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Beverage Insights

27 April 2017

Read about the latest market insights and trends that we are seeing impacting the beverage industry as well as showcasing what we are doing to match these movements.

The Internet of Alcohol

What is the Trend?

Unless you have been living under a big rock, you may have heard the news that Amazon is due to open in Australia this year. The fact that the world’s largest Internet company has now surpassed Walmart as the largest retailer in the US shows that not only is e-commerce here to stay but that it is growing at an unprecedented rate. But what does this mean to the beverage industry?

E-commerce has simplified the process of acquiring specialist and customised drinks and packaging. Home-brewing devices and personalised alcoholic gifts are just the beginning of how this category will start to use the opportunities that exist in online sales.

What does it mean to Packaging?

Supplying products to consumers via new channels such as home delivery represents a new range of challenges and opportunities for the packaging industry. On shelf stand out is replaced with on-screen attraction, while space efficiency in a carrier bag is surpassed by security and simplicity in the postal delivery supply chain.

In Market Examples

Image: Garcon Wines

Image: Garcon Wines

Garçon wines, a mail-order subscription service, have launched a new plastic 750ml wine bottle that is longer and thinner so that it survives the postal service without breaking and can then be posted through the consumers letterbox.


High Tide

shutterstock_337608692.jpg

What is the Trend?

If you haven't heard of the sugar crisis engulfing carbonated soft drinks then you need to up and move from your current dwelling under Uluru. Consumers have turned their back on their favourite fizzy drinks and are increasingly looking to water and water variants to fill this gap for flavoursome refreshment. We have seen retail sales in bottled water rise 7% in volume in 2016. Flavoured water varieties have now entered the retail market partly inspired by the trend of adding fruit pieces to water jugs, as seen in cafes. This trend will continue to grow as brands look to premiumisation and child friendly products to give a point of difference and appeal to today’s consumer.

What does it mean for Packaging?

As the water market becomes saturated (pun very much intended!), flavours alone will not offer differentiation. Packaging formats, sizes, functionality and materials will all play a part. Premium packaging formats and smaller pack sizes designed for children will be the new battlegrounds. Expect to see deviation from the traditional plastic bottle with attention grabbing packaging materials, shapes and sizes flooding (!) the market.

In Market Examples

Source: Beveragedaily.com

Source: Beveragedaily.com

Tickle water recently launched in the US to provide an unsweetened sparkling water for kids. The water is free from preservatives, calories and sugar. Tickle water recognised an opportunity for an untapped market in launching a carbonated experience for children while offering the health benefits parents desire. It has been packaged in a highly innovative clear plastic can which has been topped with an aluminium pull tab opening.


Demanding Millennials

What is the Trend?

They just keep cropping up don’t they! That’s probably because this generation are now Australia’s largest group, and with 38% of them in the top third of discretionary spenders in the economy, brands must evolve their design and marketing to talk to these consumers.

Millennials have spent their entire lives with a smartphone in their pocket and access to the Internet, and they have a new set of criteria when purchasing products.

They are untrusting and often see traditional advertising as spin, due to a greater understanding about the things that matter most to them. Brands have to work harder to convince this group on key principles such as sustainability and authenticity.

What does it mean for Packaging?

Environmental concerns of the millennial generation will drive brands to not only improve their packaging impact, but to also truthfully communicate it. Expect to see a rise in recycled content in plastics and an increased use of aluminium cans – seen by many as the most sustainable beverage packaging due to their high recycling rates and recycled content.

In Market Examples

Source: Mintel

Source: Mintel

Royal Unibrew in Denmark have relaunched their Egekilde water in cans while communicating on pack that the product is carbon dioxide neutral. This craft beer look has been designed to appeal to the millennial generation through both it’s message and packaging format.


Visy Innovation

Filtec machines are in-line inspection solutions for the beverage industry to detect over and under filled containers, as well as flaws in filled aluminium cans, PET or glass bottles.

FILTEC’s AURAtec distinguishes between low and high pressure containers by combining a variety of technologies to create a dynamic 3D image.

Rapid-fire laser scans map the surface of the container, pairing the can or bottle’s profile with acceptable profile parameters.

These small footprint machines can easily be integrated into any manufacturing line to give packers the upmost confidence over the quality of the packaging seal.

Visy are exclusive suppliers of Filtec equipment across Australia, New Zealand and SE Asia.

For more information please feel free to call or email Jason Valente - 0407 992 564


 

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