Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market at a glance
- Coke and Pepsi set the tone for competition in the category
- Dr Pepper Snapple Group and Nestlé Waters also compete
- New beverages blur segment lines, create placement challenges
- Line extensions have created an explosion of choice, but at a price
- Private label gaining a bit of momentum
- Segment performance driven by various consumer dynamics
- New product trends underscore changing segment dynamics
- Beverages widely available; supermarkets still dominate
- Key findings from consumer survey
Insights and Opportunities
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- Moving beyond price promotions to added-value benefits
- Organizing the aisle from the standpoint of the shopper
- Shopper marketing by benefit area
- Wellness
- Performance/functional
- Flavor/enjoyment
- Sustainability offers a platform for shopper engagement across all beverage segments
Inspire Trends
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- Trend: Big Spending Shifts
- What’s it about
- Evidence of trading down and retracting demand in beverages
- Future implications: finding the silver lining
- Trend: Giving a facelift to a global brand
- What’s it about
- What we have seen
- … but consider the risk of giving a facelift
Market Size and Forecast
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- Key points
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- Figure 1: FDMx sales and forecast of non-alcoholic beverages at current prices, 2003-13
- Figure 2: FDMx sales and forecast of non-alcoholic beverages at inflation-adjusted prices, 2003-13
Competitive Context
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- Key points
- Coke and Pepsi set the tone for competition in the category
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- Figure 3: The Coca-Cola Company’s brand display at 2008 Olympics
- Dr Pepper Snapple Group provides a counterpoint to the big two
- Nestlé rides bottled water wave
- New beverages blur segment lines, create placement challenges
- Line extensions have created an explosion of choice, but at a price
- Private label gaining a bit of momentum
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- Figure 4: FDMx market share of private label non-alcoholic beverages, by segment, 2005-08
Segment Performance
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- Key points
- Divergent performance across segments over the past five years
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- Figure 5: FDMx* sales and forecast of non-alcoholic beverages at current prices, by segment, 2003-13
- Figure 6: FDMx* sales of non-alcoholic beverages, by segment, 2006 and 2008
- New product trends underscore changing segment dynamics
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- Figure 7: U.S. new non-alcoholic beverage introductions, 2003-08
Retail: An Overview
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- Key points
- Beverages widely available; strategies vary from channel to channel
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- Figure 8: FDMx sales of non-alcoholic beverages, by retail channel, 2006 and 2008
- Wal-Mart sales
Retail Channels: Supermarkets
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- Key points
- Despite declining share, supermarkets remain dominant beverage channel
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- Figure 9: Supermarket sales of non-alcoholic beverages at current prices, by segment, 2003-08
- Figure 10: U.S. sales of non-alcoholic beverages at supermarkets, 2003-08
- New product introductions in supermarkets skew to big segments
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- Figure 11: U.S. new non-alcoholic beverage introductions at supermarkets, 2006-08
- Pro-health claims top the list of new product claims in supermarkets
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- Figure 12: Top claims for all beverage introductions at supermarkets, 2006-08
- Kosher
- All natural
- No additives/preservatives
Retail Channels—Other
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- Key points
- Low prices drive share growth for mass merchants
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- Figure 13: U.S. sales of non-alcoholic beverages at other* channels, 2003-08
- New product introductions considerably lower in mass merchandisers, compared to other channels
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- Figure 14: U.S. new non-alcoholic beverage introductions at mass merchandisers, 2006-08
- New product trends in mass merchandisers
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- Figure 15: Top trends for all beverage introductions at mass merchandisers, 2006-08
- Kosher
- Vitamin/mineral fortified
- Sugar (Low/No/Reduced)
Retail Channels – Convenience Stores
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- Key points
- Beverages, especially energy drinks, are c-store essentials
- C-store new product intros focus on energy
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- Figure 16: U.S. new non-alcoholic beverage introductions at convenience stores, 2006-08
- New product trends in convenience stores
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- Figure 17: Top claims for all beverage introductions at convenience stores, 2006-08
- Vitamin/mineral fortified
- Calorie (Low/No/Reduced)
- Sugar (Low/No/Reduced)
- Natural channel/SPINS
- Non-alcoholic beverage sales small but steady in natural channels
- Sales of beverages in the natural channel
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- Figure 18: Natural product supermarket retail sales of non-alcoholic beverages, at current prices, 2006-08
- Figure 19: Natural product supermarket retail sales of non-alcoholic beverages, at inflation-adjusted prices, 2006-08
- Natural channel sales by segment
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- Figure 20: Natural product supermarket retail sales of beverages, 2006-08
Market Drivers
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- Key points
- Trend towards eating healthily and watching diet can influence the traditional beverage aisle assortment
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- Figure 21: Incidence of eating healthier and watching/controlling diet, 2004 and 2008
- Health focus expanding beyond weight loss to a broader, more customized view of wellness
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- Figure 22: Reasons for watching/controlling diet, 2004 and 2008
- Increasing importance of health puts spotlight on packaging and in-aisle communication
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- Figure 23: Attitudes and behavior towards using packaging as an information tool, by age, December 2008
- Women are likely to be the primary shopper
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- Figure 24: Primary household shopper, by gender, December 2008
- An aging population suggests a shift in beverage retailing strategies
