A shift is emerging in the soft drink aisles

The Lempert Report
April 12, 2013

Beverage giants Coca-Cola, Pepsico and Dr Pepper Snapple are more focused than ever on the rising demands for healthier drinks such as tea, coffee, water, juice and muscle recovery shakes.

A shift is emerging in the soft drink aisles. Beverage giants Coca-Cola, Pepsico and Dr Pepper Snapple are more focused than ever on the rising demands for healthier drinks such as tea, coffee, water, juice and muscle recovery shakes.    Across the nation, many carbonated drink fans are seeking greater control of the flavors and ingredients they consume, and, in addition becoming more environments aware. So, options like the Soda Stream become popular. Soda Stream gives over 100 flavor choices and also offers a way to keep bottles out of landfills.  The brand is also integrating into lifestyles, with an arrangement to supply sparkling water dispensers for the doors of some new Samsung refrigerators.   Overall, consumers drink differently today.  Boomers who grew up calorie-dense sugary drinks are cutting back to help stay leaner and active.   And many Millennials never had the soda habit to the same degree—they grew up toting bottled waters to school. More and more, as the nation addresses challenges of obesity and diabetes, carbonated soft drinks are under attach.  New York City Mayor Michael Bloomberg is trying to cap the size of sugary drinks sold by restaurants, theaters and food vendors at 16 ounces; the proposed ban on larger drinks would not extend to supermarkets and convenience stores.  A judge has said no, but the city plans to appeal the decision.      It's no surprise then that U.S. sales of carbonated soft drinks continue to decline.   Dollar sales in the 52 weeks ended Jan. 19, 2013, were $21.37 billion, that’s  0.4% less that the year before, reports Nielsen.  Unit sales were down 5.7% in this latest 52-week period. An upcoming conference, Healthy Beverage Expo, will address the nation’s shift towards healthier beverage options when it convenes June 7-9 in Las Vegas. A white paper prepared in advance of this conference, 7 Key Changes the Beverage Industry Must Accept:  The Future of Beverages, explores issues such as:  consumers’ search for healthier choices; touch-sensitive packaging that will convey full descriptions of ingredients and health claims; demand for less-sweet beverages; distribution changes; the rise of at-home water filtration systems; and more sustainable packaging.