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Pricing Study

 

 

Soft Drinks National Pricing Study

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Soft Drinks
National Pricing
Study

Report

Prepared for Department of Trade and Industry

By Verdict Research

Issued October 1999

If you have any questions regarding this document please contact :

Verdict Research Limited
Newlands House
40 Berners Street London W1P 4DX

Telephone: 020 7255 6400 Fax: 020 7637 5951

E-mail: consulting@verdict.co.uk


Table of Contents

Report Section Table Description
Summary of Main Findings
Background to the Study
Objectives Of The Survey
Sample Design
Coverage & Analysis
Price Display Practices
Price Display & Visibility - Soft Drinks
Price Display & Visibility - Alcoholic Drinks
Price Levels
Prices Charged - On-Trade
Prices Charged - Off-Trade
Drinks Measure Sold - On-Trade
Drinks Measure Sold - Off-Trade
Price Per Litre - On Trade
Price Per Litre - Off Trade
Mean Price (£) Per Litre of Cheapest Drink Available
Price Per Litre - Soft Drinks by On-Trade Establishment
Price Per Litre - Alcoholic Drinks by On-Trade Establishment
Price Per Litre - On-Trade by Region
Main Analysis
On-Trade Price & Price Displays
On-Trade Price & Method of Dispense
On-Trade Price & Size of Measure (ml) - Soft Drinks
On-Trade Price & Size of Measure (ml) - Alcoholic Drinks
On-Trade Price & Fixed Size of Measure (215-284ml)

 
Summary of Main Findings

Summary of Main Findings

Price Visibility and Clarity of Pricing Information (On-Trade)

  • 41.8% of establishments visited displayed soft drinks prices in a clearly visible manner (ranging from 49.8% for cafés/restaurants of 29.9% for pubs and wine bars).
  • 41.0% of establishments visited displayed beer or lager prices in a clearly visible manner (ranging from 46.6% of cafés/restaurants to 37.3% of pubs and wine bars).
  • Less than half of those establishments visited that displayed soft drinks prices clearly (i.e. 17.7% of all establishments visited) also indicated the actual measure served (ranging from 18.5% of hotels and inns to 16.9% of pubs and wine bars).
  • Around three-quarters of those establishments which displayed beer or lager prices clearly (i.e. 31.9% of all establishments visited) also indicated the actual measure served (ranging from 35.5% of hotels and inns to 24.0% of sports/music clubs, sports centres, theatres, concert halls and rail and air terminals).

Price Levels (On-Trade and Off-Trade)

  • Drinks were bought in half pint (284ml) or 250ml measures. If unavailable, the closest size available was bought.
  • The average prices for the cheapest available regular cola, lemonade and mineral water ranged between:

      - £3.59 and £3.79 per litre in the On-Trade
      - £0.99p and £1.12 per litre in the Off-Trade

  • In the On-Trade, the cheapest available fruit juice, which was often sold in small measures, had an average price of £6.08 per litre. When the different soft drinks were sold in the fixed measure band of 251ml to 284ml, the difference between fruit juice and the other soft drinks was less pronounced. The price per litre for fruit juice within this measure band fell to £4.00 per litre, against £3.36 to £3.86 per litre for the three other soft drinks sold in this measure band.
  • In the Off-Trade, the cheapest available fruit juice had an average price of £1.70 per litre.
  • The average prices for the cheapest available beer and lager were:
      - £3.81 and £4.20 per litre respectively in the On-Trade
      - £2.16 and £2.21 per litre respectively in the Off-Trade

Relationship Between Price Displays and Price Levels (On-Trade)

  • The average price of the cheapest available soft drinks was £4.13 per litre where the price was clearly displayed, £4.36 per litre where the price was displayed but not clearly legible and £4.44 per litre where the price was not displayed.
  • The average price of the cheapest available beer and lager was £4.01 per litre where the price was clearly displayed, £3.84 per litre where the price was displayed but not clearly legible and £4.17 per litre where the price was not displayed at all.

Background to the Study

Objectives of the Survey

(I) To establish the prices charged for a selection of soft drinks and, because establishments sell soft drinks in different sizes, the unit price, in order to compare the value for money being offered in different establishments.

