Although growth of non-alcoholic beverage sales remained positive during the two-week period ending August 27, volume declines and moderate pricing increases led to decelerated overall sales, according to an analysis of NielsenIQ data by Goldman Sachs Equity Research.
Overall sales growth for the two-week period was up 9.9% year-over-year versus 10.9% for the four-week period and 12.2% for the 52-weeks. Water, tea and soda (CSDs) pulled the overall beverage volume growth down to 4% during the two-weeks. Pricing did help offset the volume decline with a 13.9% gain year-over-year, continuing an upward progression from 13.5% and 12.4% growth in the four-week and 12-week periods respectively.
On a three-year stack basis, RTD coffee and sports drinks continued to lead total dollar sales, up 31.6% year-over-year for two-weeks versus 32.4% for four-weeks.
Carbonated Soft Drinks (CSDs)
Soda dollar sales increased 13.7% in the two-week period, flat from the four-week and 12-week periods. Volume growth declined -2.5% with pricing growth relatively flat at 16.6%. The Coca-Cola Company led sales growth for the top three CSD makers with growth at 16.6% during the period, followed by PepsiCo (+10.6%) and KDP (+11.4%).
Volume growth for PepsiCo fell -6.2% in the two-week period and KDP fell -3.7% while Coke volumes rose slightly to 0.5%. All three saw double-digit price increases with Coke (+16%) and KDP (+15.7%) improving on the two-weeks compared to the four-weeks while PepsiCo (+17.9%) decelerated minimally.
Energy Drinks
Total energy drink sales rose on a one-year basis, up 10% in the two-week period, versus 9.5% in the four-weeks and 11.1% for 52-weeks. Volume growth rose 3.8% in the two-weeks compared to 3.4% in the four-week period while pricing was relatively unchanged from two- to four-weeks at 6%.
Monster Energy Company saw dollar sales accelerate by 9.5% (+8.9% for four-weeks) with volume up 2.4% (+1.1% over four-weeks) and pricing increased 6.9% compared to 4.9% in four-weeks. Red Bull sales grew to 6% (+9.2% for 52-weeks) while volume improved to 3.1% (2.7% for 4-weeks). Bang continued to report sales declines at -17.5% amid its transition out of the PepsiCo distribution network, volumes were down -20.2% with price growth up 3.4%.
PepsiCo (Rockstar and MTN Dew) was also down -4.2% in dollar sales and -11.9% in volume with pricing continuing to improve to 8.7% over the two-weeks (+7.5% in four-weeks). Sales grew triple digits for CELSIUS (+119.8%) and Nutrabolt’s C4 (+133.6%). Zoa Energy’s sales growth has calmed down to 24.1% (+27.6% for four-weeks and +66.4% for 12-weeks) as it aims to strengthen its online business.
Bottled Water
Overall bottled water sales growth slowed in the two-weeks, up 8.8% (compared to +11.1% for the four-weeks). Volume dropped to -4.9% (-3% in four-weeks) offset by flat price growth of 14.4% in the two-weeks. Private label sales rose 21% with volume declining -3.4% and price growth remained about even at 25.3% (+25.7% in four-weeks). Blue Triton Brands sales rose by 6.4% (-4.2% volume) in the period. Coke bottled water sales increased 0.4% (volume -11.8%) and PepsiCo sales fell -1.1% (-11.4% volume). Both KDP (+16%) and Niagara (+4.6%) increased dollar sales.
Sports Drinks
Overall sales decelerated to 3.3% growth in the two-weeks (+7.7% in four-weeks) while volume declined -5.8% and pricing increased by 9.7%. PepsiCo (Gatorade) was up 8.7% in dollar sales compared to 13% in the four-week period. PepsiCo volume fell -1.8% in the two-week period whereas pricing was up 10.7%. Coca-Cola’s sales fell double digits to -12.3% as volume decreased to -16.4% and pricing rose 4.9%.
RTD Tea
Tea notched an 8.1% gain in sales during the two-week period versus 6.2% in the 52-weeks. Volume continued to slide to -3.7% (-1.7% in four-weeks). Pepsi/Lipton Tea dollar sales were up 6.9% with volumes falling further to -5.4% (-3.5% in four-weeks) and charging up 13% compared to the 52-weeks of 9.9%.
Sparkling Flavored Water
Overall sparkling flavored water sales increased 4.4% in the two-week period, compared to 5.8% in four-weeks and 6.1% in 12-weeks. Pricing remained robust at 11.9% in two-weeks (+11.1% in four-weeks) and volume dipped by -6.7% (-4.7% in four-weeks). Talking Rain Beverage (Sparkling Ice) continues to lead the category but only reported a 1.6% sales increase and -8.4% volume decline. Dollar sales continued an upward trend for Spindrift (+31.6%) and Polar (+24.3%) while Coca-Cola (-34.5%) and KDP (-13.4%) were down.
Coffee
Total RTD coffee sales grew 15.5% during the two-weeks compared to 14.2% in four-weeks. Volume rose slightly to 13.6% versus the 13.1% in four-weeks and 7.6% in 12-weeks. Starbucks (+15.3%) and Coke (+5.4%) grew sales while Danone (+23.2%) continued its sales growth march upwards.
Still Flavored Water
Sales in the category were up only 0.6% in the two-weeks with pricing growing 19.6% and volume sinking -15.9%. Coke sales were down -2.7% (-14.4% volume and +13.7% pricing). PepsiCo sales increased 7.4% (-7.8 volume and +16.5% pricing).