Table of Contents
Introduction and Abbreviations
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- Introduction
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- A $75 billion market
- Children, teens, young adults, and Hispanics are key demographic growth drivers
- Health and wellness a key trend
- The three biggest segments continue with the decline, main growth from RTD NCBs
- Manufacturers step up efforts to participate in all NCB segments
- Need for convenience and economy drives retail trends
- Brands versus private
- Increased budgets for NCB, sampling evolves as an effective marketing tool
- Change in distribution strategies may affect consumers positively
- Sales expected to decrease at constant prices
Market Drivers
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- Obesity trends influence the non-alcoholic beverage market
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- Figure 1: Prevalence of overweight and obesity among adults aged 20+, 1980-2002
- Figure 2: Per capita consumption of carbonated beverages, bottled water and sports drinks, 2000-04
- Demographic influences
- Children and teens
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- Figure 3: Consumption of non-alcoholic beverages by adults, teens, and pre-teens, January-September 2005
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- Figure 4: U.S. children and teen population and projections, by age, 2001-11
- Young adults
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- Figure 5: Incidence of consumption of selected RTD beverages in the past seven days, by type of beverage, by age, January-September 2005
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- Figure 6: U.S. population of young adults aged 18-34, 2001-11
- Ethnic population drives growth in non-alcoholic market
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- Figure 7: Incidence of consumption of RTD beverages in the past seven days, by race/ethnicity, January-September 2005
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- Figure 8: Population, by race and Hispanic origin, 2001-11
- Lifestyle trends
- Convenience
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- Figure 9: Incidence of immediate consumption and take-home consumption at all channels, 1999-2004
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- Figure 10: Beverage attributes driving purchase, by age, March 2006
- Health and wellness
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- Figure 11: Top five positioning claims for juice and juice drinks, 2004 and 2005
- Organic positioning claims draw consumers’ attention
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- Figure 12: Number of positioning claims for organic non-alcoholic beverages, 2003-05
Market Size and Trends
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- Market size
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- Figure 13: Total U.S.* retail sales of non-alcoholic beverages (incl. Wal-Mart), at current and constant prices**, 2001-06
- Figure 14: Graph: Total U.S.* retail sales of non-alcoholic beverages (incl. Wal-Mart), at current and constant prices, 2001-06
- Sales excluding Wal-Mart
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- Figure 15: U.S.* retail sales of non-alcoholic beverages, at current and constant prices, 2001-06
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- Figure 16: FDM* average price/gallon of selected non-alcoholic beverages, 2006
- Market trends
- Use of the moniker “Zero” for the diet beverages
- Sucralose, the most popular no-calorie sweetener
- Flavors
Market Segmentation
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- Overview
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- Figure 17: FDM* sales of non-alcoholic beverages, by segments, 2004 and 2006
- Carbonated beverages
- Regular carbonated beverages
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- Figure 18: FDM* sales of regular carbonated drinks**, at current and constant prices, 2001-06
- Diet and mid-calorie carbonated beverages
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- Figure 19: FDM sales of diet carbonated drinks, at current and constant prices, 2001-06
- Milk
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- Figure 20: FDM* sales of milk, at current and constant prices, 2001-06
- Fruit juice and drinks
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- Figure 21: FDM* sales of juice and juice drinks, at current and constant prices, 2001-06
- Bottled water
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- Figure 22: FDM* sales of bottled water, at current and constant prices, 2001-06
- Sports and energy drinks
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- Figure 23: FDM* sales of sports and energy drinks, at current and constant prices, 2001-06
- Coffee
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- Figure 24: FDM* sales of bottled and canned tea, at current and constant prices, 2001-06
- Tea
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- Figure 25: FDM* sales of tea, at current and constant prices, 2001-06
- Other non-alcoholic beverages
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- Figure 26: FDM* sales of other non-alcoholic beverages, at current and constant prices, 2001-06
Supply Structure
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- Brand sales and market share
- Overview
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- Figure 27: FDM* sales of major manufacturers in the RTD NCB market in the U.S., 2003 and 2005
- Milk
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- Figure 28: Selected brand sales and market share of milk at FDM* in the U.S., 2003 and 2005
- Regular carbonated beverages
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- Figure 29: Selected brand sales and market share of regular carbonated beverages at FDM* in the U.S., 2003 and 2005
- Diet carbonated beverages
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- Figure 30: Selected brand sales and market share of diet carbonated beverages at FDM* in the U.S., 2003 and 2005
- Fruit juice and drinks
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- Figure 31: Selected brand sales and market share of fruit juice and juice drinks at FDM* in the U.S., 2003 and 2005
- Bottled water
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- Figure 32: Selected brand sales and market share of bottled water at FDM* in the U.S., 2003 and 2005
- Sports and energy drinks
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- Figure 33: Selected brand sales and market share of sports and energy drinks at FDM* in the U.S., 2003 and 2005
- Tea and coffee
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- Figure 34: Selected brand sales and market share of tea and coffee at FDM* in the U.S., 2003 and 2005
- All other non-alcoholic beverages
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- Figure 35: Selected brand sales and market share of other non-alcoholic beverages at FDM* in the U.S.,
- Manufacturer profiles
- Merger and acquisition
- Cadbury Schweppes Americas Beverages (CSAB)
- Coca-Cola Company
- Dean Foods
- Fuze Beverage, LLC Company
- Hansen Natural Corporation
- Nestlé Waters North America Inc. (NWNA)
- PepsiCo, Inc.
- Red Bull GmbH
Advertising and Promotion
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- Introduction
- Cadbury Schweppes Americas Beverages (CSAB)
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- Figure 36: Television spot for 7-Up Plus
- Figure 37: Television spot for Snapple white tea
- Campbell Soup Company
- Coca-Cola
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- Figure 38: Television spot for Coke Zero
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- Figure 39: Television spot for Coca-Cola black cherry vanilla
- Kraft
- PepsiCo
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- Figure 40: Television spot for Gatorade Rain
- Ocean Spray
- Sampling: a promotion trend
Retail Distribution
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- Introduction
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- Figure 41: Food retail channel blurring, 2003 and 2008
- Figure 42: Number of household trips annually, by channel, 2001-04
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- Figure 43: Number of regular stores and supercenters operated by Wal-Mart, 2000-06
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- Figure 44: Choice of retail channels for RTD beverages, February 2006
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- Figure 45: U.S. retail sales of non-alcoholic beverages, by channel, 2004 and 2006
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- Figure 46: Non-alcoholic beverage retail market share, 2006
- Supermarkets
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- Figure 47: U.S. supermarket sales of non-alcoholic beverages, at current and constant prices, 2001-06
- Decline in three major segments—milk, carbonated beverages, and fruit juice and drinks
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- Figure 48: U.S. supermarket sales of milk, carbonated beverages and fruit juice and drinks, 2001-06
- Drug stores
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- Figure 49: U.S. drug store sales for non-alcoholic beverages, at current and constant prices, 2001-06
- Mass merchandisers
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- Figure 50: U.S. mass merchandiser sales* of non-alcoholic beverages, at current and constant prices,
- Convenience stores
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- Figure 51: U.S. convenience store sales of non-alcoholic beverages, at current and constant prices,
- More competitive pricing
- Growth in private labels and use of exclusive brands
- Beverage performance by segment
- Vending
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- Figure 52: U.S. vending machine sales of non-alcoholic beverages, at current and constant prices,
Future and Forecast
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- Future trends
- Niche demographics will drive maximum growth
- Innovation geared towards health and wellness will be the key growth driver
- Line extensions targeting niche consumer groups will continue to drive growth
- Hybrid innovations—need for clear positioning
- Packaging trends will reduce information processing time for consumers
- Regular soda may become a niche beverage
- Experiential and interactive marketing—evolving marketing tools
- Effect of changing distribution strategies on consumers
- Brands will outpace private labels through differentiation
- Retailers may use exclusive distribution as a means to generate consumer loyalty
- Market forecast
- Non-alcoholic beverages
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- Figure 53: Forecast of total U.S. sales of non-alcoholic beverages, at current and constant prices,
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- Figure 54: Graph: Forecast of total U.S. sales of non-alcoholic beverages, at current and
- Forecast factors
Appendix: Trade Associations
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