Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- Brand leaders
- Drinks with universal appeal dominate on usage
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- Figure 1: Most widely drunk brands in the drinks sector, January 2015-January 2018
- CSD brands go against trust and quality relationship
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- Figure 2: Top ranking of brands in the drinks sector, by agreement with “A brand that I trust”, January 2015-January 2018
- Drinks sector gives opportunity for constant evolution
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- Figure 3: Top ranking of brands in the drinks sector, by agreement with “A brand that is innovative”, January 2015-January 2018
- Tea and coffee brands seen as offering value
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- Figure 4: Top ranking of brands in the drinks sector, by agreement with “A brand that offers good value”, January 2015-January 2018
- Coca-Cola’s universal appeal drives high preference
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- Figure 5: Top ranking of brands in the drinks sector, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
- Smaller brands compete on satisfaction
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- Figure 6: Top ranking of brands in the drinks sector, by overall satisfaction (net of “Good” and “Excellent” responses), January 2015-January 2018
- Brand personality
- Fruit-based drinks considered refreshing
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- Figure 7: Top ranking of brands in the drinks sector, by agreement with “Refreshing”, January 2015-January 2018
- Alcohol brands among most likely to possess premium traits
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- Figure 8: Top ranking of brands in the drinks sector, by agreement with “Stylish”, January 2015-January 2018
- Brands boost tradition with geography, but proximity is key
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- Figure 9: Top ranking of brands in the drinks sector, by agreement with “Traditional”, January 2015-January 2018
- Innocent top scores for ethicality
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- Figure 10: Top ranking of brands in the drinks sector, by agreement with “Ethical”, January 2015-January 2018
- Opportunities and threats
- Low/no/reduced sugar claims grow
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- Figure 11: Proportion of L/N/R claims across new product launches in the drinks sector, 2014-17
- Brands responding to demand for functionality
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- Figure 12: Proportion of functional claims across new product launches in the drinks sector, 2014-17
- Energy drinks brands considered unethical and overrated
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- Figure 13: Top ranking of brands in the drinks sector, by agreement with “Unethical”, January 2015-January 2018
- Bottled water brands’ purity offers potential to extend reach
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- Figure 14: Top ranking of brands in the drinks sector, by agreement with “Pure”, January 2015-January 2018
- Drinks promotional activity
- Adspend stays static in 2017
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- Figure 15: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, Q1 2014-Q4 2017
- Coca-Cola is biggest spender by some distance
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- Figure 16: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, by top brands, 2017
- What we think
Brand Leaders – What You Need to Know
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- Drinks with universal appeal dominate on usage
- CSD brands go against trust and quality relationship
- Drinks sector gives opportunity for constant evolution
- Tea and coffee brands seen as offering value
- Coca-Cola’s universal appeal drives high preference
- Smaller brands compete on satisfaction
Brand Usage
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- Drinks brands have above-average penetration
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- Figure 17: Most widely drunk brands in the drinks sector, January 2015-January 2018
- Sugar-free soft drinks growing in popularity
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- Figure 18: Proportion of consumers who have ever drunk the brand, by proportion who have drunk it in the last 12 months, January 2015-January 2018
- Big name brands investing more in current low-sugar sub-brands
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- Figure 19: Example launches of flavoured variants of no/low/reduced sugar sub-brands, 2017-18
Brand Trust and Quality
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- Usage and trust linked
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- Figure 20: Top ranking of brands in the drinks sector, by agreement with “A brand that I trust”, January 2015-January 2018
- CSDs drive usage without as trusted an image
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- Figure 21: Agreement with “A brand that I trust”, by overall usage, January 2015-January 2018
- Premium brands able to generate trust without usage
- “Quality” is not necessarily the same as “premium”…
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- Figure 22: Top ranking of brands in the drinks sector, by agreement with “A brand that has consistently high quality”, January 2015-January 2018
- …and it’s likely to be experience that determines it
Innovative Brands
