Category Management Handbook

Packaged Beverages: Carbonated Soft Drinks 2016

Market Share: Nonalcohol Beverages

C-store sales, 52 weeks ending Dec. 26, 2015

More than 31% of c-store packaged-beverage sales came from CSDs in 2015, while energy drinks edged up to nearly 28% of the pie, according to Nielsen.

 

Subcategory

Dollar share

PCYA*

Unit sales (Millions)

PCYA*

Carbonated soft drinks31.1%23.3%58.821.7%
Energy drinks27.7%9.5%74.610.0%
Water12.8%4.6%57.92.5%
Sports drinks9.9%2.1%37.34.0%
RTD tea5.6%(6.6%)25.1(7.0%)
Fruit drinks4.4%14.3%29.315.1%
Fruit juice3.4%94.0%11.395.0%
RTD coffee2.7%(10.0%)19.3(5.6%)
Others***2.2%3.8%11.52.8%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago | *** Beverages with less than 2% dollar share


Big Number

0.9% —Decline in c-store unit sales of CSDs in 2015, per Nielsen


Where the Gains Are

C-store sales, 52 weeks ending Dec. 26, 2015

C-store dollar sales of carbonated soft drinks (CSDs) rose nearly 2% in the 52 weeks ending Dec. 26, 2015, while units were off nearly 1% and volumes dropped 3%, according to Nielsen. The only segment showing dollar and unit growth was low-calorie noncola CSDs, although its volumes fell 1%. According to IRI figures for the 52 weeks ending Dec. 27, 2015, c-store dollar sales of CSDs rose 3.8% to reach $9.0 billion, while units rose 1.8%.

Carbonated Soft Drinks (CSDs)

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$6,659.52.1%4,042.5(0.7%)
Low-calorie$1,829.50.8%1,105.1(1.2%)
Total$8,489.01.9%5,147.6(0.9%)

Noncola CSDs

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$4,118.02.5%2,541.3(0.6%)
Low-calorie$753.96.8%467.55.0%
Total noncola$4,871.93.2%3,008.90.2%

Cola CSDs

CSD typeC-store sales ($ millions)PCYA*Volume sales (millions)PCYA*
Regular$2,541.51.6%1,501.2(1.0%)
Low-calorie$1,075.6(3.0%)637.5(5.4%)
Total cola$3,617.10.2%2,138.7(2.3%)

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago


Big Number

5.0% —Increase in c-store unit sales of low-calorie, noncola CSDs in 2015, according to Nielsen


Regular and Low-Calorie CSDs

C-store sales, 52 weeks ending Dec. 26, 2015

Unit sales of regular and low-calorie CSD units in c-stores were off in 2015, Nielsen figures show.

Regular

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew (20-oz.)$729.62.6%463.7(1.6%)
Coca-Cola (20-oz.)$561.97.1%343.62.6%
Dr Pepper (20-oz.)$372.06.2%228.42.0%
Pepsi (20-oz.)$346.52.2%217.3(1.9%)
Sprite (20-oz.)$214.214.0%129.69.4%
Total**$6,659.52.1%4,042.5(0.7%)

Low-calorie

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Diet Coke (20-oz.)$252.01.2%154.9(2.8%)
Diet Mountain Dew (20-oz.)$224.7(1.0%)143.6(5.0%)
Diet Pepsi-Cola (20-oz.)$164.32.7%103.1(1.3%)
Diet Dr Pepper (20-oz.)$131.53.9%81.10.2%
Coke Zero (20-oz.)$88.95.3%54.11.1%
Total**$1,829.50.8%1,105.1(1.2%)

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago | ** Including UPCs/brands/families not shown


20-Ounce CSDs

C-store sales, 52 weeks ending Dec. 26, 2015

C-store unit sales of 20-ounce CSDs rose nearly 2% in 2015, with Mountain Dew the top variety, according to Nielsen.

Regular

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew$729.62.6%463.7(1.6%)
Coca-Cola$561.97.1%343.62.6%
Dr Pepper$372.06.2%228.42.0%
Pepsi$346.52.2%217.3(1.9%)
Diet Coke$252.01.2%154.9(2.8%)
Total**$4,727.35.8%3,001.71.7%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago | ** Including UPCs/brands/families not shown

Continued: UPC, Package Size & Price Trends

Category Insight

According to Dr Pepper Snapple Group (DPSG), look to these three big CSD trends for 2016:

  • Continued customization of packaging: New brands with differentiated packaging, as well as established brands (e.g., Dr Pepper’s 2016 “Pick-a-Pepper” program), will keep making CSDs personal.
  • Snack bundling promotions: The rise of the snacking trend will provide more opportunities for beverage tie-ins as c-stores compete heavily against traditional quick-service-restaurants for on-the-go consumers.
  • Glass bottles continue to shine: These vinyl records of the CSD world may be a small segment, but their vintage cachet makes them increasing popular.

