All channel non-alcoholic beverage sales continue to show their strength as dollar sales accelerated in the period ending October 23, rising 13.2% in the two-weeks, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research. Total dollar sales were up 27% in the period on a two-year stacked basis.
How did the major players perform?
PepsiCo total company dollar sales were up 11% in the two-week period, compared to 10.1% in the four-week period and 8.4% in the 12-weeks. Salty snacks improved 12.6% in the two-week period. The company’s total volume increased 0.8% in the two-weeks while pricing rose a robust 10.2%. On a two-year stacked basis, PepsiCo’s total dollar sales rose 20.6% for the two-weeks.
The Coca-Cola Company reported 11.1% dollar sales growth in the two-week period, versus 11.2% growth in the four-weeks and 9.4% in 12-weeks. Volume, however, declined 1.1% for the two-weeks, while a 12.2% increase in pricing made up the difference. On a two-year stack basis, Coke reported 23.5% dollar sales growth in the period.
On the heels of a strong Q3 earnings report, Keurig Dr Pepper (KDP) saw total dollar sales grow 6.8% in the two-week period (+6.6% in the four-weeks and +5.9% in the 12-weeks). Volume fell 0.7% in the two-weeks and pricing was up 8.8%. Total dollar sales rose 23.3% in the period on a two-year stack basis.
How did energy fare?
Energy drink dollar sales accelerated in the two-weeks, rising 13.8% (+12.8% in four-weeks and +12.1% for 12-weeks). Volume sales also sped up, growing 8.7% in the two-weeks while average pricing increased 4.7%. On a two-year stack basis the energy category is up 26.7% in the two-weeks.
Monster sales rose 8.3% in the two-weeks and volume was up 5.2%. Average pricing increased by 3%. Core green Monster products climbed 13.2% in the two-weeks, with Monster Zero Ultra growing 23.1% and Java Monster up 12.2%. Meanwhile, performance energy line REIGN fell 8.6% and NOS declined 11%. On a two-year stack basis, Monster sales were up 18.8% year-over-year in the two-week period. Goldman Sachs noted that the company may also be open to a potential price increase “and may be willing to do so even if Red Bull does not,” a move it said “would be perceived favorably and is very doable” based on recent moves by Coke and Pepsi to raise prices to offset the spiking costs of materials and transport.
Red Bull continues to post double-digit dollar sales growth, up 18.5% in the two-week period with volume growing 17.9%. Average pricing increases remained low, up just 0.4%. On a two-year stack basis, total company sales rose 38.6% in the period.
Bang sales rose 2.9% in the two-weeks while its distribution partner, PepsiCo, slowed the decline of its owned energy portfolio (Rockstar and MTN Dew) with sales down just 0.7% in the period. MTN Dew Rise maintained its 0.9% dollar share of the energy category.
Meanwhile, sales of CELSIUS have continued to surge with growth in tracked channels up 204.8% in the two-weeks, compared to 212.8% growth in the four-weeks and 204% in the 12-weeks. On a two-year stacked basis the brand’s sales were up 273.2% in the two-week period.
How did other categories do?
Carbonated Soft Drink (CSDs): Total category sales increased 10.9% over the two-week period. Coke’s soda sales were up 12.3% in the two-weeks, Pepsi rose 9.9% and KDP’s climbed by 12%.
Bottled Water: Bottled water sales slightly accelerated, up 17.3% in the two-weeks. Private label sales slightly decelerated to 17.1%, while top manufacturers posted steady growth with Coke (+10.8%), PepsiCo (+20.2%), Danone North America (+6.7%) and Niagara Bottling Company (+9%) remaining closely in line with previous weeks. KDP sales were flat in the period, an improvement from a 2.9% decline in the four weeks and a 1.6% slide in the 12-weeks.
Sports Drinks: Sports drinks dollar sales grew 21.8% in the two-weeks. Prior to its acquisition by Coke this week, BodyArmor sales rose 55.4% in the period, with a 60.5% volume increase and an average pricing decrease of 3.2%. PepsiCo was up 15.4% and Coke (Powerade) grew 4%.
RTD Tea: Ready-to-drink tea reported 6.6% dollar sales growth in the two-week. Volume grew just 0.3% and pricing increased 6.3%. Milo’s Tea Company accelerated to 52.6% growth and category leader Pepsi/Lipton grew 7.8%..
Sparkling Flavored Water: Total category sales were up 7.2% in the two-weeks, with volume up 0.9% and average pricing growing 6.3%. Spindrift (+36.1%), Coke (+29.2%), Polar (+19.6%) and Talking Rain (+12.1%) each posted double-digit growth in the period and PepsiCo improved by 3%. National Beverage Corp. (LaCroix), meanwhile, fell 6.5% and Nestle Holdings dropped 3.7%.
RTD Coffee: Coffee sales increased 11.5% in the two-week period, remaining steady with 11.6% growth in the four-weeks and 11.3% growth in the 12-weeks. PepsiCo/Starbucks decelerated, up just 1% in the two-weeks. Smaller category players again saw broad double-digit growth, including Danone North America (+22.8%), Coke (+57.9%) and Califia Farms (+12.1%).
Still Flavored Water: Dollar sales rose 15.2% in the two-weeks. In Zone Brands, the makers of kids drink good2grow continued their triple-digit acceleration, up 117.7% in the two-week period while Hint was up 35.8%. Coke’s sales in the category were up 10.4%) and PepsiCo grew 15%.