.3%
• bakery
2.8%
• other
7.5%
fig: 17
So it goes without saying that Soft Drinks is a Category
at the core of any successful PFCS business.
So how can you extract the best return from the
Category in this environment?
A good place to start, as always, is in looking at who the
shopper is and how they behave.
Shoppers in PFCS tend to be slightly more middle
market, C1/C2 in socio-economic shorthand. They
tend to be blue collar, e.g. trades people or factory
workers, and mothers with children. The majority tend
to be aged between 25 – 44 and these characteristics
are even more strongly pronounced when you look
specifically at Soft Drinks shoppers. 47
In general, the bias is very slightly towards men.
However, when looking specifically at Soft Drinks,
there are slightly more Female shoppers. Overall the
ratio is 52%:48% Female to Male, although this does
differ across the three formats in PFCS. 48
Looking at their behaviour when shopping in this
environment:
• 43% just buy Fuel
• 27% just buy from the shop
• 30% buy both 49
The key figure here is the opportunity that those 43%
of ‘Fuel only’ shoppers represent. Nearly all of these
shoppers will have to enter the forecourt store to pay
for their Fuel. So our objective is to try and influence
that shopper at key points of interruption all the way
along the path to purchase – from when they first drive
onto the forecourt to when they go to pay at the till.
For Soft Drinks, there are a number of ways to do this
and it starts with letting them know you actually sell
Soft Drinks!
49 HIM CTP 2009
fig: 17 IGD Research, 2009
using the highbeam –
availability
By using advertising at the
roadside, at the pump and outside
the store, you can inform shoppers
of the products you offer and any
promotions you have for them.
Once they’re in the store, it’s
critical to have the Soft Drinks
Category clearly labelled and visible.
Once again, availability is the single
most important issue for shoppers
when they’re in this environment:
• 40% claimed that their failed
purchase was due to an out of
stock situation 50
key points of communication on the forecourt
50 HIM CTP 2009
51 HIM CTP 2009
1
2
‘ soft drinks is a category at
the core of any successful
PFCS business’
• 22% said they couldn’t find what
they were looking for 51
• An estimated £26.8m 52 is lost
each year in Fuel by simply not
having the right stock on shelf
and letting your Soft Drinks
shoppers know it’s there!
The busiest periods for Soft Drinks
are during lunch (12pm–2pm) and
after work (5pm–7pm) 53 so make
3
52 HIM CTP 2009
53 HIM CTP 2009
5
4
sure you have your shelves
re-stocked in preparation for these
peak periods.
Sectors like Energy, Sport, and
Water perform above average in
this environment compared with
other Convenience channels so
those are the ones that will perform
best when allowed the most space
on the shelf. 54
1 on the pump
2 at the pump
3 outside the
shop
4 as you enter
the shop
5 at the shelf
54 Nielsen, Multiple Forecourts, 52 w/e 16.01.2010
fig: 18

42 fuel fuel 43
on-the-go frequency
The on-the-go shopper is a rapidly
moving target. This is especially
true within the Fuel Environment,
where people are frequently in
transit and wanting to get to where
they’re going as quickly as possible.
To achieve the speed of service you
need to deliver, try placing your
Soft Drinks chiller in a visible and
handy position, along the main
walkway from the store to the till.
soft drinks sector share of value, forecourts vs total impulse
value % share
40
30
20
10
0
27.5
24.2
12.3
6.3
total impulse
multiple forecourts
cola flavours lemonade adult
mixers
sectors where forecourts over-index in share
2.0 0.5 1.1 0.1 0.9 1.0
adult
special
7.0
2.5
pure
juice
9.6 9.3
juice
drinks
18.3
30.9
fast lane chiller
energy sports non-fruit
RTD
squash water
fig: 20 Nielsen, Multiple Forecourts, 52 w/e 16.01.2010 55 HIM CTP 2009
56 HIM CTP 2009
4.7 6.7
3.9 2.8 3.3
0.4
9.5
15.2
fig: 19
fig: 20
‘ the number one mission,
after the purchase of fuel,
is to buy something to eat
or drink’
If this is not possible, think about
locating a secondary impulse chiller
along the fast-lane or near the
till-point.
