2020 Annual Report - British Soft Drinks

1 2020. Annual Report Meeting The Challenge Contents 03 Report Methodology & Background 04 Introduction 05 Overall Soft Drinks 07 Bottled Water 09 Carbonates 11 Dilutables 13 100% Juice 15 Sports & Energy Drinks 17 Still & Juice Drinks 19 Member Initiatives 22 Contact 02. Report The key strength of Global Data's methodology is that it works in industry partnerships across the value chain, from suppliers to brand producers and both on- and off-premise channels. The research is built from brand data upwards. The brick-by-brick' approach Methodology ensures that the research gives insights from all angles; from brand volume through to corporate volume, flavour segmentation , packaging splits and channel distribution.

2 The & Background companies featured in the company profiles and those whose brands are featured in the individual market categories are selected through regular market observation based on the size of their output and/or their dynamism. The data included in this Report covers the 2019 calendar year. In line with its European colleagues, the British Soft Drinks Association (BSDA) commissioned food, drink and Sources retailing data analyst Global Data to Official production and trade statistics produce its 2020 Report Face-to-face interviews with leading soft Drinks producers Interviews with retailers, distributors and associated industries Consumer surveys Quarterly monitoring of product offered in all trade channels in selected markets Industry terms Regular: 31 and over kcal per 100ml Mid Calorie: 21-30 kcal per 100ml Low/No Calorie: 0-20 kcal per 100ml*.

3 03 *Nutrition Claims Annex of Regulation (EC) 1924/2066. Introduction Amid a continuing global pandemic and the sunniest spring in the UK since records began, it is easy to forget that 2019 was one of the wettest summers ever registered in the UK by the Met Office. Little surprise, then, that our Report shows volume sales of soft Drinks were slightly down last year. But, sales values continued to rise in 2019, spurred on by the growing trend for premium ( less but better'). This shift has also highlighted the innovation in a sector responding to changing consumer tastes, including continuing signs younger adults are drinking less alcohol. Of course, COVID-19 has, temporarily at least, radically transformed how we live our lives.

4 The closure of pubs, restaurants and nightclubs this spring presents a huge challenge for the food and drink sector as it prepares for the realities of Brexit. And, it's not the only challenge the soft Drinks industry is addressing. Gavin Partington BSDA Director General Consumers want to see less plastic waste and more recycling. Our members' products are 100% recyclable but we know more can be done. That is why we are working with the Scottish Government to develop its deposit return scheme (DRS), which is currently due to be introduced in July 2022, one year before England and Wales get their DRS. In due course, we hope to have a DRS in operation across Great Britain, alongside much-needed reform of the packaging producer responsibility system.

5 For now, though, the challenge facing the sector is to rebuild as we emerge from lockdown and the impact of its unprecedented closure of customer businesses. The soft Drinks industry is renowned for its resilience. Let's hope it bounces back this summer. 04. Overall Soft 2019 statistics 13,659 16,329 Drinks market Volume M Litres YOY Growth Value M GBP YOY Growth Bottled Water, Carbonated Drinks , Six-year comparison Dilutables, 100% Juice, Sports &. Energy Drinks , and Still & Juice Drinks 2014 2015 2016 2017 2018 2019. Volume M Litres 13,414 13,402 13,569 13,545 14,071 13,659. YOY Growth (%) - - - - Value M GBP 14,515 14,377 14,695 15,112 16,306 16,329. YOY Growth (%) - 2019 channel split Off-Premise On-Premise 05 Source: Global Data Overall Soft Drinks 2019.

6 Calorie split 1 Low/No Calorie Sugar intake from consumption of 2 Regular Overall Soft Drinks fell by 3 Mid Calorie between March 2016 and March 2020. Source: Kantar Worldpanel Category split 1 Carbonated Soft Drinks 2 Dilutables 3 Bottled Water 4 Still & Juice Drinks 5 100% Juice 6 Sports & Energy Drinks Packaging split 1 PET Bottle 2 Metal Can 3 Board Carton 4 Board Bag in Box 5 Glass Bottle 6 Polycarbonate Bubble Top 7 Other 06 Source: Global Data Bottled 2019 statistics 2,811 1,635 Water Volume M Litres YOY Growth Value M GBP YOY Growth Share of Total Soft Drinks Packaged Water Still, Packaged Water Six-year comparison Sparkling and Bulk/Home or Office Delivery Water 2014 2015 2016 2017 2018 2019.

