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Consumers voted with their money last year by increasingly substituting high fat high calorie foods and drinks with healthier alternatives that promised so-called lifestyle and wellbeing benefits. 


In the £7billion soft drinks industry, sales of carbonates declined even further, whilst brands such as Actimel Probiotic Yoghurt, sprang out of nowhere to become one of the top 10 soft drinks brands. 

Manufacturers with an eye for an opportunity have consequently been capitalising on growth sectors such as bottled waters (1.6bn) and functional healthy food and drinks (a sector which did not even exist in its own right a year ago).  In these times of changing consumer tastes and preferences innovation and NPD is on the increase.  

Simultaneously, the government has been piling the pressure on food & drink manufacturers to sign off a clearer and more transparent food & drink labeling system that enables consumers to make more educated healthy diet choices.  A traffic light system was proposed but has yet to be agreed on. 

Manufacturers of high fat, high calorie brands have naturally come under most scrutiny, with some embracing the changes by openly displaying calorie content on their packs or rather cannily introducing their own labeling directives.  In going forwards, it’s likely that food and drink brands will have to embrace the dichotomy between indulgent and healthy far more clearly in order for their brands to be sustainable in the long term. 
 
All of this is set against a backdrop of continued retailer pressure.  On shelf stand out has become even more crucial and has lead to an increasing focus by manufacturers on on-pack branding.  At the same time new product lines have suffered from an even smaller window of opportunity to prove themselves in terms of sales.  We’ve therefore often see a focus on less risky shorter term brand extensions rather than more risky, ultimately more rewarding, longer term innovation. 

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"2005 saw our nations’ rather unhealthy diet subjected to continual media scrutiny with huge knock on impacts for food & drink manufacturers. Responding rapidly to government initiatives and changing consumers tastes was very much order of the day."

Laura Morris,
Senior Client Consultant

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