Table of Contents
Executive Summary
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- Demand remains stable but many fixated on price
- Juice, milk, and soda are the top three most popular beverages in the U.S.
- Number of new juice and coffee launches up in 2010
- Target young adults with new products
- Energy drink launches plummet amid health concerns
- Kids and teens trending better-for-you beverages
- Most shop for beverages at supermarkets
- Most know beverage they will purchase before entering store
- Circulars, BOGO, and coupons remain most persuasive
Insights and Opportunities—A Consumer-centric View
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- Use innovative promotions to capture the attention of shoppers
- Kroger “Make it a Movie Night”
- Pepsi NHL ticket giveaway
- Pepsi and Vons Foursquare promotion
- Coke SCVNGR mall promotion
- Blue Sky Wanderers
Inspire Insights
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- Inspire Trend: “Collective Intelligence”
Market Drivers—Health and Wellness Trends
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- Obesity rates steady, but still a cause for concern
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- Figure 1: Percentage of population aged 20+ who are overweight, obese, or extremely obese, 1988-2008
- Obesity affects more than a third of all children and teens aged 6-19
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- Figure 2: Prevalence of obesity among children and adolescents aged 2-19, 1976-2008
- Diabetes—the ugly expression of obesity; threatens beverage growth
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- Figure 3: prevalence of diagnosed and undiagnosed diabetes among adults aged 20+, 2005-08
- More than half of all adults watch their diets; a majority of those seek low-fat/low-sugar food
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- Figure 4: Trends in watching diet among adults aged 18+, 2005-10
- Figure 5: Trends in watching diet among adults aged 18+, 2005-10
- Let’s Move program likely to influence choices within nonalcoholic beverages
- High-fructose corn syrup continues to bother consumers
Market Drivers—Demographic and Economic Factors
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- Households with children are key driver in the market
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- Figure 6: Households by presence of children, 2000-10
- Kids’ population growth lower during 2011-16 compared to 2006-11
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- Figure 7: Personal consumption of different types of beverage among kids, April 2009–June 2010
- Figure 8: Population of kids aged 6-11, 2006-16
- Teen population offers little growth for 2006-11, better outlook during 2011-16
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- Figure 9: Personal consumption of different types of beverage among teens, April 2009–June 2010
- Figure 10: Teen population by age, 2006-16
- Black and Hispanics are growth-driving population groups
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- Figure 11: Population, by race and Hispanic origin, 2006-16
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- Figure 12: U.S. population buying power, by race and Hispanic origin, 1990-2014
- High unemployment rate keeps consumer spending conservative
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- Figure 13: Employment status of the civilian noninstitutional population aged 16+, 2000-11 (month to date)
- Key nonalcoholic beverage consumers continue to struggle with unemployment woes
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- Figure 14: Unemployment status (seasonally adjusted) among civilian noninstitutional population, by age, gender, and race/Hispanic origin, March 2010–March 2011
- Inflation threatens growth as consumers recover from the recession
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- Figure 15: Consumer Price Index,* all items, January 2008–February 2011
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- Figure 16: Percent change in CPI* in food and energy sectors, August 2010–February 2011
Retail
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- Key points
- Carbonated drink launches up in the club, convenience, department, and drug channels
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- Figure 17: New carbonated drinks product introductions, by channel, 2006-10
- 2010 milk launches well below 2006 and 2008 levels
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- Figure 18: New dairy and dairy-alternative beverage introduction, by channel, 2006-10
- Juice and juice drink launches on the rise as consumers seek better health
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- Figure 19: New juice and juice drinks introduction, by channel, 2006-10
- Number of new tea and RTD products in department and supermarket channels up in 2010
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- Figure 20: New tea and RTD tea product introduction, by channel, 2006-10
- Coffee and RTD coffee
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- Figure 21: New coffee and RTD coffee product introduction, by channel, 2006-10
- Sports drink launches up at supermarket and specialty channels
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- Figure 22: New sports drinks product introduction, by channel, 2006-10
- Energy drink launches decline amid health concerns and recession
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- Figure 23: New energy drinks product introduction, by channel, 2006-10
- Bottled water launches also down in 2010
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- Figure 24: New bottled water product introduction, by channel, 2006-10
