SODA TRENDS REPORT 2016 June 2016
TABLE OF CONTENTS
Table of Contents Name
Page #
Introduction
3
Overview
6
The Diet Dilemma
14
Millennial Marketing
21
Proliferation of Choice
29
Conclusion
34
© Beverage-Digest
SODA TRENDS REPORT 2016
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INTRODUCTION
Soda Trends Report 2016 CSDs declined for an eleventh straight year in 2015, and early 2016 results seem to indicate a twelfth year of volume losses are on the horizon. Despite these declines, CSDs remain a major part of American culture and are expected to remain so for years to come. However, there are several challenges that face soda manufacturers, including 1) increased threat of governmental sugary beverage regulation amid rising concerns about American obesity; 2) a rising consumer sentiment against low calorie sweeteners including aspartame; 3) the difficulties of reaching tomorrow’s generation due to their resistance to traditional marketing; and 4) the increase in competition from other beverages such as bottled water and RTD teas. This report aims to analyze these concerns and provide insight and analysis as to what beverage manufacturers are doing in response to these threats and how companies can slow the decline in the years to come.
Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Beverage-Digest and Zenith International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions. Reader discretion is advised. Please note that this report, and all contents herein, are for the sole use of the purchaser and that unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law. Violators are liable for actual damages or statutory damages up to $100,000. We thank you for your purchase and hope you enjoy the Soda Trends Report 2016.
© Beverage-Digest
SODA TRENDS REPORT 2016
3
INTRODUCTION
Definitions All-channel carbonated soft drinks (CSDs) – Encompasses all packages and formats moving through all channels including fountain and vending. Our definition of CSDs also includes energy drinks, since they are carbonated, and many are manufactured and packaged similarly to traditional CSD brands. Soda or Pop – This refers to the CSD category, but excludes energy drinks. Single-serve bottled water (Bottled Water or Water) – Water sold in packages of 1.5 liters or less and sometimes referred to as “PET” water. Beverage-Digest does not include larger "bulk" water packages sold at retail or via home and office delivery in its all-channel data. Non-carbonated (Non-Carbs) beverages – Includes shelf-stable juice drinks (not including multi-serve "juice aisle" products or refrigerated products like Tropicana or Simply); sports drinks; ready-to-drink teas; shelf-stable/single-serve dairy drinks; and "all other" which includes such things as non-soda foodservice ingredients. Cases – Unless otherwise noted, volume in this report is represented as 192-oz cases. This derives from the historic use of wooden cases packed with 24 8-oz glass bottles and is an industry standard equivalized measurement. Compounded Annual Growth Rate (CAGR) – Growth in this report is sometimes represented as a compounded annual growth rate, or CAGR. Unlike an average annual growth rate, CAGR values offer a better example of historic growth periods because it dampens the effect of volatility of periodic returns.
© Beverage-Digest
SODA TRENDS REPORT 2016
Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Beverage-Digest and Zenith International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions. Reader discretion is advised. Please note that this report, and all contents herein, are for the sole use of the purchaser and that unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law. Violators are liable for actual damages or statutory damages up to $100,000. We thank you for your purchase and hope you enjoy the Soda Trends Report 2016.
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