Quarterly Look: CSD UPCs

C-store sales, 13 weeks ending Dec. 27, 2015

According to IRI figures, c-store dollar and unit sales of CSDs were up in the final quarter of 2015, with five of the top 10 UPCs seeing gains.

UPCC-store sales ($ millions)PCYA*Unit sales (millions)PCYA*
Mountain Dew (20-oz.)$185.93.8%117.20.9%
Coca-Cola (20-oz.)$148.88.0%89.85.0%
Dr Pepper (20-oz.)$99.56.5%61.23.7%
Pepsi (20-oz.)$87.75.2%54.71.3%
Diet Coke (20-oz.)$67.41.5%40.8(1.3%)
Diet Mountain Dew (20-oz.)$61.2(0.9%)38.6(3.8%)
Coca-Cola (12 12-oz. cans)$54.0(1.8%)10.5(2.7%)
Sprite (20-oz.)$53.812.0%32.39.0%
Mountain Dew (1-liter)$51.91.2%26.7(0.4%)
Coca-Cola (2-liter)$44.2(2.2%)23.7(2.8%)
Total**$2,191.42.4%1,283.01.5%

Source: IRI | * Percent change from a year ago | ** Including UPCs/brands/families not shown


CSD Package-Size Trends

C-store sales, 52 weeks ending Dec. 26, 2015

The 20-ounce package size dominates the c-store channel’s CSD dollar sales.

Unit Sales

Package sizeUnit sales (millions)PCYA*
20-oz.3,001.71.7%
2-liter484.7(4.0%)
1-liter392.5(3.9%)
12-pack, 12-oz. cans149.0(9.2%)

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | * Percent change from a year ago

Dollar Sales

Package sizeDollar share
20-oz.55.7%
12-pack, 12-oz. cans8.5%
2-liter10.3%
1-liter9.0%
All others****16.5%

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | **** Package sizes with less than 1% dollar share


Consumer in Focus

According to Technomic, regular CSDs ranked among millennials’ top five packaged-beverage choices in all day-parts. The beverage was the top choice for lunch, dinner and snack, and ranked third-most-popular for breakfast. Thirty-four percent of millennials surveyed by Technomic said they were purchasing regular CSDs more often, compared to 22% who said they were purchasing them less often. Millennials were more likely to say they were purchasing diet CSDs less often (28%) than more often (25%).


CSD Price Trends

C-store sales, 52 weeks ending Dec. 26, 2015

Six-packs saw the biggest increase in retail price per case during 2015, according to Nielsen c-store data.

Package typeAverage price per 288-oz. casePrice increase
20-ounce bottle$22.68$0.87
12-pack, 12-oz. cans$9.68$0.36
2-liter$7.66$0.03
1-liter$16.68$0.49
6-pack, 12-oz. cans$18.75$6.46

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


CSD Flavor Trends

Regular noncolas contributed nearly 49% of c-store CSD dollar sales in 2015, while all noncolas supplied more than 57% of category sales, according to Nielsen.

Sources: The Nielsen Co., Dr Pepper Snapple Group Inc. | *** Flavors with less than 2% volume share


Packaged Beverages: What to Watch

Bottled Water

Fruit Juice and Fruit Drinks

Specialty: Energy, Sport, Tea, Coffee

Alcohol

CMOY Alcohol Beverages: Damian Wyatt

CMOY Packaged Beverages: Gary Woods

View the full 2016 Category Management Handbook

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Here’s the Foodservice Tech Convenience Stores Are Embracing

Features include helping maximize and forecast sales, aiding with production planning, automating tasks and more

Foodservice

Consider Challenges of a Dispensed Beverage Subscription Program

Profit margins, operational strain and program cannibalization are all concerns, says Richard Poye of Food Trends Think Tank

Tobacco

The Power of OTP Rises in Convenience Stores

Modern oral nicotine pouches continue to stand out as a key driver for 'other tobacco product' segment

Trending

More from our partners