This makes sense as the number
one mission, after the purchase of
Fuel, is to buy something to eat or
drink immediately:
• An enormous 89% of those
purchases are destined to be
consumed immediately or within
the first two hours 55
• three out of four Shoppers
(74%) say it’s “extremely
important” to get in and out
of the shop quickly 56
In combination with impulse
chillers, use signage that flag up
specific shopper needs.
You can help stimulate impulse
purchases with something as
simple as a sign saying “thirsty?”
And another offering an attractive
and immediate solution: “ice cold!
refreshing!”
57 Nielsen, Multiple Forecourts, 52 w/e 16.01.2010
58 HIM CTP 2009
driving the driver –
the energy opportunity
Refreshing a thirsty motorist and
providing fresh energy for a tired
long-distance driver – the first is
what Soft Drinks have always done,
the second is what Energy Drinks
can now do better than ever before.
So it’s no wonder that Energy
Drinks make up nearly a quarter
of all Soft Drinks purchased in Fuel
and is the second largest Category
behind Colas. 57
The Energy shopper is definitely
younger – 39% of stimulation drink
shoppers here are under 24 years
old. 58 Also, more than two out of
three are men, with 71% of total
Energy shoppers in Fuel being Male. 59
59 HIM CTP 2009

44 fuel fuel 45
Energy Drinks tend to be purchased either first thing
in the morning or at lunchtime in Fuel. 60 That’s why to
maximise your sales, it’s vital to have a good range of
key brands and popular formats stocked in the chiller
ready and waiting for those predictably busy periods.
It’s also well worth considering link deals with
complementary categories. Newspapers, for example,
are a common item to be bought alongside Energy
Drinks. 61 That makes them a logical choice to provide
a simple and effective way of increasing shopper spend
and facilitating a well-timed pit stop.
Experience proves the power of merchandising impulse
Categories like Energy Drinks and /or Shots near the
point of purchase, either at the till or along the queue
lane or both!
fuel for the road –
food and soft drinks
In Fuel, there is a very high incidence of snacks being
purchased with Soft Drinks.
Over one third (36%) of all Soft Drinks baskets contain
an item of Confectionery:
• 21% have crisps and 11% have sandwiches 62
• 30% of UK workers who purchase a food or drink
item to go, do so at a Petrol Forecourt 63
• It all adds up to a huge opportunity to up-weight
purchases and increase sales
• PFCS Food-to-go offerings are improving and gaining
in popularity
‘ 30% of uk workers who purchase
a food or drink item to go, do so at
a petrol forecourt’
60 HIM CTP 2009
61 HIM CTP 2009
62 HIM CTP 2009
63 Food To Go Research, IGD 2009
In many cases they provide round-the-clock solutions
for people on the move – starting with breakfast ‘on
the hoof’:
• 18% of people leave the house without having
breakfast and buy it on the move 64
• Simple breakfast meal deal options are an ideal way
to target these shoppers
• Soft Drinks categories like Juice Drinks, Energy
Drinks or Waters would be the logical choice in any
breakfast offer
Come lunch time, Sectors like Juice Drinks, Colas and
Flavours deserve prominence:
• Use your Soft Drinks options intelligently to exploit
these different meal opportunities
• Try merchandising them together in the chiller with
sandwiches or rolls
• Make it easy for shoppers to find what they want,
when they want it
64 HIM CTP 2009
65 HIM CTP 2009
‘ 18% of people leave
the house without
having breakfast
and buy it on the
move’
Cater for Top-up shoppers.
• The journey home from work is a popular time for
most Top-up shopping missions 65
• This is where Future Consumption packs like multipack
cans and two litre bottles come into their own
• Satisfying the needs of Top-up shoppers is always
good for business!

