1st Half CSD Take-Home: Industry Growth Sluggish.
Coke Posts Only Corporate Gain Among Top-3
Among Top-10 Brands, Only Diets Gain. Private Label Volume Up More Than Any Major Company.

Through first half of year, sluggish performance continues for CSD category in take-home channels. CSD volume up just +0.5% in ACNielsen 3-channel data, and down -0.2% in combined IRI/ACNielsen 4-channel data. Coke -- still benefiting in 1st half from rollout of Vanilla Coke which began May/June 2002 -- posts sole gains among top-3 CSD companies. Private label (PL) also gains. Brands. Among top-10 brands, only diets gain share and/or volume. Each company's top brand -- Coke Classic, Pepsi-Cola and Dr Pepper -- loses volume and share in both data sets. Top-10 brands' combined share down -2.2 points in 3-channel data and -1.8 points in 4-channel data. See Green Sheet for detailed brand data.

Category. First quarter effected by harsh winter in parts of U.S., and second quarter by extremely wet spring in some places including Northeast. Dynamics. In 1st half, Pepsi system rolls out Sierra Mist in more geographies. PBG and other major Pepsi bottlers delisted 7UP which moved to independent system. Transition hurts Cadbury's Dr Pepper/Seven Up unit. Through most of 1st half, there were no blockbuster new CSD products introduced. Mt. Dew LiveWire and Sprite Remix debuted at end of 2nd quarter. Pepsi Vanilla began rollout early August.

Data. Table shows corporate shares, share changes and volume changes for 1st half 2003 in: 1) four-channel data which uses IRI for supermarkets, drug and MM; and ACNielsen for convenience/gas (C&G); covers period 1/1/03 to 6/15/03. 2) three-channel ACNielsen data which covers supermarkets, drug chains and convenience/petroleum (C&P) for YTD 6/28/03. Clients. ACNielsen supplies data to Coke, Cadbury and others; plus C&G to Pepsi. IRI supplies supermarket, drug chain and MM data to Pepsi. Channel weight. In 4-channel universe, supermarkets account for 75.2% of total volume; C&G 16.3%; drug 5.5%; and MM 3%. This MM data does not include Wal-Mart. Green Sheet. Shows corporate and brand performance overall and by channel.

New brands. From four-channel data: 1) Pepsi Twist regular/diet hold overall 0.6 share, down -0.6; volume down -51.6%. 2) Pepsi's Sierra Mist regular/diet at 1.7, up +1.1 vs 1st half 2002; volume up +156.5%. 3) Vanilla Coke regular/diet at 1.7 share, up +1.5 vs beginning of rollout late in 1st half 2002. 4) Red Fusion from Dr Pepper at 0.2; 0.4 in C&G. 5) dnL from 7UP at 0.1 overall and 0.3 in C&G.