Page 42 - Retail World Magazine Jan/Feb 2021 TOB

BEVERAGES FROM PAGE 39 The first of these is “sheltering at home” with an increased trend to work and study at home (exacerbated by the impacts of Covid-19 restrictions). Mr Donnelly says this trend led to beverage category growth of 4.4 per cent in Q4 2020, compared with 2.8 per cent for Q1 (IRI Australia Grocery Weighted excl ALDI, $ growth, QTR to 22/11/20). The next trend he cites is that of rising health awareness, driving “multiple times faster” growth in diet segments across all categories compared with regular beverage ranges. “For example,” Mr Donnelly said, “for soft drinks, diet variants are growing four times faster than regular. In fact, flavoured CSDs are growing at 25 per cent versus 0.4 per cent for the regular alternatives \\\[IRI Australia Grocery Weighted excl ALDI, $ growth, MAT To 22/11/20\\\].” A further trend is the “need for energy”. “The energy \\\[drink\\\] category is now 29 per cent of total sales in petrol and convenience,” Mr Donnelly said, “and 68 per cent of the growth in the category comes from NPD as consumers are excited to try new formats and flavours.” The final trend noted by Mr Donnelly is e-commerce. “We’re seeing increased digitisation of all aspects of life, which has been accelerated as a result of Covid-19 impacts,” he said. “For example, e-commerce beverage sales are growing 10 times faster than bricks and mortar sales \\\[CCA Business Intelligence MAT Nov 2020\\\].” Doctor V prescribes visibility and education Energy drinks perform “exceptionally well” in the beverage category, says Doctor V Head of Marketing Richard Hugo Lark. “The energy drink category is strong and profitable for retailers,” he said. Sales of Doctor V, promoted as a “healthy” energy drink, are claimed to have been strong in the past quarter following Covid-19 lockdowns around the country. The product, which Doctor V describes as being “made with herbs traditionally used by Russians to boost energy, stamina, and immunity”, is available nationwide in various stores (more notably, however, in Romeo’s South Australian stores). Doctor V was launched in Romeo’s NSW stores in January. “For Doctor V, we need to educate retailers and consumers \\\[that\\\] there are healthier options now in this category,” Mr Hugo Lark said. “The grocery and convenience channels are an exceptionally strong focus for \\\[us\\\].” When it comes to challenges, Mr Hugo Lark notes the pandemic, but acknowledges that “we’ve been lucky that grocery and convenience has stayed open throughout the various lockdowns”. “Our plan from the beginning was to knuckle down and try the best we could to generate brand awareness and drive sales where we could,” he said. “Surprisingly, Melbourne has been a strong market for us \\\[despite\\\] the city’s strict Covid conditions.” This year, retailers and consumers will “definitely” see new products ranged by Doctor V. “We’re currently looking into developing an immunity drink packed with nutrients,” Mr Hugo Lark said. “Although our current range does offer immune support, we’ll fine-tune the ingredients to offer the consumers a highly concentrated vitamin drink. “\\\[Naturopath\\\] Dr Vagif Soultanov, based in Melbourne, will design the compilation for this new line. In terms of sizing, we’ll be staying at 300ml for now and looking at pumping up our labels.” Retailers can also expect to see Doctor V at trade shows in Sydney, Melbourne and Adelaide that have been rescheduled from dates affected by the pandemic. “The shows are a fantastic way to showcase our brand and the evolving beverage market,” Mr Hugo Lark said. “On a small scale, we have very focused above- and below-line advertising to drive consumers into the stores that support us. Marketing support for retailers to grow the beverage category is paramount at Doctor V.” Tonik highlights its work with retailers The functional beverage category, according to Omni Brands Sales and Marketing Manager Mat Raward, has grown steadily over the past five years, with energy drinks primarily the growth driver. “However, health-related functional beverages are steadily increasing in popularity due to the rise of the health- conscious consumer who is time-poor and leading an active lifestyle,” he said. “This is driving industry innovation, seeing operators expand product ranges with increasingly sophisticated products that are making significant inroads into the category. “As an example, consumers now understand the benefits of increased protein in their diets for health and satiety reasons, with protein products, typically in the realm of body builders, now becoming mass market. “Plant-based protein is another huge trend that’s growing. Our Tonik Plant range, Australia’s first high-protein RTDs, has been developed with this trend in mind.” Mr Raward says that during the peak of the Covid-19 pandemic in Australia last year, the business worked closely with its supply partners to maintain optimal inventory levels and created more flexible operating models to service the ever-changing demands. TO PAGE 42 40 RETAIL WORLD JAN/FEB, 2021