Wholesale Manager headed to United Wholesale, Rainham to speak to Stephen Curran, Business Unit Director – Wholesale, AG Barr.
To watch the video interview, go to wholesalemanager.co.uk
As summer approaches, the soft drinks market, valued at £15 billion, is poised for significant growth. In a bid to enhance customer connections prior to this key sales season, we spoke with Stephen Curran, Business Unit Director – Wholesale at AG Barr, to explore how they plan to drive continued success in this dynamic sector.
What are you doing here today?
We are here today as we come to a really important time for the soft drinks category, a category worth £15 billion and growing. We want to make sure we are connecting with our customers ahead of summer, which is a key seasonal sales period.
Worth £5bn, carbonates is the biggest segment within soft drinks, with sales up by +3.7%.
While cola remains the biggest flavour, it is OFC Carbonates, which are spearheading the growth, with sales up by +5.6%.
How are you driving growth on IRN BRU?
The iconic IRN-BRU brand is the third largest carbonate brand in the UK and the brand has recently refreshed its look and feel as well as implementing a product name change to better align with shopper expectations in the category.
The fast-growing XTRA variant will become ‘ZERO’ to better communicate the extra IRN-BRU taste with a zero sugar proposition and align with wider category expectations.
With low-calorie carbonates accounting for 50% of category sales and growing +50% faster than higher-calorie equivalents, this clearer name places IRN-BRU in the best possible position to drive sales and profits.
Performing strongly in consumer testing, with purchase intent up by +13% for the new designs, the new look highlights the brand’s distinctly unique assets, including the iconic strongman insignia, the ‘Made in Scotland from Girders’ strapline, and its unmistakable orange color.
We have recently launched an IRN BRU Ice Cream flavor as a permanent addition to the IRN-BRU ZERO range. Additionally, this month we introduced IRN-BRU Cherry ZERO as an exclusive offering for the symbol and independent channel, ensuring strong support for this channel with unique flavor options.
What activity do you have on Rubicon?
Rubicon is the UK’s top exotic juice drinks brand, focused on delivering bold flavors to the wholesale and independent channel. We are strengthening this mission with the recent introduction of Rubicon Sparkling Cherry and Tropical variants, and Rubicon Sparkling is experiencing significant growth at 63%. Similar to IRN-BRU, Rubicon has undergone a brand refresh that we are actively promoting within the wholesale sector.
How is Boost performing?
Our Boost brand continues to thrive, playing a crucial role in the wholesale and independent channel. Recently, we have enhanced our offering with new flavor extensions in our 250ml can range. Additionally, Boost Water+, launched last December, has proven exceptionally successful, catering to shoppers looking for electrolyte-rich flavored water. It now accounts for 100% of the flavored water growth within the symbol and independent retail channel.
What are the key trends driving growth in the soft drinks category?
Innovation and flavor are pivotal trends propelling growth in the soft drinks category. Over 80% of the growth and 51% of flavor extensions are attributed to innovation in the past year. AG Barr is fully committed to supporting this trend with exclusive offerings such as Boost Water+ and IRN BRU Cherry Zero, enabling the wholesale channel to seize growth opportunities.
Do you have PMPs?
Our Price Marked Packs (PMPs) are integral to our strategy, ensuring their availability across our product range. In this cost-of-living climate, conveying value is crucial for driving growth in this channel and among symbol and independent retailers. We are also enhancing in-depot execution to communicate these messages effectively, supported by our field sales teams to facilitate transition from depot to retail store.
How does AG Barr support the wholesale channel?
AG Barr utilizes its extensive product range to collaborate closely with local wholesalers, ensuring they have the right selection to maximize growth opportunities.
Key Takeaways
- The soft drinks market is valued at £15 billion, with significant growth expected this summer.
- IRN-BRU is adapting its branding to better meet consumer expectations and enhance sales.
- Rubicon continues to lead the exotic juice drinks segment through innovation and brand refreshes.
- Boost has introduced new flavors and continues to capture growth in the flavored water market.
- Innovation and flavor are central to growth trends in the soft drinks category.
- AG Barr focuses on providing Price Marked Packs to convey value in the retail market.
FAQ
What is the growth rate of the carbonates segment?
The carbonates segment is worth £5 billion and has seen sales rise by 3.7%.
How is AG Barr responding to low-calorie trends?
AG Barr is emphasizing low-calorie options, as they represent 50% of category sales and grow 50% faster than higher-calorie alternatives.
What marketing strategies are in place for Boost?
Boost has launched new flavored carbonated drinks and is focusing on the successful Boost Water+ in retail.
How does AG Barr ensure product availability?
AG Barr collaborates closely with local wholesalers to tailor product ranges that maximize growth potential.
In summary, AG Barr is strategically positioning itself to capitalize on emerging trends in the soft drinks category, enhancing its offerings for retailers while supporting growth initiatives. With a focus on innovation and consumer-driven branding, the company aims to make a significant impact in the upcoming summer sales season.
