soft drinks Archives - Ireland's Forecourt & Convenience Retailer

Nexba chooses SHS Sales And Marketing Ireland as new distributor

Linda Stewart — Wed, 24 Aug 2022 09:12:20 +0000

Nexba has appointed SHS Sales and Marketing Ireland to sell and distribute its Kombucha portfolio in Ireland.

SHS Ireland has launched the all natural sugar-free Australian drinks brand, Nexba, which provides healthy alternatives to sugar-filled soft drinks.

Matthew Connole, sales lead EU, Nexba Beverage Co. said that the recent launch marks an ‘exciting and important milestone’ as the company grows its international brand presence.

“We will be working closely with SHS Sales and Marketing to maximise current opportunities and identify areas for growth, boosting Ireland’s naturally sugar-free soft drinks category as we seek to realise the full potential of the Kombucha portfolio,” he said.

The new range of Kombucha is available in three flavours – Strawberry and Peach, Mango and Mixed Berry.

The soft drink is full of live culture probiotics and is made using the globally patented ‘Nexba Natural Sweetener Blend’, which allows each drink to be completely sugar-free and contains nothing artificial, yet retains its bold, and fruity flavours, the company noted.

According to the Australian soft drinks brand, the new range is part of the company’s ongoing agenda to ‘tackle diabetes and obesity and improve gut health in Ireland’.

Alan Neill, commercial director, SHS Sales and Marketing, said that the Nexba’s Kombucha range is “unique”.

“The naturally sugar-free soft drinks category is one of Ireland’s most dynamic FMCG markets,” he said.

“The desire to stay healthy during the pandemic has accelerated the demand for such products, as health and well-being become a priority for consumers.”

Nexba is currently available in SuperValu, Centra, Spar and independent stores nationwide.

The post Nexba chooses SHS Sales And Marketing Ireland as new distributor appeared first on Ireland's Forecourt & Convenience Retailer.

Coca-Cola HBC flags one-off €190m hit from Russian operations

Linda Stewart — Thu, 11 Aug 2022 09:42:49 +0000

Coca-Cola HBC says it incurred a one-time hit of €190m in the first-half of 2022 due to costs related to its business in Russia after it stopped the sale of Coca-Cola drinks in the country following the Ukraine war.

The soft drinks bottler once counted Russia as one of its biggest markets.

It said it also expects to sustain financial charges of about €82m in the second-half as it depleted all its stocks and would no longer produce or sell Coca-Cola or other brands of the Coca-Cola Company in Russia.

HBC holds Coca-Cola franchises in Ireland and Northern Ireland to bottle and sell drinks produced by the US beverage giant. Coca-Cola holds more than 20% stake in HBC.

The London-listed firm also reported a 34% fall in net profit at about €153m for the six months ending July 1, hit by the charges.

It also reinstated its forecast, expecting comparable operating profit for 2022 to be between €740m and €820m.

The post Coca-Cola HBC flags one-off €190m hit from Russian operations appeared first on Ireland's Forecourt & Convenience Retailer.

Inflation reaches highest level in almost 10 years

Linda Stewart — Mon, 27 Jun 2022 10:21:59 +0000

The latest figures from Kantar show that take-home grocery sales for Ireland fell by 4.9% in the 12 weeks to 12 June 2022.

While the decline is softer than last month, grocery price inflation continues to climb and hit 6.5% this period, the highest level in Ireland since February 2013.

Households are facing a potential increase of €453 to their annual grocery bills, the company said.

Emer Healy, senior retail analyst at Kantar, says: “Food and drink prices are on a steady upwards trajectory and many people will be feeling understandably worried about the rising cost of living. Price increases are now set to add an additional €453 to our average annual grocery bill, which is over €100 higher than the figure we quoted back in early May.

“We’ve seen some of the sharpest increases in essentials like butter, eggs, bread, and flour, which are a non-negotiable feature on the shopping list for many of us.”

Shoppers are taking additional steps to manage their spending at supermarket tills, and making three fewer trips to the store on average per month than they were this time last year.

Emer Healy says: “Unsurprisingly, 53% of the consumers we spoke to said that they will be actively seeking out any deals and discounts in store because of inflation. This is clear in the shifting balance between brands and private label, where 66% said that they would swap the branded product in their trolley if a private-label item was cheaper.

“We expect this trend to continue over the next 12 months, and those retailers offering good value, own-label products and promotions will be the most successful in attracting and retaining customers.”

Dunnes and Tesco, the retailers with the strongest performance this period, have seen €8.2 million more spent between them on their private label lines. Dunnes’ consistently strong performance has now pushed into the seventh consecutive period this year. The retailer is now tied for first place with Tesco – both holding a 22.1% share of the market.

Despite rising prices, everyone was keen to make the most of the June bank holiday and are looking ahead to a lockdown-free summer.

Emer Healy continues: “Unlike the COVID-19 restrictions of last summer, we’re all busy preparing for our holidays abroad (or even being extra optimistic about the Irish sunshine) and sun cream sales have shot up by 36% compared with May as a result.

“The combination of a bank holiday weekend and the start of barbecue season meant shoppers spent an additional €575,000 more on burgers and grilling food this month than they did in May, and ice cream has also seen an extra €2.4 million heading through the tills. Sales of savoury snacks and carbonated soft drinks, popular at any social occasion, are performing well with sales up by €1.2 million and €930,000 respectively compared to the same four week period in June 2021.”

The online grocery market grew by 9.3% in June.

“Online channels are continuing to grow even over two years on from the first lockdown, which points to its staying power as we adjust to new routines and lifestyle changes.,” Emer Healy says.