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- Drinks sector gives opportunity for constant evolution
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- Figure 23: Top ranking of brands in the drinks sector, by agreement with “A brand that is innovative”, January 2015-January 2018
- Innocent, Robinsons and Nescafé are frontrunners
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- Figure 24: Examples of product launches from Innocent, Robinsons and Nescafé, 2017
- Coca-Cola stays true to innovative product
- Kopparberg and Rekorderlig help redefine a category through launches…
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- Figure 25: Examples of Rekorderlig and Kopparberg product launches, 2017
- …and marketing activity promoting Swedish heritage
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- Figure 26: Kopparberg Recycling Rig, August 2017
- Twinings, Pukka and Fever-Tree drive premium image
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- Figure 27: Examples of launches from Twinings, Pukka and Fever-Tree, 2017
- Glacéau Smartwater uses differentiation to boost innovative image
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- Figure 28: Glacéau Smartwater highlights vapour-distilled water and the benefit to taste, 2016
Price, Cost and Value
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- Tea and coffee brands seen as offering value
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- Figure 29: Top ranking of brands in the drinks sector, by agreement with “A brand that offers good value”, January 2015-January 2018
- Brands specialising in the traditional fare better on value
- A mixture of premium and mainstream considered worth paying more for
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- Figure 30: Top ranking of brands in the drinks sector, by agreement with “A brand that is worth paying more for”, January 2015-January 2018
- Protection from negative impact of price rises
Brand Preference and Differentiation
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- Coca-Cola’s universal appeal drives high preference
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- Figure 31: Top ranking of brands in the drinks sector, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
- Big name tea and coffee brands benefit from frequent contact
- Taste and preference not a concrete link
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- Figure 32: Agreement with “delicious”, by commitment (net of “I prefer this brand over others” and “This is a favourite brand”), January 2015-January 2018
- Originality creates differentiation
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- Figure 33: Top ranking of brands in the drinks sector, by differentiation (net of “It’s somewhat different from others” and “It’s a unique brand”), January 2015-January 2018
Brand Satisfaction and Recommendation
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- Smaller brands compete on satisfaction
- Premium traits appear decisive
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- Figure 34: Top ranking of brands in the drinks sector, by overall satisfaction (net of “Good” and “Excellent” responses), January 2015-January 2018
- Alcohol brands particularly enthuse drinkers
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- Figure 35: Top ranking of brands in the drinks sector, by “excellent” reviews, January 2015-January 2018
- Brands noted for purity among most likely to be recommended
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- Figure 36: Top ranking of brands in the drinks sector, by likely recommendation, January 2015-January 2018
Brand Personality – What You Need to Know
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- Fruit-based drinks considered refreshing
- Alcohol brands among most likely to possess premium traits
- Premium boosting brand activity
- Brands boost tradition with geography, but proximity is key
- Innocent top scores for ethicality
- Plastic is offering an opportunity for brands
Taste and Refreshment
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- Taste as a driver of purchase
- Taste less associated with drinks brands than food
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- Figure 37: Top ranking of brands in the drinks sector, by agreement with “Delicious”, January 2015-January 2018
- Fruit-based drinks considered refreshing
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- Figure 38: Top ranking of brands in the drinks sector, by agreement with “Refreshing”, January 2015-January 2018
- Oasis advertising highlights refreshment
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- Figure 39: Oasis “Refreshing stuff” out-of-home campaign, 2015
- Sprite extends refreshment with cucumber launch
Premium Brands
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- Alcohol brands among most likely to possess premium traits
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- Figure 40: Top ranking of brands in the drinks sector, by agreement with “Stylish”, January 2015-January 2018
- Lavazza and Peroni focus on associations with fashion
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- Figure 41: The Prontissimo coffee trike at London Fashion Week, February 2017
- Sipsmith uses craft for sophistication
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- Figure 42: Sipsmith Tweet celebrating the 9th birthday of Prudence the copper still, March 2018
- Fever-Tree draws close comparisons with alcohol brands
