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NEWS: Carbonated Soda Sales Fizzle

Soda CanFewer tops are flipping as consumers switch from carbonated soda to water, juice and tea drinks.   Consumers in both the U.S. and the U.K. are turning away from carbonated soft drinks and opting for healthier beverages, according to a new report by independent market analyst Datamonitor. Are you one of them? Our own personal drinking patterns have changed significantly over the last five years. Whereas we used to keep a supply of sugar-free sodas for “diet days,” now we’re only into water and tea—fresh brewed or bottled (thank goodness Teas’ Tea came up with the more affordable jumbo sizes of their bottled teas). When we want something special, we’ll have a Fizzy Lizzy sparkling juice—and this is what we offer guests instead of Coca Cola. It looks like were not the only ones. In the U.S. and Europe overall, carbonated beverages are expected to decline from 50% of overall soft drink consumption in 2006, to 45% in 2011, and from 61% to 50% by 2011 in the U.K. In contrast, Datamonitor forecasts juices to grow from 16% to 22%, while bottled water is forecast to increase from 19% to 24% over the same period.
Greater consumer knowledge on the importance of hydration, maintaining a healthy diet and an awareness of nutritional needs, along with a growth in skepticism toward sugared carbonates are all contributing to a dynamic soft drink market. If you’re a giant soft drink manufacturer, you don’t like to see billions of dollars of sales float away. Mega-mass-marketers are responding by purchasing popular “specialty” juice, water and bottled tea companies. In the last year alone, among other deals, Pepsico acquired Izze sparkling juice and Naked Juice, Cocoa-Cola’s purchased Odwalla juice, Glaceau (makers of Vitaminwater) and took a 40% stake in Honest Tea. Read more about these products in the Beverages Section of THE NIBBLE online magazine.




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