Retail—Supermarkets
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- Supermarket sales recover after 2009 decline
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- Figure 25: U.S. sales of nonalcoholic beverages at supermarkets, 2005-10
- Safeway
- Wegmans
Retail—Drug and Other
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- 2010 picks up as more private label products come online
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- Figure 26: U.S. sales of nonalcoholic beverages at drug and other channels, 2005-10
Retail Channel Choice to Purchase Nonalcoholic Beverages
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- Key points
- Supermarket and mass remain dominant channels
- Women more likely to purchase in value-oriented channels
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- Figure 27: Retail channel choice to purchase nonalcoholic beverages, by gender, January 2011
- Young adults more likely to shop across greater variety of channels
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- Figure 28: Retail channel choice to purchase nonalcoholic beverages, by age, January 2011
- Affluents more likely to purchase at supermarkets and club stores
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- Figure 29: Retail channel choice to purchase nonalcoholic beverages, by household income, January 2011
The Shopper—Usage and Frequency of Use
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- Key points
- Nonalcoholic beverage use remains steady
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- Figure 30: Summary of trends in personal consumption of soda, bottled water, sports drinks, and energy drinks, May 2005-September 2010
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- Figure 31: Summary of trends in household consumption of fruit juice/juice drinks, milk, powdered soft drinks, coffee, and tea, May 2005-September 2010
- Soda consumption remains steady despite wellness aspirations
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- Figure 32: Trended personal incidence of drinking and volume consumption of soda, May 2005-September 2010
- Soda remains very popular with young adults, kids, and lower-income households
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- Figure 33: Adult soda usage, by subcategory, by age, July 2009-September 2010
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- Figure 34: Adult soda usage, by subcategory, by household income, July 2009-September 2010
- Bottled water
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- Figure 35: Personal incidence and frequency of drinking bottled water, May 2005-September 2010
- Bottled water somewhat more popular with young adults
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- Figure 36: Personal incidence of drinking bottled water, by key demographic groups, July 2009-September 2010
- Energy drinks and sports drinks
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- Figure 37: Personal incidence of usage and volume consumption of energy and sports drinks, May 2005-September 2010
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- Figure 38: Personal incidence of usage and volume consumption of energy and sports drinks, July 2009-September 2010
- Use of instant coffee rising
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- Figure 39: Household incidence of usage and volume consumption of coffee, May 2005-September 2010
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- Figure 40: Personal incidence of drinking RTD coffee, by age, July 2009-September 2010
- RTD iced tea use on the rise
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- Figure 41: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, May 2005-September 2010
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- Figure 42: Personal incidence of drinking RTD iced tea and household incidence of using tea bags and loose tea, by age, July 2009-September 2010
- Fruit juice and juice drink use remains very stable
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- Figure 43: Household incidence and frequency* of fruit juice and juice drinks usage, May 2005-September 2010
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- Figure 44: Household consumption of orange juice, other fruit juice, and tomato/vegetable juices, July 2009-September 2010
- Incidence of milk use remains steady but number of glasses per day rising during 2008-10
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- Figure 45: Household incidence of usage and volume consumption of milk, May 2005-September 2010
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- Figure 46: Household incidence of milk usage, by type, by presence of children, July 2009-September 2010
The Beverage Shopper
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- Key points
- Women are more likely to buy beverages for household
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- Figure 47: Incidence of buying nonalcoholic beverages for self and household, by gender, January 2011
- 25-64 year olds more likely to buy for household
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- Figure 48: Incidence of buying nonalcoholic beverages for self and household, by age, January 2011
Beverage Purchase Behavior with Respect to Grocery and Other Shopping
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- Key points
- Women more likely than men to purchase beverages with groceries
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- Figure 49: Incidence of buying beverages while doing other shopping in the past month, by gender, January 2011
- Young adults more likely to purchase beverages on impulse
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- Figure 50: Incidence of buying beverages while doing other shopping in the past month, by age, January 2011
- 18-24s least likely to always know what drinks they will buy in advance
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- Figure 51: Beverage purchase intention prior to shopping trip, by age, January 2011
Purchase Driving Beverage Attributes
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- Key points
- 18-24s most likely to buy least expensive in category
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- Figure 52: Importance of price and packaging in beverage purchase decision, by age, January 2011
- Convenient placement, coupons, eye-catching displays, and recommendations all influence more than 10% of shoppers
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- Figure 53: Importance of in-store placement and in- and out-of-store advertising, January 2011
- Young adults more likely to be influenced by social networks
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- Figure 54: Importance of in-store placement and in- and out-of-store advertising, by age, January 2011
- Young adults more likely to purchase private label and new flavors
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- Figure 55: Importance of store and national brand and other beverage attributes, by age, January 2011
Influence of Marketing Strategies on Beverage Purchase Behavior
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- Key points
- The influence of online promotions remains relatively low
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- Figure 56: Influence of price promotions on nonalcoholic beverage purchase, January 2011
- Older consumers more likely to be influenced by printed materials
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- Figure 57: Influence of price promotions on nonalcoholic beverage purchase, by age, January 2011
- Advertising generally more likely to influence young adults
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- Figure 58: Influence of television, magazine, and online advertising on nonalcoholic beverage purchase, by age, January 2011
Influence of Economy on Beverage Purchase Behavior
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- Key points
- Only one in four report no changes as a result of economy
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- Figure 59: Influence of economic factors on beverage purchase behavior, January 2011
- Women more likely to be influenced by economic factors
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- Figure 60: Influence of economic factors on beverage purchase behavior, by gender, January 2011
- 18-24s more likely to have changed beverage buying behavior
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- Figure 61: Influence of economic factors on beverage purchase behavior, by age, January 2011
- Middle-income shoppers more likely to search for bargains and use coupons
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- Figure 62: Influence of economic factors on beverage purchase behavior, by household income, January 2011
Impact of Race/Hispanic Origin
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- Key points
- Asians and whites more likely to drink diet cola, fewer Asians drink soda
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- Figure 63: Adult soda usage, by subcategory, by race/Hispanic origin, July 2009-September 2010
- Whites less likely than minorities to drink bottled water
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- Figure 64: Personal incidence of drinking bottled water, by race/Hispanic origin, July 2009-September 2010
- Minorities more likely to consume juice
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- Figure 65: Household consumption of orange juice, other fruit juice, and tomato/vegetable juices, by race/Hispanic origin, July 2009-September 2010
- Low-fat milk less popular among blacks, Asians drink more lactose-free
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- Figure 66: Household incidence milk usage, by type, by race/Hispanic origin, July 2009-September 2010
- Walmart and dollar stores especially popular with blacks
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- Figure 67: Retail channel choice to purchase nonalcoholic beverages, by race/Hispanic origin, January 2011
- Value pricing an important driver for many across ethnic groups
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- Figure 68: Importance of price and packaging in beverage purchase decision, by race/Hispanic origin, January 2011
- Blacks and Hispanics more likely to buy at children’s request
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- Figure 69: Influence of children on adult nonalcoholic beverage purchase, by race/Hispanic origin, January 2011
- Blacks and Hispanics more swayed by promotions in store circulars
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- Figure 70: Influence of price promotions on nonalcoholic beverage purchase, by race/Hispanic origin, January 2011
- Non-whites more likely to purchase because of TV advertisements
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- Figure 71: Influence of television, magazine, and online advertising on nonalcoholic beverage purchase, by race/Hispanic origin, January 2011
The Teen Shopper
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- Key points
- Teens drinking less soda and some other nonalcoholic beverages
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- Figure 72: personal consumption of different types of beverage among teens, May 2005-June 2010