(ii) To establish reference prices for popular alcoholic drinks eg a pint of beer or lager in order to establish the size of the price differential between soft and alcoholic drinks.

(iii) To consider whether for soft drinks the difference between the supermarket/take-home price and the price charged for consumption on premises is significantly different than for beer or lager.

(iv) To establish what are current price display practices for soft drinks consumed on the premises in (a) pubs and (b) other establishments.

(v) To establish whether there is a relationship between prices charged for soft drinks and the existence and nature of price displays.


Sample Design

884 establishments selected at random from the Yellow Pages Directory and intended therefore to be representative of such outlets across Great Britain.
A full description of the Sampling Procedure adopted is available.

ON-TRADE (768)

Consisting of Cafés & Restaurants (317), Public Houses & Wine Bars (201), Hotels & Inns (200) and Other Establishments* (50) serving soft and alcoholic drinks on the premises to the general public.

* Other Establishments were those where soft drinks are served/consumed on the premises, but drinking is not the establishments main purpose:

        Sports/Music Clubs (30)
        Sports Centres (5)
        Cinemas (5)
        Theatres & Concert Halls (5)
        Travel Centres (5)

OFF-TRADE (116)

Consisting of Supermarkets (106) and Off-Licences (10) selling soft and alcoholic drinks for consumption elsewhere.


Coverage & Analysis

Measuring of the prices of four soft drinks and two alcoholic drinks:

Regular (non-Diet) Cola
Lemonade
Pure Fruit Juice
Sparkling Mineral Water
Beer
Lager

Standard size set – half pint (284 ml) or 250 ml.

Cheapest drink on display (including promotions).

Unit prices analysis – £ per litre.

Order of preference for the type of – drink draught => bottled => canned.

Order of preference for packaging – draught-flow system => ordinary can => bottle.

Full description of method provided for every field worker.

Price Display Practices

Price Display and Visibility - Soft Drinks

On-Trade

SOFT DRINKS
PRICE/MEASURE DISPLAYS
Total
On-Trade
Cafés & Restaurants
Pubs &
Wine Bars
Hotels &
Inns
Other*
Numbers of establishments visited selling each drink
768
317
201
200
50
(%)
(%)
(%)
(%)
(%)
All stocking this type of drink
100
100
100
100
100
Displaying price:
68.1
68.1
67.2
68.0
72.0
— and prices clearly visible
41.8
49.8
29.9
40.5
44.0
— and prices not clearly visible
26.3
18.3
37.3
27.5
28.0
The quantity of drink served is indicated
27.1
23.3
33.3
26.5
28.0
Prices clearly visible & quantity of drink served is indicated
17.7
17.7
16.9
18.5
18.0

*Other = Sports/music clubs, sports centres, cinemas, theatres, concert halls, rail & air terminals.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price Display and Visibility - Alcoholic Drinks

On-Trade

ALCOHOLIC DRINKS
PRICE/MEASURE DISPLAYS
Total
On-Trade
Cafés &
Restaurants
Pubs &
Wine Bars
Hotels &
Inns
Other*
Numbers of establishments visited selling each drink
768
279
201
200
50
(%)
(%)
(%)
(%)
(%)
All stocking this type of drink
100
100
100
100
100
Displaying price:
68.8
68.5
74.6
75.0
74.0
— and prices clearly visible
41.0
46.6
37.3
44.0
44.0
— and prices not clearly visible
27.8
21.9
37.3
31.0
30.0
The quantity of drink served is indicated
50.5
50.2
58.2
55.0
42.0
Prices clearly visible & quantity of drink served is indicated
31.9
35.1
31.8
35.5
24.0

*Other = Sports/music clubs, sports centres, cinemas, theatres, concert halls, rail & air terminals.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.