ars, pubs
and clubs
FUEL
CAFE/COFFEE SHOP
RESTAURANT
GENERAL STORE
FAST FOOD
FOOD TO GO
VENDING
NEIGHBOURHOOD CONV
ST
bars, pubs and
clubs
PUBS, BARS AND CLUBS CANTEEN
F

the changing opportunity
for licensed outlets
There are some 76,000 Licensed
Bars, Pubs and Clubs 66 in this
country. These outlets generate
over £20 billion 67 from all food and
beverages consumed on site.
Despite not always being the
‘destination Category’, it is
significant that Soft Drinks account
for over 10% of this turnover. 68
In the first half of 2009, around
52 pubs went out of business, on
average, every week, 69 as a range
of social, economic and legislative
pressures took their toll.
However, all is not doom and
gloom. The challenge for licensed
outlets is to adjust to the changing
needs of their customers.
This environment is now smokefree,
more family friendly and more
health-conscious.
soft drinks are ideally placed
to capitalise on these changes
– their role is more important
than ever!
More often than not the perception
of Soft Drinks in Pubs is that
‘ bars, pubs and clubs
generate over £20 billion
from all food and beverages
consumed on site’
66 Nielsen Total On Premise 2009
67 Mintel Eating Out Review 2009
68 Nielsen Total On Premise 2009
69 CGA / British Beer & Pub Association Research, 2010
bars, pubs and clubs 51
they’re the most sensible choice,
for drivers and of course, the
most popular choice for children.
However, their role in Pubs goes
way beyond this. Soft Drinks, for
many are the preferred choice, with
around one in four people entering
a bar just wanting a Soft Drink. 70
The last 20 years have also seen
the spectacular rise in popularity
of ‘eating out’, with a rise in a new
breed of ‘Gastro Pubs’. Here the
quality and value of the food are
attracting the patrons as much as
the range and quality of the beers
and ales available.
Witness the fact that food sales now
make up over a third of some Pubs’
turnover. 71
This trend has created increased
demand for Soft Drinks either as
an aperitif, or as a refreshingly
acceptable accompaniment to food.
70 HIM Ontrack, 2009
71 Horizons Foodservice 2008

52 bars, pubs and clubs bars, pubs and clubs 53
what are the key facts?
• Around one in four people enters
a bar just wanting a Soft Drink 72
and it is one of the highest
penetration Categories. 73 Whether
it be groups of friends with some
driving, or families with young
children, consumers’ experience
can often be disappointing, as
there are often very few Soft
Drinks on display, limited choice
and poor quality of serve
‘ around one in four people enters
a bar just wanting a soft drink’
on-trade sector values
total liquor
total wine
total beer
total cider
total spirits
total soft drinks
72 Distillery Research 2008
73 HIM Ontrack 2009
74 HIM Ontrack 2009
value sales by sector £m % value change – MAT % value change – YTD
1421
1265
1067
970
2418
2134
2369
2132
9490
8535
MAT TY YTD TY
14392
12900
-5
-3
0
1
3
4
75 Kantar Worldpanel Research 2008
76 HIM Ontrack 2009
fig: 21 Nielsen, Total Brewer to November 2009
-5
-3
0
1
3
4
fig: 21
• Consumers rate choice of
drinks as the No. 1 aspect they
want their Pubs to provide. 74
This means having a choice of
the most popular Soft Drinks,
especially in the big Sectors like
Colas
• Perhaps not unexpectedly, two
thirds of visits to licensed outlets
are for social occasions 75 with the
core consumers ABC1 (slightly
more up-market) and aged 25 –
44. These customers are willing
to pay premium prices for quality
Soft Drinks that deliver health,
refreshment or functional
benefits. Naturally, they expect
their Soft Drinks to be served
in a way that enhances their
drinking experience too
• Some 13% of consumers rate
service in Pubs as poor. No other
retail channel could get away
with disappointing such a large
number of consumers, so why
should Pubs? 76
• Almost half (49%) of food bought
in Pubs is consumed with Soft
Drinks. 77 This is already a much
higher ratio compared with any
alcoholic drink including wine
and beer. 78 What’s more, the
trend is growing
77 NPD/CREST 2009
78 NPD/CREST 2009
beverage incidence with food
total pub sector
total beverages
total alcoholic beverages
beer
cocktails/mixed drinks
wine/champagne total
total hot beverages
total soft drinks
colas
cola – regular
cola – diet
other fizzy flavours
juice
bottled water
tap water
2.4
4.3
4.6
2.8
% incidence
13.7
44.2
• Further research reveals that there is a consumer
need for Energy in this environment, especially in
young person’s venues or Style Bars 79
• Too often this need is not met, resulting in
disappointment among prospective customers,
not to mention lost opportunities for profit
There are good profits to be made in this
important Category simply by doing a few basic
things much better.
