Research/Insight

Two leading market analysts have given juices and smoothies a glowing forecast for future growth. Keynote says the fruit juice sector weathered the storm of the recession and was worth £4.1bn in 2010, up 6% year on year – a great result following the 4.3% fall during 2009, which it believes was because people were tightening their purse strings in the tough economic environment and looking at cheaper alternatives to fruit juice.

The mantra that everyone shouts is ‘breakfast is the most important meal of the day’ and research backs this statement. As analysts such as Mintel estimate that breakfast sales in restaurants increased by 4.1% last year, more operators are looking at this lucrative market and the competition is rising. For example Greggs the high street baker-cum-coffee shop chain has increased the range of breakfast products it offers and has been heavily promoting meal deals, with sausage and bacon breakfast rolls featuring strongly.

The Christmas and New Year celebrations are over and consumers concerned about their waistlines are taking more interest in ‘better for you’ products to counterbalance the excesses of the festive season. From WeightWatchers to the new fangled Dukan diet taken up by Brits means menus are coming under close scrutiny.

Coffee, tea and cocoa have all felt the effects of the sharp rise in commodity prices. For the moment the status quo on coffee and cocoa is that prices have stabilised and the threat of rising prices have abated. However the pundits predict the cost of tea could rise by as much as 7% next year due to a predicted drought in Kenya and increased consumption worldwide. These forecasts, combined with the recession, have luckily not affected consumers’ habit of having their daily cuppas out of home.

Despite the recession affecting consumer spending, there has been no let up in soft drink consumption. It’s one of their must-haves but there is still a need to offer good choice and value for money.

While the debate about tap versus bottled water goes on, huge volumes of the latter are still being sold to consumers wanting a drink on the go. Bottled water has healthy and ethical connotations, portability and recyclability, plus of course competitive pricing, which ticks all the boxes for consumers. Analyst Zenith International says the UK bottled water market achieved a 2.8% increase in annual sales [MAT 52 w/e 24/12/11] adding up to more than1.8 billion litres sold, thus providing a healthy profit for the operator.

There is nothing like a waft of freshly baked bread to draw customers through the doors. Even though there’s a limit on what many consumers can spend nowadays, a bite to eat in or to grab-and-go, made with bread that’s a bit mo. Pret A Manger, Tossed and other specialists have responded to the call for a choice of flavours, textures and dietary needs, and suppliers are keen to provide what they want – from ready-to-use to bake off artisanal style products.

Plans have been launched to link public sector catering buyers with private suppliers to use Government spending to drive moves to create a low-carbon economy in the UK. It is one of three such public/private compacts – the others being transport and renewable energy – that it is hoped will pave the way for low-carbon procurement worth more than £1bn.

Hold the cakes and disconnect the fizzy drinks machine. Replace the meeting biscuits with fruit, nuts and smoothies. What we eat has a big impact on our performance at work – from mental clarity, to energy, stamina and productivity, food governs how well our bodies and brains function. Sportsman and broadcaster Matt Dawson, best known for his role in the winning England 2003 rugby squad, argued that a 2% reduction in hydration reduces concentration levels by between 10–25%.