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Dilutable drinks beat spending squeeze

Dilutable drinks have done well out of the recession and will continue to grow, according to industry experts.

The sector grew by 4.5% last year and now accounts for nearly a quarter of all soft drinks consumed, worth £910m worth in sales, said Richard Laming, spokesman for the British Soft Drinks Association.

It is the largest increase since 2006 where an exceptionally hot summer saw an increase of 8.1%, he added. Growth in the UK will continue, judging by new product development in other countries, said David Jago, director of insight and innovation at Mintel.

Pressure on disposable income encourages consumers to think about dilutables, said Laming. The recession may be over but the squeeze on disposable incomes is not, income decline and rising taxes mean dilutables still have an important role to play, he added.

Jago said that dilutables provided affordable options for the family, some degree of portion control for parents and a greener image with less waste per serving; Chris Baker, md of Five Valleys Cordials said that the carbon footprint of dilutables was much lower than ready-to-drink products.

Within dilutables, smaller bottles could be the next trend in the UK, said Jago. Family sized drink containers have gone out of fashion and the UK could see US-style products such as Kraft's Mio dilutable (a one drop water enhancer that comes in 1.62 fluid oz bottles), he added.

Baker said gourmet and functional dilutables might also be future directions.

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