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SEISMIC SHIFT IN BEVERAGES Australian Beverages Council CEO Geoff Parker tells Convenience World it may be some time before data brings to the fore the full impact of the disruption by COVID-19. He says the pandemic has caused a seismic shift in the demand for many categories in the drinks industry, which has impacted the ways its members operate. “Members are providing record amounts of stock to ensure consumers have a constant and adequate supply of beverages,” he said. “The supply chain is supporting convenience stores and other retailers that are crucial to meeting the needs of households across the country.” In line with this, the Council has communicated to government the need for beverage manufacturers, distributors and suppliers to continue to be regarded as essential during this crisis, pointing to unprecedented demand for essential products, including food and beverages, with the Council’s members at the front line. Mr Parker says the industry’s supply chain is diverse, covering local and imported ingredients, R&D laboratories, transportation, logistics, materials handling, plant and equipment, and much more. “Therefore, as we convey to governments the importance of drinks manufacturing, we’re also emphasising the end-to-end supply chain that is critical to supporting core operations,” he said. “The industry relies on quality Australian produce and expertise right across the supply chain. “This will support the workforce in addition to ensuring the supply of drinks to Australians.” Mr Parker underscores that small companies are taking the strain in current circumstances, making support from government “vitally important to ensure the smooth supply of drinks in convenience outlets”. The Council also continues to advocate for greater domestic reprocessing capability, particularly regarding plastic, to boost the supply of PET resin to Australian manufacturers. CONVENIENCE ESSENTIALS REPORT CONFIRMS FOOD A CLEAR WINNER Analyst input correlates with data in the latest AACS State of the Industry Report (sources: AACS, CMA Shopper Insights, IRI, retailer information). AACS CEO Jeff Rogut notes that shoppers increasingly visited convenience stores for milk and bread in 2019, with the milk category growing 1.4 per cent to record sales of $146 million and bread up 5.3 per cent for sales of $40 million. The grocery category grew one per cent for sales of $40 million. However, the result for this year will tell an interesting story, Mr Rogut says, as consumers show a preference for grabbing their staples from convenience stores during the pandemic. The report reveals that, especially, the performance of the food and beverages category brought the value of the channel to nearly $8.8 billion. Food was a clear winner, with the food-on-the-go category the second fastest growing in convenience in 2019, and efforts of operators in this category bearing fruit, Mr Rogut says. As to beverages, on average more than 70 per cent of convenience shopping baskets included a beverage, says the report, with packed beverages growing 4.4 per cent over the year to deliver the greatest dollar value contribution of any convenience category, at $79 million. Mr Rogut says the trend is for convenience customers to include a beverage in their purchases, often with a food-on-the-go purchase, with the trend to healthier alternatives getting stronger and new entrants into the category doing well. Energy drinks, soft drinks and flavoured milk were hot items, while hot dispensed beverages shone as the fastest growing category for the third year running. JUL/AUG, 2020 CONVENIENCE WORLD 49