CSD Declines Worsen: Herzog

Worst results of the year "driven by weak diet trends"

Published in CSP Daily News

By
Steve Holtz, Online News Director & Beverage Editor

Carbonated Soft Drink sales 4-22-14

NEW YORK -- Carbonated soft drinks registered their worst month this year during the four-week period ending April 12, 2014, according to beverage analyst Bonnie Herzog of Wells Fargo Securities LLC, New York.

"Total CSD dollar sales declined 4.8% (-3.0% for 12 weeks) in the latest XAOC (eXtended All Outlet Coverage) Nielsen period," she wrote in a recent research note. The drop also was worse than sales data from the same period in 2013, when dollar sales declined 4.1%.

The decline was "driven by an equivalent unit pricing increase of 1.0% and equivalent unit volume declines of 5.7%," Herzog wrote. "We note that Easter was not included this period vs. the year-ago period, which likely dragged volumes down further. Downward pressure remains on diet CSDs with dollar sales down 9.5%.

Other beverage category statistics from the period:

  • Liquid teas had modest dollar sales growth of 1.0%.
  • Isotonics were up a solid 7.1%.
  • Bottled-water dollar sales were up 1.6%, while sparkling water continues to be one of the fastest-growing categories, up 24.5%.
  • Energy-drink dollar sales were up a solid 8.9%, led by Monster's strong 17.2% growth (including Muscle Monster), offset by Red Bull's modest growth of only 2.7%.

"Bottom line," Herzog wrote, "functional beverages, like energy, remain one of the few sources of growth in nonalcoholic beverages, while CSDs continue to remain under pressure."

By Steve Holtz, Online News Director & Beverage Editor
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