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- Figure 73: Trends in the frequency of drinking diet soda, regular soda, thirst quenchers, and energy drinks among teens, May 2005-June 2010
- Hispanic teens among heaviest beverage users
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- Figure 74: personal consumption of different types of beverage among teens, by race/Hispanic origin, April 2009-June 2010
- Teen bottled water users drinking more than they did in 2005-06
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- Figure 75: personal consumption of different types of beverage among teens, May 2005- June 2010
- Male teens are heaviest consumers of cola
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- Figure 76: frequency of drinking diet soda, regular soda, thirst quenchers, and energy drinks among teens, by gender and age, April 2009-June 2010
- Among teen bottled water drinkers, female teens drink more
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- Figure 77: personal volume consumption of noncarbonated/sparkling/seltzer/natural soda and orange/other juice and drinks among teens, by gender and age, April 2009-June 2010
The Kid Shopper
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- Key points
- Soda and thirst quencher consumption down among kids
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- Figure 78: personal consumption of different types of beverage among kids, May 2005-June 2010
- Older kids more likely to drink sodas and thirst quenchers
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- Figure 79: personal consumption of different types of beverage among kids, by gender and age, April 2009 -June 2010
- Trends in the volume consumption of nonalcoholic beverages among kids
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- Figure 80: Trends in volume consumption of different types of nonalcoholic beverage among kids, May 2005-June 2010
- Older kids drink higher volume of cola and other soft drinks, less juice
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- Figure 81: volume consumption of different types of nonalcoholic beverage among kids, by gender and age, April 2009-June 2010
- Older kids and female consumers use more single-serve food and beverages
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- Figure 82: Incidence of using single-serve food and beverages among kids aged 6-11, by gender and age, April-2009-June 2010
- Beverages less available in school vending machines
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- Figure 83: Choice of food and beverages in school vending machine, by gender and age, May 2005-June 2010
Cluster Analysis
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- High-value Shoppers
- Characteristics
- Demographics
- Opportunity
- Moderates
- Characteristics
- Demographics
- Opportunity
- Affluent Smart Shoppers
- Characteristics
- Demographics
- Characteristic tables
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- Figure 84: nonalcoholic beverage consumer clusters, January 2011
- Figure 85: Incidence of buying nonalcoholic beverages for self and household, by nonalcoholic beverages consumer clusters, January 2011
- Figure 86: Retail channel choice to purchase nonalcoholic beverages, by Nonalcoholic beverages consumer clusters, January 2011
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- Figure 87: Incidence of buying beverages while doing other shopping in the past month, by nonalcoholic beverages consumer clusters, January 2011
- Figure 88: Beverage purchase behavior exhibited most often by beverage buyers, by nonalcoholic beverages consumer clusters, April 2011
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- Figure 89: Beverage purchase intention prior to shopping trip, by nonalcoholic beverages consumer clusters, April 2011
- Figure 90: Importance of price and packaging in beverage purchase decision, by nonalcoholic beverages consumer clusters, April 2011
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- Figure 91: Importance of in-store placement and in- and out-of-store advertising, by nonalcoholic beverages consumer clusters, April 2011
- Figure 92: Importance of store and national brand and other beverage attributes, by nonalcoholic beverages consumer clusters, April 2011
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- Figure 93: Influence of price promotions on nonalcoholic beverage purchase, by nonalcoholic beverages consumer clusters, April 2011
- Figure 94: Influence of television, magazine, and online advertising on nonalcoholic beverage purchase, by nonalcoholic beverages consumer clusters, April 2011
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- Figure 95: Influence of economic factors on beverage purchase behavior, by nonalcoholic beverages consumer clusters, April 2011
- Demographic tables
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- Figure 96: Nonalcoholic beverages consumer clusters, by gender, April 2011
- Figure 97: Nonalcoholic beverages consumer clusters, by age, April 2011
- Figure 98: Nonalcoholic beverages consumer clusters, by household income, April 2011
- Figure 99: Nonalcoholic beverages consumer clusters, by race, April 2011
- Cluster methodology
Custom Consumer Groups
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- Mom remains an important beverage shopper
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- Figure 101: personal consumption of different types of beverage, by moms and nonparents, April 2008-June 2009
- Moms are most likely to buy beverages for households
