Although dollar sales remain “robust,” weaker volumes led non-alcoholic beverage sales growth to decelerate in the two-week period ending April 22, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Total sales were up 11.4% in the two-weeks, compared to 12.9% in the four-week period and 12.6% in the 12-week period, with year-over-year performance impacted by an earlier Easter holiday this year. Volume declines picked up pace however, falling -1.9% in the period compared to 0.4% growth for the four-weeks and a -1.5% decline in the 12-weeks.
Meanwhile, pricing remained strong on the back of double-digit increases in CSDs, energy, sports drinks and still flavored water, rising 13.3% for the two-week period versus +12.5% and +14.1% for the four- and 12-week periods respectively.
CSDs
Carbonated soft drink sales improved 9.9% in the two-week period, down from +14.2% in the four-weeks and +14.6% in the 12-weeks. Volumes dropped a sharp -9.2% in the period (-2.7%/-3.2% for the four- and 12-weeks) while pricing made up the difference at a 21.1% increase.
Dollar sales for The Coca-Cola Company were up 8.9% in the period while volume fell by -10.5%. PepsiCo sales rose 8.9% while volumes were the sharpest decline among the top companies in the category, falling -12.6%. Meanwhile, Keurig Dr Pepper (KDP) reported sales growth of 11.9% against a -8% volume slide.
Energy Drinks
Energy drink growth continues to prove strong, up 13.1%, an acceleration over 12.9% growth in the four-week period and 12.6% in the 12-weeks. Volumes also stayed positive, increasing 2.7% for the two-weeks (2.5% for four-weeks and 2.2% for 12-weeks) while pricing rose 10.1% – in line with the four-weeks.
Category leader Monster Energy saw sales rise north of the $7 billion mark by 10.2% while volume was flat (an improvement from -0.2% decline in the four-week period). However, Red Bull outpaced the company, growing sales 10.5% and volume up 2.5%, as did PepsiCo (Rockstar and MTN Dew) which improved by 10.7% despite a -4.3% volume hit.
Performance energy brands continued to see strong dollar sales growth in the two-weeks, including CELSIUS (+136.2%), Nutrabolt/C4 (+70.1%), Alani Nu (+27.9%) and Ghost (+211.1%). However, A-Shoc (-27.1%) and ZOA (-38.7%) reported declines.
Meanwhile, Bang Energy – currently in the midst of bankruptcy proceedings and facing a court order to cease all sales of cans advertising its “Super Creatine” ingredient – continued to experience a steep drop in sales, falling -57.3% while volume was down -60%.
Bottled Water
Sales of bottled water rose 11.6% in the two-week period, decelerating slightly from +12.2% in the four-week period. Volume sales in the period were up 2.8% (+3.2% in the four-weeks) while average pricing climbed +8.5%.
Private label products grew dollar sales by 16.7% in the two-weeks with volume up by 10.5%. Among branded water manufacturers, Blue Triton Brands (+10.8%), Coke (+12.7%), PepsiCo (+9.3%), Nestle Holdings (+7.1%), CG Roxane (+5.2%) and KDP (+3.1%) all reported positive sales growth while Fiji maker The Wonderful Company was flat.
Sports Drinks
Sports drinks sales were up double-digits, +20.5%, in the two-weeks, gaining pace from 18% growth in the four-weeks and 15.5% in the 12-weeks. Volume sales improved as well, up 2.2% (compared to -0.2% for four-weeks) while pricing did the heavy lifting, up 17.9%.
PepsiCo (Gatorade) grew sales 16.1% in the period, while Coke (BodyArmor and Powerade) reversed declines with modest 0.9% growth. The Mexican manufacturer of Electrolit, Laboratorios Pisa S.A., was up 27.3% in the category to $319.4 million in dollar sales.
RTD Tea
Liquid tea grew 7.3% for the two-weeks, versus 8.8% growth in the four-week period and 8.7% for 12-weeks. Volume sales fell -4.6% while pricing increased by 12.5%.
Category leader Pepsi/Lipton posted +5.7% sales growth against -9% volume declines, while Coke was up 7.1% with a -4.4% hit to volume. Independent brands fared a bit better, however, as AriZona grew sales by 10.8% and volume +1.9% while Milo’sTea Company jumped up by 20.9% for dollar sales and 14.5% volume.
Sparkling Flavored Water
Seltzer decelerated slightly in the two-week period, growing sales 5.6% versus +6.2% for four-weeks. Volume sales worsened, down -4.6% compared to -4.2% in the four-week period, which was offset by +10.7% average pricing.
The top three manufacturers in the category reported sales declines, including Talking Rain (-1.3%), National Beverage Corp (-1.1%) and PepsiCo (-3.2%), as did conglomerates Coke (-27.8%) and Nestle Holdings (-36.9%).