Twix presentation

PESTLE Analysis

Porter's Five Forces

Childhood Obesity

The Sugar Tax

(Public Health England)

Banning of Energy Drinks to Under 16's

Ban on Sales

“It’s a question of how, not whether, we do it.” (The Guardian)

Brexit

Brexit

Brexit

• High degree of uncertainty

• Practice of free trade encouraged for business success

• Loss of competitive pricing

• Level of exports forecasted to fall

Macro economy

• Economic Growth

• Employment and labour productivity

• Interest rates

Macro economy

Obesity

• 617,000 admissions in NHS concerning obesity

• 27% of Britains are clinally obese

• Agave has low glycemic

Obesity

Calorie count!

• Agave has too many calories

Calories

Negative image on Energy drinks

• Banning under 16's

Negative Image

Declining Market

• Market in stagnant and declining stage

• Steal from existing competitors

• Not feasible to invest in a declining industry

Declining

Market

(Source; Mintel, Market Sizes 2018)

Strong Competitors

• Suntory Holdings Ltd.- 28.7%

• Red Bull GmbH - 25%

• Coco Cola Company - 18.3%

Strong

Competitors

Similar Products

Energy drinks with:

• Natural sweeteners

• Calorie free

• Less sugar

Similar

Products

Agave; Our Forefront

• No other major competitor uses agave in their energy drinks

Agave;

Our Forefront

Brand Loyalty

• Airtime programme by Lucozade

• Difficult to steal market share

Brand Loyalty

Economies of Scale

• Positive economies of scale of competitors

Economies of Scale

Existing rivalry

• Intensifying rivalry

• Strong competitors means difficulty in establishing foothold

Existing rivalry

(Mintel)

References

• BBC News, (2018), ENERGY DRINKS: UK SUPERMARKETS BAN SALES TO UNDER-16S- (https://www.bbc.co.uk/news/uk-43287125), accessed on 07/11/18

• BELFAST TELEGRAPH, (August 2018), Children to be banned from buying energy drinks under government plans, Belfast Telegraph, Accessed on 22/10/18 https://www.belfasttelegraph.co.uk/news/uk/children-to-be-banned-from-buying-energy-drinks-under-government-plans-37265980.html

• BoE, Bloomberg, (2018), The UK Economy at glance, accessed on 15/11/18 https://ig.ft.com/sites/numbers/economies/uk/

• CANCER RESEARCH, (December 2016), The Sugar Tax: A Sweet Stocking Filler? Cancer Research, accessed on 22/10/2018, https://scienceblog.cancerresearchuk.org/2016/12/05/the-sugar-tax-a-sweet-stocking-filler/

• Deardon, L, (2017)- UK NAMED MOST OVERWEIGHT NATION IN WESTERN EUROPE AS OBESITY RATE RISES FASTER THAN US, https://www.independent.co.uk/news/health/uk-obesity-rate-rising-overweight-worst-countrywestern-europe-world-us-ranking-oecd-research-a8049451.html, accessed on 07/11/18

• Diabetes.co.uk, (2018), DIABETES PREVALENCE, (https://www.diabetes.co.uk/diabetes-prevalence.html), accessed on 11/11/18

• DR SUE GRUNDY & DR LYNN JAMIESON, (2002), DEMOGRAPHIC:18-24 YEAR OLD IN THE POPULATION UK SOCIO DEMOGRAPHIC PROFILE OF 18-24 YEAR OLDS, (http://www.sociology.ed.ac.uk/youth/docs/UK_sociodem.pdf), accessed on 11/11/18

• EUROMONITOR, (March 2017), Brexit and its Impact on the Largest FMCG Companies. Euromonitor, accessed on 22/10/18, https://blog.euromonitor.com/brexit-impact-largest-fmcg-companies/

• EUROPEAN FOOD SAFETY AUTHORITY, (March 2013), ‘Energy’ drinks report. EFSA, accessed on 22/10/18, ,

• FINANCIAL TIMES, (April 2018), Sugar tax leaves bitter taste for drink makers, Financial Times, accessed on 22/10/18, https://www.ft.com/content/66cafab8-33cb-11e8-a3ae-fd3fd4564aa6

