Consumer Edge Research published a report last week that said increased drink mix consumption is “potentially one of the most disruptive forces in non-alcohol beverages and associated supply chains.” Right now, mixes are equivalent to about 2.0% of the ready-to- drink (RTD) beverage market in the US. Single-serve versions, usually in small plastic sleeves designed to be poured into a water bottle, equate to less than 1.0% of the RTD market. In 2020, value sales of single-serve drink mixes jumped +23% in measured retail channels, or about 2.5 times as fast as non-alcoholic RTD beverages, according to the Jan. 14 report. Single-serve drink mix growth began outpacing RTD beverage growth in late 2017, according to Consumer Edge. “Heightened environmental concerns from consumers and the rise of e-commerce as a channel in beverages has the potential to shift consumption to non- packaged formats,” Consumer Edge analysts led by Brett Cooper wrote. Coca-Cola, PepsiCo and Keurig Dr Pepper are underexposed should such a disruptive shift to beverage mixes happen, the analysts added.

DOWNSIDE. Noting low risk today, the analysts said a long-term shift to packaged beverages in combination with a population decline could reduce the advantage enjoyed by large beverage companies with capital intensive bottling distribution systems.

TOP MOVERS. Among single-serve drink mixes, Crystal Light added the most in new dollar sales last year with $27.8 million, after growth of +20%, the analysts wrote. Liquid IV, which is being acquired by Unilever, increased almost +500%, generating $18.6 million in added sales, making it the third-largest gainer in 2020. No. 7 mover Gatorade jumped +684%, while No. 8 Propel grew +12%. Both brands are owned by PepsiCo. Private label brands in aggregate were at No. 7 in the dollars added, representing growth of +21%.