European consumers eye sustainable nutrition and taste in beverages, Kerry flags

07 Sep 2023 ---Natural reformulation, incremental innovation and rethinking seasonality will be critical in creating successful foodservice beverages, says Kerry’s latest beverage report. Citrus comeback, ice-cold caffeine and little treat culture dominate the summer trends, with lemon emerging as the top flavor in Europe.

Iced latte and iced tea are reportedly gaining popularity as rising beverage platforms across the region.

The results are mentioned in Kerry’s new Art of Taste and Nutrition report, which examines approximately 500 seasonal offerings across 14 key markets in Europe to categorize the leading beverage platforms and flavors and profile global future trends.

Innovation and sustainability
Kerry underscores that sustainability is a crucial driver in the future of beverages.

Daniel Sjogren, vice president for foodservice in Kerry Europe, says: “Sustainable nutrition is where the future of beverages is heading. Collectively, we need to do more to move this along at pace.”

According to the company, today’s consumer needs great taste, functionality and reduced sugar and in the future, will demand sustainable sourcing of ingredients, sustainable packaging and balanced nutrition, based on research.

“Sustainability also benefits foodservice operators in achieving their own goals, such as reducing water usage, food waste or CO2.”
Iced latte and iced tea are gaining popularity across Europe (Image credit: Kerry).

Kerry further notes that sustainability is a solution where everyone benefits. In the future, this will likely become its “own innovation platform”: meeting consumer needs for better-for-you beverages that are better for the planet and society.

“By partnering with Kerry, our customers can leverage solutions such as Tastesense Advanced, which significantly reduce the sugar content of products without any impact on taste or mouthfeel - all this while reducing carbon footprint. There is a great opportunity for operators to innovate while keeping a firm eye on overall impact,” adds Sjogren.

Meanwhile, in line with the consumer demand for sugar alternatives, Sweegen received regulatory approval for its zero-calorie sweetness solution derived from stevia plants using alternative technologies in the UK earlier this year.

Last month, Food Ingredients First reported beverage formulator CoCo Fresh Tea & Juice’s focus on innovation and expansion to fulfill consumer demand.

Taste reigns supreme
The company underscores that taste remains the number one driver of purchasing a beverage. 

However, a need for excitement, value and sustainable nutrition are also factors that consumers consider to balance their new desires, says the company.

“Our report details an increase in more natural flavors and formats across Europe, with consumers showing a clear desire for beverages that deliver great taste and experience but in a more sustainable and nutritious way,” Sjogren reveals.

He flags the need for foodservice brand owners to consider all these when innovating. 

“On top of this, we see a continuous battle between maximizing the existing product range versus offering new limited-time offers. Businesses that apply a balanced approach to creating efficiencies and exciting offers in target areas of the menu are the likely winners.”

At the IFT FIRST trade show last month, Sensegen’s told Food Ingredients First that consumers are seeking three things in the flavors selection – uniqueness, exoticness and naturality.

Consumers want novelty
Kerry’s report provides valuable insights for foodservice brand owners to consider when innovating for 2024, with efficiency being key. 

“Innovation doesn’t need to mean ‘blue sky’ big cost changes and can be as simple as getting the right flavor pairing or introducing a new format,” notes Kerry.
Pressures in a post-pandemic world have resulted in many consumers turning to 'little treats' to add a daily dose of joy into their lives.

There is also an opportunity to create new seasonal windows throughout the summer and the rest of the year to increase profitability. An example is the growing popularity of iced beverages throughout the year.

The drinks are considered refreshing, with young consumers associating them with part of their identity.

“Meanwhile, pressures in a post-pandemic world have resulted in many consumers turning to 'little treats' to add a daily dose of joy into their lives.”

While buyers will continue to look for novelty and excitement, Sjogren notes that when purchasing a seasonal beverage, this doesn’t mean foodservice brands need to “reinvent the wheel.”

“Focusing on efficient innovation can deliver winning beverages that taste great, are simple for your back of the house and are cost-effective,” he concludes.

Last month, Kerry reported a 5.1% organic growth in revenue for the first half of 2023, amounting to €4.1 billion (US$4.51 billion).

By Insha Naureen