As April came to a close amid the COVID-19 crisis, BD spoke to beverage bottlers about their expectations for the rest of the year. Here are a few observations based on those discussions.
CURRENT QUARTER. Bottlers generally expect the difficult business environment in the second quarter to continue. Some negative trends, such as depressed immediate consumption sales, may begin to ease near the end of the quarter and into the third quarter as convenience store traffic returns and consumers venture out in states that are getting back to business. However, shoppers will remain cautious, especially those suffering from economic distress.
ON-PREMISE. Restaurants and other food-service operations may start to improve by the fourth quarter at best.
HOME AND OFFICE. This profitable channel will take some time to rebuild as people continue to work at home even as offices reopen. This universe is expected to shrink as some workers stay home for good.
CATEGORY OUTLOOK. Carbonated soft drink and bottled water sales performance will hold up in the coming months as people continue to dine at home and convenience store traffic increases. Sports drinks will improve as people return to outdoor activities as stay at home orders lift (in Atlanta, for example, one of the country’s largest recreational tennis leagues has announced that its summer season will continue as planned in June after Spring leagues were cancelled). Energy drinks will remain challenged for now but benefit when convenience store traffic picks up.
UNCERTAINTY. Bottlers BD spoke to said they are well aware that the consumer landscape will remain volatile and that any prediction is merely a best guess.
© 2022 Beverage Digest.
Design, CMS, Hosting & Web Development :: ePublishing