Nielsen: Non-Alcoholic Beverage Slows Post-Labor Day

Major beverage corporations continued to report growth despite a slight decrease in total non-alcoholic beverage sales over the last two weeks, according to a Goldman Sachs Equity Research analysis of Nielsen sales data through Sept. 19.

All channel dollar sales for non-alcoholic drinks was up 8.8% year-over-year for the two-week period ending on Sept. 19, a deceleration from the four-week period (up 9.4%) and the 12-week period (up 11.3%).

Carbonated soft drinks (excluding energy products) was up 12.3% over the two-week period, during which volume rose 9.8% and pricing increased 2.3%. Both regular and low-calorie CSDs enjoyed a sales boost over the period, rising 11.8% and 13.7% respectively.

Coca-Cola enjoyed a 10.1% increase in total company sales over the two weeks, driven by strong performances in CSDs (up 12.9%) and still flavored water (up 15.3%).

Elsewhere, PepsiCo saw its total company sales grow 7.7% during the two week period, a slight acceleration over the four-week period (6.2%). The brand’s CSD portfolio was upon 8.1% over the two weeks, with volume rising 7.5%. In sports drinks, which includes category leader Gatorade, however, Pepsi reported muted sales growth of just .4%, as volume fell 1.2% after growing by 8.6% over the 12-week period.

For Keurig Dr Pepper (KDP), CSDs continue to set the pace with 18.7% sales growth and a 16.6% increase in volume during the two weeks. Representing just around $257 million out of a $13 billion category, KDP’s bottled water sales were up 11.3% over the two weeks, with volume up 6.2%. The brand’s liquid tea portfolio was up 6.9%, but sales remained flat over the last 52 weeks.

Energy drink sales were up 8.5% over the two weeks, with volume rising 10.7% and pricing slipping 1.9%. Though slightly slowing, Red Bull put together another in a series of strong performances over the last several months, up 17.1% over the last two weeks. Monster also saw a deceleration in sales, despite rising 4.9% over the two weeks. Meanwhile, Bang saw its sales dip 2.9% while Pepsi’s energy portfolio, including Rockstar, was down 12.1%

Sparkling flavored water continued to be one of the hottest categories in beverage this month. The segment grew sales 22.4% over the two weeks (compared to 19.6% increase in the 52-week period), with nearly all brands in the space enjoying a boost over the two weeks, including gains for Talking Rain (29.1%), National Beverage Corp. (31.7%), PepsiCo (23.1%), Coca-Cola (72.1%) and Spindrift (75.1%).

Another big gainer was RTD coffee, up 15.6% over the two week period. Danone North America (up 41.6%), Coca-Cola (12.9%) and Califia Farms (6.6%) all posted sales gains, though they remain dwarfed by Pepsi’s North America Coffee Partnership with Starbucks, which is up 15%.

Elsewhere, bottled water sales picked up 2.7% over the two weeks, while sports drinks sales were up 3.5%. Ready-to-drink tea sales rose 5%, while still flavored water was up 7.6%.