Pestle Political · Sugar Tax · Exporting incentives Economical · Disposable Income · Cost of Production Social · Social Media · Health Craze · rebranding Technology · New Advertising · New Production Methods Legal · Market guidelines · False advertisement issues Environmental · Water scarcity · Single use plastics (Academy, 2018). POLITICALTherecent Irish budget revealed there will be a sugar tax introduced which mayincrease the price of sugary drinks in the industry and may mean consumers areaware of the sugar content in things they consume. Drinks with over 8g of sugarper 100ml will face a 30c tax per litre and drinks with 5-8g will face a 20ctax per litre. A study found that the Vit Hit Lean & Green product had 6.5g of sugar per 500mlbottle so the sugar tax will have no direct impact on Vit Hit. However, it mayaffect the industry as sugary drinks will be taxed, it may be favorable for VitHit. “MinisterPaschal Donohue’s new sugar tax may have taken the fizz from many drinks-makersbut at least one Irish manufacturer is celebrating.
” (Independent.ie. 2018). Consumers will see that their products are lowsugar and may decide that they will buy these products as they seemhealthier. Low sugar drinks may alsoseem cheaper as producers won’t have extra tax levied on them and won’t need toraise prices. -incentives to exportEconomicEconomic issues effect the industry aswhen people have less disposable income and they may prefer cheaper drinks ornatural water as it is more affordable. However, on the other hand if theeconomy is doing well then people have more income and may decide to consumeless inferior goods and ‘splurge’ on the higher quality, more luxury brandedproduct such as Vit Hit.With economic issues the costs ofproduction will also be affected as it will cost more to produce the sameamount.
As production costs rise, producers will increase the prices theycharge to compensate themselves for these higher production costs which causescost-push inflation. The inflation makes the products less affordable anddiscourages the consumption of such goods. Social Today’ssociety is very health orientated, people are interested in knowing about whatthey’re putting in their bodies.
Branded health drinks are more popular thanunhealthy carbonated drinks. Although Lavin knew he had a winning product, the Irishmarket had not yet caught up with his idea, as society was not ashealth conscious as it is today( Blair-White et al2017). The rebranding of the product most definitely had apositive impact on sales for Vit Hit as it put the brand back in viewers eyesand sparked interest among consumers to buy and try these new healthieralternatives.
In today’s society many people live busy life styles sonutritious energy drinks help people with hectic lives get through the day. VitHit are very active on social media. They have a website, and blog as well asan Instagram, Twitter and Facebook which all frequently upload things.
Socialmedia has a had a huge impact on the growth of the company as people will see’brand ambassadors’ or celebrities consuming products in the industry orencouraging healthy eating and will follow suit. (Instagram.com. 2018) (Twitter.com. 2018)TechHealthy eating trends are spread acrosssocial media platforms, many of which are relatively new technologies. Socialnetworks have impacted the food and drinks industry as people have swapped fromsugary, unhealthy products to more healthy goods in the industry.
Advertisinghas never been easier, at the click of a button millions of people are exposedto new products and information. The advancement in production methods andmachinery has broadened the horizon for large scale production and allows firmsto produce more in less time and for less money.Medical research improvements have anindirect effect on the industry. As more research is done on the benefits ofhealthy produce peoples’ views on the commodities they consume change and theymay be encouraged consumers to consume healthier products in the industry LegalInthe food and beverage industry there are many regulations which are legallimitations within the industry. Different international markets may havedifferent food and drink laws that effect the ingredients that can be inproducts on the markets. For example, L-carnitine is a substance in Vit Hit butentering the US market involved “reformulating it toremove L-carnitine, which is not permitted in liquid products in the US” (Blair-Whiteet al 2017).
For companiesin the industry that claim to be ‘health drinks’ this may not be true, energydrinks and sports drinks are portrayed to make it seem like they will make youhealthier and this is not the case as many of these drinks contain lots ofsugar and are high calorie and this can lead to legal disputes as it can beviewed as false advertisement. ENVIORONMENTAL Vit Hit products come inbottles and cans, both are which are environmentally friendly in the sense thatthey are recyclable, however, Vit Hit bottles may be seen as single useplastics, which in recent ties have become a problem for the environment. Apossible solution for this might be to install Vit Hit dispensers in supermarkets so as to allow consumers to reuse their Vit Hit bottles and along withthis they could produce more durable bottles that will last longer than aplastic bottle like a canister type bottle and to give a discounted price as anincentive for consumers to reduce the amount of single use plastics they use. Aclimate change study revealed that fresh water is becoming scarcer. Many drinkproducts contain water and the scarcity of fresh water will increase the costof production for companies as the resource will cost more.