Price Levels

Prices Charged

On-Trade

ON-TRADE:
Actual Price
Charged
Regular
Cola
Lemonade
Fruit
Juice
Mineral
Water
Beer
Lager
No of establishments visited selling each drink
764
747
757
692
659
718
(%)
(%)
(%)
(%)
(%)
(%)
Less than £1.25
89.4
91.7
83.5
81.1
49.5
45.4
£1.26 to £1.50
7.1
5.6
9.0
12.3
8.3
7.7
£1.51 to £1.75
2.2
1.3
3.3
1.6
7.3
6
£1.76 to £2.00
0.5
0.4
1.6
2.0
16.4
16.4
£2.01 to £3.00
0.1
0.3
1.7
1.0
15.3
21.7
Over £3.00
0.3
0.1
0.9
0.7
Not recorded/free of charge
0.7
0.7
0.7
1.4
2.3
2.1

Base = 100% = All establishments visited selling a given type of drink

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Prices Charged

Off-Trade

OFF-TRADE:
Actual Price
Charged
Regular
Cola
Lemonade
Fruit
Juice
Mineral
Water
Beer
Lager
No of establishments visited selling each drink
116
114
115
112
114
115
(%)
(%)
(%)
(%)
(%)
(%)
Less than £1.25
98.3
100
97.4
97.3
59.6
69.6
£1.26 to £1.50
0.9
2.6
14.9
7.8
£1.51 to £1.75
1.8
7.9
1.7
£1.76 to £2.00
5.3
7.8
£2.01 to £3.00
0.9
7.0
7.0
Over £3.00
4.4
5.2
Not recorded
0.9
0.9
0.9

Base = 100% = All establishments visited selling a given type of drink

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Drinks Measure Sold (ml)

On-Trade

ON-TRADE:
Drinks Measure
Sold (ml)
Regular
Cola
Lemonade
Fruit
Juice
Mineral
Water
Beer
Lager
No of establishments visited selling each drink
764
747
757
692
659
718
(%)
(%)
(%)
(%)
(%)
(%)
Less than 226 ml
14.3
9.4
63.9
17.2
0.3
226 to 250 ml
17.0
21.6
13.9
26.3
1.8
1.9
251 to 284 ml
31.8
35.5
10.6
8.8
46.3
45.1
285 to 330 ml
28.1
26.0
8.7
35.0
7.1
11.7
Over 330 ml
7.6
6.3
2.1
10.7
33.5
29.0
Not recorded
1.2
1.3
0.8
2.0
11.2
12.0

Base = 100% = All establishments visited selling a given type of drink

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Drinks Measure Sold (ml)

Off-Trade

OFF-TRADE:
Drinks Measure
Sold (ml)
Regular
Cola
Lemonade
Fruit
Juice
Mineral
Water
Beer
Lager
No of establishments visited selling each drink
116
114
115
112
114
115
(%)
(%)
(%)
(%)
(%)
(%)
Less than 226 ml
4.3
4.4
27
3.6
-
0.9
226 to 250 ml
14.7
24.6
23.5
3.6
0.9
5.2
251 to 284 ml
-
0.9
0.9
-
14
16.5
285 to 330 ml
60.3
47.4
4.3
51.8
14
19.1
Over 330 ml
18.1
18.4
39.1
35.7
69.3
53.9
Not recorded
2.6
4.4
5.2
5.4
1.8
4.3

Base = 100% = All establishments visited selling a given type of drink

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price per Litre

On-Trade

ON-TRADE:
Price/Litre
Regular
Cola
Lemonade Fruit
Juice
Mineral
Water
Beer Lager
% % % % % %
£1.00 or less 0.3 0.1 0.1 0.6 0.2 0.1
£1.01 to £2.00 5.0 5.0 1.7 7.1 1.2 0.8
£2.01 to £3.00 21.5 22.6 6.7 15.5 21.9 7.1
£3.01 to £4.00 42.7 48.7 13.9 43.6 41.9 49.6
£4.01 to £5.00 17.8 14.9 16.5 19.5 11.5 13.1
Over £5.00 11.0 6.7 59.7 10.7 11.5 16.7
Not Recorded/Free 1.7 2.0 1.4 3.0 11.8 12.6
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price per Litre

