The transition of the beverage industry, which had for decades been dominated by carbonated soft drinks, has come seemingly swift amid a growing emphasis on healthy and functional drinks. Yet while the first half of 2014 saw significant strides in terms of brands and categories filling in gaps left by declining soda sales, new trends and innovation have slowed in comparison to years past.
That said, emerging segments have continued to evolve, and in the following video, BevNET CEO John Craven and BevNET Editor-in-Chief Jeff Klineman discuss notable developments in several nascent beverage categories that have taken place over the past six months.
While the industry saw sustained growth in the number of super-premium, cold-pressed juice brands coming to market, Craven and Klineman note that high pressure processing has become less impactful as a point of differentiation. As a result, early-stage companies in the space are attempting to find white space via new product lines, unique formulations and packaging, as well as distribution in emerging markets for cold-pressed juice that lie beyond the coasts.
And while consumers continue to see (and accept) the high price tag for these products, some companies have been consistent in their use of promotional pricing as a way to gain new adopters and aggressively pursue market share.
Craven and Klineman also examine the evolution of cold-brewed coffee, which has rapidly adopted single-strength entries and variety in format and packaging as seen by companies including Chameleon Cold-Brew, Stumptown and Califia Farms. Additionally, the pair delves into the aloe category, which has fallen far short of predictions about its growth potential, and look at the drivers and opportunities created by plummeting sales of diet sodas.
Part 2 of our mid-year report comes Monday, when we’ll look at investment and strategic partnerships from the first half of the year and our predictions for the second half and into 2015.