Independent data for supermarkets/C-stores/mass merchandisers shows Snapple and SoBe dominate growth in premium hot-fill segment of non-carb beverage category (table). SoBe performing well, as product innovation and new market rollouts continue. Snapple appears to have fully reversed volume and market share hemorrhage suffered under Quaker Oats' ownership before 1997 sale to Triarc (BD 3/28/97). Triarc Beverage CEO Mike Weinstein says consumers show renewed interest in Snapple. However, dark spot for Triarc is Mistic, which is losing significant market share.

Category details. Table left shows shares and changes vs comparable 1998 period for "premium" non-carbs. Data (not in table) also indicates premium segment growing at about same rate as non-premium. Premium hot-fill teas grow volume +6% vs non-premium cold-fill's +7%. Premium and non-premium juice drinks each up +6%. Water. Data shows water volume category up +32% for period.

Snapple acceleration. Snapple's growth rate is accelerating. For 12 week period, Snapple's overall volume up +18%. Snapple teas up +19%; juice drinks up +32%; diet line up +27%. But in latest four-week period, Snapple's overall volume up +24%. Snapple teas up +27%; juice drinks up +33%; diets up +30%.

Executive views. BD asks Weinstein: What is driving performance? "Combination of factors. (But) the major growth is coming out of our core business which is regular tea and regular juice drinks ... There is a resurgence of consumer interest in the brand (driven by) a combination of packaging, promotions and advertising. Everything is hitting at the same time and working well ... Distributors are supportive of the brand again." Why growth rate accelerating? "There's a building consumer re-interest in Snapple."

Raised prices? "We took a +25¢ increase on Snapple effective April 1. We don't monitor pricing as closely as they do in carbonated soft drinks. But retail pricing has crept up." How much? "About +2%." Not much impact on volume? "We are really delighted to see the June numbers ... We think the (current) 'Jokes on Us' promotion has a lot of interest behind it."

Plan to launch flavored water? "We're still are looking at a lot of ideas that are around water but not water."

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