9.6
15.8
11.9
12.2
So what do we mean: how can you sell more
Soft Drinks?
27
27.3
49.7
79 Kantar Worldpanel, Walkabout Research 2008
80 NPD Group / Crest Research, 52 Weeks to December 2009
97.2
fig: 22
food for thought
There is an obvious opportunity to drive Soft Drink
penetration/frequency with food even further. On
average, for example, over half of all food occasions
(51%) do not feature a Soft Drink. 80
Food drives footfall and boosts overall outlet-spend,
while Soft Drinks link more readily with food than any
other Category. How can you make much, much more
of this natural synergy?
• Dedicate sufficient space in the chiller for Soft
Drinks to adequately reflect their value share to
your business
• Give Soft Drinks the physical visibility they deserve
both inside and outside the premises
• Make the link between Soft Drinks and food much
more obvious
• Your Soft Drinks range should be included on the
menu, preferably with the brand logo alongside
• Present meal deals including Soft Drinks
• Feature both adult and child-friendly options
• Link promotional activity and visibility to time of
day and meal occasion. Orange Juice with breakfast,
adult and child options with lunch, Colas and Energy
Drinks for evening
fig: 22 Crest, Latest 52 Weeks to November 2009

54 bars, pubs and clubs bars, pubs and clubs 55
81 Mintel On Trade Soft Drinks Report Jan 2010
fig: 23 Nielsen, Total Brewer Latest 52 Weeks to November
quality, visibility
and choice mean
profitability
Consumers won’t buy what they
can’t see on a shelf, see on a poster
or read in a menu. They won’t
buy if their favourite brand is not
available, and if it’s served poorly
they won’t come back for more!
Driving people towards Soft Drinks
is a mixture of art and science.
• Tailor your chosen range to
match the taste and profile
of your customers
comparative value of soft drinks
on-trade
off-trade
7.5% •
16.1%
41.5%
6.7%
18.5%
6.7%
colas
£982,128,000
• flavours
£163,726,000
• lemonade
£437,316,000
• mixers
£159,531,000
7.3%
9.1%
9.1%
9.1%
27.7%
21.9%
9.1%
• colas
£1,357m
• flavours
£564m
• lemonade
£138m
• mixers
£115m
• adult
£279m
•
fruit juice
£381,363,000
• squash
£178,444,000
• water
£66,641,000
•
•
fruit juice
£1,721m
sports &
energy
£566m
• squash
£480m
• water
£566m
• other
£566m
fig: 23
• Enhance the Soft Drinks
experience for your customers
through serving the product
chilled and using branded
glassware where available, over
ice with a slice of lemon or lime
• Make sure the space you assign
to Soft Drinks realistically
reflects their value to your
business
And the rewards?
As a licensee, you enjoy a
significant advantage over High
Street Retailers, as Soft Drinks sold
for immediate consumption are
three times more profitable than
their Take Home equivalents.
But remember:
• 63% of consumers resent the
prices they pay 81 for Soft Drinks
in the on-trade
• Always offer them value for
money by training your staff to
serve Soft Drinks correctly
• Make them well aware of all the
brands and formats available
to them, both packaged and
post-mix
• This will bring customers back
into Category and the outlet –
and leave them feeling good
about the experience!
maximise those social occasions for
adults and children
You can encourage consumers to buy more Soft Drinks
more often and in greater volume simply by having the
right products clearly visible in all the right places.
