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Where does Red Bull fit in to the UK soft drinks market?Red Bull is part of the functional drinks market. These are sparkling, still and dilutable products, designed to help:
The functional drinks market includes:
Image: A selection of the numerous soft drinks available. Copyright: Robert Aichinger, stock.xchng The main brands that dominate the take-home sector of the market are listed below. Note that this list includes all soft drink brands, so products that occupy smaller niches of the market are not listed:
Image: Coca Cola is the most consumed soft drink in the UK in terms of both value and volume. Copyright: Rosika Voermans, stock.xchng Top 12 Take-Home UK Brands by Value 2002
Top Take-Home Soft Drinks Suppliers by Value (£million) 2002
Top Take-Home Soft Drinks Suppliers by Volume (litres m) 2002
Data source: Britvic Soft Drinks Category Report 2003 [PDF, 1.8 MB] Notice that Red Bull occupies a place in the top selling soft drinks suppliers if you measure this by value (in terms of sales revenue), but if you measure performance by volume (in terms of quantity of product sold) Red Bull does not put in an appearance. What does this tell you about the selling price and the quantity of drink sold in each unit? The market for functional drinks and foods is growing as food and drink companies seek to benefit from the social trend towards personal well-being and healthier lifestyles. This is accompanied by the demographic reality of an ageing population; a greater proportion of the population is middle aged and elderly. These people are attracted to products that offer regenerative or rejuvenating properties. In addition, younger consumers are drawn towards products that offer legal 'highs'. This can be seen in the nicknames that Red Bull attracted from its key consumer segment (see A look at a key feature of Red Bull's business). Market Analysis: The soft drinks brands sold by each supplier(Information sourced from own company Web sites, where available) Coca Cola Enterprises
Britvic Soft Drinks
Danone Water
GlaxoSmithKline
AG Barr (Barrs)
Gerber Foods
Tropicana UK
Procter and Gamble
Princes Soft Drinks
Highland Spring
*Own label products are generic versions of goods often sold under brand names. Supermarket retailers, for example, stock versions of popular soft drinks' brands such as colas and lemonades, which carry the supermarket's name, rather than that of a premium brand's name. Own label products are almost always cheaper than premium brands, as the development and marketing costs of supplying them are usually lower. | Index | Previous Question | Next Question | |