Page 24 - GBC Fall 2018 Eng

Adam Cleland
Adam is an Account Executive with Coca-Cola Canada. He has had a variety of roles within Coca-Cola over the past 14 years including as the acting managing partner of the NGCOA Canada for the past 3 years. Adam can be reached at acleland@cokecanada.com or 416-882-1686.
Critical to any business is a thorough understanding of current market trends and insights. Executing against opportunities and staying ahead of consumer trends is key to capturing incremental food & beverage (F&B) revenue year over year.
In this article, I will highlight the role of non-alcoholic beverages in growing your business, share some insights into the future state of the industry, and highlight some recent consumer trends and F&B occasions. This will provide you with an overall understanding of where the industry is going, as well as opportunities that are essential for the golf industry.
THE ROLE OF BEVERAGES
In Canada, the non-alcoholic con- sumer package goods (CPG) industry is approximately $14B in revenue and currently growing at 3% in 2018.
These beverages have wide shopper appeal, with 99% house- hold penetration. Furthermore, 63% of them are being consumed with food, highlighting the oppor- tunity for combo activations and menu pairings to increase average cheque size and enhance guest experience.
BEVERAGE INDUSTRY INSIGHTS
The latest insights suggest that in three years, the non-alcoholic beverage industry will grow 1.7% or $240M, with the fastest growing categories being: • Ready to Drink (RTD) Coffee Energy – e.g. Monster® Java
• RTD Tea – e.g. Gold Peak®, Honest Tea®, Peace Tea®
• Sparkling and Flat Water – e.g. smartwater®, Evian®, Badoit®
• Energy – e.g. Monster®, NOS®, Full Throttle®
• Sports Drinks – e.g. POWERADE®, Glaceau vitaminwater activeTM,
Core Power®
It is also important to note that carbonated soft drinks are still the largest cold beverage category, driving $4.8B in revenue last year, with the juice category a close second at $3.4B.
The energy category continues to grow and drive great revenue dol- lars at $3+ per transaction. This represents a massive opportunity within the golf course industry to drive incremental revenue.
TOP FOUR CONSUMER TRENDS
Insights into the immediate future of the beverage industry are promising. However, it is also important to understand the trends. There are four distinct non-alcoholic beverage trends in uencing the Canadian market: • The emergence of new beverage categories
• Sugar reduction and consumer desire for low-and-no calorie beverages • Premiumization
• The emergence of beverages with functional bene ts (innovation)
24 Golf Business Canada
Drink
Non-Alcoholic Beverage Industry Opportunities