1996 Alternative Beverage Top-10

From Beverage Digest 4/25/97

1996 ALTERNATIVE BEVERAGES: STILL WATER UP SHARPLY. PERRIER, COKE, PEPSI AND SUNTORY GAIN SHARE.

Alternative beverages post +13% overall volume growth in 1996; source BD/Maxwell. Alternative beverages include: still waters, teas, juices/juice drinks, sports drinks, sparkling waters and natural sodas. Growth rate accelerates vs 1995 when volume was up +9.2%. Alternative beverage growth rate -- paced by +25% water volume increase -- is nearly 4 times greater than CSD's +3.6% growth (BD 2/7/97). Category totals 1.9 bil 192-oz cases. Retail sales estimated at $11.5 bil vs $10.4 bil in 1995. Perrier Group ranks #1, followed by Quaker Oats (QO), Coke and Pepsi.

1996 All-Channel Alternative Beverages

	1996	1995	Share	'96	'95	Volume
Companies	Share	Share	+/-	Cases	Cases	% Chg.
Perrier Group	24.3	23.2	+1.1	453.1	382.9	+18.3
Quaker Oats	13.9	15.3	-1.4	259.4	252.8	+2.6
Coca-Cola Co	12.4	12.0	+0.4	230.3	197.7	+16.5
PepsiCo	11.2	10.9	+0.3	208.9	180.5	+15.8
Suntory Water	10.9	9.3	+1.6	203.9	153.2	+33.1
Arizona Beverages	2.2	2.5	-0.3	41.0	41.0	flat
Dr Pepper/Seven Up	1.7	2.0	-0.3	31.8	33.4	-4.8
Seagram	1.7	1.6	+0.1	30.9	26.7	+15.5
Triarc	1.6	1.7	-0.1	29.1	27.6	+5.3
McKesson Corp	1.4	1.4	flat	25.6	23.0	+11.1
All Others	18.7	20.1	-1.4	350.2	331.4	+5.7
	100.0	100.0		1864.0	1650.1	+13.0

	1996	1995	Share	'96	'95	Volume
Segments	Share	Share	+/-	Cases	Cases	% Chg.
Still Waters	39.2	35.5	+3.7	731.0	585.0	+25.0
RTD Teas	19.6	20.4	+0.8	366.2	336.0	+9.0
SS Juices/Drinks	18.2	19.8	-1.6	340.0	326.0	+4.3
Sports Drinks	14.2	14.1	+0.1	265.1	232.5	+14.0
Sparkling Waters	8.2	9.7	-1.5	152.2	159.5	-4.5
Natural Soda	0.5	0.7	-0.2	9.5	11.2	-14.8
	100.0	100.0		1864.0	1650.1	+13.0

Charts. Top chart shows ranking of top-10 alternative beverage companies; includes market shares, share changes, case volume and volume changes 1996 vs 1995. Bottom chart tracks individual categories. BD/Maxwell data covers all channels including take-home, vending, fountain, etc. Cases in millions. Results. Four of 6 categories grow last year; sparkling waters, natural sodas shrivel. Still water, sports drinks exceed industry's +13% growth. Tea up +9%, gains share.

Companies. 1) Perrier Group -- with numerous regional still water brands like Arrowhead, Poland Spring and Zephyrhills -- posts significant volume and share growth. Note: data for Perrier, Suntory and McKesson tracks all packages and channels. 2) QO's volume increases slightly driven by Gatorade's +11.8% growth to 190 mil cases; Snapple down -16.2% to 69.4 mil 192-oz cases. 3) Coke's Nestea tea up +25%; Powerade up +19.6%. 4) Pepsi's Lipton Brisk up +13%, Lipton Original/Brew down -18.2%. All Sport up +17.6%; Aquafina still water, now bottled at 11 Pepsi plants, sells 11 mil cases.

Plus. 1) Suntory posts greatest share and volume gain due to 1/96 acquisition of Hinckley & Schmitt for $290 mil (BD 1/12/96). 2) Arizona's volume flat; market share down -0.3. 3) Dr Pepper/Seven Up alternative beverage brands lose overall volume and share; Crystal Light volume up, but volume down for Country Time lemonade, Motts, Canada Dry seltzer and Schweppes seltzer. 4) Seagram posts +15% volume increase; gains share. 5) Triarc grows volume; share down -0.1. 6) McKesson water volume up, share flat.

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