Dollar sales of carbonated soft drinks (CSD) decelerated, while sparkling water continues to impress, according to a new Wells Fargo Securities report detailing Nielsen xAOC (expanded all outlets combined) year-over-year beverage sales data for the four-week period ending on Nov. 5.
According to the report, the CSD category saw a 0.2 percent dip in dollar sales during the timeframe, driven by a modest price bump of 0.8 percent. Volume sales fell by 0.9 percent. The Coca-Cola Co. outperformed the overall category with a 1.1 percent jump in both dollar and volume sales amid flat pricing. Wells Fargo highlighted strong performances by Sprite (up 6.1 percent in dollar sales) and Fanta (up 19.9 percent), both of which helped offset a 0.8 percent decline in sales of Coke’s flagship cola, which represents approximately 43 percent of the company’s CSD sales.
PepsiCo did not fare as well with its CSD portfolio. Dollar sales of PepsiCo sodas tumbled by 2.7 percent in the four-week period, while a 4 percent slip in volume sales were partially offset by a 1.4 percent increase in pricing. PepsiCo’s reliable Mtn Dew brand also took a hit as dollar sales turned negative in the timeframe. Meanwhile, Dr Pepper Snapple Group had the strongest showing of the soda giants. Dollar sales of the company’s CSDs jumped by 1.3 percent, a result of a 0.3 reduction in pricing and volume growth of 1.6 percent, according to Wells Fargo.
Among bottled water products, carbonated varieties once again led the pack. The segment of sparkling flavored waters was up 15.6 percent in dollar sales and 16.1 percent in volume sales, powered by huge gains for National Beverage Corp.-owned LaCroix, (up 67.4 percent in dollar and 64.2 percent in volume sales). Nestle Holdings (up 18.7 percent in dollar sales) and Polar Corp. (up 14.9 percent) also saw big gains.
The energy drink category also saw positive gains in the four-week period. Overall, dollar sales in the category were up 5.9 percent, amid a 0.9 percent reduction in pricing and a 6.9 percent jump in volume sales. Monster Beverage’s energy drink portfolio performed well in the timeframe (up 7.7 percent in dollar sales, with a 1.7 percent dip in pricing and 9.5 percent jump in volume sales). However, Wells Fargo expressed some concern about the brand’s new CSD product, Mutant, pointing to decelerating weekly sales trends for the soda, which was designed to compete with Mountain Dew.
Meanwhile, Red Bull saw a 3.4 increase in dollar sales for the period. Wells Fargo described Rockstar’s 3.8 percent jump in dollar sales as “remaining soft,” while highlighting Mountain Dew Kickstart’s impressive growth of 20.9 percent in sales during the timeframe.
Among other beverage categories, dollar sales of RTD coffee in the four-week period (up 4.6 percent) underperformed against recent 12-week (10.5 percent) and 52-week (12.9 percent) timeframes. RTD tea (up 3.6 percent in dollar sales) and sports drinks (dollar sales up 5.8 percent) were winners in the period, while still flavored water (down 0.5 percent) and refrigerated juice drinks (down 2.9 percent) did not fare as well.