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December 12, 2003
By: Dustin Cyril
Website: http://www.water-purification-filters.com
Shifting patterns in Americans' beverage perferences
As the 20th century drew to a close, U.S.
consumers' tastes in beverages appeared to be changing, and marketers
made unprecedented moves to respond to - and stimulate - new developments.
The late-1990s saw the start of a "non-carbonated revolution" as carbonated
soft drink (CSD) growth slowed and fruit beverages, ready-to-drink (RTD)
teas and coffees and -especially - bottled water attracted greater attention.
A new report from Beverage Marketing Corporation, the leading provider
of data, consulting and financial services to the global beverage industry,
offers a bird's-eye view of the U.S. beverage market at the turn of
the century.
Bottled
water goes platinum
If the
1990s were bottled water's golden decade, the fastest moving major beverage
category in the U.S. can now be certified to have gone platinum. Bottled
water passed the 5 billion gallon milestone in 2000. In contrast, the
biggest beverage category, CSDs showed only sluggish growth. Tea was
the sole basic beverage category to see volume decline, although RTD
teas remain an important platform for New Age nutrient enhanced concoctions.
Altogether,
the third annual edition of The Multiple Beverage Marketplace in the
U.S. discloses, sales of the nine leading commercial beverages approached
47 billion gallons last year, an advance of 1.5% over 1999. CSDs retained
a long lead despite slowing growth, followed, in order by size, by milk,
beer, coffee, bottled water, fruit beverages, tea, wine and distilled
spirits. Together, these nine beverages accounted for nearly 90% of
Americans' total beverage diet. Within five years, the study predicts,
bottled water will rise to second place, bypassing coffee, beer and
milk.
Dollar
sales grew faster than volume figures in 2000, rising by almost 3% from
the preceding year. "Beverage marketers and suppliers' revenues increased
more rapidly than volume in 2000," the 2001 edition of The Multiple
Beverage Marketplace in the U.S. reports, "reflecting the relatively
strong showing of some of the generally more expensive categories, such
as wine and distilled spirits, as well as the forceful growth of higher
priced waters (i.e., the retail premium PET segment)."
At 55.7
gallons, CSDs continue to lead in per capita consumption by a wide margin,
although average intake declined slightly in 2000, while the totals
for bottled water surged. "With most beverages," the report observes,
"changes in per capita consumption tend to occur in small increments,
with a tenth of a gallon gained here (as happened with fruit beverages
in 2000) or three tenths lost there (as happened with tea). Bottled
water, in contrast, has been gaining a gallon or more in average intake
each year. And 2000, when per capita consumption reached 18.2 gallons,
was no exception."
New
marketing structures and strategies
Simultaneously
reacting to and fostering consumers' beverage preferences, the report
states, "the leading CSD franchise companies, through mergers and acquisitions,
joint ventures and traditional new product introductions, have increased
their efforts behind non-carbonated beverages, including fruit beverages,
dairy-based drinks and energy drinks, as well as bottled water." It
records in detail the competitive measures taken in this direction by
the leading, rival CSDs marketers, Coca-Cola and PepsiCo, while both
continue to pursue new carbonated drink options.
New
products are also entering the beer territory, the study reports, with
light beers overtaking the full-calorie brands, and many brewers now
offering "malternatives," malt-based brews with added flavorings. The
trend to premium products is also noted. In 2000, imported beers for
the first time accounted for more than 10% of the market.
Dramatic
developments in other beverage sectors in 2000 and 2001 are detailed
in the report. It analyzes the dissolution of the Seagram beverage empire
and the distribution of its wine and spirits brands among other firms,
the emergence of Suiza Foods as the first dominant force in the milk
market following its acquisition of Dean Foods, and the growing consolidation
in the wine category, both domestically and internationally.
While
predicting the rise of bottled water to second place in the beverage
hierarchy by 2005, the report points out that this will be the only
category whose advance will outpace population growth, as total beverage
market volume rises from 53 billion gallons in 2000 to 55 billion in
2005.
Additional News, see bottled water delivery.
Author Notes:
Dustin Cyril contributes and publishes news editorial to http://www.water-purification-filters.com.
Get educated on the benefits of water purification systems and different water filters available.
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