Wells Fargo weighs in on beverage category numbers.
Energy drinks sales are improving, while liquid tea and sports drinks sales remain strong, a recent report by Wells Fargo Securities reported.
Total carbonated soft drinks (CSDs)—excluding energy drinks—dollar sales were up 0.1% (up 0.5% for 12-weeks) in the latest XAOC Nielsen period during the four weeks ended Dec. 20, 2014, driven by equal unit pricing increases of 4.6% and equal unit volume declines of 4.3%, Wells Fargo Securities LLC reported. Coca-Cola continues to lead the pricing growth in CSDs (up 7%).
Liquid teas remain strong with dollar sales growth of 10.5% while sports drinks were up 8.5% led by ongoing strength in Gatorade. Bottled water dollar sales were up 4.2% and energy dollar sales were up a solid 12.5% led by significant sequential improvements by Monster, which had 14.6% $ sales growth.
“We believe Coca-Cola’s ongoing pricing discipline will continue to support CSD sales growth, and are encouraged by Monster’s return to solid double-digit growth despite declines in promos,” said Bonnie Herzog, managing director, beverage, tobacco and convenience store research.