EXCERPT FROM THE DIGITAL IQ INDEX®: BEVERAGES 2014 TO ACCESS THE FULL REPORT, CONTACT
[email protected] DIGITAL IQ INDEX® BEVERAGES September 29, 2014 EXCERPT FROM THE DIGITAL IQ INDEX®: BEVERAGES 2014 TO ACCESS THE FULL REPORT, CONTACT
[email protected] DIGITAL IQ INDEX® BEVERAGES Fizzle Beverages: Annual Per Capita Consumption by Category The “sugar water” business is going from bad to worse. U.S., 1987–2013 In 1998, the average American drank more than 50 gallons of soda per year.1 Fifteen years later, consumption 50 is down nearly 20 percent—with “diet” drinks declining 42.2 faster than any other beverage category due to increased 40 Soft Drinks scrutiny of aspartame and other artificial sweeteners.2 Although cola conglomerates have attempted triage by 30 launching anti-obesity campaigns, testing stevia-based GALLONS PER CAPITA Bottled Water 22.1 reformulations (e.g., Coca-Cola Life, Pepsi NEXT), and 20 20.1 doubling down on marketing expenditures—nothing can Beer 3,4 stem the tide. Last April, Coca-Cola announced its 10 Juices first global dip in soda volume since 1999, signaling the 6.9 4.3 5 spread of the disease beyond the United States. 0 Sports Drinks 1990 2000 2010 Source: Beverages Digest, July 2014. Too Little, Too Late? As reality sets in, beverage titans are slowly rethinking business Beverages: Change in Per Capital Consumption by Category fundamentals. In 2007, Coca-Cola embarked on a diversification U.S., 2003–2013 binge (e.g., Glacéau, Honest Tea, Zico)—culminating in a $2 billion investment in Monster Energy last August.6,7 In 2013, the company Sports Drinks reversed course by selling costly distribution operations it acquired +40% Bottled as recently as 2010.8 In September, Coca-Cola experimented with its Water first exclusive distribution deal with Amazon (see page 48).