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- Figure 43: Fever-Tree’s The Art of Mixing book, March 2018
- Twinings and Taylors use differentiated product range
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- Figure 44: Royal-themed launches from Twinings and Taylors of Harrogate, 2016-17
- Exclusivity judged on a category basis
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- Figure 45: Top ranking of brands in the drinks sector, by agreement with “Exclusive”, January 2015-January 2018
Premium Boosting Brand Activity
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- Coffee brands going deeper into origin
- Brands in other categories following suit
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- Figure 46: Example product launches with details of origin, 2017-18
- Pushing flavour and taste expertise
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- Figure 47: Kenco, Cofficionados since 1923, 2018
- Bottlegreen and Belvoir experiment with food pairing recommendations
- Designer packaging reaches water bottles
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- Figure 48: Examples of Evian limited edition designer packaging, 2016-17
- Opportunity for designer packaging in different categories
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- Figure 49: Examples of limited edition packaging in the drinks sector, 2017
Tradition, Heritage and Authenticity
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- Brands boost tradition with geography…
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- Figure 50: Top ranking of brands in the drinks sector, by agreement with “Traditional”, January 2015-January 2018
- …but proximity appears to be key
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- Figure 51: Jack Daniel’s tweets highlighting heritage, January 2018
- Gordon’s changes packaging to emphasise heritage
- Tea brands among most traditional
- Alcohol brands dominate on authenticity…
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- Figure 52: Top ranking of brands in the drinks sector, by agreement with “Authentic”, January 2015-January 2018
- …but non-alcohol brands can take inspiration
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- Figure 53: Example of Fever-Tree and Fentimans launches, 2018
Social Responsibility
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- Innocent top scores for ethicality
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- Figure 54: Top ranking of brands in the drinks sector, by agreement with “Ethical”, January 2015-January 2018
- Kenco and Fever-Tree initiatives drive ethical image
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- Figure 55: Fever-Tree #MalariaMustDie campaign, April 2018
- Clipper focuses on the environment
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- Figure 56: Clipper tea as the official tea of the National Trust, March 2018
- Plastic demonisation presents an opportunity
- BrewDog ‘stands up to The Man’
Ethical Brand Activity
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- Ethicality of brands improving
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- Figure 57: Proportion of ethical claims across new product launches in the drinks sector, 2014-17
- Rising watermark for recycled plastic
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- Figure 58: The Co-operative’s pledge to use 50% recycled plastic in own-label water bottles, March 2018
- PG Tips and Tetley brands go biodegradable
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- Figure 59: PG Tips’ announcement of biodegradable tea bags, February 2018
- Wider array of charities being represented
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- Figure 60: Examples of product launches in the drinks sector carrying ethical – charity claims, 2018
- Smirnoff and Absolut continue to fight for human rights
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- Figure 61: Examples of vodka brands supporting LGBT+ causes with limited edition packaging, 2017
- Tea and coffee brands encourage talking
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- Figure 62: PG Tips’ promotion of Time to Talk Day, February 2018
Opportunities and Threats – What You Need to Know
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- L/N/R sugar claims grow
- Brands responding to demand for functionality
- Fruit juice and tea brands well placed to add health benefits
- Energy drinks brands considered unethical and overrated
- The reduced alcohol trend means opportunities to innovate
- Bottled water brands’ purity offers potential to extend reach
Reformulation of Drinks
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- Response from consumers to sugar levy is mixed
- Not just the sugar levy which is influencing healthier habits
- L/N/R sugar claims grow
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- Figure 63: Proportion of L/N/R claims across new product launches in the drinks sector, 2014-17
- Naturally sweetened drinks hold potential for growth
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- Figure 64: Examples of product launches including honey as an ingredient, 2017-18
- Opportunity to push real sugar as indulgent
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- Figure 65: Coca-Cola, “They don’t make ‘em like they used to”, April 2018
- Diet Coke pushes freedom in a world of regulation
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- Figure 66: Diet Coke’s “Because I can” campaign, March 2018
- Taste replication vital after reformulation
