Non-alcoholic beverage sales remained strong but continued to decelerate over the two-week period ending March 26, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Total beverage sales were up +9.4% in the two-week period, compared to +10.7% for the four-weeks and +12.3% for the 52-week period. On a two-year stack basis, total beverage sales rose +14.2% in the two-weeks, with categories such as RTD coffee, energy drinks and sports drinks serving as key growth drivers.
The sales slowdown resulted from slower volume growth, which was up by low single digits in the four-week period with several categories facing declines. According to Goldman, the volume slump likely reflects sharp pricing increases across the industry and increased pressures on consumer’s overall spending ability amid economic inflation.
How did individual categories perform?
Carbonated Soft Drinks: Dollar sales grew +10.2% in the two-week period, compared to +11.2% in the four-weeks and +8.3% in the 52-week period. Volume sales of the category fell by -2.6% in the period while average pricing jumped up +13.1%.
Among leading manufacturers, The Coca-Cola Company reported the strongest sales growth (+14.1%) in the two-weeks against a -0.9% drop in volume and a +15.1% average pricing spike. Keurig Dr Pepper (KDP) sales rose +10.2% (with volume dropping -1.2% and pricing up +11.5%). PepsiCo sales were up +5.2%, while volume fell -5.9% and pricing increased +11.8%.
Energy Drinks: Dollar sales were up +9.1% in the two-weeks, versus +10.8% in the four-weeks and +14.6% for 52-weeks. Volume sales remained positive at +4.7%, but decelerated from +6.2% growth in the four-week period and +10.6% in the 52-weeks. Average pricing increased +4.3%.
Sales for Monster Energy Co. rose +7.5% against a +4% volume increase and +3.3% rise in pricing. Red Bull sales were up +5.3% in the two-weeks with volume growing +3.% and pricing up +1.8%. CELSIUS also maintained sharp growth, up +213.9% in the period with volume growing +216.8% and pricing falling -0.9%. Meanwhile, Bang saw dollar sales decline -11.5% with volume dropping -12.8% and pricing up +1.5%. PepsiCo (Rockstar and MTN Dew) reported a -4.4% drop in dollar sales, and volume slid -12.4% against a +9.1% average price increase.
Bottled Water: Water sales were up +13.4% in the two-weeks (+14.2% for four-weeks), volume rose +3.5% and pricing was up +9.7%. Private label sales accelerated slightly, up +22.6% (compared to +22.3% for the four-weeks). Blue Triton Brands was up +10%, Coke grew +3.7% and PepsiCo rose +10.9%.
Sports Drinks: Sports drink sales decelerated slightly, up +10.1% in the two-weeks (+12.3% for four-weeks and +19.3% in the 52-weeks) against a -7.2% drop to volume sales and a +18.7% increase to average pricing. PepsiCo (Gatorade) sales were up +6.8%, while volume fell -11.2%; Coke (BodyArmor and Powerade) dollar sales grew +9.5% with a volume drop of -2%.
RTD Tea: Tea sales rose +2% in the two-week period (+3.1% for four-weeks), volume fell -5% and average pricing increased +7.3%. Pepsi/Lipton sales fell -2.8% and Coke was down -9.3%. AriZona increased sales by +1.1%, but volume declined -7.5% while pricing jumped +9.3%. Sales for Milo’s Tea Company were up +52.2% in the period.
Sparkling Flavored Water: Dollar sales improved +3% in the two-weeks (+3.6% for the four-week period), volume declined -5.1% and average pricing increased +8.5%. Spindrift led category sales growth (+30.4%) while Polar accelerated sales (+14%). Talking Rain (+3.8%) and National Beverage Corp. (+7.4%) also reported positive sales increases while PepsiCo (-12%) and Coke (-6.2%) faced declines.
RTD Coffee: Coffee sales reported decelerated growth of +1.5% in the two-weeks (+3.3% for four-weeks and +15.5% for 52-weeks), with volume down -0.2% and pricing up +1.6%. The North American Coffee Partnership (Starbucks) reported -5.3% sales decline and Coke was down -19.1%. Danone North America (STOK) was up 44% and Califia Farms rose +24.5% in the period.
Still Flavored Water: Dollar sales were up +9.2% in the two-week period (+11.9% for four-weeks), volume fell -6.4% and average pricing jumped up +16.7% Coke (+4.8%), PepsiCo (+23.3%), Hint (+4.2%) and good2grow maker In Zone Brands (+31%) all reported decelerated sales increases and The Kraft Heinz Company saw sales slide -6.4%.