The correct presentation and marketing will answer
and appeal to the different needs of consumer groups.
Remember to capitalise on day-parts:
• Females and families are your prime prospects
before 3pm 82
• Ensure a range of healthy and family-friendly
Soft Drinks are on offer
• Feature Soft Drinks descriptors, visuals and logos
on menus
After 3pm you need to cater more for diverse groups
and a more traditional customer mix. 83
But, remember, they are willing to pay more for
healthy Soft Drinks, 84 or premium mixed drinks.
Once again, perceived price and quality issues are
two major barriers to purchase of premium spirit
mixed drinks. You can overcome this by ensuring that
the ‘finished drink’ pricing is clearly visible to the
consumer for spirits and mixers, ensuring all drinks
are given the quality serve that your customers expect
and deserve and that you stock a range of mixer pack
sizes and formats to cover all consumer tastes and
price expectations.
82 HIM on track 2009
83 HIM on track 2009
energise the outlet
Younger adults, aged 18 – 30, who are going out on the
town or clubbing, are a force to be reckoned with!
They require renewed energy.
This is the fastest growing sector in the total Soft
Drinks market – with further scope for growth.
How can you drive more profitable penetration into
this Category?
• By making these drinks more visible
• And offering the top choice
• By always remembering that these younger
customers also appreciate the quality of serve –
in a branded glass, with ice and a slice of lemon
or lime
‘ soft drinks sold
for immediate
consumption are
three times more
profitable than
their take home
equivalents’
84 Mintel On Trade Soft Drinks Report Jan 2010

canteen
FUEL
CAFE/COFFEE SHOP
RESTAURANT
GENERAL STORE
FAST FOOD
FOOD TO GO
VENDING
NEIGHBOURHOOD CONVENIENCE
STORE
PUBS, BARS AND CLUBS CANTEEN
CONCESSIONS
SUPERSTORES
FRONT OF STORE
SUPERSTORE
FOOD HALL
ONLINE
canteen
BULK BUYING

it’s all about the canteen
Let’s look now at the Canteen
environment.
Through sheer weight of numbers
and typical ‘dwell-time’ there are
outstanding opportunities here to
influence more consumers to buy
more Soft Drinks more often. This
is not the long business lunch to
seal a deal – it is a lunch pause
before getting back to work.
The Business & Industry (B&I)
Catering market is worth £1.79
billion, serving some 666 million
‘routine’ meals. 85 B&I Catering
outlets represent just under half
of total Canteen Catering outlets
in the market, ahead of education,
healthcare and defence outlets.
There are 28.9 million people
currently working in the UK. 86
Each one, on average, passes some
46 different outlets on their way
to work. 87 That means that the
Canteen competes with the High
Street for custom and needs to
consumer’s exposure to food /drink outlets during a typical day
HOME
85 Mintel B&I Catering 2009
86 ONS Summer 2009
87 Mintel Research 2008
Wilkinson
Subway
Esso
Red Lion Inn
Waitrose
Tesco Express
Underground
Co-op
Boots
Somerfield
Budgens
Sainsbury
Marks & Spencer
on average a consumer will pass 46 food and/or drink outlets on the way to work
Lidl
Spar
88 CCE estimates based on NPD/CREST 2009
89 NPD Group / Crest Research, 52 Weeks to
December 2009
WORK
Greggs
fig: 24
workplace 61
work hard to attract consumers
and make them spend their money
with them on Soft Drinks.
Recent economic and social trends
have put pressure on B&I Catering,
but according to our calculations,
the great news is this: increasing
Soft Drink incidence by just 1%
equates to a £2.5K annual increase
in sales, per outlet. 88
what are the key facts?
