SUNTORY BEVERAGE & FOOD LIMITED LUCOZADE owner Suntory is focusing on products that will perk up tired workers, the beverage maker's COO told City A.M. yesterday.
While the brand's flagship Lucozade products have long been staples for sport fans and gym goers, a new product Lucozade alert is targeting those in need of a mental boost.
Amid the pandemic,
"We saw that as more people worked from home, they spent more time in front of a computer, which accelerated a surge in mental energy requirement," she said.
New drink Lucozade Alert has launched in a small number of stores, ahead of a larger roll out this month.
The company is eyeing trends for functional drinks, such as caffeine and stimulant drinks, as well as low and no sugar drinks.
The office return is set to accelerate growth in the category while the pandemic has also driven more at-home drinking occasions, the COO said.
When asked the biggest challenge faced by the company in the year ahead, Robert said high commodity cost inflation was likely to continue to pile pressure on the business.
The COO anticipates that there will probably be some issues with ingredient supply that pop up due to the current global commodity context.
The commodity context was "probably the worst we have seen for many, many years," she said. This has led to price hikes in the firm's ready to drink format, with the exception of Lucozade Alert, for trade customers.
"We always try to avoid [price hikes]," through cost-cutting measures, Robert added.
Another big challenge is the shortage of skilled workers, following the pandemic and Brexit. "Demand for talent is very high but the scarcity of it is high."
The firm is keen to retain staff with flexible working, that gives them the "right balance between work and home life."
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