Britvic Ireland

Background

Britvic Ireland (purchased from C&C Group – Aug. 2007), the latest addition to the Britvic Group, is an excellent fit to Britvic’s existing business. The brand profiles of each company are very similar with a good spread of stills and carbonates. Both companies also hold the franchise for Pepsi and 7UP in each territory. The acquisition reunites the Britvic on-premise brands, ownership of which had been split. The only obvious difference between the businesses is that Britvic Ireland operates its own wholesale and distribution network, a vital route to market in a country with a largely independent pub sector.

Company Facts

  • 2nd largest branded soft drinks business in Ireland
  • Turnover circa €270m in (C&C) year to February 2007
  • Circa 1000 employees
  • Number one brand in key soft drink categories
  • Operates its own wholesale and distribution network
  • Based in Dublin with facilities across Ireland

Business Integration

  • Acquisition by Britvic plc completed 29th August 2007
  • Key senior management team retained and business run largely autonomously with support from GB
  • Existing Britvic International operations integrated into Britvic Ireland in January 2008

Consumer Trends

  • Consumer trends in Ireland follow similar trends in Western Europe. The move toward Health and Wellness is the key dynamic.

Market dynamics

  • Per capita consumption of soft drinks in Ireland is quite low versus the Euro average which gives Britvic Ireland a great opportunity for future growth.

  • Britvic Ireland is a strong player in the Irish soft drinks market with a 29% value share of the grocery soft drinks market and a 37% value share of the On Trade soft drinks market.

Channel Trends

  • Retail trade concentration is increasing as smaller independent shops are closing down
  • Multiples and symbols continue to drive share due to high levels of store upgrades
  • Discounters continue to gain share due to a high level of store openings and their strong value offering

Key Brands

  • 7up – No.1 Lemon and Lime and No.2 soft drink.
  • Club – No.1 Orange and No.3 soft drink.
  • Cidona - No.1 Apple.
  • Pepsi – No. 2 Cola.
  • TK – No.1 Value Lemonade.
  • Miwadi – No.1 Squash.
  • Ballygowan - No.1 Water.
  • Energise – No.3 Sports/Energy drink.
  • Club Mixers – No. 2 Mixer range.
  • J2O - New Launch.

Brand Highlights 2007

  • Britvic’s successful J2O brand introduced in Ireland in October 2007 focused at first on licensed on premise and food service. The launch is supported by outdoor media, radio and in pub sampling
  • Ballygowan’s award winning ‘Bodies Never Lie’ TV campaign drives continued growth in the brand
  • H2OH!, a naturally flavoured water from 7UP was successfully launched in April 2007, capitalising on the success of 7UP Free in Ireland
  • GDA labelling rolled out in mid 2007 with completion planned for mid 2008
  • Britvic Ireland launched a stimulant drink called Energise Edge in September 2007. Initial sales are very encouraging.

Key Market Opportunities

  • Grow per caps of water which are only in their mid thirties in Ireland closer to the Euro average of 130 litres per person.
  • Grow the cordial category in Ireland from the current per caps of 26 closer to the GB average of 52 litres per person.
  • Maximise our market reach through our sales team and chilled infrastructure.
  • Exploit the market trend in CSD’s to sugar free variants.
  • Exploit the consumer trend to increasing still drink consumption with the J20, Miwadi and Club brands.
  • Maximise the opportunity in Sports and Energy with the Energise brand.

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