Lucozade targets tired office workers as new Alert energy drink hits the shelves
Lucozade is focusing on products that will perk up tired workers, the beverage maker’s COO for Great Britain and Ireland told CityA.M.
While the brand’s flagship Lucozade products have long been staples for sport fans and gym goers, a new product Lucozade alert is targeting those in need of a mental boost.
During the pandemic, soft drink titan Suntory Beverage & Food “started to take more risks” with product innovation, according to Carol Robert.
“2020 was a year when we as a business started to take more risks, tried to experiment more with innovation and adapting to customer needs at pace,” Robert explained.
“We saw that as more people worked from home, they spent more time in front of a computer, which accelerated a surge in mental energy requirement,” she said.
The drink is high in caffeine and contains vitamin B3 to help reduce tiredness, as well as tapping into a wider trend of wellness.
New drink Lucozade Alert has launched in a small number of stores, ahead of a larger roll out next month.
With Tropical Burst and Cherry Blast flavours, the range generated £1m in sales in under two months through wholesale and convenience stores.
The company is eyeing trends for functional drinks, such as caffeine and stimulant drinks, as well as low and no sugar drinks.
The office return is set to accelerate growth in the category while the pandemic has also driven more at-home drinking occasions as people opt for nights in, the COO said.
Advancing restrictions on products that are high in fat, sugar and salt (HFSS) are set to further push the low-sugar category. Suntory will be seeking to inject more cash into marketing its low and no sugar offering, Robert said ahead of the new rules coming into force.
The new UK legislation will result in restricted price promotions, with buy one get one free promotions no longer able to be offered for HFSS drinks.
When asked the biggest challenge faced by the company in the year ahead, Robert said high commodity cost inflation was likely to continue to pile pressure on the business.
The COO anticipates that there will probably be some issues with ingredient supply that pop up due to the current global commodity context.
The commodity context was “probably the worst we have seen for many, many years,” she said. This has led to price hikes in the firm’s ready to drink format, with the exception of Lucozade Alert, for trade customers.
“We always try to avoid [price hikes],” through cost-cutting measures, Robert added.
Like many, the firm has been no stranger to supply chain challenges. The food and drink sector was hit with difficulties last year with staff shortages and hiked shipping costs resulting in empty supermarket shelves and shortages in hospitality venues across the country.
Robert said: “Indeed last year was very challenging from both HGV shortages, which was a global issue, and we also had shortages in CO2. The overall theme for last year was very much issues with supply.
“That was exacerbated by the fact that because the category was locked down inJanuary and February, from April/May it bounced back at pace – which also put pressure on manufacturing.”
Another big challenge set to continue to plague the sector is the shortage of skilled workers, following the pandemic and Brexit. “Demand for talent is very high but the scarcity of it is high,” Robert said.
The firm is keen to retain staff with flexible working, which gives them the “right balance between work and home life,” she added.