Introduction and summary

There are many reasons why consumer preferences are evolving and fragmenting so quickly. We live in an information rich, time poor, health aware and increasingly regulated society where we demand more and more from the products we consume. A soft drink can be a refreshment or a performance enhancement, a treat or a treatment. Compared with a few years ago we are facing a new and more complex consumer whose demands may shift radically according to time, place and occasion.

But our industry is adept at anticipating and adapting to change. It gave ample proof of that in 2007, maintaining growth in sales value despite a succession of external challenges including the worst summer on record and the impact of the smoking ban on licensed premises.

The quality of our industry’s performance depends ultimately on the quality of our insight into the consumer’s heart, mind and tastes. A close understanding of consumer behaviour has enabled manufacturers to innovate continuously, giving consumers choices that best fit with their lifestyles, health and wellbeing aspirations, and sense of occasion.

Consumer insight is what drives us forward as an industry. And I use the word “insight” advisedly, because more than ever we have to look below the surface to see what’s really happening. As we report in The complex consumer, the choices consumers make can be surprisingly inconsistent.

This year’s report provides an overview of how the market performed during 2007. It also delves deeper into consumer behaviour to see what is shaping and changing the market – and what innovations are most likely to drive performance in the months and years ahead.