You are here

PepsiCo, Coke lose market share as Americans drink less soda

Thursday, April 20, 2017 - 16:18

6-30416835 - 09_01_2014 -  food10.jpg
Coca-Cola Co and PepsiCo Inc's sodas continued to lose US market share in 2016, hurt by Americans ditching the drinks in favour of bottled water.

[NEW YORK] Coca-Cola Co and PepsiCo Inc's sodas continued to lose US market share in 2016, hurt by Americans ditching the drinks in favour of bottled water.

The beverage giants saw soft-drink volume decline last year, with per capita consumption falling to a 31-year low, according to trade publication Beverage-Digest. Still, total volume grew for the two companies, with their water and sports-drink brands picking up the slack.

Bottled water beat carbonated soft drinks in sales volume for the first time, according to Beverage Marketing Corp.

"The beverage industry has undergone a seismic shift," said Michael Bellas, chief executive officer of the group. "Bottled water's emergence as the No 1 beverage type clearly signals a fundamental change in what consumers want from their beverages."

sentifi.com

Market voices on:

Atlanta-based Coca-Cola and Purchase, New York-based PepsiCo have expanded their portfolios of beverages and diversified pack sizes of carbonated drinks to appeal to increasingly health-conscious consumers. Volume of Coca-Cola's Dasani grew 5.3 per cent and PepsiCo's Aquafina gained 10.9 per cent in 2016, according to Beverage-Digest's annual report.

Smaller soda cans and bottles contributed to a 2 per cent gain in carbonated soft-drink revenue to US$80.6 billion from US$79 billion in 2015. That's a sign of success for Coca-Cola, which has increasingly focused on profit, rather than volume.

BLOOMBERG

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom