KO Coca-Cola Co
45.05 -0.28 (-0.60 %)
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116.17 -0.06 (-0.10 %)
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In 2016, US soft drink consumption by volume dropped for the 12th year in a row, according to trade publication Beverage Digest. Instead of soda, Americans are drinking more bottled water, energy drinks, and coffee.
As a result, Coca-Cola and PepsiCo are increasingly investing in the development of new drinks such as sodas packed with fiber, premium water, and bottled coffee.
“Generating growth today can be like assembling a jigsaw puzzle,” Duane Stanford, Beverage Digest’s executive editor, said at the publication’s Market Smarts conference in New York City on Monday.
While both PepsiCo and Coca-Cola are adding new brands to the lineup, Pepsi has been especially proactive in moving beyond soft drinks. In April 2016, the company announced that less than 25% of sales were from soda, as the company invests in snacks and non-carbonated soft drinks — something some analysts say has been to the detriment of Pepsi’s sales.
“I think [Pepsi] is falling victim to media hype” in its soda strategy, RBC Capital analyst Nik Modi…