CSD volumes declined at a lower rate over the four weeks ending on August 10 than they had over the previous three months, according to Morgan Stanley Analyst Bill Peroriello. The segment declined 2 percent in grocery stores, compared to drops of three to five percent over the last few months. Pepsi and Coke fell 5.2 percent and 2.4 percent, respectively, while DPSG saw a 0.2 percent gain and private label brands edged up one percent.
Bottled waters gained 3.3 percent volume while prices fell by 6.6 percent. Coke cut prices on Dasani by 10 percent while the brand’s volumes fell 1.5 percent. Aquafina’s volumes dropped by 10.5 percent as PepsiCo trimmed prices by 2.3 percent. Nestle gained 13 percent in supermarkets on a 10 percent price cut.
Enchanced waters continued to decline, this time by 6 percent following a 10 percent drop in the prior month. SoBe Lifewater and Glaceau gained while Propel and Aquafina Alive fell. The sports drink category slipped by 3.3 percent, with average price down by 1.4 percent.
Pecoriello noted that energy drink volumes in supermarkets have stabilized in the mid-to-high single digits. Red Bull slowed to a 3 percent gain while the category grew 7 percent. Monster gained 12 percent in grocery while prices climbed 6 percent. PepsiCo’s energy brands jumped 29 percent.
RTD teas gained 2.9 percent in supermarkets, a downgrade from their 12.4 percent gain a year ago. Prices fell an average of 5 percent. Coke and AirZona were the big volume winners, with gains of 10 and 14 percent. Snapple was the big loser, dropping 26 percent in supermarkets.