Monday, 16 April 2018

Forget Your Customers At Your Peril

I've had a busy start to a busy Puddlecote Inc week, so am a bit late on this. Snowdon has already had his say but - as a former loyal customer of Lucozade for decades - I want to chip in something too.

Via The Grocer:
Lucozade Energy has lost £62.6m in value over the past year - the largest loss in the soft drinks category - as consumers turned away from the new lower-sugar formula. 
According to IRI figures, Energy’s value sales were down 18.6% to £273.6m, while volumes fell 18.9% to 162 million litres, after Lucozade changed the recipe last April to avoid the levy.
Good. I'm glad to have been one of those who abandoned them for their cowardly and contemptuous decision to shit on their best customers. I hope they go under.

Meanwhile their rivals are doing rather well.
Conversely, rival Red Bull added £20.5m to sales of its standard variant, taking its value to £279.6m and assuming the title of Britain’s bestselling energy drink.
Assuming the title of bestselling energy drink from ... Lucozade Energy! Forget about sugar, for a very pissed off former customer, could anything be sweeter than that?

Amusingly, the sales director in charge of this huge fall in, erm, sales is thrilled about losing nearly a fifth of revenue in the space of a year.
“We’re proud to have taken a leading stance and believe these steps have ­future-proofed our brands for our customers and their ­consumers,” said sales director Scott Meredith. 
Future-proofed the brand? It's just lost its top ranking spot. What kind of alternative world are these people living in?

The simple reason that Lucozade are - rightly - being deserted by swathes of their former happy customers is that Lucozade completely forgot the very first rule of business; that the customer is always right. Their customers, like me, enjoyed the product as it was. They changed it, not because customers were demanding it as their lame Twitter feed continually bleats, but because their CEO is a snivelling coward.
'Jamie Oliver was beating me up, so were other celebrities, NGOs and the media. They were demonising me as though sugar were the new tobacco,' says Peter Harding
Aww, poor thing. What was Don Jamie "two chins" Oliver doing to terrorise you, Peter? Firing pine nuts at you out of a carbine? Maybe you should go take charge of a jumble sale instead of a multi-million pound company, because the spidey business sense isn't that acute.
“Our retailers and suppliers have been really supportive,” he says, “because they recognised that we were motivated by doing right by the consumer, responding to the demand for more low-sugar and no-sugar drinks.”
And how is that demand working out for you right now, you cretin?
We’re 9pc of the UK soft drinks market. We’re probably not going to change the world ourselves but if we can demonstrate that it’s possible to make these changes and provide a lead for the rest of the food and drink industry and show that it can be done, then maybe other people will come with us.”
I think you're a little less than 9pc now, sunshine. And I hope you continue to fail so you can provide a lead for the rest of the food and drink industry not to be so spineless in the face of adversity as to abandon their core consumers.

Lucozade customers have had their say at the tills for their preferences being dismissed, now we can but hope shareholders will react accordingly to having their hopes of growth and increased dividends dashed on the altar of cowardice and stupidity. 



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