• Fleming, A., (2018), FLYING HIGH: KIDS IN THE UK ARE WILD ABOUT ENERGY DRINKS – BUT HOW HARMFUL ARE THEY? https://www.google.com/amp/s/amp.theguardian.com/lifeandstyle/2018/jul/09/flying-highkids-in-the-uk-are-wild-about-energy-drinks-but-how-harmful-are-they, accessed on 07/11/18

• HM TREASURY, (April 2018), Soft drinks industry levy comes into effect, UK Government, accessed on 22/10/18, https://www.gov.uk/government/news/soft-drinks-industry-levy-comes-into-effect

• http://www.pepsico.com, accessed on 2/11/2018

• http://www.redbull.com, accessed on 2/11/2018

• http://www.refresco.com, accessed on 2/11/2018

• http://www.suntory.com, accessed on 3/11/2018

https://www.bbc.co.uk/news/business-45141127

• https://www.coca-cola.co.uk, accessed on 5/11/2

• Index mundi, (2018), UNITED KINGDOM DEMOGRAPHICS PROFILE 2018 (https://www.indexmundi.com/united_kingdom/demographics_profile.html), accessed on 11/11/18

• Leville, S. (2017), Chinese ban on plastic waste imports could see UK pollution rise. The Guardian. Available at: https://www.theguardian.com/environment/2017/dec/07/chinese-ban-on-plastic-waste-imports-could-see-uk-pollution-rise

• MINTEL, (2018). Mintel Market Sizes: UK Energy Drinks. Mintel. 21/10/18

http://marketsizes.mintel.com/snapshots/GBR/144/performance/single

• National statistics, (2018), STATISTICS ON OBESITY, PHYSICAL ACTIVITY AND DIET – ENGLAND, 2018 [PAS] https://digital.nhs.uk/data-and-information/publications/statistical/statistics-on-obesity-physicalactivity-and-diet/statistics-on-obesity-physical-activity-and-diet-england-2018, accessed on 05/11/18

• Nielsen Holdings. (2014). Nielsen’s Breakthrough Innovation Report. Europe: The Nielsen Company. Available at: https://www.nielsen.com/uk/en/press-room/2014/Nielsen-cracks-the-DNA-of-breakthrough-innovation-success-following-study-of-12000-product-launches-across-Europe.html

• Office for Budget Responsibility, (2018), Discussion paper No.3 Brexit and the OBR's forecasts, accessed on 15/11/18, https://obr.uk/docs/dlm_uploads/BrexitDiscussionWebVersion.pdf

• Office for National Statistics (2018), Economic Growth boosted by warmer weather, accessed on 14/11/18,

• OXFORD ECONOMICS, (August 2016), The economic impact of the soft drinks levy, British Soft Drinks, accessed on 22/10/18, http://www.britishsoftdrinks.com/write/MediaUploads/Publications/The_Economic_Impact_of_the_Soft_Drinks_Levy.pdf

• PUBLIC HEALTH ENGLAND, (April 2015), Childhood obesity: applying all our health, UK Government, accessed on 14/11/18, https://www.gov.uk/government/publications/childhood-obesity-applying-all-our-health/childhood-obesity-applying-all-our-health

• Rogers, A (2018), Porter’s Five Forces Presentation

• THE GROCER, (April 2018), Red Bull flies high as Lucozade Energy has wings clipped, The Grocer, accessed on 22/10/18, https://www.thegrocer.co.uk/buying-and-supplying/categories/soft-drinks/red-bull-flies-high-as-lucozade-energy-has-wings-clipped/565880.article

• THE GUARDIAN, (June 2015), Children are consuming energy drinks but are they being sold responsibly? THE Guardian, accessed on 15/11/18, https://www.theguardian.com/sustainable-business/2015/jun/11/children-are-using-energy-drinks-but-are-they-being-sold-responsibly

• THE GUARDIAN, (August 2018), The Government to ban energy drinks sales to Children in England, The Guardian, accessed on 22/10/18, https://www.theguardian.com/business/2018/aug/29/ban-sale-energy-drinks-to-children-uk-government-combat-obesity

• The Office for National Statistics, GDP first quarterly estimate, UK: April to June 2018, accessed on 15/11/18 https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/apriltojune2018