Non-alcoholic beverage sales decelerate during the two-week period ending January 27 as volume growth declines “accelerated in conjunction with a slight acceleration in pricing growth,” according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ data.
Experts noted that “unusually wet weather” and extreme winter storms in January likely contributed to some pressure on non-alcoholic beverage sales growth.
Here’s the overview:
- Dollar sales in the two-week period grew 0.4%, compared to +1.3% in the four-weeks and +7.3% in the 52-weeks.
- Volume growth declines accelerated to -2.2% in the two-weeks, versus -0.8% in the four-week period.
- Average pricing climbed modestly to 2.6% in the two-week period, compared to +2% in the four-weeks.
Carbonated Soft Drinks
CSD sales decelerated in the two-week period at 1.8% versus +2.7% in the four-weeks, slowing significantly from +8.3% in the 52-weeks. Volumes fell -4.7% (worsening from -3.5% in the four-week period) while pricing grew moderately at 6.9% compared to +6.4% in the four-weeks.
For the first time in weeks, The Coca-Cola Company did not outperform, with sales up just 1.2% in the two-week period while volume dropped -4.5% and average pricing climbed 5.9%. Elsewhere, PepsiCo dollar sales fell -0.7% (-7.1% volume and +6.8% average pricing) while Keurig Dr Pepper (KDP) posted a +0.8% dollar sales growth, against a -5.6% volume slide partially offset by +6.8% pricing growth.
Meanwhile, better-for-you brand Zevia saw sales fall -5.4% with volumes down -7.2%.
Energy Drinks
Examining the energy drink category, dollar sales slowed to 1.8% in the two-weeks versus +2.5% in the four-week period and +10.2% in the 52-week period. Volume sales were down by -0.3% (+0.3% in the four-weeks) and average pricing was flat at +2.1% (+2.1% in the four-weeks).
Frontrunner Monster Energy Company – including Bang – saw dollar sales declines remain relatively flat, dropping to -6.8% (-6.7% in the four-weeks). Still fighting for the top spot, Red Bull sales rose 1.2% in the two-week period (+1.2% in the four-weeks) while volumes fell -4.1%.
Rising better-for-you star Celsius grew dollar sales 67.6% accompanied by +73.6% volume growth and a -3.5% pricing decline. PepsiCo, the brand’s primary distribution partner, saw its own portfolio of Rockstar and MTN DEW drop -13.9% against a -17.8% volume slide and a +4.7% price increase. Meanwhile, sales of Starbucks slid a steep -38.5%.
Other emerging brands saw double-digit gains in the category including C4 maker Nutrabolt (+55.3% sales and +47.9% volume), Alani Nu (+18.7% sales and +29.8% volume) and GHOST (+34.2% sales and +33.3% volume).
Bottled Water
Bottled water sales were down -0.8% in the two-week period, down slightly from +0.1% in the four-weeks. Volumes decelerated (up 0.6% compared to +2.2% in the four-week period) while average pricing declines improved moderately at -1.4% (-2.1% for four-weeks).
Private label outpaced the category, with sales rising 4.1% (+3.3% volume and +0.7+ average pricing). Meanwhile, Blue Triton Brands, the largest branded water portfolio, saw sales fall -3.5% (-1.8% in the four-weeks) with volume sales down by -1.3% and average pricing down -2.2%.
Elsewhere, PepsiCo (-7.8%), Nestle (-7.9%), KDP (-5.9%) and The Coca-Cola Company (-2%) all reported single-digit losses.
Sports Drinks
Sports drinks slid -3.7% in the two-week period, compared to -2.1% in the four-weeks and +6.6% in the 52-weeks. Volume sales were down -12.3%, worsening from -10.9% in the four-week period, while average pricing jumped 9.8%.
PepsiCo’s Gatorade saw sales drop to -5.7% (-4.2% in the four-weeks) while volume dropped -16.1% and average pricing climbed 12.3%. The Coca-Cola Company’s portfolio of BodyArmor and Powerade improved its sales declines to -10.1% (-11% in the four-week period) with volumes down by -10.9% and pricing up +0.9%.
Newcomer PRIME saw a slowdown in the period, reporting +40.4% sales growth (66% in the four-weeks and +412.3% in the 52-weeks).
Sparkling Water
Sparkling water sales slowed slightly to 2% in the two-weeks (+2.7% in the four-week period and +5% in the 52-week period) with volume sales down -2.3% (-1.9% in the four-weeks) and average pricing up 4.5% (+4.7% in the four-weeks).
Category leader Talking Rain reported sales down by -2.6% in the period against -0.9% volume and -1.8% average pricing. Meanwhile, Polar Corp (+14.7%), Spindrift (+18.1%) and Waterloo (+21.7%) all saw double-digit dollar sales gains.
RTD Coffee
Liquid coffee was down -10.5% in the two-week period, compared to -9.3% in the four-weeks and +0.8% in the 52-weeks. Volume sales declined by -10.8%, worsening from -9.6% in the four-week period, and average pricing remained flat at +0.4%.
Starbucks sales slid -13.5% in the two-weeks versus -11.9% in the four-week period. Volumes were down -15.3% and average pricing grew 2.2%. The Coca-Cola Company’s portfolio of brands – Dunkin’ and Costa – also fell, sliding -28.9% with a -43.2% volume drop and +25.2% average pricing.
Meanwhile, Danone, the maker of STOK, grew dollar sales by 7.5% with +3.5% volume and +3.8% average pricing. Califia Farms (-10.4%) and Kitu Life (-42.2%) both posted declines.
Coconut Water
Though the smallest by valuation, coconut water saw the largest dollar sales growth among all major non-alc beverage categories, climbing +7.6% in the two-weeks (+9.6% in the four-weeks and +14.3% in the 52-weeks). Volumes rose 8.5% (down from +11.1% in the four-week period) while average pricing fell -0.8% (-1.3% in the four-weeks).
Vita Coco (+6.3%), Harmless Harvest (+8.9%), Goya (+8.1%) and C20 Pure Coconut Water (+16.1%) all reported dollar sales growth.