DOLLAR SALES FOR CARBONATED BEVERAGES IN U.S. RETAIL STORES
increased by 1.9 percent in 2012 compared with the prior year; however, volume
decreased by 1.6 percent, according to Euromonitor International, Chicago.
As consumer preferences for healthier beverages
continue to rise, the carbonated soft drink (CSD)
category remains challenged, according to a January
2013 “Carbonated Soft Drinks” report by Mintel,
Chicago. From 2011 to 2016, Mintel projects the
overall CSD market to grow 6 percent, reaching
$45.5 billion in 2016 in current prices. However,
after adjusting for inflation, market sales are
projected to decline 3 percent during that time
frame, the market research firm adds.
To expand the drinking occasion of CSDs,
beverage-makers have launched new products
positioned for different times of the day. For
instance, earlier this year, Purchase, N.Y.-based
PepsiCo launched Kickstart by Mountain Dew,
which contains 92 mg of caffeine, 80 calories and
5 percent juice in each 16-ounce can. The beverage is
positioned for the morning drinking occasion.
Flavored carbonated beverages are helping to
balance out the decline in overall CSDs, according
to experts.
As PepsiCo’s second-largest CSD trademark,
Mountain Dew volume in North America grew
in 2012, proving that there still is potential for
growth in CSDs outside of colas, said Indra Nooyi,
chairwoman and chief executive officer of PepsiCo,
during the company’s fourth-quarter 2012 earnings
conference call. Likewise, Atlanta-based The Coca-
Cola Co.’s Fanta brand grew 5 percent in volume
last year.
Nevertheless, cola remains the most popular
flavor in the CSD category, according to a December
2012 report by the Netherlands-based Innova
Market Insights titled “Carving New Niches for
Carbonates.” Citrus flavors follow as the second
most popular flavor option for CSDs, it adds.
Demonstrating cola’s popularity, The Coca-Cola
Co. reported that its global share in the sparkling
beverage market was up 3 percent last year, led by
its flagship brand, Coca-Cola. Additionally, Coke
Zero volume grew in the high single digits, it adds.
Naturally sweetened varieties also are gaining
traction in the CSD category, experts say.
Earlier this year, Bethesda, Md.-based Honest Tea,
a subsidiary of The Coca-Cola Co., released Honest
Fizz in select natural food and specialty grocers. As a
result of interest from retailers, Honest Fizz expanded
availability at a number of natural and specialty
retailers around the country. Honest Fizz is sweetened
with a blend of stevia leaf extract and erythritol.
Similarly, Culver City, Calif.-based Zevia added
Strawberry, Cherry Cola and Lime Cola flavors to its
line of stevia-sweetened CSDs last spring.
PepsiCo also plans to use natural sweeteners
such as stevia to produce reduced-calorie
offerings in the near future, Nooyi said during the
company’s fourth-quarter 2012 earnings conference
call. Last year, PepsiCo launched mid-calorie
Pepsi Next nationally. The soft drink features a
taste profile closer to regular Pepsi but contains
60 percent less sugar by using a proprietary
sweetener blend, the company says. Likewise, The
Coca-Cola Co. began testing its own mid-calorie
sodas in the United States last year. Sprite Select
and Fanta Select contain 50 percent of the calorie
content as their full-calorie counterparts, according
to Innova’s report.
Following the 2011 launch of Dr Pepper Ten,
Plano, Texas-based Dr Pepper Snapple Group
(DPS) expanded the 10-calorie platform in
select markets to include 7UP Ten, Sunkist Ten,
A&W Ten, Canada Dry Ten and RC Ten. Due
to its success, the entire line became available
nationwide this year, DPS reports.
“With a full year of support behind Dr Pepper
Ten, the Dr Pepper trademark grew dollar
share by 0.2 in Nielsen channels,” said Larry
Young, president and chief executive officer
for DPS, during the company’s fourth-quarter
2012 earnings conference call. “Dr Pepper Ten
now holds a 0.3 share of the CSD category and,
more importantly, has brought new and lapsed
consumers back to the category.”
As consumers continue to turn away from sugar
and toward natural alternatives, mid-calorie sodas
and stevia-sweetened soft drinks are expected to
gain in popularity, Innova’s report states.
Source by
www.bevindustry.com