Still cranking out profits from carbonated water and sugar
Americans bought less soda for the 10th straight year in 2014…An annual report by the industry tracker Beverage Digest found that overall soda volume slipped 0.9% last year, moderating from the decline of 3% the previous year.
And the poor performance of diet sodas in particular led to a shake-up in the top 10 US soda rankings; even though people bought less Pepsi, it managed to regain the No 2 spot from Diet Coke, which suffered an even steeper decline. Diet Coke had knocked Pepsi off the No 2 spot in 2010…
Interesting to investors and hedge funds. Meaningless compared to good news for the health of the nation.
John Sicher, publisher of Beverage Digest, attributed the moderation in soda’s decline in 2014 to the continued growth of energy drinks. He also noted that Coca-Cola Co, PepsiCo and Dr Pepper Snapple Group have improved marketing for their soda brands.
Soda volume has been declining in the US since 2004 amid concerns that sugary drinks fuel weight gain, and a proliferation of alternatives in the beverage aisle.
They’re still cranking out easier profits from stuffing people with sugar.
Despite the ongoing decline of soda volume, the broader US beverage industry performed better than in the previous year with growth of 1.7%, according to Beverage Digest. That increase was driven by an increase in bottled water sales.
How dumb is that? Continued growth in designer water sales confounds any measure of intelligence.