Britvic highlighted the increased flexibility of its media strategy as it seeks to exceed historical levels of marketing spend in an effort to access “new growth spaces”.
The beverage giant is developing a center of excellence for consumer experience, focused on improving its digital marketing capability. The plan is to integrate the Britvic brands end-to-end customer experience with “interactive communications” on social media, while developing an in-house digital studio to create marketing content.
Having cut back on marketing during the lockdown, the company is looking to increase its investment, with advertising and promotion (A&P) spending reaching £ 58million as of September 30, up 18.6% from 2020, but £ 6million down from 2019 levels.
“We will see an acceleration in A&P this year as we catch up to these historic levels and have plans to move beyond where we see growth opportunities,” Britvic CFO Joanne Wilson said at a conference call with investors today (November 24).
“What I would add is that we have a lot more flexibility than in the past, just because of the delays in some of our advertising and media campaigns, which really helps us manage that throughout the process. year and make sure we’re making the right level of investment.
Britvic’s after-tax profit rose 9.1% to £ 103.2m over the period, while revenue fell 0.5% to £ 1.4bn, Britain and with Brazil leading the revenue growth. The company attributed its “trust” to marketing for the strong performance and is committed to maintaining the momentum.
We have a much greater degree of flexibility than in the past, simply because of the delays in some of our advertising and promotional and media campaigns.
Joanne Wilson, Britvic
The brand announced its investment in ‘exciting marketing campaigns‘, such as Pepsi Max’s sponsorship of the Champions League tournament, as well as the launch of new flavors to broaden appeal, such as Pepsi Max Lime and Tango Dark. Berry. Britvic also explained that it has run in-store and online activities to ensure its brands are visible to consumers.
“We have reinvested behind our brands in the second half of 2021 and will continue to do so in 2022,” said CEO Simon Litherland.
“With an exciting and comprehensive marketing activation program in all of our markets. We continue to leverage our proven platforms, running them throughout the chain to deliver business at scale to our customers, retail partners and brands. “
During the period, Pepsi’s retail value exceeded £ 700million, with its sugar-free variant Max driving growth. Tango and 7UP gained market share during the year, while J20 and Fruit Shoot returned to growth with the reopening of stores and schools and the “standardization of mobility”.
The move towards people moving more freely has also called for smaller packaging sizes, suitable for brands such as Lipton, Purdey’s and Aqua Libra sold for consumption on the go. Lipton’s revenue grew 47% in the second half of the year alone.
Britvic also highlighted key growth trends for consumers turning to brands they trust and those that are better for their health, leading to increased sales of drinks without sugar or with added benefits such as vitamins.
The company acquired the Plenish herbal drink brand in May, with work underway for brand development and a relaunch next year. Britvic said it would seek other acquisition opportunities, having also targeted the energy sector by expanding its partnership with PepsiCo to include Rockstar. In April, PepsiCo repositioned its Rockstar energy drink brand to shed its immature image.
Litherland said the repositioning had “gone very well with consumers,” despite industry-wide supply chain challenges that arose during the rebranding. The Rockstar brand has been revamped with additional health benefits and supported by a new gaming-based marketing platform.
The Britvic CEO noted that the energy drink industry is worth £ 1.4bn and has seen ‘double-digit’ growth for some time.
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“We are convinced that we will develop the brand [Rockstar] and take a share in 2022. We’re very excited about the brand and being part of the category, ”said Litherland.
“With a brand like Rockstar and a partner like PepsiCo, with the quality of thought behind the brand and the marketing campaign, we are confident that we will start participating in the category in 2022 and beyond. “
Britvic is planning a series of marketing campaigns leading up to Christmas for “family favorite brands” that have proven platforms and that will be supported by a “multi-channel approach” through TV, print, digital and outdoor advertising.
Examples given were the fruit drink brand J20, which will return with the ‘It’s a season to shine’ campaign led by returning mascot Mojo the Alpaca and Robinson’s with its ‘Let There Be Fruit’ platform.