67th Annual Consumer Expenditures Study
Packaging Innovations
Add Fizz to Soft Drinks
Across CPG, only 2.5 percent of all shoppers contribute 80 percent of the average brands’ sales, according to
analysis from Catalina. For soft drinks specifically, nearly
8 percent of all shoppers drive 80 percent of a brand’s
sales. This makes soft drinks an interesting category in
that shoppers buy many brands. Additionally, the top
six brands represent 80 percent of category sales, while
the average shopper spends only 26 percent of his or her
category dollars on one brand. Nonetheless, when they’re
loyal, they’re loyal. Loyalty is higher than average in this
category, with 54 percent of loyal shoppers in year one
remaining loyal in year two.
Traditional carbonated soft drinks continue to get
flattened from all sides — from liquid refreshment competitors to watchdog groups beating the drum against
ANNUAL SPENDING
The average brand spending on a top 6 soft
drink brand is $17.36, and the average shopper
spends $66.12 in the category.
Average
Brand
Average
Category
SHARE OF REQUIREMENT
both nutritive and non-nutritive
sweeteners. Sales of carbonated
soft drinks were down 3.7 percent
in 2013, but the category retains
a robust $11.5 billion in supermarket sales.
So while the new product
news is light for traditional
CSDs, companies are making use
of packaging, including commemorative treatment, glass bottles and different sizes, to attract
consumers. Dr Pepper/Seven Up
has repackaged its limited-edition
Dr Pepper Vanilla Float in a
summer design with a retro 4th
of July summer barbecue theme.
Coca-Cola’s fridge pack features
the FIFA World Cup Brazil 2014
logo. Pepsi’s new bottles, in its 24 x
12-ounce case or 4 x 12-ounce carton,
feature a more modern twisted glass version of the swirlglass bottle of yesteryear. The company also came out with
new 16- and 20-ounce single-serve bottles last year (the
first since 1977) that feature a swirled
grip on the bottom and a smaller label
on top. Most major soft drink companies now have 7.5- or 8-ounce cans.
New soft drink varieties are harder to come by. Jones Soda, historically one of the most creative soft drink
companies, didn’t disappoint with
Huckleberry and Chipotle Pineapple
varieties. Coca-Cola has launched a
completely new product, Sprite 6Mix
by Lebron James, a limited-edition
lemon-lime soda with natural cherry
and orange flavors. Hansen’s Natural, for its part, has launched a line
of Cane Soda, including a Mandarin
Lime variety.
PIVOTAL POINT CONSUMER
26%
For the average consumer,
only 26% of their soft drink
needs are met by one of the
top 6 brands.
Source: Catalina
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| Progressive Grocer | Ahead of What’s Next | July 2014
7.7%
Only 7.7% of all shoppers
contribute 80% of the
average soft drink
brand’s volume.