Strong pricing helped keep non-alcoholic beverage sales largely consistent in the two-week period ending June 18, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Retail dollar sales in the two-week period grew 9.4% year-over-year, compared to 9.3% growth in the four-weeks and 11.3% for 52-weeks. Volume sales remained in decline, down -1.7% in the two-weeks – same as in the four-week period – which was offset by 11.1% average price growth. According to Goldman, on a three-year stacked basis – which “smooths for Covid-related volatility” – total dollar sales accelerated, growing 34.3% in the two-week period.
Dollar sale growth varied by category, with CSDs accelerating slightly in the two-weeks, while energy drinks remained “relatively stable” and bottled water decelerated, according to the report. Still and sparkling flavored water sales both decelerated, while sports drinks gained momentum thanks to a “moderation in volume declines.”
Carbonated Soft Drinks (CSDs)
Soda dollar sales were up 12.2% in the two-week period, compared to 11.8% in the four-weeks and 10.4% in the 52-weeks. This was driven by a steep 14.7% average pricing increase in the period, while volume sales fell by -2.2%. Among the top three manufacturers, The Coca-Cola Company led sales growth up 14.9% in the period, followed by Keurig Dr Pepper (KDP) at 12.3% growth and PepsiCo, which was up 7.1%.
Energy Drinks
Retail dollar sales were up 7.2% in the two-weeks, versus 7% growth in the four-weeks and 11.9% in the 52-week period. Volume sales were up by 2.5% in the period while average pricing rose 4.7%. Category leader Monster Energy Co. increased dollar sales by 4.7% in the period, with Red Bull up 3.5%. Meanwhile, Bang Energy – which announced last week it was officially severing ties with its distribution partner PepsiCo – saw sales drop -15.6% in the period. PepsiCo also faced declines for its energy portfolio (Rockstar and MTN Dew), which fell -9.9%.
Meanwhile, several fast rising better-for-you energy players posted triple- and four-digit growth in the two-weeks. CELSIUS sales were up 155% (compared to 210.5% in the 52-weeks), while C4 maker Nutrabolt was up 138.8% (+149.8% for 52-weeks) and Alani Nu grew 144.4% (+386.8% for 52-weeks). Gamer-focused brand Ghost reported dollar sales up 1,595% in the two-weeks to around $70.1 million, accelerating from 1,385.2% growth in the 52-week period. Meanwhile, after more than a year on the market, Dwayne “The Rock” Johnson-backed ZOA Energy reported sales up 226.1% in the two-weeks.
Bottled Water
Bottled water sales decelerated slightly in the two-weeks, up 12.1% (compared to 12.9% growth for the four-weeks) fueled entirely by 12.1% average pricing growth as volume sales were flat. Private label sales were up 25.6% with pricing up by 26% and volume down by -0.3%. Blue Triton Brands grew 10.7% in the period while Coke was up just 0.3% and PepsiCo grew 1.3%.
Sports Drinks
Sales gained traction in the two-weeks, up 8.5%, compared to +7.9% in the four-week period, thanks primarily to a 15.1% average pricing increase as volume sales dropped -5.7%. PepsiCo reported sales up by 10.8% while Coke faced a -3.7% decline in the two-week period.
RTD Tea
Tea was up 4.7% for the two-weeks, relatively consistent compared to +4.8% growth in the four-weeks. Volume fell by -4.3% while average pricing was up 9.4%.
Sparkling Flavored Water
Bubbly beverages grew 2% in the two-weeks, versus 2.8% in the four-week period, based on 9% average pricing growth and a -6.4% volume slide. Of the major brands, only Polar (+16.1%) and Spindrift (+29.2%) saw positive dollar sales growth.
RTD Coffee
Coffee sales grew 3.1% in the two-weeks, up from 2.4% in the four-week period. Average pricing was up 5.7% and volume fell by 2.5%. Starbucks sales dropped by -3.3% and Coke reported a -13.8% dive. Meanwhile, Danone (+42.3%), Califia Farms (+17.3%) and Butterfly Equity (+14.9%) all posted double-digit growth.
Still Flavored Water
The category grew 1.4% in the two-weeks, decelerating from 2.5% growth in the four-weeks. Average pricing jumped by 20.9% as volume sales dipped by -16.1%.