OAKBROOK TERRACE, Ill. -- The biggest beverage news stories of 2015 underscored an overriding trend the industry is facing: consumers opening their mind to healthier beverages while legacy beverage makers strive to maintain share and revenue.
Here's our picks for the five biggest stories of the year:
1. Bottled Water to Overtake CSDs as No. 1 Packaged Beverage
This prediction has been a long-time coming, with 2016 expected to be the tipping point. While minor as it relates to day-to-day operations, the swing represents a long-term change in consumer behavior that could have far-reaching impact on not just the water and carbonated soft-drink categories, but everything in between, as well. In convenience stores, the status quo stands. IRI's c-store scan data for the 52 weeks ending Nov. 1 show CSDs still out-sell bottled water by more than 2 to 1 in volume and dollar sales.
2. AB InBev Buys SABMiller
Forget David and Goliath. In this case, two goliaths will combine to become one of the largest consumer products companies in the world. With the selling of all MillerCoors assets to Molson Coors as an integral part of getting this deal past regulators, retailers, again, can expect little change to their day to day operations. But on an international level, this deal is huge! It's also raised the possibility in several analysts minds that Coca-Cola Co. may be the next conquest of yet-to-be-named megabrew.
3. Coca-Cola Takes Control of Monster Energy
With this deal, Coca-Cola fully embraced that it's strength in product development is as much in who the company can buy as what products it can create, enabling it to position itself as a wide-portfolio company rather than just carbonated soft drinks. And for Monster, consistent distribution, after stumbling through a transition, could be the plum that can take it back to No. 1 among energy drinks.
4. Pepsi Reformulates Diet Pepsi with Sucralose
Just as regular CSDs became the poster children of obesity in the U.S., diet sodas sweetened with aspartame took a beating for allegedly causing cancer and still making consumers fat. Pepsi was bold to take itself to task by reformulating its Diet Pepsi, sweetening it with sucralose to test what consumers' real issue is. Launched in August, Pepsi said it's too early to cite results and calls the repositioned soda a test that will continue to change as the company finds formulations that taste better.
5. Keurig Kold Launched in September
Keurig changed the way consumers brew coffee at home, and it wants to do the same for soda. To date, SodaStream has owned the home-brewing soda market. Keurig aims to change that, while possibly changing the beverage industry entirely. “We expect homes to become exciting beverage centers where consumers can experience a number of beverages they otherwise wouldn’t get to try without the new home systems,” CEO Brian Kelley said. Partnerships with Coca-Cola and Dr Pepper don't hurt either.
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