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- Figure 25: U.S. population of adults aged 18 and over, by age group, 2003-13
- Hispanics offer opportunities in the beverage aisle
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- Figure 26: Population, by race and Hispanic origin, 2003-13
Brand Performance: Carbonated Drinks
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- Key points
- Carbonated drinks face considerable headwinds
- Refocus on flagship cola brands
- Opportunities beyond big-brand colas
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- Figure 27: Top regular carbonated drinks brands in FDMx*, 2007 and 2008
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- Figure 28: Top diet carbonated drinks brands in FDMx*, 2007 and 2008
Brand Performance: Bottled, Canned, and Aseptic Fruit Juice and Juice Drinks
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- Key points
- Stagnant segment growth tied to health concerns
- Newer fusion brands expand, blur boundaries of segment
- Segment’s diversity presents placement challenge
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- Figure 29: Top aseptic/canned/bottled fruit juice/juice drinks brands in FDMx*, 2007 and 2008
Brand Performance: Bottled Water
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- Key points
- Issues converge to put a halt to growth
- Enhanced water has fueled growth and crowded shelves
- Environmental issues and opportunities
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- Figure 30: Top bottled water brands at FDMx*, 2007 and 2008
Brand Performance: Sports and Energy Drinks
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- Key points
- Energy drinks starting to slow after fueling segment growth
- Sports drinks broaden appeal, compete more directly with other segments
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- Figure 31: Top sports and energy drinks brands in FDMx*, 2007and 2008
Brand Performance: Canned and Bottled Tea/Coffee
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- Key points
- Tea’s healthy, wholesome image drives segment
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- Figure 32: Top canned and bottled tea and coffee brands in FDMx*, 2008 and 2008
Brand Qualities
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- Key points
- Brand reinventions remake category
- Pepsi “refreshes” with simplified look on package and at shelf
- Mountain Dew leverages packaging for creativity and engagement
- Snapple upgrades product, updates package
- Target’s Archer Farms an example of trend towards premium private label
Advertising and Promotion
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- Overview
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- Figure 33: Media expenditure of selected gum/mint brands, 2006-07
- Beverages play a role in retailer advertising
- Coke and Wal-Mart combine for affordable holiday joy
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- Figure 34: Wal-Mart Coke holiday ad, 2008
- Coke and Wal-Mart collaborate on eco-friendly promotion
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- Figure 35: Wal-Mart recycled Coke bottle shirts ad, 2008
- Target features Dasani in Good Buy campaign
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- Figure 36: Target Dasani hello good buy ad, 2008
- Kroger and 7-Eleven ads feature beverages in price promotions
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- Figure 37: Kroger football event ad, 2008
- Figure 38: Kroger football event ad, 2008
Incidence and Frequency of Purchasing Beverages by Types of Retail Channels
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- Choice of retail channels to purchase non-alcoholic beverage
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- Figure 39: Choice of retail channels to purchase non-alcoholic beverages, by age, November 2008
- Varying frequency by channel reflects varying shopper motivations
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- Figure 40: Frequency of purchasing beverages at different retail channels, November 2008
- Mean frequency of purchasing beverages at various channels, by demographics
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- Figure 41: Mean frequency of purchasing beverages at various retailers in a month, by key demographics, November 2008
- Incidence and mean frequency of purchasing beverages by itself or with other household purchases
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- Figure 42: Incidence of purchasing beverages by itself or with other household purchases, November 2008
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- Figure 43: Mean frequency of purchasing beverages by itself or with other shopping needs in the past month, by key demographics, November 2008
- Most beverage purchases decided before going to the store
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- Figure 44: How often beverage purchases are planned before going shopping, by age, November 2008
Purchase-driving Attributes at Retail
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- Value pricing: a strong motivator across the board
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- Figure 45: Beverage purchase driving attributes at retail, by age, November 2008
- Hispanic shoppers heavily influenced by value and in-store displays
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- Figure 46: Beverage purchase driving attributes at retail, by race/Hispanic origin, November 2008
Consumer Response to Various Promotional Tactics
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- Beverage shoppers influenced by a variety of promotional tactics
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- Figure 47: Incidence of purchasing beverages, by type of promotion, November 2008
- Promotional responses follow consistent demographic patterns
- Incidence of purchasing beverages by using buy-one-get-free
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- Figure 48: Incidence of purchasing beverages on buy-one-get-one free promotion, by age, November 2008
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- Figure 49: Incidence of purchasing beverages on buy-one-get-one free promotion, by race/Hispanic origin, November 2008
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- Figure 50: Incidence of purchasing beverages on buy-one-get-one free promotion, by presence of children, November 2008
- Incidence of purchasing beverages by using in-store coupon
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- Figure 51: Incidence of purchasing beverages by using in-store coupon next to the beverage placement, by age, November 2008
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- Figure 52: Incidence of purchasing beverages by using in-store coupon next to the beverage placement, by presence of children, November 2008
- Incidence of purchasing beverages by using coupons clipped from weekly papers or magazine
