Soda Sales Flat, Energy Drinks Supercharged

The energy drink category continues to see strong sales, despite increased scrutiny due to deaths that have been linked to consumption.

March 06, 2014

DULLES, VA – While traditional soda sales continue to struggle, carbonated energy drinks are still growing strong, Daily Finance reports.

According to Symphony IRI data compiled by Bloomberg last summer, U.S. energy drink sales increased nearly 7% to $9.7 billion through the previous 12 months, especially strong growth considering the category has come under sharp attack due to deaths that have been linked to energy drink consumption.

The increase comes on the heels of a 30% surge in 2011 and 21% rise in 2012.

More recently, Monster Beverage posted strong quarterly results last week as it realized a 15% surge in net sales.

At the same time, Coca-Cola reported global volume up just 1% during the fourth quarter and 2% for all of 2013, which includes all of the beverage company’s drink offerings. PepsiCo also reported sluggish volume performance worldwide.

According to Daily Finance, sugary drinks and even diet beverages “are failing to deliver the kind of growth that these two soda giants used to routinely deliver. We're drinking water,” it said.

Additionally, coffee consumption is up, including iced coffee and latte beverages at QSRs, which is impacting sales for Coca-Cola and PepsiCo.

Daily Finance speculated that the good times may be topping out for companies like Monster that, in addition to battling health safety concerns, are also confronting the possibility of labeling regulations.

In the meantime, “[t]he health concerns may never entirely go away. The FDA will let us know if that ever changes. However, energy drinks are now delivering caffeinated boosts for investors who can use a little pick-me-up in their portfolios,” Daily Finance concluded.

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