Carbonated soft drinks (CSD) saw a 0.5 percent increase in dollar sales in the four-week period ending Oct. 25, according to a recent Wells Fargo Securities report covering Nielsen xAOC (expanded all outlets combined) sales data. The bump marks the fourth consecutive month of increased dollar sales for carbonated soft drinks. Coca-Cola continues to lead the charge in (CSDs) continued overall growth in dollar sales, with the company experiencing a 2.4 percent increase in soda dollar sales.
Wells Fargo Senior Analyst Bonnie Herzog attributed the rise in sales to pricing initiatives, saying “We continue to believe pricing will become an increasingly important driver of sales growth in CSDs, and believe [Coca Cola’s] leadership position will ultimately be extended over time through its price/pack architecture.”
Dr. Pepper Snapple Group, Inc. also saw a 1.4 percent bump in CSD dollar sales, though 0.6 percent of that was credited to the company’s recent promotional pricing. Pepsi experienced a 1.8 percent decline in CSD sales, which Herzog attributed to the company suffering in volume growth as a result of following Coca Cola’s pricing initiatives. Pepsi’s snack line saw a 1.8 percent increase.
In the energy drink space, Monster Beverage’s growth softened with a 9.0 percent increase in dollar sales. The company also sold 32.4 percent of its volume on promotion this period, a significant decrease from last period when 45.1 percent was sold on promotion. Herzog called the decline “an anomaly of timing of promos” adding that “[We] fully expect that sales growth will return to solid double-digit growth soon especially given new products.” Herzog also noted that Coca Cola’s energy portfolio had increased 29.0 percent this period and that Monster was to absorb that portfolio in the near future.