Wells Fargo has released data on the current status of the beverage and snacking markets, specifically considering the industry’s giants.
Wells Fargo has released data on the beverage and snacking markets. The research has revealed that the sales in both of these markets is up for the period in the last period.
All Channel Sales Results
- Beer and Snacks Strong
- Carbonated Soft Drinks (CSD) Recover
- Energy Softens, but Monster Remains Solid
According to a report from Wells Fargo, for the period ending March 26, 2016, all channel dollar sales (including grocery, drug, mass market and convenience stores) for each major manufacturer are up.
- Coca-Cola total beverage dollar sales were up +2.6% last month (+1.4% for 12-weeks; +2.4% for 52-weeks) driven by strength in juices, sports drinks, waters and teas and broad improvements in carbonated soft drinks (CSDs).
- PepsiCo total beverage and snack dollar sales were up +2.6% last month (+1.7% for 12-weeks; +2.0% for 52-weeks) as strong performance in salty snacks and improvements in CSDs were offset by weakness in teas.
- Pepper Snapple total beverage dollar sales were up +1.5% last month (+0.8% for 12-weeks; +2.1% for 52-weeks), driven by modest growth in CSDs offset by weakness in juices and teas.
- Monster dollar sales remain solid, up +7.7% during the period (+8.3% for 12-weeks; +8.7% for 52-weeks).
CSD (Excluding Energy) Sales Solid With Limited Volume Declines
Total CSD (ex-Energy) dollar sales in all channels were up +0.9% (-0.3% for 12-weeks; +0.2% for 52-weeks) during the four-week period, driven by modest average equal price growth of +1%, offset by equal unit volume declines of -0.1%, an improvement from recent trends.
- Coca-Cola’s CSD dollar sales were up +1.1% (-0.2% for 12-weeks) as a result of -0.9% average equal price declines (as Coca-Cola is lapping its price increases from last year), and equal unit volume growth of a solid +2%. Brand Coke (about 43% of Coca-Cola CSD sales) improved to +1.1% dollar sales growth.
- PepsiCo’s CSD dollar sales were flat during the month (-1.6% for 12-weeks) with -0.9% equal unit volume declines offset by +0.9% average equal price growth.
- Pepper Snapple’s CSD dollar sales were up +0.8% (+0.3% for 12-weeks) as a result of average equal price increases +2.5% and equal unit volume declines of -1.6%.
Energy Category Growth Slows
Monster Results Remain Solid While Red Bull & Rockstar Soften Materially
The energy category generated relatively soft dollar sales growth of +5% (+6.5% for 12-weeks; +9.5% for 52-weeks), driven by very weak Red Bull results, with dollar sales growth down -1% this period (+2.2% for 12-weeks) driven by -1.9% equal unit volume declines and +0.9% average equal pricing. Monster results were generally solid, with +7.7% dollar sales growth (+8.3% for 12-weeks), driven by +5.4% equal unit volume growth and impressive +2.3% average equal pricing growth. Rockstar dollar sales returned to single-digit growth (+8.9%) however PepsiCo’s Kickstart remains strong (+20.9%).
Beer Category Growth Remains Strong
Constellation Brands Continues to Outperform
Beer dollar sales in the four-week period were up a solid +4.1% (+4.5% for 12-weeks; +4.0% for 52-weeks) driven by equal unit growth of +1% and pricing growth of +3.1%.
- Anheuser-Busch InBev dollar sales were up +2% (+2.2% for 12-weeks) as a result of average equal price increase of +2% and +0.1% equal unit volume growth.
- MillerCoors dollar sales were down -0.2% (+0.3% for 12-weeks) with average pricing up +2.2% and -2.3% equal volume declines.
- Constellation Brands had very strong +17.6% sales growth (+19.2% for 12-weeks), with average pricing up +2.8% and +14.4% equal volume growth.
Salty Snacks Remains Strong
Frito-Lay Continues to Show Improvements Led by Lay’s Brand
Salty snacks dollar sales increased an impressive +5.6% during this period (+4.5% for 12-weeks), with +2.9% equal unit growth and +2.6% equal unit pricing.
- PepsiCo’s Frito-Lay dollar sales improved, up +5.3% (+4.1% for 12-weeks) driven by +2.9% equal unit volume growth and solid +2.3% average equal pricing, as Lay’s (23% of PepsiCo’s snack sales) continued its improvements to +4% dollar sales growth following the recent initiatives to improve the brand’s pricing architecture.