Cost Sector Catering: What are the biggest challenges for the soft drinks sector?
Razin Ali: One is the new government legislation regarding school food standards coming into play in January 2015. Under the new standards, soft drinks available in schools must contain no more than 150ml of juice due to their sugar content, and the portion size of ‘combination drinks’ – drinks containing juice and water – is now capped at 330ml. The limit has been put in place to avoid soft drinks manufacturers adding artificial sweeteners to enhance the taste of an overdiluted drink.
However, we saw this as an opportunity to launch two new ranges that adhere to the new guidelines. These are available from leading education wholesalers nationally, and comprise Sunmagic 75% juice range, which comes in orange, apple and pineapple juice drink variants, in 200ml cartons, and the Sunmagic 45% juice range, which is available in orange, apple and tropical flavours, as well as Fairtrade orange and Fairtrade apple lines, and is packaged in a 330ml PET bottle. All the products contain 150ml juice, with the remaining volume being water.
What trends do you see emerging in this sector?
We are seeing a real trend for value-for-money products, so low-cost products that also deliver on quality. Many consumers are also looking for low-calorie products as they seek to lead healthier lifestyles, plus products with more exotic flavour profiles. To respond to this, we have recently launched a range of juice drinks that tick all these boxes, providing consumers with a quality low-cost drinks option.
Many of the drinks are also low-calorie and are available in more exotic flavours. These include Sunmagic cherry and apple juice drink, which is low-calorie and available in 500ml bottles. Sunmagic apple, mint and white grape juice drink is another new product. It contains 35% juice, a much higher juice content than that of the average juice drink. It’s also available in 500ml bottles.
We have also extended our core 12×1L range for caterers looking for a low-cost 1L solution. These include Sunmagic tropical juice drink, orange and mango juice drink, Caribbean delight and summer delight juice drinks.
Our new school range mentioned earlier also responds to consumers’ increasing health concerns, with the products mixed with water to ensure the packs do not contain more than 150ml of juice.
Who are you targeting in the cost sector?
We target everyone in the cost sector, and our huge variety of pack sizes and flavours reflects this. The brand is now one of the most widely distributed 100% pure fruit juice, 100% pure fruit smoothie and juice drink brands in the UK, with a current retail sales value of £24 million. Our pack sizes range from 200ml right up to 10L packs, and we have a pack size for every occasion. We have a total of 12 1L flavours, as well as 16 500ml variants, including Fairtrade and two new sports-cap drinks.
What advice are you offering foodservice operators?
Foodservice operators need to ensure they are stocking the right range of soft drinks to satisfy all consumer needs. Given that 83% of adults in the UK drink fruit juice, juice drinks and smoothies, these should feature heavily in any range, responding to the drinks’ established role in consumers’ diets.
What are your bestsellers in the cost sector?
Our bestsellers are 200ml carton range in 100% juice and 75% juice, and our apple and blackcurrant juice drink variant. Our 500ml bottle also fares extremely well in the cost sector and is one of our largest distribution channels for 500ml Fairtrade variants. Our 1L format is another bestseller.
How important is character licensing to your business?
Character licensing has an important role in encouraging consumers to buy our products. We have been the official soft drinks category partner of a number of popular family blockbusters, including Ice Age 4, Turbo, How to Train Your Dragon 2 and, most recently, The Hobbit: The Battle of the Five Armies, which is our biggest tie-in to date. The Hobbit’s branding features on-pack at the moment, and with the film launching on 12 December, cost sector caterers need to make sure they are well stocked.
What are your plans for the coming year?
We are continually identifying gaps in the market for new products, and next year will be no different. We already have a raft of activity in store for 2015, with additional launches planned including extending the brand into other soft drinks categories, following trade and consumer demand.