Non-alcoholic beverage sales accelerated during the two-week period ending July 31, improving after several weeks of slow down amid a lap of last year’s pandemic-driven at-home consumption spike, according to an analysis of Nielsen data by Goldman Sachs Equity Research. Volume sales continued to shift towards on-premise, up 7.2% in the two-weeks, compared to 5.5% in the four-week period and 10.3% in the 52-weeks. Total non-alc sales on a two-year stack basis were up 20.2% in the two-weeks.
Major Players Feel the Pickup
PepsiCo total company sales were up 3.8% in the two-week period, compared to 2.9% in the four weeks and 5.8% in the 52-weeks. Salty snacks grew 5.4% in the two-week period. Total volume sales dropped -3% in the two week period, a mild rebound from a -3.2% drop in the four-week period (volume was up 1.7% in the 52-weeks). Average pricing was up 6.8% in the two-weeks. On a two-year stack basis PepsiCo sales were up 14.5% for the two-week period.
The Coca-Cola Company also saw accelerated dollar sales growth, up 6.1% in the two-weeks (+4.6% for four-weeks, +7.5% for 52-weeks). Total volume was down -0.8% in the two-weeks, compared to -1.5% in the four weeks and 2.2% for 52-weeks. Average pricing jumped 6.9% for two-weeks. On a two-year stack basis, dollar sales were up 18.5% in the two-week period.
Meanwhile, Keurig Dr Pepper (KDP) saw a milder sales boost, up 2.4% in the two-weeks, compared to 1.5% in four-weeks and 8.4% for 52-weeks. Average volume dipped -2.2%, versus -2.7% for the four-weeks and +4.9% for 52-weeks. Average pricing climbed 4.6% in the two-week and dollar sales on a two-year stack basis climbed 19.3% for the period.
Energy Growth Remains Steady
Dollar sales of energy drinks was up 13.4% in the two-week period, remaining in line with long term growth trends. The category’s sales were up 12% in the four-week period and 14.4% for 52-weeks. Volume sales jumped 10.2% in the two-week period and average pricing rose 2.9%. On a two-year stack basis, the category’s sales increased 23.4% in the period.
Among the category leaders, Red Bull continued to show strong sales growth in line with the category, up 15.8% in the two-week period (+14.2% in four-weeks and +20% for 52-weeks). Monster, meanwhile, saw sales increase 8.3% in the period (+7.3% in four-weeks, +10.8% for 52-weeks). Goldman Sachs noted that it expects Monster’s growth to continue apace and that analysts “remain upbeat about [Monster’s] robust innovation pipeline for 2021.”
In the PepsiCo portfolio, distribution partner Bang reported 13.2% sales growth in the two-weeks (13.% for four-weeks), while the conglomerate’s owned portfolio of Rockstar and MTN Dew slowed declines to just -2.4% (compared to -5.1% for four-weeks and -8.7% in 52-weeks).
Elsewhere, CELSIUS continued to leap triple digits, up 181.9% in the two-week period to $165.4 million in dollar sales. Volume sales rose 135.8%.
How Did Other Categories Perform?
CSDs (excluding energy): Traditional sodas “modestly accelerated” per Goldman Sachs, with sales up 4.7% in the two-week period, versus 4.2% in the four-weeks. On a two-year stack basis the category’s sales grew 18.2%. PepsiCo led CSD sales growth in the two-weeks, up 6.3%, while Coke reported sales up 4% and KDP sales improved 6%.
Bottled Water: Water sales were up 9.2% in the two-week period (+6.7% for four-weeks) and volume sales grew 3% (1.2% in four-weeks). PepsiCo led sales growth, up 16.5%, while Coke was up 8.8% and Nestle Holdings declined 3.4%. Danone North America also improved dollar sales 11.3%.
Sports Drinks: Total category sales grew 4.7% in the two-weeks. PepsiCo (Gatorade) saw sales dip -2.9% (an improvement from -8.3% declines in the four-week period). BODYARMOR, which recently surpassed Coke’s Powerade as the second leading brand in the category, reported 36.5% growth in the period, while Coke itself rose 3.5%.
RTD Tea: Tea drink dollar sales were down -0.2% in the two-weeks, while volume fell -3.9%. Dollar sales declines were reflected across the category as Pepsi/Lipton (-1.4%), Coke (-5.1%), Ferolito, Vultaggio & Sons (-1.5%), KDP (-14.5%), Peak Rock Capital (-8.1%) and Red Diamond Inc. (-1.6%) all fell.
RTD Coffee: Coffee grew 14.4% in the two-week period, with Pepsi and Starbucks’ North American Coffee Partnership growing 6.2%. Other brands in the category all posted double digit growth, including Danone (+36.5%), Coke (+43.9%), Califia Farms (+23%) and Butterfly Equity (+23.7%).
Sparkling Flavored Water: Bubbly beverages were up 4.2% in the period, including mid double-digit growth from Coke’s AHA (+52.1%) and Spindrift (+42.5%). LaCroix maker National Beverage Corp. saw sales dive -6.7%, while PepsiCo’s Bubly grew 7.3% and Talking Rain improved 6.1%.
Still Flavored Water: The category was up 11.9% in the two-week period. Category leaders Coke (+12.7%) and PepsiCo (+7.3%) saw solid growth while Hint grew 20% to $114 million in sales.