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- Figure 53: Incidence of purchasing beverages by using coupons clipped from weekly papers or magazine, by age, November 2008
- Incidence of purchasing beverages by using online coupon printed for store use
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- Figure 54: Incidence of purchasing beverages by using online coupon printed for store use, by age, November 2008
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- Figure 55: Incidence of purchasing beverages by using online coupon printed for store use, by presence of children, November 2008
- Incidence of purchasing beverages by using special offers such as sweepstakes or online bonuses
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- Figure 56: Incidence of purchasing beverages by using special offers such as sweepstakes or online bonuses, by age, November 2008
- Consumer attitudes and behavior in purchasing beverages
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- Figure 57: Attitudes and behavior in purchasing beverages, by gender, November 2008
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- Figure 58: Attitudes and behavior in purchasing beverages, by age, November 2008
Custom Consumer Groups
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- Gender by age
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- Figure 59: Choice of retail channels to purchase non-alcoholic beverages, by age and gender, November 2008
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- Figure 60: Beverage purchase driving attributes at retail, by age and gender, November 2008
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- Figure 61: Attitude and behavior in purchasing beverages, by age and gender, November 2008
Cluster Analysis
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- Planners
- Who they are
- Opportunity
- Bargain Hunters
- Who they are
- Opportunity
- Indulgers
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 62: Beverage retail clusters, November 2008
- Figure 63: Choice of retail channels to purchase non-alcoholic beverages, by beverage retail clusters, November 2008
- Figure 64: Incidence of purchasing beverages by itself or with other household purchases, by beverage retail clusters, November 2008
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- Figure 65: Beverage purchase by immediate or at-home consumption, by beverage retail clusters, November 2008
- Figure 66: How often beverage purchases are planned before going shopping, by beverage retail clusters, November 2008
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- Figure 67: Beverage purchase driving attributes at retail, by beverage retail clusters, November 2008
- Figure 68: Incidence of purchasing beverages on various types of promotions (response presented by most of the time), by beverage retail clusters, December 2008
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- Figure 69: Incidence of purchasing beverages on various types of promotions (response presented by rarely/never), by beverage retail clusters, November 2008
- Figure 70: Attitudes and behavior in purchasing beverages, by beverage retail clusters, November 2008
- Cluster demographics
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- Figure 71: Beverage retail clusters, by gender, November 2008
- Figure 72: Beverage retail clusters, by age group, November 2008
- Figure 73: Beverage retail clusters, by income group, November 2008
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- Figure 74: Beverage retail clusters, by race, November 2008
- Figure 75: Beverage retail clusters, by Hispanic origin, December 2008
- Cluster methodology
IRI/Builders Panel Data: Key Household Purchase Measures
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- Carbonated beverages: key household purchase measures
- Overview of carbonated beverages
- Regular soft drinks
- Consumer insights on key purchase measures – regular soft drinks
- Brand map
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- Figure 76: Brand map, selected brands of regular soft drinks, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 77: key purchase measures for the top brands of regular soft drinks, by household penetration, 2008*
- Low calorie soft drinks
- Consumer insights on key purchase measures – low calorie soft drinks
- Brand map
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- Figure 78: Brand map, selected brands of low calorie soft drinks, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 79: key purchase measures for the top brands of low calorie soft drinks, by household penetration, 2008*
- Shelf stable bottled juices: key household purchase measures
- Overview of shelf stable bottled juices
- Shelf stable bottled fruit drink
- Consumer insights on key purchase measures
- Brand map
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- Figure 80: Brand map, selected brands of SS bottled fruit drink, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 81: Key purchase measures for the top brands of SS bottled fruit juice drinks, by household penetration, 2008*
- Shelf stable bottled fruit juice blend
- Consumer insights on key purchase measures
- Brand map
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- Figure 82: Brand map, selected brands of SS bottled fruit juice blend, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 83: Key purchase measures for the top brands of SS bottled fruit juice blend, by household penetration, 2008*
- Bottled water: key household purchase measures
- Overview of bottled water
- Convenience/PET still water
- Consumer insights on key purchase measures
- Brand map
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- Figure 84: Brand map, selected brands of convenience/PET still water, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 85: key purchase measures for the top brands of convenience/pet still water, by household penetration, 2008*
- Bulk still water
- Consumer insights on key purchase measures – jug/bulk still water
- Brand map
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- Figure 86: Brand map, selected brands of jug/bulk still water, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 87: key purchase measures for the top brands of jug/bulk still water, by household penetration, 2008*
- Canned and bottled tea: key household purchase measures
- Canned and bottled tea
- Consumer insights on key purchase measures
- Brand map
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- Figure 88: Brand map, selected brands of canned and bottled tea, by household penetration, 2008*
- Brand leader characteristics
- Key purchase measures
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- Figure 89: key purchase measures for the top brands of canned and bottled tea, by household penetration, 2008*
Appendix: IRI/Builders Panel Data Definitions
Appendix: Trade Associations
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