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Pepsi Max success bodes well for Britvic following UK sugar tax

Feb 02, 2018 (MarketLine via COMTEX) --

UK-based beverage producer Britvic revealed the two products that performed best in the first quarter of 2017 which ended on 22 December 2017 were Pepsi Max and Robinsons Refresh'd.

They are respectively no and low-sugar beverages and thus will not be subject to the Soft Drinks Industry Levy (SDIL) being introduced in the UK in April 2018. Britvic disclosed the results in a report based on data from Nielsen.Pepsi Max achieved a record market share in 2017 and the 4.9% revenue increase in the UK carbonates category was driven by the product's continued success. Pepsi Max is the largest no or low-sugar cola product in the convenience sector. Refresh'd was named the number one soft drinks innovation of the year and its revenue from retail sales exceeded AGBP7.4 million in 2017.Britvic attributes the success of these two products to the popularity of healthy eating trend that motivates consumers to seek no or low-sugar beverage options. The company's response to this trend has been to adapt and innovate these products, among others, to meet the changing desires of drinkers. The notable success of no and low-sugar Britvic products suggests that the company will continue to perform well financially following the implementation of the SDIL in April.Paul Graham, GB managing director at Britvic, commented: "This is a key moment for Pepsi MAX, which has been consistently taking market share, in a growing category, for many years now. With consumers increasingly seeking great tasting no and low-sugar options, it is great to see how successfully Pepsi MAX is taking advantage of that trend, through new flavour innovations and a bold ATL campaign."We're also thrilled that Robinsons Refresh'd has been so well received. By extending the trusted Robinsons name into an on-the-go format, we're able to capitalise on the hydration trend and offer an exciting, new product that's also exempt from the sugar levy."Britvic saw general growth in revenue in the first quarter of 2017 compared to 2016. Quarterly revenue reached $337.2 million which represents a 3.3% increase. The company's revenue in the UK increased by 1% across all its brands."We have delivered a solid start to the new financial year, with group revenue growing 3.3% ahead of a strong first quarter last yearthe introduction of a soft drinks industry levy in the UK and Ireland brings a level of uncertainty, but we are well placed to navigate this given the strength and breadth of our brand portfolio and exciting marketing and innovation plans," said Britvic chief executive Simon Litherland."In addition, our continued focus on revenue and cost management and the delivery of the final phase of our business capability programme means we remain confident of making further progress in 2018."
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