Tiger and G2 still good for Gatorade

The sales of Pepsi’s Gatorade extensions have softened, but
G2 and Tiger continue to be good for the Gatorade brand, according to Morgan
Stanly Research Analyst Bill Pecoriello.

Pecoriello reported that both brand extensions lost one percent
of their segment share during the four weeks ending on May 18, but have altered
the overall decline Gatorade suffered in 2007. The sports drink segment as a whole
grew 2.2 percent year to date, Pecoriello reported, while volumes declined by
9.2 percent in the last four weeks. Pepsi’s volumes fell by 7.3 percent, while
Coke’s volume fell by 14.2 percent.

In the broader soft drink market, Pecoriello reported that
the trends observed so far this year have continued. The market declined by 4.4
percent in the last four weeks – roughly in line with the 3.6 percent recorded
year to date. Pepsi and the Dr Pepper Snapple Group saw small losses while private
label companies and Coca-Cola saw small gains, but the story was different in
the carbonated soft drink market.

There, Coke and the Dr Pepper Snapple Group suffered small
losses, private label stayed flat and Pepsi saw small gains, while prices rose
across the board. Coke increased prices by 2.1 percent, Pepsi increased prices
by 2.2 percent, private label prices grew by 3.6 percent and DPSG prices hopped
4.3 percent.