Corporate Profiles - 2020 - 32

INDUSTRY REVIEW: BEVERAGES

Beverages
COVID-19 cuts into away-from-home sales
he bottled water category was enjoying a decade-long streak of increasing sales. Diet soft drinks were making a comeback. Then COVID-19
struck, leaving the beverage industry wondering how long the pandemic
will last and how it will impact all categories.
US retail sales from Information Resources, Inc., a Chicago-based market
research firm, showed sales surging in several categories, but beverage companies, especially soft drink makers, reported slumping sales in foodservice.
"We generally align with forecasts that imply the global economy could take
two to three years to fully recover," said James Robert B. Quincey, chief executive officer for the Coca-Cola Co., Atlanta, in a July 21 earnings call. "Notwithstanding the macros, our North Star is to return to pre-COVID levels and to do
this ahead of the economic recovery."
Robert J. Gamgort, executive chairman and CEO of Keurig Dr Pepper Inc.,
Plano, Texas, also spoke about COVID-19 in a July 30 earnings call, saying the
macro environment will be bumpy and uncertain until a vaccine or treatment
becomes widely available.
"The COVID crisis is by no means a windfall for KDP," he said. "We have been
required to focus resources on the areas of our business that are aligned with
changing consumer trends such as at-home coffee, multipack cold beverages,
large-format retail and e-commerce, to offset significant weakness in awayfrom-home coffee, on-premise beverage consumption and convenience stores."

13.8 billion gallons in 2018, according to Beverage Marketing Corp., New York.
Data from IRI showed bottled water sales increasing at the US retail level
this year with sales of $13.97 million for the 52 weeks ended July 12, up 9%
from the previous 52-week period. Yet bottled water sales struggled outside
retail. Over the first six months of the year, Danone SA, Paris, posted sales
declines in water, which ranged between 20% and 40%, across all regions.
Out-of-home demand declined for single-serve bottled water.
Nestle SA,Vevey, Switzerland, in May said it was exploring strategic options, such
as a potential sale, for the majority of its Nestle Waters business in North America.

BOTTLED WATER'S BIG DECADE

PEPSICO MAKES ENERGY MOVES

Bottled water volume in the United States has increased every year since
2010.Total US bottled water volume grew to 14.4 billion gallons in 2019 from

IRI data showed US retail sales of energy drinks, non-aseptic, up 15% to
$3.51 billion in the 52 weeks ended July 12. Category leader Red Bull North

LEADING GROUND

1
2
3
4
5

The Folger Coffee Co.
Starbucks Coffee Co.
Kraft Heinz Co.
The J.M. Smucker Co.
Peet's Coffee
Private label
Total

LEADING GROUND

1
2
3
4
5

coffee vendors

Folgers
Starbucks
Maxwell House
Dunkin' Donuts
Peet's Coffee
Private label
Total

Dollar sales
$1,035,722,749
$531,299,096
$530,971,155
$324,283,821
$190,202,413
$424,012,296
$4,052,439,600

coffee brands
Dollar sales
$1,002,094,624
$518,399,596
$417,174,009
$318,461,247
$190,032,605
$424,012,296
$4,052,439,600

% change
from
year ago
-1.7%
11.7%
-8.6%
7.9%
16.1%
1.6%
3.2%

©AMENIC181 - STOCK.ADOBE.COM AND HONEST TEA

LEADING CONVENIENCE

1
2
3
4
5

Nestle Waters North America, Inc.
Glaceau Water Co., Inc.
Coca-Cola Co.
PepsiCo, Inc.
Quaker Oats Co.
Private label
Total

LEADING CONVENIENCE
% change
from
year ago
-1.8%
12.2%
-10.0%
6.2%
16.0%
1.6%
3.2%

1
2
3
4
5

bottled water vendors
% change
Dollar sales
$2,349,229,113
$758,799,867
$712,746,339
$702,826,817
$292,224,169
$2,961,994,243
$9,221,357,550

from
year ago
-0.9%
6.4%
2.0%
8.3%
15.8%
10.6%
6.0%

bottled water brands

Aquafina
Dasani
Nestle Pure Life
Poland Spring
Glaceau smartwater
Private label
Total

Dollar sales
$702,053,476
$695,323,572
$611,880,472
$509,647,251
$367,765,646
$2,961,994,243
$9,221,357,550

% change
from
year ago
8.3%
1.4%
-5.0%
-1.8%
7.7%
10.6%
6.0%

Data for 52 weeks ended July 12, 2020
Total US - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains)
Source: Information Resources, Inc.

32 \ October 2020

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Corporate Profiles - 2020

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