7 Volume M Litres 2,263 2,465 2,694 2,816 2,986 2,811. YOY Growth (%) Value M GBP 1,319 1,422 1,513 1,634 1,711 1,635. YOY Growth (%) Share of Total Soft Drinks (%). 2019 channel split Off-Premise On-Premise 07 Source: Global Data Bottled Water 2019. Water source split 1 Mineral On-Premise consumption of Bottled 2 Spring Water grew by percentage points 3 Table in 2019. Packaging split 1 PET Bottle 2 Polycarbonate Bubble Top 3 Glass Bottle 4 Metal Can Sales split 1 Packaged Water Still 2 Packaged Water Sparkling 3 Bulk/HOD Water 08 Source: Global Data Carbonated 2019 statistics 5,271 8,230 Drinks Volume M Litres YOY Growth Value M GBP YOY Growth Share of Total Soft Drinks Carbonates ( of category sales Six-year comparison in 2019), Carbonated Flavoured Water ( ), Carbonated Enhanced 2014 2015 2016 2017 2018 2019.

8 Water ( ) and Carbonated RTD. Iced Tea ( ) Volume M Litres 5,240 5,201 5,192 5,173 5,324 5,271. YOY Growth (%) - - - - - Value M GBP 6,748 6,706 6,809 7,183 8,105 8,230. YOY Growth (%) - - Share of Total Soft Drinks (%). 2019 channel split Off-Premise On-Premise 09 Source: Global Data %. Carbonated Drinks 2019. Calorie split 1 Low/No Calorie Low/No Calorie Carbonated Drinks grew 2 Regular by percentage points in 2019 3 Mid Calorie Flavour split 1 Cola 2 Clear Lemonade 3 Tonic, Mixers & Bitters 4 Orange 5 Lemon/Lime 6 Other Packaging split 1 PET Bottle 2 Metal Can 3 Board Bag in Box 4 Glass Bottle 5 Metal Tank 6 Polypropylene Cartridge 10 Source: Global Data Dilutables 2019 statistics 2,847 845 Volume M Litres YOY Growth Value M GBP YOY Growth Share of Total Soft Drinks Predominantly Squashes & Syrups, plus a very small percentage of Fruit Powder products Six-year comparison 2014 2015 2016 2017 2018 2019.

9 Volume M Litres 3,041 2,882 2,827 2,768 2,947 2,847. YOY Growth (%) - - - - - Value M GBP 855 753 778 751 865 845. YOY Growth (%) - - - Share of Total Soft Drinks (%). 2019 channel split Off-Premise On-Premise 11 Source: Global Data %. Dilutables 2019. Calorie split 1 Low/No Calorie Low/No Calorie Dilutables grew by 2 Mid Calorie percentage points in 2019 3 Regular Flavour split 1 Orange 2 Flavour Mixes 3 Apple 4 Berries 5 Other Packaging split 1 PET Bottle 2 Glass Bottle 3 HDPE Bottle 4 PVC Bottle 5 Paper Sachet 12 Source: Global Data 100% Juice 2019 statistics 891 1,591 Volume M Litres YOY Growth Value M GBP YOY Growth Share of Total 100% Juice, including Smoothies Soft Drinks and Coconut Water Six-year comparison 2014 2015 2016 2017 2018 2019.

10 Volume M Litres 1,012 960 940 923 928 891. YOY Growth (%) - - - - - Value M GBP 1,828 1,722 1,743 1,693 1,623 1,591. YOY Growth (%) - - - - - Share of Total Soft Drinks (%). 2019 juice type split From Not From Concentrate Concentrate 13 Source: Global Data 100% Juice 2019. Flavour split 1 Orange Orange Juice's share of this category 2 Apple grew by percentage points in 2019 3 Berries 4 Pineapple 5 Other Packaging split 1 Board Carton 2 PET Bottle 3 HDPE Bottle 4 Glass Bottle 5 Board Bag in Box 6 Metal Can Shelf state split 1 Chilled 2 Ambient 14 Source: Global Data Sports & 2019 statistics 866 2,529 Energy Drinks Volume M Litres YOY Growth Value M GBP YOY Growth Share of Total Soft Drinks Six-year comparison Sports Drinks enhance physical performance before, during or after 2014 2015 2016 2017 2018 2019.