Morgan Stanley: CSDs Perform Well In Year-Over-Year Comparison

Utilizing Nielsen scanner data results, Morgan Stanley recently released a report detailing a year-over-year comparison in which category sales of CSDs increased by 12.1 percent over a four-week period ending on May 14. The overview, however, takes into account sales figures from this year’s Easter holiday which were not included in last year’s data and over a two-year average, sales accelerated by only 0.4 percent.

Overall, Coca-Cola products led the way with a 17.3 percent increase in sales during the period – likely due, at least in part — to an average price that dropped by over 6 percent. In comparison, sales of Pepsi drinks leapt by 12.4 percent with prices that declined by only 3.7 percent.  Both companies showed strong increases in sales of regular and low-calorie beverages, up by a combined average of 13.6 percent, although neither seemed to fare well with bottled waters in which sales declined by over 10 for Pepsi and stood stagnant for Coca-Cola.

And while RTD Tea was a huge winner for both Coca-Cola and Dr. Pepper, both enjoying sales increases of 20 percent, Pepsi, the front runner in the sub-category, saw its sales drop by nearly 8 percent. On the other hand, sales of sports drinks were quite strong for Coca-Cola and Pepsi with sales up by 14.7 and 6.4 percent respectively. For Dr. Pepper, tea sales tumbled by almost 22 percent.

Dr. Pepper did see great improvement in sales of shelf-stable juices gaining 10.2 percent in the sub-category while both Coca-Cola and Pepsi saw satisfying bumps in sales of refrigerated juices which were up by 5.2 percent across the board.