Off-Trade

OFF-TRADE:
Price/Litre
Regular
Cola
Lemonade Fruit
Juice
Mineral
Water
Beer Lager
% % % % % %
£1.00 or less 39.7 45.6 25.2 34.8 27.2 27.0
£1.01 to £2.00 56.0 49.1 33.0 53.6 24.6 23.5
£2.01 to £3.00 0.9 0.9 33.0 3.6 21.9 18.3
£3.01 to £4.00 3.5 0.9 14.9 20.0
£4.01 to £5.00 0.9 6.1 3.5
Over £5.00 0.9 2.6 2.6
Not Recorded/Free 2.5 4.4 5.3 6.2 2.7 5.1
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price per Litre

The Proportion of Sales in Different Price Ranges

Total Soft Drinks by On-Trade Establishment Visited

Price/Litre
Cafés &
Restaurants
Public Houses
& Winebars
Hotels
& Inns
Other*
% % % %
£1.00 or less 0.6 0.5
£1.01 to £2.00 5.7 0.5 1.5 10.0
£2.01 to £3.00 12.9 6.0 4.5 24.0
£3.01 to £4.00 28.4 32.3 21.0 28.0
£4.01 to £5.00 34.7 38.8 40.0 26.0
Over £5.00 16.7 21.4 32.0 12.0
Not Recorded/Free 1.0 0.5 1.0
TOTAL 100.0 100.0 100.0 100.0

*Other = Sports/music clubs, sports centres, cinemas, theatres, concert halls, rail & air terminals.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price per Litre

The Proportion of Sales in Different Price Ranges

Total Alcoholic Drinks by On-Trade Establishment Visited

Price/Litre
Cafés &
Restaurants
Public Houses & Winebars Hotels
& Inns
Other*
% % % %
£1.00 or less 0.4
£1.01 to £2.00 1.1 3.0 1.5 4.0
£2.01 to £3.00 4.7 20.9 11.5 20.0
£3.01 to £4.00 35.6 52.2 54.5 44.0
£4.01 to £5.00 12.4 7.5 13.5 4.0
Over £5.00 33.5 5.5 8.5 18.0
Not Recorded 12.3 10.9 10.5 10.0
TOTAL 100.0 100.0 100.0 100.0

*Other = Sports/music clubs, sports centres, cinemas, theatres, concert halls, rail & air terminals.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


Price per Litre

The Proportion of Sales in Different Price Ranges

Total Soft Drinks vs Total Alcoholic Drinks - On-Trade By Region

Price/Litre
Total GB
Scotland
Northern England
Midlands
Wales
Southern England
Total Soft Drinks
Total
Alcoholic
Drinks
Total Soft Drinks
Total
Alcoholic
Drinks
Total Soft Drinks
Total
Alcoholic
Drinks
Total Soft Drinks
Total
Alcoholic
Drinks
Total Soft Drinks
Total
Alcoholic
Drinks
Total Soft Drinks
Total
Alcoholic
Drinks
%
%
%
%
%
%
%
%
%
%
%
%
£1.00 or less
0.3
0.2
1.1
1.0
0.5
£1.01 to £2.00
4.7
1.0
2.3
7.5
1.6
2.7
3.9
2.3
2.0
1.3
£2.01 to £3.00
16.6
14.5
8.0
13.6
11.4
21.1
9.7
8.4
13.0
9.1
8.0
8.0
£3.01 to £4.00
37.2
45.8
31.0
59.3
30.3
58.4
30.3
47.2
17.4
43.2
23.7
31.5
£4.01 to £5.00
17.2
12.3
36.8
12.3
30.3
5.9
46.0
9.6
32.6
15.9
34.9
13.9
Over £5.00
22.0
14.1
20.7
8.6
17.4
7.6
10.8
12.4
37.0
2.3
30.5
35.7
Not Recorded/Free
2.0
12.1
0.1
6.2
2.1
4.9
0.5
18.5
27.3
0.9
9.6
TOTAL
100.0
100.0
100.0
100.0
100.0
100.0
100.0 100.0
100.0
100.0
100.0
100.0

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.

Main Analysis

On-Trade Price & Price Displays

Assessing the relationship between price levels and the
presence of price displays and their visibility in establishments visited.

