Non-alcoholic beverage sales continued to pick up over the two-week period ending July 14, reporting accelerated dollar sales and volume growth after an extended period of slowdown earlier this summer. According to an analysis of Nielsen data by Goldman Sachs Equity Research, volume sales continue to shift to the on-premise channel, up 8.7% in the two-week period, versus 8.1% in the four-weeks and 10.3% in 52-weeks. Total non-alc beverage sales on a two-year stack basis rose 20.6% for both the two-week and four-week period.
Leading Strategics Maintain Growth
Total company sales for PepsiCo rose 5.4% in the two-week period, compared to 4.9% in the four weeks and 5.8% for 52-weeks. Salty snack sales were up 4.8% in the two weeks. Total volume sales continued to decline, but slowed down to just -0.6% in the two weeks, versus -1.4% in the four week period. Average pricing increased 6.1% in the two week period. On a two-year stack basis PepsiCo sales were up 14.5% over the two weeks.
The Coca-Cola Company reported slightly accelerated dollar sales growth of 6.3% in the two-weeks (+6.3% for four-weeks, +7.3% in 52-weeks). Total volume sales fell -2.9% (-1.8% for four-weeks, 1.8% over 52-weeks). Average pricing jumped 9.2% in the two-week period, while dollar sales on a two-year-stack basis rose 17.8%.
Keurig Dr Pepper’s (KDP) total company sales improved 2.4% for the two-week period (+2.4% in four weeks, +7.8% in 52-weeks). Volumes slipped -3.4% (-2.8% over four weeks, +4.2% for 52-weeks) and average pricing came up 5.8% in two weeks. On a two-year stack basis, KDP dollar sales grew 20.8% year-over-year.
Energy Drinks Remain Elevated
Dollar sales of energy drinks slowed somewhat but remained elevated over the two week period, growing 11.7%, compared to 12.6% for four-weeks and 14.5% for 52-weeks. Volume sales were up 7.8% in the two-week period and average pricing grew 3.5%. On a two-year stack basis, energy sales increased 22.3% in the period.
Red Bull’s double-digit growth streak continued, up 13.8% in the two-week period (+14.8% in four-weeks and +19.8% for 52-weeks). Monster dollar sales were up 6.4% in the period (+7.4% in four-weeks, +10.8% for 52-weeks).
“Looking forward, we expect [Monster’s] growth (along with the Energy Drink category) to remain elevated as the category laps the effects of last year’s Covid-related volatility,” wrote Goldman Sachs in its report. “All-in, we remain upbeat about [Monster’s] robust innovation pipeline for 2021.”
For PepsiCo products, distribution partner Bang reported slight deceleration, growing dollar sales 8.3% in the two-weeks (10.7% for four-weeks, 11.5% in 52-weeks). The snack and soda giant’s owned portfolio of Rockstar and MTN Dew faced further declines despite signs of a rebound in the last Nielsen report two weeks ago, dropping -4.7% in the period (compared to -3.6% for four-weeks and -8.6% in 52-weeks). However, MTN Dew Rise, which launched this spring, has become a fast player in the category by capturing a 1% market share.
CELSIUS continues to post triple digit sales growth, up 192.7% in the two-week period to $173.3 million in dollar sales. Volume sales rose 155.6%.
How Did Other Categories Perform?
CSDs (excluding energy): Traditional sodas once again “modestly accelerated” according to Goldman Sachs, with dollar sales growth of 5.1% in the two-week period, versus 4.9% in the four-weeks. On a two-year stack basis the category’s sales grew 19.2%. KDP led sales growth in the category, up 6.6% in the period over the two-weeks, while PepsiCo followed close behind, up 6.5%. Coke, meanwhile, reported 4.3% dollar sales growth.
Bottled Water: Water dollar sales sped up, growing 13.2% in the two-week period (+11.2% for four-weeks) and volume sales grew 8.1% (5.6% in four-weeks). PepsiCo led sales growth, up 16.9%, followed by Danone North America (+13.1%), and Coke (+12.2%). Nestle Holdings fell 20.4% and KDP dropped 2.8%.
Sports Drinks: Sports drinks posted double digit sales increases, with the category up 12%, bolstered by average pricing increases of 16.5% while volume dipped -3.8% in the two-weeks. PepsiCo (Gatorade) reversed a sales decline, growing 6.9% in the period and BODYARMOR grew total sales past $1.2 billion, up 43.9% in the period. Coke (Powerade), however, saw sales drop 2.4%.
RTD Tea: Tea drink dollar sales fell -0.2% in the two-weeks, with volume down -3.8%, but average pricing up 3.7%. Leading brands saw dollar sales slide across the board, including Pepsi/Lipton (-2.1%), Coke (-5.7%), AriZona (-0.7%), KDP (-16.4%), Turkey Hill (-4.4%) and Red Diamond Inc. (-1.5%). However, Milo’s Tea Company saw sales rise 37.6% to $263.7 million and Bolthouse Farms was up 3.3% to $33.2 million.
RTD Coffee: Coffee sales were up 11.5% in the two-week period (volume +11.2% and average pricing +0.3%), with Pepsi and Starbucks’ North American Coffee Partnership climbing 2.8%. Other leading brands saw double digit growth, including Danone (+32.8%), Coke (+30.2%), Califia Farms (+30.3%) and Bolthouse Farms (+22.7%).
Sparkling Flavored Water: The category jumped 6.2% in the two-week period (volume +1.4% and average pricing 4.7%). Coke’s AHA (+40.7%) and Spindrift (+60.6%) saw the strongest dollar sales growth. Meanwhile, sales for LaCroix maker National Beverage Corp. were down 4.1%. PepsiCo’s Bubly grew dollar sales 11.5%, Polar was up 7.5% and Talking Rain rose 5.7%.
Still Flavored Water: Flavored waters grew dollar sales 14.4% in the two-week period. Category leaders Coke (+15.7%) and PepsiCo (+9.8%) saw accelerated growth, as did Hint which leaped up 36.5% to $115.7 million.