US SOFT DRINKS - FIRST FIGURES FOR 2007

As the biggest market for most beverages worldwide, US results are always worth watching. Although the Beverage Digest supermarket numbers represent well under 50% of total volume, they offer very strong indications.

• Energy drinks were up most at 24% - Monster was just 1 share point behind Red Bull.
• Teas rose 20% - with Lipton pulling away from the competition.
• Bottled water gained 10% - Private label has jumped to a 22% share and Glaceau has overtaken Dasani in value.
• Sports drinks increased just 3% - much weaker than in recent years, with Gatorade dipping below 80%.
• Carbonates fell 8% - worse than the 5% decline of 2006. Coke was down 9%, Pepsi 8%, Cadbury 6% and private label 9%.

What should one make of this ? Well, these numbers certainly bear out the trends towards healthier and lighter beverages, with contrasting attractions in more natural or more functional propositions. Carbonates undoubtedly have the most work to do, but it should be noted that both Coke and Pepsi did increase their prices by 6% in 2007. Overall, it reinforces the scope for soft drinks to continue growing if they continue adapting and innovating.