No longer the main event? Beverage Digest released its topline volume numbers for 2008... and CSD volume at the big beverage companies is declining.
Frankly this is not really news, its been a trend for a number of years but the news media has been all over this today (Atlanta Journal quoted above). The 2008 number is -3%, in line with most analyst expectations, driven by cola declines (again in line). Gainers are Red Bull, Hansen's and my old company - Dr Pepper Snapple.
It will be interesting to watch 2009 as prices of non-carbonated beverage become comparatively higher priced and CSDs become a better value. As Brand Manager of RC it used to be that a 3 Liter of RC had greater interaction with the price of milk in some markets... families are often just trying to put the best priced beverage on the table. This dynamic will also drive the growth of Private Label, which is now at a significant savings against branded CSDs.
Is this the death spiral for CSDs? Unlikely, but it does seem to confirm that a different era for the big beverage companies is here, where volume is no longer the main objective. Note that revenue for beverages increased 1% to almost $72B. A nice market if you can tap it...
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