Carbonated Soft Drink Sales Up

ncasef-opposes-new-york-soft-drink-ban01Wells Fargo notes Coca-Cola Co. dollar sales help buoy the CSD category.

Nielsen reported that carbonated soft drink (CSD) sales were up for the first time in over a year.

Total CSD (excluding energy) dollar sales were up +0.7% (-0.7% for 12-weeks) in the latest XAOC Nielsen period during the four-weeks ended Aug. 2, 2014, driven by an equal unit pricing increases of +1.1% and equal unit volume declines of -0.4%.

Meanwhile, liquid teas had solid dollar sales growth of +4.9%, while sports drinks were down -2.7%, and bottled water dollar sales came in flat. Energy dollar sales were up +10.1%, led by Monster (MNST)’s strong +12.2% growth, and offset by Red Bull’s modest growth of only +5.7%, Wells Fargo Securities LLC reported.

“We are encouraged by the sequential improvements in CSDs, led largely by Coca-Cola (KO), and continue to remain confident on the long-term growth runway for the energy category,” noted Bonnie Herzog, managing director, Beverage, Tobacco & Convenience Store Research for Wells Fargo Securities.

Wells Fargo noted Coke is likely supporting the CSD category growth, with total company dollar sales up +1.1% for the recent four-weeks (+0.2% for 12 weeks). Total CSD (ex. energy) dollar sales were up a solid +2.5% (+1.0% for 12-weeks) on +0.8% equal unit sales (vol.) growth and +1.7% pricing. The Coke brand had particularly strong +6.0% dollar sales growth, which Wells Fargo attributed to its successful ‘Share a Coke’ campaign.





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