WEBINAR, 20 FEBRUARY 2013 Global Beverages Congress, 16-17 April 2013 Overview of emerging segments in the global beverage market Richard Hall, Chairman Matt Wilton, Commercial Consulting Director STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION
Event outline 9th InnoBev Global Beverages Congress 16-17 April, Warsaw 150 delegates each year from top global and regional producers Around 40 countries represented Sponsored by Aptar, Bericap, Closure Systems International and Sidel Full programme and online booking at www..com/events
Previous Congresses
2013 programme Conference: Refreshing outlook In association with FoodBev.com Plant tour visit hosted by Coca-Cola HBC Poland 2013 InnoBev Sustainability Awards at Gala Dinner For details on 2013 InnoBev Sustainability awards, go to www..com
Refreshing outlook Keynote address by Chairman of Coca-Cola Europe and newly elected President of European Beverages Association, Dominique Reiniche Market insight briefings Enterprise and innovation East Europe trends and developments Global market dynamics Supplier innovation Major market opportunities Soft drinks and society
Conference speakers Global producers Regional producers and innovators Other industry representatives and advisers Industry suppliers
Emerging Segments Innobev Webinar Presentation Matt Wilton Commercial Consulting Director, Zenith International 20/02/2013 STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & GEOTHERMAL ENVIRONMENT & CARBON PACKAGING & DISTRIBUTION
What we will see today A bit about Zenith Consumer driven innovation the major themes Individual beverage segment focus Final thoughts 8
A bit about Zenith Zenith is a niche consultancy specialising in the food and drinks industries. We have a core of about 40 staff based in Bath, United Kingdom. In addition we have a large network of associates based throughout the world who have specific specialist expertise. All staff are specialists in food and drink Zenith International headquarters Bath, United Kingdom
Our areas of specialism Bottled water Natural Mineral Water and spring water; plain, flavoured and functional; in small pack, water coolers, POU or bulk. Soft drinks Carbonates, dilutables and still drinks; in cans, bottles and innovative new packaging formats. Juice 100% juice, nectars, smoothies and juice drinks; ambient and chilled; in bottles, cartons and pouches. Coffee & tea Coffee, tea, herbal drinks and hot chocolate; in fresh, granular and ready-to-drink (RTD) formats. Food Confectionery, cereals and dairy; organic, fair-trade and functional foods; flavours, vitamins and antioxidants. Dairy Milk and cream; hard, soft and analogue cheese; yogurts; whey and other functional dairy products. Functional drinks Energy and sports drinks, relaxation drinks, beauty drinks and other nutraceutical innovations. Packaging Food and beverage primary and secondary packaging and labels; design, legislation and other advice.
Global soft drinks consumption 2003-13 40 30 Litres per person Water Carbonates 20 10 0 2003 2005 2007 2009 2011 2013 Still Juices Dilutables Source: globaldrinks.com
Consumer driven innovation Innovation increasingly needing to put the consumer first Importance of having a consumer reason to believe and personal relevance in a cluttered global marketplace Major current global consumer drivers include: Health and wellbeing Age concerns and ageing populations The time/energy conundrum Convenience Search for natural Macro consumer trends really underpinning emerging beverage segments
What is an emerging segment? As categories blur it can become increasingly difficult to identify what might be new or emerging e.g. tea infusions with fruit juice Innovation in recent years has been continuing apace However, emerging need not necessarily be seen as the next big thing New categories seem to be decreasingly an overnight success More focus in this presentation is given to categories that are growing in popularity or evolving and those which are leveraging increasingly important and relevant consumer trends
Health and wellbeing A category driver near the top of the consumer agenda Products combining functional ingredients with a natural, healthy and preferably low calorie offering look set to continue on their upward trajectory Nutri-cosmetics address numerous beauty and antiageing needs which is of particular interest in markets such as the UK where demographics are ageing Functional properties of emerging importance include; Weight loss and fat blocking (such as the Japanese launched Pepsi Special) Immune support (which leverages growing consumer focus on prevention) Beauty drinks and weight loss combined Anti-ageing drinks containing collagen protein Body skin care maintenance of skin and hair
What s going on in energy? Energy drinks remain a huge and growing market globally dominating the functional drinks category The last Zenith global market report on energy drinks shows the overall market in 13.7% volume growth to reach over 4.8 billion litres globally Natural energy, particularly from plant extracts such as tea, guarana, kola nut and mate is growing in importance Ginseng likely to continue gaining in importance Caffeine free energy formulations increasing being sought by the consumer plus energy segment now emerging more strongly across different segments such as water, cola and juices
Are you ready? A dynamic category growing through innovation and ongoing consumer popularity and relevance The ready to drink segment continues to strengthen globally Ongoing and sustained focus and activity within both the RTD Tea and RTD coffee segment Innovative segment with widening array of flavour combinations involving flavours, herbs and spices Within the tea category combining the convenience of ready to drink with functional elements has been key Leveraging both natural and health (i.e. high natural antioxidant) with strong consumer perception of superiority (compared with other beverages such as CSDs and bottled water) Fortified or functional RTD tea products still providing growth and innovation potential
More information to follow in Poland.. This is just a flavour of the themes and topics that will be covered Other areas of discussion for Innobev 2013 will be: The role of natural-ness Soft drinks and an adult target audience What s next for protein and soft drinks
Final thoughts Once again a market with a plethora of activity and creativity Emerging segments will be those best addressing macro consumer growth drivers and many are now able to combine more than one growth trend Products need to deliver against promised benefits to avoid consumer confusion and apathy More thoughts and detail to follow in Warsaw, April 2013.
Special offers to webinar attendees, subject to conditions: 20% discount on new bookings for Global Beverages Congress 10% discount on latest emerging market reports For more information on this presentation, these offers or any Zenith services, please contact Nick Crossland ncrossland@.com or telephone Zenith s head office on +44 (0)1225 327900 www..com STRATEGY & MANAGEMENT MERGERS & ACQUISITIONS COMMERCIAL & MARKET OPERATIONS & TECHNICAL WATER & ENVIRONMENT PACKAGING & DISTRIBUTION