“A lot of this growth is coming from families with younger children who are getting organised as the school summer holidays fast approach. They’ve spent an additional €2.3 million on online grocery shopping over June, perhaps hoping to save on extra trips out in the car and avoid the petrol pumps.”

Tesco’s share grew 0.6 percentage points this period. The retailer’s strong performance was helped by a 10% boost in online sales during the month of June, with shoppers spending an additional €2.9 million.

SuperValu now holds 21.7% of the market. Lidl and Aldi follow behind, each accounting for 13.2% and 12.3%.

The post Inflation reaches highest level in almost 10 years appeared first on Ireland's Forecourt & Convenience Retailer.

Grocery inflation hits highest level since 2013

Linda Stewart — Tue, 31 May 2022 09:21:11 +0000

Grocery inflation has hit 5.5%, marking the first time it has risen above 5% since August 2013.

New research from Kantar shows that shoppers are changing their buying behaviour to manage the cost of buying food, including turning to cheaper alternatives.

Kantar said that people are now making four fewer trips to the supermarket on average per month than they were this time last year.

Branded items – a favourite when consumers were treating themselves more during the Covid-19 lockdowns – previously made up more than 50% of grocery sales in 2020 and 2021.

“We’re now seeing clear signs that people are turning to retailers’ own-label items instead, which are usually less expensive,” said David Berry, Managing Director for Kantar Worldpanel Ireland.

“As a result, brands’ share of grocery spend has dropped to 49% in the latest 12 week period, which is equivalent to a €29m fall,” Mr Berry added.

David Berry said recent research from Kantar shows the rising cost of living is a key concern for 81% of Irish consumers, while a “staggering” 62% expect that they will have to cut back on the amount of food they buy in response to current prices.

“We’ll be seeing the effects of inflation for months to come,” he stated.

The figures from Kantar also show that take home grocery figures for Ireland fell by 6.5% in the 12 weeks to May 15 this year.

However, sales of BBQ meats, like burgers and sausages, as well as prepared salads have increased by 2% and 8% respectively in the latest 12 week period.

Soft drinks have also seen a 5% boost this period, equating to an extra €5m through supermarket tills.

“It’s likely that sales of these items will keep rising as we make the shift to more summery foods and leave the soups and stews behind, but prices are going up too. A trip to the supermarket to buy BBQ meat, salad, and soft drinks will now cost you €1 more on average in total than it would have last year,” David Berry said.

For the sixth consecutive period this year, Dunnes retained its position as the country’s biggest retailer and holds a 22.3% share of the market.

David Berry noted that sales among all the retailers are still in decline compared to lockdown last year, when people were far more reliant on supermarkets to stock up their cupboards as Covid-19 restrictions were in place in other areas of the economy.

“That said, Dunnes seems to be recovering well from the challenging Covid-19 period. The retailer’s current market share is now 1.2 percentage points higher than May 2021, boosted by 98,000 new shoppers in the latest 12 week period,” he added.

Tesco is now slightly ahead of SuperValu in the race for second place, each accounting for 21.9% and 21.7% of the market.

Tesco benefited from shoppers visiting the store more often, bucking the general market trend and allowing it to move just ahead of SuperValu, Kantar said.

Lidl holds a 13.1% market share in the period under review, while Aldi follows with a 12.2% market share.

The post Grocery inflation hits highest level since 2013 appeared first on Ireland's Forecourt & Convenience Retailer.

Coca-Cola HBC says it has contingency plans to cope with the Russia crisis

Linda Stewart — Thu, 03 Mar 2022 16:51:43 +0000

Coca-Cola HBC says it has contingency plans to cope with the escalating Russia-Ukraine crisis, as the soft drinks bottler reported a surge in annual profit driven in part by its large Russian business.

The company, which bottles soft drinks for the Republic of Ireland and Northern Ireland markets among others, said it was considering stockpiling ingredients to limit any disruption in Russia, after Western nations threatened new sanctions following Moscow’s recognition of two breakaway Ukrainian regions.

“We have contingencies in place for all scenarios, including alternative sourcing, so that we can act swiftly to whatever happens,” Zoran Bogdanovic, chief executive told Reuters.

He said Coca–Cola HBC, which operates in 29 European and African countries and counts Russia and Nigeria as its two biggest markets, had learned lessons from its experience during the 2014 Russian-Ukrainian conflict.

“We ensure that we have the right level of stocks in our markets to avoid disruptions,” the CEO said.

Coca–Cola HBC’s annual profit trounced market expectations, led by higher demand for low-sugar and energy drinks as more people dined out after COVID restrictions eased.

The company holds local Coca–Cola franchises to bottle and sell drinks produced by the U.S. beverage giant, which holds a roughly 23% stake in the Switzerland-headquartered company.

It said comparable operating profit for the year ended 31 December jumped nearly 24% to €831 million ($939 million), topping a company-provided market estimate of €797.6 million.

“The business has delivered a very strong recovery in 2021, with all key metrics above pre-pandemic levels,” Bogdanovic said in a statement, adding that the firm faced inflationary pressures ahead.

Soft drink makers such as Coca–Cola and PepsiCo have flagged profit pressures for this year from a relentless rise in costs related to labour, shipping and aluminium cans, pushing them to hike prices.

Coca–Cola HBC said emerging markets like-for-like revenue jumped 27% on a constant currency basis, with Nigeria, Russia, and Ukraine showing strong momentum.

On Russia, Ben Almanzar, chief financial officer said the company was considering alternative sourcing for raw materials.

“We have looked at all types of scenarios and have ensured that we have contingency plans in place in case there is disruption,” he said.

The post Coca-Cola HBC says it has contingency plans to cope with the Russia crisis appeared first on Ireland's Forecourt & Convenience Retailer.