Non-alcoholic beverage sales remained elevated and saw modest acceleration on a one-year basis, with sales up 10.3% in the two-week period ending January 29, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Sales growth was primarily driven by pricing increases, according to the report, as manufacturers continue to raise prices and reduce promo activity amid supply chain difficulties and higher raw material costs. Although the double-digit increase in dollar sales was up mildly in the two weeks (compared with +10.1% in the four-week period), sales decelerated on a two-year stack basis, up 24.4% year-over-year in the two weeks, compared to +24.6% in the four-weeks.
Broken down by category, carbonated soft drink sales remained solid, offsetting volume declines. As well, bottled water and sports drinks both saw double-digit spikes in dollar sales while volume growth continued to rise.
Meanwhile, the energy drink category reported accelerated dollar sales on both the one and two-year basis. On the one-year basis, sales rose 7.5% in the two-week period, compared to +6.7% in the four-weeks and +14.8% in the 52-week period. On the two-year stack basis, the category rose 22.3%, versus +22% for the four-weeks. Overall, volume growth was up 3.1% in the two-weeks.
Sales for category leader Monster Energy rose 2.4% in the period, while volume fell by 1.4% and pricing increased 3.9%. Red Bull was up 7.1% in the period, with positive volume growth of 6.2% and just +0.8% average pricing increase. But sales of Bang (-5.4%) and PepsiCo (-0.1%) both dipped as their volume sales fell -6.8% and -6% respectively. Fitness energy brand CELSIUS, however, continued its triple-digit growth surge, with sales up 235.9% in the two-weeks and volume up 221.1%.
How did the other categories do?
CSDs: Carbonated soft drinks rose 8.8% in the two-week period, a mild acceleration over 8.7% growth in the four-weeks. Volumes fell -4% in the period but +13.4% average pricing offset the slide. The Coca-Cola Company reported double digit sales growth (+11.1%) with -2.6% drop in volume and +14.1% average pricing. Keurig Dr Pepper (KDP) also showed strong sales, up 11.8%, with volume sales down just 0.1% and pricing up 11.9%. PepsiCo, meanwhile, grew sales 3.5%, while volume took a hit of -9% and average pricing rose 13.8%.
Bottled Water: The category’s dollar sales rose 14.7% in the two-weeks, up from 14.4% in the four-week period. Volume sales rose 5% and average pricing increased 9.2% in the period. Private label sales – marking the largest share of the category – jumped up 16.6%. Coke (+10.2%), PepsiCo (+16.2%), KDP (+13.5%) and Niagara Bottling Company (+17.8%) all rose double digits, while Danone North America reported a slide of 1.3%. Blue Triton Brands, which acquired the Nestle Waters North America bottled water portfolio last year, was not listed in the report.
Sports Drinks: Sales growth remained steady, up 23% in both the two- and four-week periods. Volume growth of 5.6% and pricing increases of 16.4% helped fuel the spike. PepsiCo, which owns Gatorade, saw sales increase 20.5% in the period while Coke (BodyArmor and Powerade) was up 21.5%.
RTD Tea: Tea sales were up 2.3% in the two-week period, versus 2.6% in the four-weeks. Volume slid 2.9% while average pricing rose 5.4%. Category leader Pepsi/Lipton reported nearly flat growth, up just 0.1%, while Coke’s sales in the category dropped 11.6%. Fast growing Milo’s Tea Company continued its double-digit sales rise in the two-weeks, up 54.9%.
Sparkling Flavored Water: Bubbly drink sales rose 4.2% in the two-weeks, slightly decelerating from 4.7% growth in the four-weeks. Volume sales were down 3.2% but pricing offset the decline, growing 7.7%. PepsiCo (Bubly) sales fell by 14.5% in the two-weeks, and Nestle Holdings dropped by 0.4%. However, sales of Talking Rain (+7.1%), National Beverage Corp (+5.6%), Polar (+15.8%), Coke (+4.7%) and Spindrift (+35.3%) were positive.
RTD Coffee: Liquid coffee sales rose 10.3% in the two-week period, compared to 10.9% growth in the four-weeks. Volume increased +12% and average pricing decreased by 1.5%, the only tracked category to report a decline in pricing. Sales for the North American Coffee Partnership (Starbucks) rose 0.4% in the two-weeks, while relatively smaller players like Danone North America (+38.2%), Coke (+33.2%) and Califia Farms (+30.7%) were up double digits.
Still Flavored Water: Category dollar sales rose 13.8% in the two-weeks, versus 15.2% for the four-weeks. Volume sales improved by 0.1% and average pricing was up 13.7%. Good2grow maker In Zone Brands led sales growth (+79.2%), followed by PepsiCo (+20.5%) and Coke (+15.6%). Hint saw dollar sales drop by 2.8% and volume decline 3%, with an average pricing rise of just 0.2% in the two-weeks.