The beverage market has experienced mixed results across the separate categories.
A new report from Wells Fargo Securities has revealed the state of the carbonated soft drinks, non-carbonated beverages, beer and salty snacks markets, along with additional industry insight.
All Channel Sales Results
In carbonated soft drinks Dr Pepper Snapple continues to lead growth but Coca-Cola is gaining share.
All channel dollar sales data from Nielsen (including grocery, drug, mass and convenience stores) during the four week period ending Dec. 26, 2015 for each major manufacturer and as reported by Wells Fargo are as follows:
- Coca-Cola total beverage dollar sales were up 1.9% last month (2.2% for 12-weeks; 2.5% for 52-weeks) driven by solid performance in waters and teas offset by softness in carbonated soft drinks, juices and a slowdown in sports drinks.
- PEPSICO total beverage and snack dollar sales were up 2.1% last month (2.2% for 12-weeks; 2.1% for 52-weeks) as solid performance in salty snacks, bars/rice cakes/hot cereals (Quaker) and several non-carbonated categories including sports drinks and water offset declines in carbonated soft drinks and teas.
- Dr Pepper Snapple total beverage dollar sales were up 2% last month (3% for 12-weeks; 2.4% for 52-weeks), a sequential decline from mid-single digit performance the last several months, driven by slightly positive sales in carbonated soft drinks and strong results in juices and teas.
- Monster dollar sales improved slightly, up 8.9% during the period (7.5% for 12-weeks; 9.5% for 52-weeks).
Carbonated Soft Drinks (Excluding Energy) Sales Down Slightly
Total carbonated soft drinks (excluding Energy) dollar sales in all channels were down 0.2% (-0.2% for 12-weeks; +0.3% for 52-weeks) during the four-week period, driven by modest average equal price growth of +2.3%, offset by equal unit volume declines of -2.4%.
- Coca-Cola carbonated soft drinks dollar sales were up +0.1% (+0.0% for 12-weeks) as a result of much softer +0.8% average equal price increase, and equal unit volume declines of -0.7%. Brand Coke (43% of Coca-Cola carbonated soft drinks sales) matched its highest sales growth in the last six months (+0.9%).
- PEPSICO carbonated soft drinks dollar sales were down -1.9% during the month (-1.9% for 12-weeks) with -4.5% equal unit volume declines and +2.8% average equal price growth.
- Dr Pepper Snapple carbonated soft drinks dollar sales pulled back sequentially, up +0.7% (+1.6% for 12-weeks) as a result of average equal price increases +2.6% and equal unit volume declines of -1.8%.
Energy Category Growth Remains Strong
The energy category had solid dollar sales growth of +10.1% (+10.1% for 12-weeks; +10.5% for 52-weeks), driven by strong results in numerous areas.
- Rockstar: (+20.9%)
- PEPSICO‘s Kickstart: (+40.5%)
- Red Bull had +8.7% dollar sales growth this period (+9.8% for 12-weeks) driven by relatively soft +4.8% equal unit volume gains and +3.7% average equal pricing.
- Monster sales improved slightly to +8.9% dollar sales growth (+7.5% for 12-weeks), driven by improved +5.6% equal unit volume growth and +3.1% average equal pricing growth. This is the first period in four months that Monster outpaced Red Bull, however, Monster still lost one point in equal unit share.
Beer Category Continues to Grow at Mid-Single Digit Rate
Beer dollar sales in the four-week period were up +3.7% (+4.3% for 12-weeks; +3.7% for 52-weeks) driven by equal unit growth of +0.5% and pricing growth of +3.1%.
- Anheuser-Busch InBev dollar sales were up 1.1% (+1.2% for 12-weeks) as a result of average equal price increase of +1.8% and -0.7% equal unit volume growth.
- MillerCoors dollar sales were down 0.3% (-0.2% for 12-weeks) with average pricing up 1.5% and -1.8% equal volume declines.
- Constellation had 17.6% sales growth (+20.1% for 12-weeks),
- Boston Beer had 1.7% sales growth
- Heineken sales were down 1.0%.
Salty Snacks Results Remain Solid
Salty snacks dollar sales increased 3.2% during this period (+3.4% for 12-weeks), with 0.6% equal unit growth and +2.5% equal unit pricing. PEPSICO’s Frito-Lay dollar sales remain solid at +3.0% (+3.0% for 12-weeks) driven by +0.8% equal unit volume growth and solid +2.2% average equal pricing.