According to Beverage digest, carbonated soft drink volume declined 3% in 2013. This follows a 1.2% decline in 2012 and a 1% decline in 2011.
This decline happened in spite of huge budgets set aside for marketing, advertising and promotion expenses. Both Pepsi™ and Coke™ have spent significant funds to try to stem the tide. Pepsi announced that they are going to spend $600MM more and Coke is supporting its brands with an increase of $1Billion in the budget for marketing, selling, advertising and promotion.
Replacing both regular and diet brands of soda are water, tea, and energy drinks.
What does this sea change (let’s face it, these declines are a sea change!) mean for supermarkets and convenience stores when stopping in to pick up a six pack of Coke or Pepsi was a regular event for many shoppers?
Do they stop in as often for water or energy drinks?
Do stores get the regular “go with” items that used to come along with the soda?