European Soft Drinks Growth Slows to 4.6% Amid Normalisation

The European soft drinks market is showing signs of normalisation after strong growth earlier this year. According to Jefferies, value growth in the four weeks to September 6th slowed to 4.6%, down from 12.0% previously.

Volume growth also eased to 1.4% from 9.2%, while price and mix contributions increased to 3.2% from 2.8%. The analysts pointed to favourable weather as a supporting factor.

The market recorded particularly strong volume growth in Italy at 8.2%, while France rose 5.4%. However, Great Britain's sales growth normalised to 10.4% from 20.8%, and Europe excluding Britain increased by 3.3%. Spain edged up 0.9% and Germany declined by 2.3%.

Coca-Cola Europacific Partners PLC, the bottler of Coca-Cola products across Europe and other markets, delivered value growth of 5.7% in Great Britain's sales growth normalised to 10.4% from 20.8%, while Europe excluding Britain posted 6.1% in France, 4.9% in Spain, and 0.7% in Germany.

The broker also highlighted continued momentum at Fevertree Drinks, the premium mixer maker, although Great Britain sales growth normalised to 10.4% from 20.8%, while Europe excluding Britain slowed to 5.8% from 12.6%. Jefferies retained 'buy' ratings on Coca-Cola Europacific Partners, Coca-Cola Hellenic and Fever-Tree Drinks, while maintaining 'hold' on Carlsberg.