Beverage growth slows, CSDs hurt worst

The growth of liquid refreshment beverages in the U.S. fell to half the rate it charted in 2006, according to Beverage Digest.

The newsletter’s survey found that all-channel LRG volume grew by 2 percent in 2007, down from 4.1 percent in 2006, and the worst may not be over.

BD cited statements by PepsiCo Americas Beverages chief Massimo D’Amore who said he expected growth between 1 percent and 1.5 percent over the long term. Morgan Stanley Analyst Bill Pecoriello forecasted flat growth for 2008, and 2 percent per year beyond that.

Carbonated soft drinks suffered the worst, according to BD. The cooler-case staples still account for 63.7 percent of the market, but their volumes are declining at increasing rates. Excluding energy drinks, CSDs fell by 2.9 percent last year, while non-carbonated drinks and water continue to grow.

Source: BevNET.com Staff