Innova Market Insights: Beverage Management

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A representative of Innova Market Insights, Lu Williams, stated that “’free from’ foods have all gained traction and moved onto the next level during 2015” (Beverage Industry, 2015). Today people tend to pay much attention to the things they drink and eat. A range of advertisements that appear on the screens or are printed affects the way people perceive the world around them and their choices. Clean eating seems to be one of the most popular trends, focusing on simpler products with the ingredient list as short as possible.

The percentage of organic products present in the Netherlands market, for instance, was registered to soar from 6.3% in 2013 to 9.5% in 2015 and continues to climb steadily (Beverage Industry, 2015). The consumers demand transparency in their foods, which means that clean labels are gaining momentum. Highly-processed foods and beverages are out of favor as the public opts for simplicity (Beverage Industry, 2015). For the beverage industry, the trend for cleanliness means the necessity to switch to non-artificial products to meet the consumers’ demand. This includes investing in organic ingredients, clean manufacture, and sustainability maintenance all the way from the supplier to the stores.

This necessity is complimented by another viral trend – the “free-from” food labeled as not containing dairy or gluten. This type of food product is beneficial specifically for persons with lactose or gluten intolerance, which is its target audience. However, the target consumer is a part of a larger community, which means that the adverts designed for gluten- and lactose-intolerant persons can (and do) include everyone who sees them. As a result, a wider community is constantly exposed to adverts marketing dairy- and gluten-free foods as healthier solutions. Thus, more people start to favor products containing no gluten or lactose even if they have no special need for them (Beverage Industry, 2015).

Some other aspects of applying to the beverage industry include non-GMO concerns spreading out to soft drinks and sodas as well as food. However, it is the “free from sugar” drinks that seem to concern the consumer; they will be discussed in more detail below. Healthcare professionals tend to emphasize the adverse influence of sugar. That is why a lot of representatives of the general public start to drink only sugar-free beverages regardless of the fact whether they refer to the vulnerable population or not. The majority of people are used to believing that the things they find in the media are true for everyone. As a result, the beverage industry needs to adapt to the changes and implement new trends.

During the last two years, healthcare professionals started to emphasize that the consumption of soft drinks increases risks to become overweight and face complications. Realizing a real possibility to suffer from obesity and diabetes, the representatives of the general public started to drink beverages that include less sugar. In this situation, organizations that used to offer them had to implement new products in order to meet client needs. Some of them started to provide sugar-free drinks, as they became extremely popular. Berman and Johnson (2015) proved this fact, stating that shipments of such products “increased 5.9% in fall 2012 and 15.7% in spring 2013”, which showed the tendency of buying a new beverage.

Ma, He, Hashem, and MacGregor (2016) focused on the UK population and revealed the connection between sugar-sweetened and sugar-free beverage consumption. They emphasized that the changes were made mainly on an individual level, which means that the whole industry is not affected greatly and managers should not implement any substantial changes. They may improve the advertising of drinks with reduced sugar level however there seems to be no necessity to add new products to the range of offerings.

A new promotion strategy is likely to be the best option. Still, in their work Berman and Johnson (2015) discuss the whole USA population on the example of university students. The scientists underline that having an opportunity to choose between bottled water, sugar-free, and sugar-sweetened beverages, the majority of the sample gave preference to calorie- and sugar-free options. All in all, their conclusions can be used as a suggestion for beverage managers to provide more bottled drinks. The most advantage can be received when offering the largest range of options for sugar-free drinks and the smallest of water.

The article prepared by Ma et al. (2016) focuses on the connection between health and beverage consumption while Berman and Johnson (2015) pay more attention to the general preferences of the population, as they initially wondered whether it was possible to decrease “the number of plastic bottles entering the waste stream from the university campus” (p. 1406). Even though the articles selected for this assignment seem to have little in common, the researchers discussed the most recent beverage tendencies in each of them. The connection can be observed when analyzing this information and aligning it with the ideas of Lu Williams. Having various reasons, people in the UK and the USA tend to buy “free from” drinks that are claimed to be healthier and better for a diet. Thus, beverage managers should ensure that their organizations can provide required products and advertise them to attract more clients and enhance income.

References

Berman, E., & Johnson, R. (2015). The unintended consequences of changes in beverage options and the removal of bottled water on a university campus. American Journal of Public Health, 105(7), 1404-1408.

Beverage Industry. (2015). . Web.

Ma, Y., He, F., Hashem, K., & MacGregor, G. (2016). Gradual reduction of sugar in soft drinks without substitution as a strategy to reduce overweight, obesity, and type 2 diabetes: A modelling study. The Lancet: Diabetes & Endocrinology, 4(2), 105-114.

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