U.S. soft drink sales fell for the seventh consecutive year in 2011 as consumers increasingly switched to energy drinks, water and teas, according to a new report.
While the nation's bestselling beverages remained No. 1 Coca-Cola, No. 2 Diet Coke and No. 3 Pepsi, volume for the carbonated drinks segment was down 1 percent in 2011, according to Beverage Digest's annual look at the industry's performance. That follows a 0.5 percent drop in 2010 and puts industry volume -- about 9.3 billion of 192-ounce cases -- at 1996 sales levels.
Non-carbonated drinks, however, saw strong growth. Energy drink companies Monster, Red Bull and Rockstar saw double-digit increases last year while sales volume for "mega brands" such as Gatorade, a Pepsi product, and Arizona, a tea, were up 8 percent and 9.3 percent respectively, Beverage Digest reported. Dasani, one of Atlanta-based Coke's water lines, grew 11 percent.
A separate industry study by Beverage Marketing Corporation, also released Tuesday, had similar findings, adding that coffee grew 9.4 percent.
When all products are combined -- soft drinks, water, teas, etc., -- volume in 2011 was up 0.8 percent compared to 2010.
Coke spokesman Dan Schafer said Dasani's success stemmed partly from consumer acceptance of the company's attempt to be eco-friendly.
"Our plant bottle packaging – made with up to 30 percent plant-based materials – was launched nationally last year with a major marketing campaign, and our consumer preference scores for this brand have continued to rise," he said.
Dave DeCecco, a spokesman for Pepsi North America Beverages, said consumers are not abandoning one category for another, but are embracing variety. They like that Gatorade is there after a workout while Pepsi goes well with a pizza.
"Consumers are interested in diversity and more options," he said.
The news for colas haven't been all bad. Sales of Coke Zero were up for the fifth year in a row in 2011, and regular Coke also saw volume grow in the fourth quarter, Schafer said.
And Pepsi, hoping to woo consumers who want reduced-calorie drinks but not the aftertaste, on Monday is releasing Pepsi Next, a new cola with 60 percent less sugar.
About the Author