• There is a potential loss of 1.6
billion visits to other Foodservice
outlets on the High Street that
could have used a workplace
Canteen 89
• Lunch accounts for 44% of all
Canteen meal occasions and Soft
Drinks ‘over index’ on these
occasions – yet over 70% of food
occasions outside of meals do NOT
involve a Soft Drink purchase 90
• 16% of workplace purchases
are consumed out of area and
‘Grab and go’ is the second most
important shopper mission 91
90 NPD Group / Crest Research, 52 Weeks to
December 2009
91 Kantar Worldpanel 2008
fig: 24 Mintel October 2008

62 workplace workplace 63
We have identified an opportunity
to reverse the decline and unlock
new levels of opportunity.
make sure the product
is available and visible
The pattern of peak demand is well
established and easily predictable:
market size and trends in canteens
£m
2000
1800
1600
1400
1200
1000
800
600
400
200
0
92 HIM CTP 2009
fig: 25 Mintel October 2008
1673
1444
1694
1502
1734
1584
• Lunch
• Mid-morning
• Evening
Nearly two thirds of consumers say
this in an impulse environment. 92
If they cannot find the Soft Drink
products they want when they want
them, they will simply go without
or go elsewhere.
1774
1664 1656 1640
2003 2004 2005 2006 2007 2008 2009
£m
1656 1640
1638
1587
£m at 2009 prices
In order to increase penetration and
frequency of sales, it is essential to
ensure the right products are visible
in the right place, at the right time,
at the right price.
This combination is what delivers
immediate satisfaction and builds
customer loyalty.
1663
1559
1702
1750
1796
1548 1557 1558
2010 2011 2012 2013
fig: 25
Installing the correct equipment,
following the proven planogram and
ensuring that staff are trained and
incentivised to re-stock Soft Drinks
at these key times, will ensure that
no sales are lost unnecessarily.
And more than that – it ensures
that appealing Soft Drinks can
catch the consumer’s eye in order
that more purchases may be
stimulated on impulse.
profits on the go
All employees in the workplace are
‘prospects’ for the Canteen, where
many are looking to ‘Grab and go’.
The key to increasing Soft Drinks
frequency in the workplace is to:
• Drive consumers to the
Canteen by highlighting it as
the ‘convenient choice’. This
is particularly important at a
time when the lunch break is
in decline
• Use internal media, emails and
promotions
• Make the products visible
wherever possible using a broad
range of materials – Point of
Sale, Media, Chillers, Vending
Machines
• Offer a range of pack formats
that address the need for
portability and convenience – for
example, bottles as well as cans
All of these triggers will expose
prospects to the tempting choice
available to them and ultimately
mean consumers are more likely
to buy more units, more often.
soft drinks make more
of a meal
Most missions to the Canteen are
for lunch time meals. This is also
when Soft Drinks are most popular.
This suggests that Canteen
customers would buy more Soft
Drinks more often if they were
reminded of the value they add to
food and the drinks were clearly
linked to the meal occasion.
Experience in other On-Premise
environments suggests that Soft
Drink incidence with food is very
high and that there are powerful
opportunities to increase the Soft
Drink/food linkage in the Canteen.
The main ways to do this are:
• Ensuring physical proximity of
Soft Drinks to fresh sandwiches,
crisps and snacks
• Activating meal deals and other
appropriately linked promotions,
utilising the day-parts –
breakfast, lunch, snacking –
using ‘best practice’ from the
High Street as a guide

other
environments
FUEL
CAFE/COFFEE SHOP
GENERAL STORE
FAST FOOD
FOOD TO GO
VENDING
NEIGHBOURHOOD CONVENIENCE
STORE
CONCESSIONS
SUPERSTORES
FRONT OF STORE
SUPERSTORES
FOOD HALL
ONLINE
other

all other environments
Soft Drinks can be enjoyed by
anyone, on any occasion. Their
popularity and versatility means
they can be bought and consumed
across numerous environments
throughout the day. Here we take
a brief look at the eleven other
environments.
grocery convenience
Grocery Convenience includes
smaller sized Grocery formats
including Tesco Express,
Sainsbury’s Locals, Co-op stores,
Marks & Spencer and sophisticated
Symbol chains. These outlets are
geared towards a ‘Top-up’ shopping
mission and generally are more
skewed towards more affluent and
Female shoppers. 93
93 Walkabout Research, Kantar Worldpanel, 2009
supermarket front
of store
Usually located as you enter a large
supermarket, these outlets are
designed to provide a Convenience
offering that complements the
main household shopping mission
of the Foodhall. Here you can find
Tobacco, Lottery, Soft Drinks and
sandwich chillers, Newspapers and
Confectionery – all items shoppers
want to pick up quickly. Soft Drinks
are often purchased for on-the-go
refreshment, and are often bundled
into ‘meal deals’ at lunchtime.
online
other environments 69
More and more shoppers are using
the Internet for their Grocery shop.
