NEW YORK -- Energy drink and beer saw strong growth in November, while carbonated soft drinks were flat to down in all channel sales, according to the latest research note from Wells Fargo Securities analyst Bonnie Herzog.
Citing Nielsen data from the four weeks ending Nov. 28, 2015, Herzog said Dr Pepper Snapple continues to lead growth in carbonated soft drinks (CSDs), while Monster Energy sales "remain under pressure on very soft volume growth."
By Manufacturer
- Coca-Cola Co.'s total beverage dollar sales were up 2.7% last month (and up 3.1% for the past 12 weeks), driven by solid performance in sports drinks, waters and teas and offset by softness in CSDs, Herzog said.
- PepsiCo's total beverage and snack dollar sales were up 2.5% (and up 2.7% for 12 weeks) as solid performance in salty snacks and several noncarbonated categories, including sports drinks and water, offset declines in CSDs.
- Dr Pepper Snapple Group's total beverage dollar sales were up a solid 3.7% last month (and up 4.2% for 12 weeks), driven by solid performance in CSDs and "very strong" results in juices and teas, Herzog said.
- Monster dollar sales improved, up 8.4% (and up 6.3% for 12 weeks) following two months of soft, mid-single-digit growth.
By Category
- Total CSD dollar sales in all channels were flat (and up 0.4% for the prior 12 weeks), driven by solid average equivalent price growth of 3.3%, offset by equivalent unit-volume declines of 3.2%. Coca-Cola's CSD dollar sales were flat (up 0.6% for 12 weeks) as a result of a 2.7% average equivalent price increase and equivalent unit volume declines of 2.6%. Brand Coke (43% of Coca-Cola Co.'s CSD sales) had positive sales growth (up 0.2%) following negative growth in three of the past four months. PepsiCo's CSD dollar sales were down 1.4% during the month (and down 1.4% for 12 weeks) with 5.3% equivalent unit volume declines and 4.1% average equivalent price growth. Dr Pepper Snapple Group's CSD dollar sales continue to outperform its peers, up 2.3% (and up 3.0% for 12 weeks) as a result of average equivalent price increases of 2.0% and equivalent unit-volume growth of 0.2%. Dr Pepper Snapple Group gained 80 basis points of unit share this period.
- The energy-drink category had solid dollar sales growth of 10.9%, thanks to strong results from Red Bull, which had 10.6% dollar sales growth this period (and growth of 10.4% for the past 12 weeks), driven by 6.1% equivalent unit volume gains and 4.3% average equivalent pricing gains. Monster Energy sales improved following two straight months of mid-single-digit growth with 8.4% dollar sales growth (and up 6.3% for 12 weeks), driven by improved 5.2% equivalent unit volume growth and 3.1% average equivalent pricing growth. Rockstar continued its strong improvements in its results, generating an impressive 21.3% growth in dollar sales this period and gaining 1.1 equivalent volume share points, "which we believe was largely sourced from Monster, which lost 1.4 share points," Herzog said.
- Beer dollar sales in the four-week period were up a strong 5.4% (and up 5.6% for the past 12 weeks), thanks to equivalent unit growth of 2.1% and pricing growth of 3.2%. Anheuser-Busch InBev dollar sales were up a solid 2.3% (and up 1.9% for 12 weeks) as a result of average equivalent price increase of 1.8% and 0.4% equivalent unit volume growth. MillerCoors dollar sales were up 0.9% (and up 0.7% for 12 weeks) with average pricing up 1.4% and 0.5% equivalent volume declines. Constellation Brands saw 22.4% sales growth (and up 23.1% for 12 weeks); Boston Beer had 4.4% sales growth, while Heineken sales were up 1.9%.
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