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Research Outline
Prepared for Lars L. | Delivered May 6, 2020
COVID-19 Impact on the European Soft Drinks Industry
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Goals
Obtain the latest insights that describe how the crisis created by COVID-19 has affected the soft drinks industry as a whole in the European market. Determine also the brands that manifest these insights.
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Early Findings
COVID-19 Impact on the European Soft Drinks Industry
Across Western Europe and the U.S, there is a
high demand for typical household drinks
such as soft drinks and other beverage choices as people hoard these items while on self-quarantine inside their homes.
Due to the high demand,
beverage retailers
are finding it hard to meet the needed supply in both their physical and online stores. The soft drinks manufacturers are enjoying their logistical edge in this case as most of them employ a "direct-store-delivery (DSD) distribution model."
The soft drinks industry comprises
20-60% of the total consumption
in Western Europe. It also has the most share of the market's revenue.
However, the forced closure of
dining establishments
and the reduction in traffic in various transit points of sale are expected to bring down the sales figures.
Furthermore, the current
stockpiling
behaviors for these staples are seen only as a short-term trend. In the long run, consumers are expected to opt for healthier beverage choices that can boost their immune system.
Consumers will also
contribute
to the rise of the grocery e-commerce channel for the food and beverage sector.
As the pandemic continues to
wreak havoc
into the economy, the industry is advised to prepare for a more value-focused market. The market will more likely trun to private label alternatives, discounter conduits, and multipack formats.
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