Carbonated drink category continues to decline

by FoodBusinessNews.net Staff
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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.

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