Mean Price/Litre
Prices Are
Clearly
Visible
Not Clearly
Visible
Not
Displayed
£/L £/L £/L
Soft Drinks:
- Mean Price/Litre 4.13 4.36 4.44
- At 95% confidence level 3.96 — 4.30 4.10 — 4.62 4.22 — 4.66
Alcoholic Drinks:
- Mean Price/Litre 4.01 3.84 4.17
- At 95% confidence level 3.82 — 4.20 3.65 — 4.03 3.91 — 4.43

Mean Price/Litre for Soft Drinks is split by whether or not Soft Drinks' prices are displayed.

Mean Price/Litre for Alcoholic Drinks is split by whether or not Alcoholic Drinks' prices are displayed.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


On-Trade Price & Method of Dispense

Assessing the relationship between price levels and the
method - packaging or dispense - by which the drinks are served or sold.

Mean Price/Litre
Alcoholic Drinks Soft Drinks
On-Trade Off-Trade On-Trade Off-Trade
£/L £/L £/L £/L
METHOD OF DISPENSE
— Draught/Tap 3.54 NA 3.83 NA
— Bottled (Glass/Plastic) 6.23 3.07 4.78 1.31
— Canned 4.06 1.72 3.53 1.50
— Other Methods 5.82 NA 3.90 1.32

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


On-Trade Price & Size of Measure (ml) - Soft Drinks

Assessing the relationship between price levels and the
actual size of the measure of soft drinks recorded in this survey.

Mean Price/Litre
Soft Drinks
On-Trade Off-Trade
% of
establishments
selling

Mean
Price/Litre
% of
establishments
selling

Mean
Price/Litre
Total establishments visited 768 116
MEASURE SOLD (ml) (%) £/L (%) £/L
— Less than 225 ml 26.2% 5.87 9.8% 2.42
— 226 to 250 ml 19.7 4.12 16.6 1.56
— 251 to 284 ml 21.7 3.67 0.5 1.06
— 285 to 330 ml 24.5 3.41 41.0 1.20
— Over 330 ml 6.7 3.09 27.8 0.71
Not recorded 1.2 NA 4.4 NA

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


On-Trade Price & Size of Measure (ml) - Alcoholic Drinks

Assessing the relationship between price levels and the
actual size of the measure of alcoholic drinks recorded in this survey.

Mean Price/Litre
Alcoholic Drinks
On-Trade Off-Trade
% of
establishments
selling

Mean
Price/Litre
% of
establishments
selling

Mean
Price/Litre
Total establishments visited 768 115
MEASURE SOLD (ml) (%) £/L (%) £/L
— Less than 225 ml 0.2% 3.39 0.5% 5.35
— 226 to 250 ml 1.9 5.42 3.1 3.56
— 251 to 284 ml 45.7 3.80 15.3 3.15
— 285 to 330 ml 9.4 6.39 16.6 2.99
— Over 330 ml 31.3 3.48 61.6 1.63
Not recorded 11.5 NA 2.9 NA

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.


On-Trade Price & Fixed Size of Measure (251-284ml)

Assessing the relationship between price levels
within a fixed size of measure.

On-Trade
Establishments Visited
Regular
Cola
Lemonade Fruit
Juice
Mineral
Water
Beer Lager
Hotels & Inns 3.52 3.38 3.84 4.28 3.68 4.01
Cafés & Restaurants 3.64 3.57 4.30 3.77 4.08 4.32
Pubs & Wine Bars 3.30 3.20 3.40 3.38 3.34 3.57
Other Establishments* 3.15 2.83 3.22 3.84 2.99 3.49
Total On-Trade 3.47 3.36 4.00 3.86 3.64 3.95

This table examines in greater depth the 251 to 284ml band shown on the previous two pages.

*Other = Sports/music clubs, sports centres, cinemas, theatres, concert halls, rail & air terminals.

The cheapest drink available in each category was bought. Drinks were bought in half-pint (284ml) or 250ml sizes. If this was not possible, the closest size was bought.

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Last updated 26 July 2005


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