This virtual shopping environment
allows shoppers to browse for
products and save a ‘personal’
basket for repeat purchase at
a later date.
The ease of shopping from the
comfort of their own home is made
even more appealing as the goods
are delivered to their door at a later
date, usually for a fee.

70 other environments other environments 71
food-to-go
Outlets in this environment are typically specialist
sandwich retailers or independent bakeries and chains
focused on providing food and drink to people on the
move. They include Boots, Prêt a Manger, Subway,
Greggs, etc.
These outlets are busiest primarily at lunchtimes
but also in the morning, 94 catering for time-pressed
workers on their way to work or enjoying a break from
the office during lunch. Soft Drinks can be purchased
on their own or, as is more often the case, as part of a
‘meal deal’.
fast food
Serving food and drink to order from a pre-set menu
is the hallmark of these outlets. The environment
ranges from the big Fast Food chains operating eat-in
restaurants to small Independent ‘Take-away’ outlets
on almost every local High Street.
With at least 20% of the population enjoying Fast Food
at least once a fortnight, 95 it is a key environment in
offering convenient meal solutions. Soft Drinks are
almost always offered as part of a meal deal package.
94 NPD Group / Crest Research, 52 Weeks to
December 2009
95 Walkabout Research, Kantar Worldpanel, 2009
restaurants
This environment encapsulates a wide variety of
outlets ranging from fine dining venues to some pubs
if greater than 50% of their sales comes from food.
The defining characteristic is that food and drink is
bought for immediate consumption on the premises.
Customers are normally served at the table, and
pay after having their meal. Soft Drinks are usually
consumed alongside the main meal – 51% of food
orders contain a Soft Drink of some description. 96
bulk buying (route to market)
Bulk Buying covers two distinct shopper and outlet
propositions. The first being Club wholesalers like
Costco. Shoppers usually pay an annual membership
fee to purchase personal household supplies at
discounted rates through the depot.
The second is the Cash and Carry where a Retailer
or Caterer purchases items for on-sale to an end
consumer. Soft Drinks are a key Category within
Cash and Carry. They are the most common Category
in shopper’s baskets as well as the most common
Category bought on impulse. 97
96 NPD Group/Crest Research, 52 Weeks to June 2009
97 HIM, Cash and Carry Programme 2009
concessions
Concessions include a variety of
formats falling under the ‘Out of
home entertainment’ umbrella.
These primarily include Cinemas,
Theme Parks and Resorts and are
normally directed to providing a
fun, social occasion for the whole
family. Soft Drinks are normally
served as part of set menus but
can also play a role in offering
‘refreshment on the go.’
café /coffee shop
The café, coffee shop or tea house
is an environment that focuses on
beverage service – primarily coffee
and other hot drinks. It will also
usually have a basic food and drink
offering. They vary in size from the
basic kiosk, serving coffee to people
on the move, to full-sized coffee
shops with tables where people can
relax and eat and drink in.
general store
General Store consists mainly of
outlets that are either general
merchandise stores, including the
likes of Wilkinsons and Poundland
or specialist Retailers like Butchers,
Garden Centres etc. Places where
the Soft Drinks offering will be very
basic – if on offer at all.
vending
As the name suggests vending
is all about Vending Machines.
These machines can be located
in numerous locations, usually
where people will easily see them
and allow Soft Drinks to be
purchased in locations where they
may not otherwise be available,
e.g. Workplaces, Sports Centres,
Shopping Malls...
If you need further information
on any of these environments,
please contact your local Coca-Cola
Enterprises representative.