Beverage Digest/Maxwell today reported that carbonated soft drinks saw volume improve 0.8% vs. 2001's rate of 0.6%, but despite the slight increase, the figure is still considerably below the segment's annual 2% to 4% growth rate that was customary through much of the 1990s.
Retail value: $62.9 billion
The Bedford Hills, N.Y-based newsletter, which tracks the beverage industry, estimates the soft drink category's retail value last year grew 2% to about $62.9 billion, up from $61.7 billion in 2001. The rise is based on increased volume and pricing, with the top three marketers -- Coca-Cola Co., PepsiCo. and Cadbury Cadbury Schweppes -- accounting for about 90% of volume in the industry.
Among the marketers, Coca-Cola Co.
Rival Pepsi-Cola Co., owned by PepsiCo, saw its market share drop 0.2% to 31.4% in 2002, while volume rose only 0.2%. One year earlier, in 2001, Pepsi-Cola benefited from the launch of Mountain Dew Code Red and Sierra Mist and the lemon-flavored extensions Pepsi Twist and Diet Pepsi Twist.
In a battle of two heavyweight brands, Coca-Cola's Coke Classic and Pespi's Pepsi-Cola, volume of Coke Classic fell 2%, with share down 0.6% to 19.3% while Pepsi-Cola volume fell 4%, with market share also down 0.6% to 12.6%.
No. 3 marketer, Dr Pepper/Seven Up, owned by the U.K.'s Cadbury Schweppes, saw market share fall 0.6% to 15%, while volume suffered 2.8%, based in part on lost share from 7 Up, which many of its bottlers have discontinued in favor of Sierra Mist. Volume for 7 Up, the country's No. 8 carbonated soft drink, was down 7.8%, while No. 6 soft drink Dr Pepper volume fell 3.3%.
Diet drinks were the only brands gaining market share. Diet Coke, the No. 3 carbonated soft drink, saw volume grow 3%, with its share up 0.2% to 9% of the category. Diet Pepsi, which ranks No. 7, saw its volume grow 3.5% and share increase 0.2% to 5.5%. Tenth-ranked Diet Dr Pepper volume rose 3.9%, with market share flat at 1.1%.
Private label success
Perhaps as a sign of tightening economic times, Toronto's Cott Corp., the leading producer of private label carbonated sodas, saw volume up 11.5%, with market share up 0.4% to 4.2% according to Beverage Digest numbers.