Overall, the beverage market experienced growth in the recent four week period.
During the recent four-week period ending July 16, 2016, each beverage category in the market recorded dollar sales growth. A number of different factors drove growth in the period, but underperformance by certain brands hindered category growth.
Beverage Dollar Sales Broadly Positive
A recent report from Wells Fargo Securities shows that Nielsen Data has indicated that all channel dollar sales for non-alcoholic beverages were broadly positive for the four week period ending July 16, 2016.
Overall results for each major non-alcoholic manufacturer were:
- The Coca-Cola Co. total beverage dollar sales were up 2%, driven by positive results in carbonated soft drinks (CSDs) and strength in teas, shelf-stable juices and waters.
- PepsiCo total beverage and snack dollar sales were up 2.8% last month. Solid performance in salty snacks and most non-carbonated beverages was offset by weakness in CSDs.
- Dr Pepper Snapple Group’s total beverage dollar sales were up 0.5%, driven by positive growth in CSDs, solid results in teas, offset by declines in juices.
- Monster dollar sales were up +6.5% during the period, broadly in-line with recent performance but below long-term averages.
Carbonated Soft Drinks Sales Grow, but Underperform Other Categories
The new report from Wells Fargo Securities revealed that total, according to Nielsen Data, CSD (excluding-Energy) dollar sales in all channels were up +0.2% during the four-week period. This growth was driven by modest average equal price growth of +0.9% and equal unit volume declines of -0.7%.
- The Coca-Cola Co.’s CSD dollar sales were up +0.4% as a result of +0.8% average equal price increase, and equal unit volume declines of -0.4%. Brand Coke (43% of Coca-Cola’s CSD sales) dollar sales remain negative at -1.6% despite a relatively easy 0.6% comparison.
- PepsiCo’s CSDs dollar sales continue to underperform, down -0.8%, driven by -1.7% equal unit volume declines partially offset by +0.9% average equal price growth.
- Dr Pepper Snapple’s CSDs dollar sales were up +0.7% as a result of average equal price decrease of -0.7% and equal unit volume growth of +1.5%.
Energy Sees Soft Growth
According to Wells Fargo Securities, Nielsen Data revealed that, during the recent four week period, the energy category generated soft dollar sales growth of +5.2%, driven by ongoing weak trends in Red Bull, whose dollar sales were up only +2%.
- Red Bull experienced an increase of +2.7% equal unit volume as the brand lapped product launches and subsequent removals of several Editions lines, and -0.7% average equal pricing.
- Monster’s results remain below historical averages with +6.5% dollar sales growth, which was driven by +3.4% equal unit volume growth and +3.0% average equal pricing growth.
- Rockstar dollar sales remained strong (+8.1%).
- PepsiCo’s Kickstart was strong with growth of +20%.
Beer Category Strong
The report from Wells Fargo Securities revealed that, according to Nielsen Data, beer dollar sales in the recent four-week period were up a strong +4.4%. Reportedly, the growth was driven by solid equal unit growth of +1.4% and strong +3% pricing.
- Anheuser-Busch InBev dollar sales were up +2.5%, led by +0.8% growth in equal unit volume and +1.7% average eq. price increase.
- MillerCoors dollar sales were down -0.1% based on average pricing up +2.6% and -2.7% equal volume declines.
- Constellation Brands generated very strong +20.2% sales growth, with average pricing up +3.1% and +16.6% equal volume growth as Corona and Corona Light both grew double-digits. Constellation Brands gained nearly two points of dollar share.
Salty Snacks Remain Strong
Nielsen Data in covered in the report from Wells Fargo Securities revealed that salty snacks dollar sales increased +4.4% during this period on +2.2% equal unit growth and +2.1% equal unit pricing. PepsiCo’s Frito-Lay dollar sales remain strong up +4.2%, driven by +2% equal unit volume growth and +2.1% average equal pricing.
