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RTD coffee, energy drinks, water market grew, soft drinks declined in U.S. in 2013


April 3, 2014
By Canadian Vending

April 2, 2014, New York – Ready-to-drink
coffee, energy drinks and bottled water grew strongly while carbonated soft
drinks declined again, according to newly released preliminary data from
Beverage Marketing Corporation.

April 2, 2014, New York – Ready-to-drink
coffee, energy drinks and bottled water grew strongly while carbonated soft
drinks declined again, according to newly released preliminary data from
Beverage Marketing Corporation.

However, the U.S. liquid refreshment
beverage market stayed essentially unchanged in size in 2013, the report said.
Its flatness followed three years of growth. Some specific financial factors,
such as cuts to the Supplemental Nutrition Assistance Program (food stamps) and
the resumption of the payroll tax early in the year, affected consumers’
purchasing power, while disruptive weather events also hindered the market’s
performance. Total liquid refreshment beverage volume stood at 30.2 billion
gallons in 2013.

Niche categories continued to outperform
traditional mass-market categories. Premium beverages such as energy drinks
and, especially, ready-to-drink (RTD) coffee advanced particularly forcefully during
2013. Aggressive pricing contributed to the sizeable increase in bottled water
volume. Larger, more established segments such as carbonated soft drinks and
fruit beverages failed to grow once again.

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RTD coffee moved forward faster than all
other segments with a 6.2 per cent volume increase in 2013. Nonetheless, the
segment accounted for a relatively small share of total liquid refreshment
beverage volume. Indeed, it was the smallest, trailing even value-added water,
which registered the largest decline of any liquid refreshment beverage type
(despite a strong showing by Glaceau Smartwater). Energy drinks advanced by 5.5
per cent, but also remained fairly modest in size. Not surprisingly, no energy
drink, RTD coffee or value-added water brand ranked among the leading
trademarks by volume.

Sports beverages, in contrast, had Gatorade
(including all brand variations) as the fifth largest beverage trademark during
the year, and the category it led grew even as the overall liquid refreshment
beverage market did not. The brand topped one billion gallons for the first
time in 2011 and remained above that level in 2012 and 2013.Carbonated soft
drinks remained by far the biggest liquid refreshment beverage category, but
they continued to lose both volume and market share. Volume slipped by 3.2 per
cent from 13.3 billion gallons in 2012 to 12.9 billion gallons in 2013, which
lowered their market share from 44 per cent to less than 43 per cent. Even so,
certain soda trademarks, such as Canada Dry and certain varieties of Mountain
Dew, did achieve growth. Moreover, carbonated soft drinks accounted for five of
the 10 biggest beverage trademarks during 2013, with Coca-Cola and Pepsi-Cola
retaining their usual first and second positions.

Bottled water had three per cent in 2013.

Four companies accounted for all of the
leading refreshment beverage trademarks. Coca-Cola had four brands, including
the only fruit beverage brand to make the list, Minute Maid. Pepsi-Cola had
three while Nestlé Waters North America (NWNA) had two and Dr Pepper Snapple
Group (DPSG) had one.

“Beverages endured a transitional year in
2013,” said Michael C. Bellas, chairman and CEO, Beverage Marketing
Corporation, in a press release. “Even in the face of economic challenges,
healthier products thrived and even formerly floundering segments like RTD
coffee demonstrated their potential. Certainly the state of the economy is
crucial for overall beverage category success, but so are products that connect
with the evolving American consumer.”