Skip to main content

Water is winning the Pepsi-Coke war in the US

| Economic factors

Coca-Cola and PepsiCo’s sodas continued to lose US market share in 2016, hurt by Americans ditching the drinks in favour of bottled water.

Soft-drink volume declined in 2016 for the beverage giants, with per capita consumption falling to a 31-year low, according to trade publication Beverage-Digest. Still, total volume grew for the two companies, with their water and sports-drink brands picking up the slack.

Bottled water beat carbonated soft drinks in sales volume for the first time, according to Beverage Marketing Corp.

"The beverage industry has undergone a seismic shift," said Michael Bellas, CEO of the group. "Bottled water’s emergence as the number one beverage type clearly signals a fundamental change in what consumers want from their beverages."

Coca-Cola and PepsiCo have expanded their portfolios of beverages and diversified pack sizes of carbonated drinks to appeal to increasingly health-conscious consumers. Volume of Coca-Cola’s Dasani grew 5.3% and PepsiCo’s Aquafina gained 10.9% in 2016, according to Beverage-Digest’s annual report.

Smaller soda cans and bottles contributed to a 2% gain in carbonated soft-drink revenue to $80.6bn from $79bn in 2015. That is a sign of success for Coca-Cola, which has increasingly focused on profit, rather than volume.


Pin It

Related Articles

By: Myles Illidge - MyBroadband Eskom has asked the National Energy Regulator of South Africa (Nersa) for a 36.15% electricity tariff hike for the customers it directly supplies and charges, Daily Maverick reports.
By: Yogashen Pillay – The Mercury Economists are predicting a big drop in petrol and diesel prices next month, saying it will bring much-needed relief to under-pressure consumers.
By: Jason Woosey - IOL Petrol and diesel prices are set to come down from Wednesday, June 5, according to a statement released by the Department of Mineral Resources and Energy (DMRE).
By: Opinion – IOL Business Report South Africans have been collectively waiting with bated breath for some small financial reprieve from the relentless price hikes of the past few years that have driven them to the brink of despair, chief among t...
Stats SA reports that retail trade sales increased by 2.3% year-on-year in February 2024. The largest contributor to this increase was general dealers (6.4% and contributing 2.8 percentage points).