Carbonated drink category continues to decline

by Staff
Share This:

BASINGSTROKE, ENGLAND — Consumption of carbonated drinks is expected to decline for the fourth consecutive year in 2007, according to "The 2007 USA Soft Drinks Report" from Canadean Ltd., a beverage industry analyst.

Challenges in the category have led The Coca-Cola Co. and PepsiCo, Inc. to consider growing outside of the category, Canadean said, noting the companies efforts into investing in dynamic independent producers, overhauling iced/ready-to-drink tea products, new health-focused drinks and testing new routes to market.

The bottled water category continues to grow, and the popularity of multi-packs at discount stores is driving the growth, Canadean said. But consumer prices are falling and profitability is declining, the analyst added.

Iced and ready-to-drink teas and sports drinks have been growing strong, with new product development in the tea category led by Arizona. New premium green, low-calorie and unflavored/unsweetened teas have been successful, with overall consumption of iced and ready-to-drink tea expected to inrease by 13% this year.

Growth in sports drinks has been led by PepsiCo’s Gatorade, and Canadean predicts a growth of at least 20% in the nectars category.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.