PepsiCo, Coke lose market share as Americans drink less soda
[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."
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
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
‘Extreme’ climate blamed for world’s worst wine harvest in 62 years
Sheng Siong Q1 net profit up 9.3% on higher revenue
Nestle sales growth sputters on US slump, vitamin snags
Hermes Q1 sales jump 17% on strong China demand
Cordlife’s independent auditor to retire after issuing disclaimer of opinion on FY2023 financials
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO