Table of Contents
Scope and Themes
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- What you need to know
- Data sources
- Sales data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Market at a glance
- Four out of eight segments down in 2008-09
- Top six manufacturers account for nearly half of sales
- Kids, blacks, and young adults important to sales
- Naked Juice offers peace of mind, and Manzanita Sol gives a piece of home
- Innovation driven by food-minus, vitamins/minerals and environment
Insights and Opportunities—A Market-centric View
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- Growing confusion in the beverage aisle; brands getting stretched too thin
- Personal coffee to go
- Trash to treasure
- Reward the recycling efforts
- Make room for super premium frozen juice smoothies
Inspire Trends
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- Trend 1: Taxing your soda
- What’s it all about?
- What we’ve seen?
- A fury over fat taxes
- Reformulate or be part of the problem
- Trend 2: Food and Beauty
- What it’s all about?
- What we’ve seen?
- You are what you drink
- Drink up, gorgeous!
- Trend 3: Can we trust the water?
- What it’s all about?
- What we’ve seen?
- Demanding more from water
- Water and other beverages with a purpose
Market Size and Forecast
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- Key points
- Beverages with affordable premium positioning will drive future growth
- Continued price volatility in fruit juice and milk will inhibit growth
- Sales and forecast of market
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- Figure 1: FDMx sales and forecast of non-alcoholic beverages, at current prices, 2004-14
- Figure 2: FDMx sales and forecast of non-alcoholic beverages, at inflation-adjusted prices, 2004-14
- Walmart sales
Competitive Context
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- Key points
- Competition from categories within the retail environment
- Internal competition within the beverage aisles
- Convenient nutrition
- Refreshing/Thirst Quenching
- Lifestyle goals such as weight management
- Private Label: Wooing consumers with lower prices
- Bottled water
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- Figure 3: Cost comparison: private label vs. national brand bottled water, 2009
- Figure 4: Positioning comparison: private labels vs. national brand bottled water, 2009
- Coffee
- Juice
- Soda
- Tea
- Private label summary
Segment Performance
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- Key points
- Caffeine trumps health in beverage sales growth during 2008-09
- Sales and forecast by segment
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- Figure 5: FDMx sales and forecast of non-alcoholic beverages, at current prices, by segment, part 1, 2004-14
- Figure 6: FDMx sales and forecast of non-alcoholic beverages, at current prices, by segment, part 2, 2004-14
- Figure 7: FDMx sales of non-alcoholic beverages, by segment, 2007 and 2009
Segment Performance—Carbonated Drinks
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- Key points
- High-sugar content continues to alienate consumers
- Low-calorie soda suffers from health and taste concern
- Sales and forecast of carbonated drinks
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- Figure 8: FDMx sales and forecast of carbonated drinks, 2004-14
Segment Performance—Milk, Soymilk, and Yogurt Drinks
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- Key points
- Fewer households with children mean fewer milk sales
- Volatile pricing spikes market size
- Sales and forecast of milk
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- Figure 9: FDMx sales and forecast of milk, 2004-14
Segment Performance—Fruit and Vegetable Juice and Drinks
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- Key points
- Healthy juice drinks offer real sugar with lower cost
- Sales and forecast of fruit and vegetable juice and drinks
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- Figure 10: U.S. FDMx sales and forecast of juice and juice drinks, 2004-14
Segment Performance—Bottled Water
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- Key points
- Market strained from less volume and lower prices
- Sales and forecast of bottled water
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- Figure 11: U.S. FDMx sales and forecast of bottled water, 2004-14
Segment Performance—Coffee and RTD Coffee
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- Key points
- Mature market keeping pace with inflation; lacks innovation
- Untapped innovation for Instant coffee could garner premium sales
- Sales and forecast of coffee and RTD coffee
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- Figure 12: U.S. FDMx sales and forecast of coffee and RTD coffee, 2004-14
Segment Performance—Tea and RTD Tea
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- Key points
- What is behind up/down in market?
- Sales and forecast of tea and RTD tea
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- Figure 13: FDMx sales and forecast of tea and RTD tea, 2004-14
Segment Performance—Energy Drinks and Energy Shots
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- Key points
- Growing sales, but overall penetration remains low
- Energy shots fuel growth during 2007-09
- New products reaching out to consumers looking for safer energy boost
- Sales and forecast of energy drinks and shots
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- Figure 14: U.S. FDMx sales and forecast of energy drinks and shots, 2004-14
Segment Performance—Sports Drinks
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- Key points
- Segment sales stall with scarcity of new consumers
- Sales and forecast of sports drinks
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- Figure 15: U.S. FDMx sales and forecast of sports drinks, 2004-14
Segment Performance—Other
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- Key points
- Artificial ingredients and declining milk popularity works against the segment
- Sales and forecast of other drinks
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- Figure 16: U.S. FDMx sales and forecast of other* drinks, 2004-14
Retail Channels
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- Key points
- Grocery channel losing its edge
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- Figure 17: FDMx sales of non-alcoholic beverages, by retail channel, 2007and 2009
Retail Channels—Supermarkets
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- Key points
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- Figure 18: U.S. sales of non-alcoholic beverages at supermarkets, 2004-09
Retail Channels—Drug and Other
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- Key points
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- Figure 19: U.S. sales of non-alcoholic beverages at drug and other FDMx retailers, 2004-09
Market Drivers
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- Key points
- The number of adults watching their diets appears to have reached its high, but is still substantial
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- Figure 20: Attitude towards health, May 2004-June 2009
- Adults watching their diet seek low-fat, low-sugar food products
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- Figure 21: Attributes diet-watchers look for in food, 2006/07 and 2008/09
- Adult obesity levels in the U.S. stabilize but still remain a cause of concern
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- Figure 22: Percentage of population aged 20 and over who are overweight or obese or extremely obese, 1988-2008
- Consumers’ and the government’s concerns for obesity-related issues spell negative outlook for much of the industry
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- Figure 23: Reasons for watching/controlling diet, 2006 and 2009
- Obesity rates among children and teens cause concern
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- Figure 24: Prevalence of obesity among children and adolescents, 2-19 years of age, 1976-2008
- Prevalence of obesity among adults by age
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- Figure 25: Prevalence of obesity and overweight among adults aged 20 Years or older, by age, 1999-2008
- Diabetes strikes many older Americans
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- Figure 26: Estimated total prevalence of diabetes in people aged 20 years or older, by age group in the U.S., 2005
- High-fructose corn syrup and artificial sweeteners alienate consumers
Market Drivers—Demographic and Economic Factors
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- Key points
- Households with children impact fruit juice/juice drinks and milk categories
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- Figure 27: Households by presence of children, 1998-2008
- Kids population growth offers better prospects for 2009-14 period
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- Figure 28: Population of kids aged <6 and 6-11, 2004-14
- Teen population growth to remain flat; growth through frequency
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- Figure 29: Teen population by age, 2004-14
- Black and Hispanic population projections offer growth potential for the market
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- Figure 30: Population by race and Hispanic origin, 2004-14
- Recession has negatively influenced the NAB market
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- Figure 31: Impact of recession on beverage purchase behaviour, by presence of children, November 2009
Companies and Brands
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- Key points
- Large CPG companies dominate the industry
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- Figure 32: FDMx sales of leading non-alcoholic beverage companies, 2009 and 2010
Brand Share—Carbonated Drinks
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- Key points
- Leaders struggle to find place in a health driven market
- Private label successful with low cost low calorie soda
- Manufacturer and brand sales of diet carbonated drinks
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- Figure 33: FDMx brand sales of diet carbonated drinks, 2009 and 2010
- Manufacturer and brand sales of regular carbonated drinks and seltzer/tonic water/club soda
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- Figure 34: FDMx brand sales of regular carbonated drinks and seltzer/tonic water/club soda, 2009 and 2010
Brand Share—Milk, Soymilk, and Yogurt Drinks
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- Key points
- Uniquely positioned brands gain the highest dollar growth
- Manufacturer and brand sales of milk, soymilk, and yogurt drinks
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- Figure 35: FDMx brand sales of milk, soymilk, and yogurt drinks, part 1, 2009 and 2010
- Figure 36: FDMx brand sales of milk, soymilk, and yogurt drinks, part 2, 2009 and 2010
Brand Share—Fruit and Vegetable Juice and Drinks
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- Key points
- Diet Ocean Spray drives sales
- Value pricing makes Hawaiian Punch a winner
- Manufacturer and brand shares
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- Figure 37: FDMx brand sales of fruit and vegetable juice and juice drinks, part 1, 2009 and 2010
- Figure 38: FDMx brand sales of fruit and vegetable juice and juice drinks, part 2, 2009 and 2010
Brand Share—Bottled Water
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- Key points
- Brands with clear benefits and excitement win sales
- No clear message means no match for private label
- Manufacturer and brand sales of bottled water
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- Figure 39: FDMx brand sales of bottled water, part 1, 2009 and 2010
- Figure 40: FDMx brand sales of bottled water, part 2, 2009 and 2010
Brand Share—Coffee and RTD Coffee
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- Key points
- Market leader Folgers finds a new home
- Consumers seek upscale experience with Specialty Coffees
- Manufacturer and brand sales of coffee and RTD coffee
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- Figure 41: FDMx brand sales of coffee and RTD coffee, part 1, 2009 and 2010
- Figure 42: FDMx brand sales of coffee and RTD coffee, part 2, 2009 and 2010
Brand Share—Tea and RTD Tea
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- Key points
- Market leader struggled to compete on price
- Ferolito, Vultaggio & Sons’ new age tea for common folk gets sales
- Value priced brands winning share
- Private labels attract price-sensitive consumers; thrive in a down economy
- Manufacturer and brand sales of tea and RTD tea
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- Figure 43: FDMx brand sales of tea and RTD tea, 2009 and 2010
Brand Share—Sports Drinks
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- Key points
- New products fail to bring new consumers
- New brands need totally new approach
- Manufacturer and brand sales of sports drinks
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- Figure 44: FDMx brand sales of sports drinks, 2009 and 2010
Brand Share—Energy Drinks
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- Key points
- Expansion beyond hardcore males is the key to opening up market
- Manufacturer and brand sales of energy drinks
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- Figure 45: FDMx brand sales of energy drinks* and energy shots, part 1 2009 and 2010
- Figure 46: FDMx brand sales of energy drinks* and energy shots, part 2, 2009 and 2010
Brand Qualities
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- Naked juice: Peace of mind commands a premium price
- Manzanita Sol: South of the border flavor that speaks to the heart
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- Figure 47: New carbonated beverage launches in the U.S. and Mexico, by flavor, January 2005-February 2010
Innovation and Innovators
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- New product launch continues to remain under recessionary pressure
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- Figure 48: Number of new product launches, by non-alcoholic beverage segment, 2005-10
- Carbonated soft drinks
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- Figure 49: New product claims in carbonated soft drinks, 2005-09
- RTD coffee and tea
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- Figure 50: New product claims in RTD coffee and tea, 2005-09
- Sports drinks and energy drinks/shots
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- Figure 51: New product claims in sports drinks and energy drinks/shots, 2005-09
- Bottled water
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- Figure 52: New product claims in bottled water, 2005-09
- Fruit juice and juice drinks
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- Figure 53: New product claims in fruit juice and juice drinks, 2005-09
Advertising and Promotion
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- Overview
- Few words and strong images evoke feelings about the brand
- Dasani— Dancing Mom
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- Figure 54: Dasani, TV ad, 2009
- Coca-Cola—History exam at 11:30am
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- Figure 55: Coke, TV ad, 2010
- Intrigue entices viewers to seek further engagement online
- Pepsi
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- Figure 56: Pepsi, TV ad, 2010
- Tropicana Juicy Rewards
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- Figure 57: Tropicana Juicy Rewards, TV ad, 2010
- Nestlé Pure Life—endorsement from a lifestyle guru
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- Figure 58: Nestlé Pure Life, TV ad, 2009
- Glacéau VitaminWater—create your own flavor
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- Figure 59: VitaminWater, TV ad, 2009
Appendix: Trade Associations
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