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- Figure 102: Incidence of buying nonalcoholic beverages for self and household, by gender and children, January 2011
- Parents are more likely to buy at Walmart, mass merchandisers, and convenience
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- Figure 103: Retail channel choice to purchase nonalcoholic beverages, by gender and children, January 2011
- Parents are most likely to combine drink purchases with other shopping
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- Figure 104: Incidence of buying beverages while doing other shopping in the past month, by gender and children, January 2011
- Buy-one get-one promotions and in-store coupons popular with parents
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- Figure 105: Influence of price promotions on nonalcoholic beverage purchase, by gender and children, January 2011
- Parents tend to be more receptive to ads and other marketing efforts
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- Figure 106: Incidence of buying beverages while doing other shopping in the past month, by gender and age, January 2011
- Parents’ beverage buying affected by economic factors
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- Figure 107: Influence of economic factors on beverage purchase behavior, by gender and children, January 2011
- Men aged 18-34 more likely than others to respond to ads and promotions
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- Figure 108: Incidence of buying beverages while doing other shopping in the past month, by gender and age, January 2011
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- Figure 109: Influence of economic factors on beverage purchase behavior, by age and gender, January 2011
Appendix—Additional Consumer Tables
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- Figure 110: Retail channel choice to purchase nonalcoholic beverages, by household income, January 2011
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- Figure 111: Incidence of buying beverages while doing other shopping in the past month, by household income, January 2011
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- Figure 112: Beverage purchase intention prior to shopping trip, by gender, January 2011
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- Figure 113: Beverage purchase intention prior to shopping trip, by household income, January 2011
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- Figure 114: Importance of price and packaging in beverage purchase decision, by gender, January 2011
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- Figure 115: Importance of in-store placement and in- and out-of-store advertising, by gender, January 2011
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- Figure 116: Incidence of buying nonalcoholic beverages for self and household, by household income, January 2011
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- Figure 117: Influence of children on adult nonalcoholic beverage purchase, by gender, January 2011
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- Figure 118: Importance of store and national brand and other beverage attributes, by gender, January 2011
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- Figure 119: Influence of price promotions on nonalcoholic beverage purchase, by gender, January 2011
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- Figure 120: Influence of price promotions on nonalcoholic beverage purchase, by household income, January 2011
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- Figure 121: Influence of television, magazine, and online advertising on nonalcoholic beverage purchase, by gender, January 2011
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- Figure 122: Influence of television, magazine, and online advertising on nonalcoholic beverage purchase, by household income, January 2011
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- Figure 123: Retail channel choice to purchase nonalcoholic beverages, by gender and children, January 2011
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- Figure 124: Incidence of buying beverages while doing other shopping in the past month, by gender and children, January 2011
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- Figure 125: Incidence of buying beverages while doing other shopping in the past month, by gender and age, January 2011
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- Figure 126: Retail channel choice to purchase nonalcoholic beverages, by gender and age, January 2011
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- Figure 127: Incidence of buying beverages while doing other shopping in the past month, by gender and age, January 2011
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- Figure 128: Incidence of buying beverages while doing other shopping in the past month, by gender and age, January 2011
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- Figure 129: Influence of economic factors on beverage purchase behavior, by gender and children, January 2011
- Sports drinks consumption by brand
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- Figure 130: Personal sports drinks consumption by brands, by gender, July 2009-September 2010
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- Figure 131: Personal sports drinks consumption by brands, by age, July 2009-September 2010
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- Figure 132: Personal sports drinks consumption by brands, by race/Hispanic origin, July 2009-September 2010
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Appendix—Trade Associations
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