Interesting discussion in the WSJ about the schools declining in total beverage sales. The data provided is pretty staggering - looking at some of the declines in big school sellers like regular CSDs and Sports Drinks (no wonder Gatorade has issues).
The issue of beverages in schools has been a hot one for many years. A decade ago the objection was marketing to kids before they knew any better. Today it is about sugar/obesity.
So, is the battle won? Well, hardly likely. Kids will have gone to other places to buy what they want, while schools that benefited from the incremental beverage income are in the process of ending programs and firing teachers that they were funding from rich, multi-year drinks deals.
And in the interim, beverage costs have increased and the profitability from the channel is now compromised. Is there a way back? Probably only through innovation. But since kids like the taste of sugar, its unlikely that just offering a limited range of either low sugar or stevia sweetened products.
There is no simple solution here, kids want good tasting products, schools need funding, but cannot endorse full sugar beverages, and the beverage industry lacks the right single serve package size.
Come back 6 oz Coke bottles, all is forgiven?
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