As the industry continues to lap last year’s heightened pandemic-driven retail sales, non-alcoholic beverage sales remained “broadly elevated” in the two-week period ending June 19, according to an analysis of Nielsen data by Goldman Sachs Equity Research. Sales were up 8.5% over the two weeks, grew 9% in the four-weeks and rose 13.7% for the 12-week period. Sales were up 11.1% overall year-over-year.
How did the large strategics perform?
- Sales growth for The Coca-Cola Company slowed down, but remained up 5.5% in the two-weeks, compared to +6% in the four-weeks. Volume declined 0.5% in the two-weeks (compared to +0.6% in the four-week period) and average pricing rose 6.1% in the two-week period.
- PepsiCo likewise showed moderate deceleration, but sales remained “solid” according to analysts at +4.6% in the two-weeks and +6% in the four-weeks. Volume rose 0.3% in the two-week period and 4% for the four-weeks. Average price rose 4.2% in the two-weeks.
- Keurig Dr Pepper (KDP) reported 0.4% total dollar sales growth in the two-weeks and was up 1.8% in the four-weeks. Volume declined 3.4% in the two weeks and -1% in the four-weeks. Pricing jumped 3.8% in the two-weeks.
Which categories grew the most?
- Sports drinks sales jumped 42.4% to $7.9 billion in the two-week period as BodyArmor (+104.7%) surpasses Coke’s Powerade (+20.3%) to become the number two brand in the category. PepsiCo, with Gatorade, remains the leader, up 34.7% to $5.4 billion in the period.
- RTD Coffee sales increased 16.2% to $3.3 billion in the two-week period. Coke was among the fastest growers in the space (+58.2% dollar sales) while Califia Farms (+16.4%) and Butterfly Equity (25.8%) made headways in the two-weeks.
- Bottled water growth continued apace, up 24.8% to $14.8 billion in the two-week period. Nestle (+17.3%), Coke (+25.5%) and PepsiCo (+26.2%) all saw double digit growth in that period.
- Sparkling flavored water sales rose 6% in the two-week period (+16.1% in the 52-weeks) to $3.4 billion. Talking Rain led the category at 11.7% growth in the two-weeks, while PepsiCo jumped 18%, Coke rose 18.4% and Spindrift was up 50.2% in the two-weeks. National Beverage Corp. (-4.3%), Nestle (-9%) and KDP (-11.5%) posted sales declines.
- Total CSD sales rose 17.5% in the two-weeks to $31.1 billion. Regular carbonated beverages were up 15.9% and low calorie drinks improved 22% in the period.
- RTD tea sales increased 14.7% to $4.9 billion, with volume rising 10.1% in the two-week period.
- Still flavored water was up 12.6% to $1.7 billion, while volume rose 11.7% in the two-weeks.
How about energy drinks?
- Once again, Goldman Sachs analysts stated that energy drink sales “modestly decelerated” but remained up at 10.7% growth to $15.2 billion in the two-week period (+14.1% in the 52-weeks). Volume increased 8% in the period (+11.5% for 52-weeks) and price rose 2.5% (+2.3% for 52-weeks).
- Monster Energy reported 6.6% sales growth in the two-weeks (+10.9% for 52-weeks) and volume increased 4.1% in the same period (+9.3% year-over-year).
- Red Bull sales rose 12.3% in the two-weeks compared to 21% in the 52-weeks.
- Bang Energy Drink posted accelerated double digit sales growth, up 14.9% in the two weeks (+6% in the 52-weeks). Volume was up 17.6% in the period (9.8% year-over-year).
PepsiCo sales declined 8.5% in the two-week period (-8.9% in the 52-weeks), a continued trend for the portfolio that includes Rockstar and MTN DEW Rise.