Non-alcoholic beverage sales remained “healthy and accelerated” in the two-week period ending November 18 reflecting heightened volume growth despite broadly stable pricing, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Here’s the overview:
- Dollar sales grew 6% during the two-weeks, compared to 4.5% for four-weeks and 9.1% for 52-weeks.
- Volume growth accelerated sequentially, up 1.4% in the two-weeks versus flat in the four-weeks and -0.9% in the 12-week period despite healthy/stable pricing growth, up 4.6% in the two-week period.
- Overall, the improved volumes were primarily driven by energy drinks, bottled water and carbonated soft drinks (CSDs).
CSDs
Carbonated soft drink sales climbed 5.9% in the period, a slight increase from +4.3% in the four-weeks but a significant slowdown from +10.5% in the 52-weeks. Volumes fell -0.5% (improving from -2.4% in the four-week period) while pricing slowed slightly at +6.4% compared to +6.9% in the four-weeks.
Category leader The Coca-Cola Company outpaced the category, with sales up 6.1% in the two-weeks, while volume rose +2.3% and average pricing grew 3.8%. Elsewhere, PepsiCo sales were up +3.3% (-3.6% volume and +7.2% average pricing) while Keurig Dr Pepper (KDP) reported growth of 5.7% with a -1.2% volume slide offset by +7% pricing growth.
Energy
Looking to the caffeine-fueled energy category, dollar sales elevated to 10.2%, up almost two percentage points from the four-weeks but still below the 11.4% growth in 52-weeks. Volume accelerated in energy to 9.8% as pricing remained relatively flat at 0.4% (compared to 0.1% in four-weeks).
Frontrunner Monster Energy improved its dollar sales declines, edging up to + 0% (-2% in four-weeks). Still vying for the top spot, Red Bull sales climbed to 5.2% in the two-week period (+3.2% in the four-weeks) while volumes rose to 0.7%.
Rising star Celsius grew dollar sales +122.8% with +118.6% volume growth and +1.9% average pricing growth. PepsiCo, the brand’s primary distribution partner, saw its own portfolio of Rockstar and MTN DEW drop -1.1% against a -8.9% volume slide and a +8.6% price increase. Meanwhile, sales of Starbucks fell a steep -33.5%.
Other emerging brands saw double-digit gains in the category including C4 maker Nutrabolt (+61.8% sales and +51.4% volume), Alani Nu (+53.4% sales and +61.8% volume) and GHOST (+58.5% sales and +56.5% volume).
Bottled Water
Bottled water sales accelerated in the period, with dollar sales rising 3.9% versus 2.7% in the four-weeks. Volume also improved, ticking up 3.2% (compared 2.1% for four weeks) while average pricing growth remained relatively flat at 0.8% versus 0.6% in the four-week period.
Private label dominated the category, with sales rising +6.5% (+5.3% volume and +1.2% average pricing). Blue Triton Brands rose sales to 3.5% with +4.8% volume growth and pricing down -1.3%.
Elsewhere, PepsiCo (+0.7%), Nestle (+1.8%), KDP (+4.4%) and Danone North America (+15.4%) reported positive sales growth.
Sports Drinks
Sales of sports drinks also accelerated in the two-weeks, up 4.4% (+2.9% for four-weeks) with a -6.7% volume decline and a +11.9%
The Coca-Cola Company’s Gatorade grew sales to 1.5% with volume at -9% and pricing gains in line with the category at 11.5%. PepsiCo’s sports drink portfolio (Powerade and BodyArmor) improved sales declines to -7.3% (-8.6% in the four-weeks). Meanwhile, up-and-coming PRIME Hydration saw a slight slowdown, reporting +160.5% sales growth (+185.1% in the four-weeks and +650.9% in the 52-weeks).
Sparkling Flavored Water
Sparkling water sales rose 4.3% in the two weeks (+3.3% for four-weeks and +4.5% for 52-weeks) as volume declined -2% and average pricing was up +6.5%.
Category leader Talking Rain (+1.8%), as well as National Beverage Corp (+1.8%) both saw sales improve on the four-weeks (-0.2% and -2.6%, respectively). Meanwhile, The Coca-Cola Company (-0.7%), PepsiCo (-3.8%), and Nestle (-0.4%) all reported sales declines.
Elsewhere, Spindrift (+20.6%), Waterloo (+27.8%) and Supplying Demand (+56.2%) experienced double-digit growth.
RTD Coffee
Coffee sales were down -0.4% this period, improving sequentially from -2.6% in the four-weeks. Meanwhile, volume fell -2.7% and average pricing climbed 2.4%. Sales improved slightly for Starbucks (+1.3%), Danone North America (+7.5%) and Black Rifle (25.4%) while The Coca-Cola Company’s Dunkin’ and Costa brands (-25.5%), Califia Farms (-12.1%) and Kitu Life (-38%) posted declines.
Coconut Water
Coconut water saw the largest dollar sales growth among major non-alc beverage categories, rising 12.8% in the two-weeks (+12% for four-weeks and +14.3% for 52-weeks) with volume increasing 12.6% and pricing up 0.2%. Vita Coco (+13.1%), Harmless Harvest (+16.1%) and C20 (+16.8%) all exceeded the category’s sales averages while Goya Foods (+6.8%) experienced less dramatic growth.