Adding Functionality to Drinks
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- Brand responding to demand for functionality
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- Figure 67: Proportion of functional claims across new product launches in the drinks sector, 2014-17
- Fruit juice and smoothies’ health advantage makes them natural candidates
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- Figure 68: Examples of juice/smoothie launches carrying functional claims, 2017-18
- Figure 69: Tropicana “Little Glass” ad, April 2016
- Tea’s association with health means it is a target for functionality
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- Figure 70: Examples of launches in the tea category carrying functional claims, 2017-18
- Tetley uses expertise in tea to move into squash
- Energy drinks incorporating vitamins to improve image
- Consumers unwilling to compromise on taste
Changing the Image of Energy Drinks Brands
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- Energy drinks brands considered unethical…
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- Figure 71: Top ranking of brands in the drinks sector, by agreement with “Unethical”, January 2015-January 2018
- …and overrated
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- Figure 72: Top ranking of brands in the drinks sector, by agreement with “Overrated”, January 2015-January 2018
- Natural energy sources as an alternative
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- Figure 73: Examples of energy drinks with natural claims, 2017-18
- An opportunity for coffee brand to up on-the-go efforts
Capitalising on the Reduced Alcohol Trend
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- Consumers are drinking less alcohol
- Brands responding with alcohol-free launches
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- Figure 74: Examples of alcohol-free product launches, 2017-18
- Brands with similar image to alcohol may benefit
- The reduced alcohol trend means opportunities to innovate
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- Figure 75: Examples of product launches being pushed as alternatives to alcohol, 2017
Bottled Waters Extending Reach
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- Bottled waters are noted for purity
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- Figure 76: Top ranking of brands in the drinks sector, by agreement with “Pure”, January 2015-January 2018
- Water as a base of healthiness
- Using positive perceptions of water to extend reach
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- Figure 77: Examples of waters adding functionality, 2017-18
- Drinks brands focusing on hydration
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- Figure 78: Examples of natural waters claiming to offer intense or natural hydration, 2016-18
- Figure 79: Evian tweet promoting its hydrating ability, February 2018
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- Figure 80: Capri-Sun Fruity Water, December 2017
- Hydration theme taken outside of immediate water category
Drinks Promotional Activity – What You Need to Know
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- Adspend stays static in 2017
- Coca-Cola is biggest spender by some distance
- Active brands tend to be leaders across measures
Adspend in the Drinks Sector
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- Adspend stays static in 2017
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- Figure 81: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, Q1 2014-Q4 2017
- Coca-Cola is biggest spender by some distance
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- Figure 82: Total above-the-line, online display and direct mail advertising expenditure in the drinks sector, by top brands, 2017
- Coca-Cola maintains advertising tradition…
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- Figure 83: Break free with a Coke that’s sugar free, January 2018
- …while Pepsi Max encourages a new tradition
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- Figure 84: Pepsi Max, “Try a new tradition this Christmas”, November 2017
- Guinness continues iconic advertising to create differentiation
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- Figure 85: Guinness, The Cowboys of Compton, September 2017
- Smirnoff uses advertising to highlight brand values
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- Figure 86: Smirnoff presents We Are Open campaign, November 2017
- Red Bull marketing makes it representative of the category
- Lucozade attempts to unlock potential
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- Figure 87: Lucozade Energy, Unstoppable Bottles in Oxford Circus, May 2017
- Yorkshire Tea highlights locality
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- Figure 88: Yorkshire Tea, “Where everything’s done proper”, March 2017
- Bud Light relaunches with nostalgic campaign
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- Figure 89: Bud Light frogs, May 2017
- Gordon’s drives impulse drinking occasions
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- Figure 90: Gordon’s Gin, Grand National Facebook post, April 2017
- L’OR shows off premium credentials
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- Figure 91: Discover the L’OR gold standard in coffee, December 2017
- Nielsen Ad Intel Coverage
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
Appendix – Brands Covered
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