Though carbonated soft drinks face weakened demand and declining sales as a result of higher prices, sales of energy drinks and ready-to-drink teas remain on a hot pace, according to a recent report from Morgan Stanley. Utilizing Nielsen scanner data results, the investment bank detailed a year-over-year comparison in which category sales of energy drinks and RTD teas leapt by 12.5 and 4.5 percent, respectively, while sales of CSDs declined by 0.8 percent over a four-week period ending on November 26.
Red Bull (up 15 percent in the period) and Rockstar (up 30 percent) led the way for the energy drinks, a category whose sales have risen by over 10 percent in the last 52 weeks. Lower prices may have much to do with Rockstar’s rise in sales as the company’s products decreased by over one-third as compared to the same period last year. Coke and Pepsi, however, saw sales of their energy drink products fall by nearly 10 and 13 percent respectively.
In the RTD tea category, Pepsi continues to lose market share to its competitors as sales of its tea drinks tumbled by 4.6 percent in the four-week period. Coke, however, fared much better as sales of its tea brands, including Honest Tea, increased by almost nine percent. Dr Pepper also saw a significant bump in the sales of its RTD tea products, up 6.4 percent for the period.
Coke and Dr Pepper, each of which raised prices on its carbonated soft drinks, saw sales of their sodas beverages drop by a relatively small margin. Sales of Coke’s CSD products fell by three percent and those of Dr Pepper declined by 1.5 percent. On the other hand Pepsi, which also increased its prices, saw sales remain flat over the period. However, Pepsi’s spike in prices was the smallest of the three beverage companies.