CSP Magazine

Beverages: Carbonated Soft Drinks 2015

Market Share: Nonalcohol Beverages

C-store sales, 52 weeks ending Dec. 27, 2014

Energy drinks and water gained share of c-store sales of nonalcohol packaged-beverage sales at CSDs’ expense in 2014, according to Nielsen.

SubcategoryDollar sharePoint change
Carbonated soft drinks33.0%-1.1
Energy drinks26.9%0.5
Water12.3%0.2
Sports drinks9.8%0.2
RTD tea5.5%0.2
Fruit drinks4.6%-0.1
Fruit juice3.5%-0.1
RTD coffee2.4%-0.1
Other**2.0%NA

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

** Beverages with less than 2% dollar share


Where the Gains Are

C-store sales, 52 weeks ending Dec. 27, 2014

C-store dollar sales of carbonated soft drinks (CSDs) rose 1.6% in 2014 as volume sales fell 2.4% and units were off 0.1%, according to Nielsen. None of the segments posted growth, although low-calorie CSDs suffered the biggest drop over the year prior, continuing a trend from the previous year.

According to IRI, c-store CSD dollar sales rose 0.3% to $8.7 billion in the 52 weeks ending Dec. 28, 2014, with units off 0.1%.

Carbonated Soft Drinks (CSDs)

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$6,519.43.8%424.2-0.7%
Low-calorie$1,814.9-5.6%112.2-8.6%
Total$8,334.31.6%536.3-2.4%

Non-Cola CSDs

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$4,016.94.2%251.7-0.2%
Low-calorie$705.9-5.9%41.6-7.9%
Total non-cola$4,722.82.6%293.3-1.3%

Cola CSDs

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$2,502.53.0%172.4-1.4%
Low-calorie$1,109.0-5.4%70.6-9.1%
Total cola$3,611.50.2%243.0-3.7%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

* Percent change from a year ago


20-Ounce CSDs

C-store sales, 52 weeks ending Dec. 27, 2014

Sales of this core CSD package size rose nearly 6% in 2014, according to Nielsen, with 20-ounce Mountain Dew the top-selling UPC.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew$711.06.5%471.25.7%
Coca-Cola$524.810.0%335.18.7%
Dr Pepper$350.33.7%224.02.0%
Pepsi$339.04.2%221.53.6%
Diet Coke$249.01.6%159.50.6%
Total (including UPCs not shown)$4,468.05.8%2,950.54.5%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

* Percent change from a year ago


Quarterly Look: CSD UPCs

C-store sales, 13 weeks ending Dec. 28, 2014

C-store CSD dollar sales rose 2% in the final quarter of 2014, with units off 0.6%, according to IRI.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew (20-oz.)$177.19.1%114.96.6%
Coca-Cola (20-oz.)$137.911.4%85.68.0%
Dr Pepper (20-oz.)$94.77.5%59.84.6%
Pepsi (20-oz.)$84.55.6%54.83.3%
Diet Coke (20-oz.)$66.05.3%41.12.2%
Diet Mountain Dew (20-oz.)$60.93.2%39.70.5%
Coca-Cola (12 12-oz. cans)$55.5-3.2%10.9-10.3%
Mountain Dew (1-liter)$50.91.8%26.50.6%
Sprite (20-oz.)$48.414.6%29.811.3%
Coca-Cola (2-liter)$45.1-4.1%24.5-1.4%
Total (including UPCs not shown)$2,146.82.0%1,273.70.6%

Source: IRI

* Percent change from a year ago

CONTINUED: Pricing, Flavor & Package-Size Trends

Regular and Low-Calorie CSDs

C-store sales, 52 weeks ending Dec. 27, 2014

C-store sales of regular CSDs rose nearly 4% in 2014, according to Nielsen, while low-calorie fell nearly 6%.

Regular

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew (20-oz.)$711.06.5%471.25.7%
Coca-Cola (2-liter)$192.8-2.7%101.7-5.6%
Coca-Cola (20-oz.)$524.810.0%335.18.7%
Coca-Cola (12 12-oz. cans)$210.4-1.8%44.4-6.7%
Dr Pepper (20-oz.)$350.33.7%224.02.0%
Total (including UPCs not shown)$6,519.43.8%4,072.92.1%

Low-calorie

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Diet Coke (20-oz.)$249.01.6%159.50.6%
Diet Mountain Dew (20-oz.)$226.92.4%151.21.5%
Diet Coke (2-liter)$59.3-7.9%31.8-10.8%
Diet Pepsi-Cola (20-oz.)$160.04.5%104.43.7%
Diet Coke (12 12-oz. cans)$67.2-10.4%14.2-14.8%
Total (including UPCs not shown)$1,814.9-5.6%1,119.9-6.6%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

* Percent change from a year ago


CSD Price Trends

C-store sales, 52 weeks ending Dec. 27, 2014

Most of the major CSD package sizes saw a price increase in 2014, according to Nielsen figures.

Package typeAverage price per 288-oz. casePrice increase
20-ounce bottle$21.81$0.27
12-pack, 12-oz. cans$9.33$0.52
2-liter$7.63$0.17
1-liter$16.20$0.38
6-pack, 12-oz. cans$12.26-$3.96

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.


Cross-Category Opportunity

According to an analysis of retail POS data by Management Science Associates, CSDs were the most popular item included in cigarette or OTP market baskets, and the second most common item in beer or general-merchandise market baskets.


CSD Flavor Trends

C-store sales, 52 weeks ending Dec. 27, 2014

More than 48% of c-store CSD sales in 2014 came from regular, non-cola varieties, but cola was the top flavor overall, according to Nielsen.

TypeDollar share
Non-cola regular48.2%
Cola regular30.0%
Cola low-calorie13.3%
Non-cola low-calorie8.5%
  
FlavorDollar share
Cola43.3%
Citrus27.2%
Pepper11.2%
Lemon/lime7.5%
Orange2.7%
Other**8.1%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

* Percent change from a year ago

** Beverages with less than 2% dollar share


CSD Package-Size Trends

C-store sales, 52 weeks ending Dec. 27, 2014

Among CSD package sizes, the 20-ounce dominates in c-stores by dollar and unit sales, according to Nielsen.

Unit Sales

Package sizeUnit sales (millions)PCYA*
20-oz.2,950.54.5%
2-liter505.0-5.6%
1-liter408.7-4.9%
12-pack, 12-oz. cans164.1-13.2%
6-pack, 12-oz. cans1.71,319.1%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc.

* Percent change from a year ago


Consumer in Focus

According to Mintel consumer research, the top reason (58%) purchasers of CSDs chose that particular beverage was because they like the flavor. Refreshment follows at 54%.

“Consumers who drink CSDs are doing so based on taste, rather than health,” Mintel says. “It will be important to remember that no matter what changes manufacturers make to their formulation to appeal to current health trends, their flavors should not be altered.”

However, only 30% of consumers said they purchased a CSD because it was their favorite beverage.

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