Analysis of Britvic PLC's Innovation Impacts on Sales and Performance

This report examines the impact of innovation on Britvic PLC's sales and operations, focusing on the years 2016-2018. It begins with an introduction to the concept of innovation and its importance in business, highlighting its role in economic development and competitive advantage. The report the...Read More

Britvic plc innovation impacts1
BRITVIC PLC INNOVATION IMPACTS
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Introduction
Ever since the 15th century, innovation has been at the forefront of organisation operations.
Innovation takes a focal point in the victory of industry to test the novel ideas and change
business venture model (Foss & Saebi 2017). Innovation also offers a competitive edge and is
essential for organisation learning and development. From the modernisation of the internet, a
transformation has developed to be crucial aspect of several companies. Innovation has become a
critical and buzzword of the sector to uphold incessant development. Innovation can be termed
as the routine of executing a novel brand or organisational process in business operations, which
can be new to the market or the company (BODDY 2017).
The technology can be reflected as an essential base in economic development, and technological
change support significantly in the development of industries and states (Needle 2010). The
applications of new technologies give a direction to the production of less expensive and more
affordable products. Economic progress and innovation are connected in the sense that their
development is essential in the survival of the business (Petrariu, Bumbac & Ciobanu 2013).
Change in technology can result in advanced financial structures, employment prospects,
infrastructure growth, and international competitiveness which lead to an upsurge in the total
organisation brand sales (Anderson, Potočnik & Zhou 2014). This paper aims to illustrate how
the innovation had impact on Britvic’s sales for the three consecutive years, beginning 2016.
Centred in Hemel, Hempstead, Britvic plc is a British manufacturer of soft drinks and is listed on
the London stock exchange. The firm's vision is to be most inventive, dynamics and reliable soft
beverages corporation in the globe, which they will realise through their drive of creating
everybody moments more fun. It is the main seller of patented soft beverages and occupies

Britvic plc innovation impacts 3
position two in distributing of carbonated soft refreshments in the GB (BRITVIC plc n.d). Using
export, contracting, certifying, Britvic plc has established its scope into other regions,
specifically the United States. Even though most its operations are focused in the United
Kingdom and Ireland, the firm's international branch is growing, and it currently exports to over
50 nations (BRITVIC plc n.d).
At present, the business has no financial or ICT issues. Despite the company experiencing profits
slip due to restructuring cost, factory closure in Norwich and changes in the consumer
preferences in 2017, they enjoy the returns as the company has embraced the modernisation
(Britvic. Com 2017). The company has delivered in a challenging environment, with good
profits, margins, and earnings growth. The above can be attributed to innovation and marketing
which has started to pay off (Morrison 2016). The company has constantly shown that they are
flexible and robust business operations.
Britvic is committed to manufacturing high soft drinks which are produced in an ethical, fair and
ecologically responsible manner. The company engages with suppliers to better comprehend the
environmental and ethical effect linked with the ingredients they buy. The company uses Sedex,
a supplier data program, to assess the supplier strategy to ethical and ecological risk control and
they are audited so that they have the correct level of assurance. The company's board of
directors (BOD) offers strategic leadership within the model of practical and prudent regulations.
BOD is accountable for the firm's long term victory, values, culture, and ethical standards and is
devoted to high standards of corporate governance throughout the company's operations
(BRITVIC plc ANNUAL REPORT AND ACCOUNTS 2018).

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In 2018, the company continued its innovation to realise their customer needs, change their
supply chain and assist the user in making healthier selections. It prompted to the company
making 7.1% of revenue created from innovation (BRITVIC plc ANNUAL REPORT AND
ACCOUNTS 2018). It the company opened novel super-quick lines in production sites,
streamlines and joined Brazilian acquisitions into the operations. The company is well-ranked to
venture on the premiumisation form, having capitalised considerably in first-class innovation and
product extension such as Purdey’s multi-vitamin drinks, Robinsons Cordials, and Mathieu
Teisseire in 2018 (BRITVIC plc ANNUAL REPORT AND ACCOUNTS 2018). In the same
year, it relaunched J2O with a novel, advanced packaging. In 2018, there were increased returns
from innovation in small and fast developing categories such as unsweetened sparkling water
(Aqua Libra) and Natural Energy (Purdey's) (BRITVIC plc ANNUAL REPORT AND
ACCOUNTS 2018).
The business concentrated on development prospects, in these critical parts: first, targeting fast-
developing, emerging classes that provide long-term development prospects such as increasing
energy drinks marketplace, with normal energy beverages, Purdey's and premium adult
socialising products such as London Essence company. Secondly, forming an improved products
collection, driving ahead of a market redesigns, and safeguarding innovative brands mainly ones
with zero or low sugar contents. Thirdly, using the power of basic products unique occurrences
through diverse package style such as Robinsons with Fruit Creations, Fruit Cordials, and
Refresh’d, and Squash'd through premiumisation (BRITVIC plc ANNUAL REPORT AND
ACCOUNTS 2018).
In 2018, Britvic plc capitalised on the trend of the flavoured hot and premium cocktails with the
re-launching of home syrups and Purées variety under the Mathieu Teisseire trademark

Britvic plc innovation impacts 5
(BRITVIC plc ANNUAL REPORT AND ACCOUNTS 2018). The company developed its
premium ‘zero-proof’ (alcohol-free) collection which comprised Monte Rosso and Thomas &
Evans, in alignment with the improving trends towards user wishing to decrease alcohol use and
looking excellence substitutes. The company extended the Robinsons collection to comprise
Squash’d, a low sugar choice to flavours water and also launching Robinsons in several
foodservice cafeterias and Robinsons Refresh’d. It was apparent that the company's
modernisation repaid dividends. Therefore, the firm products invention delivered 7.1% of total
returns in 2018 as mentioned earlier (BRITVIC plc ANNUAL REPORT AND ACCOUNTS
2018).
In 2017, the innovation offered considerable future development prospects represented which
represented 5.4 % of the total revenue (BRITVIC plc ANNUAL REPORT AND ACCOUNTS
2017). The same year, the company was able to realise Net income from the innovation of 10%.
Purdey, a healthier, more natural energy beverage resonated well with the users and increased its
retailer worth by 55%. In the same year, they launched Refresh’d and this increased its earlier
performance, realising £4m retail transaction within a duration of 5 months since its launch
(BRITVIC plc ANNUAL REPORT AND ACCOUNTS 2017).
According to the annual report 2016, over the past three decades, the company invested in
marketing and innovation capabilities (BRITIC plc ANNUAL REPORT AND ACCOUNTS
2016). The contribution to the innovation continued to grow and represented 4% of 2016
revenues (BRITIC plc ANNUAL REPORT AND ACCOUNTS 2016). Assisting users to make
healthier selections has been a central part of the company's sustainable business approach since
2013. In 2016, the company continued to make development in these zones on a three-pronged
strategy: reformulation with zero compromise on quality or taste and innovation, where the firm

Britvic plc innovation impacts 6
pipeline was heavily weighted towards zero/low sugar beverage (BRITIC plc ANNUAL
REPORT AND ACCOUNTS 2016).
Conclusion
Health conscious continues to be a developing trend across the food retail and user landscape.
The improving demand for brand solutions which accomplish the individuals’ wants while
performing their busy lifestyle is increasing. Capitalising on the market trend and placing
wellbeing at the centre of innovation approach, Britvic focuses on user demand for more
convenient, enjoyable and more premium experiences. The company distinguished from its
rivals through unmatched joint of market-leading products and trajectory records in novelty,
specialist information of the soft beverages marketplace, extended and viable link with associates
such as PepsiCo, and vastly devoted and talented staff.

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