Pepsi
Pepsi

KO Coca-Cola Co

45.05 -0.28 (-0.60 %)

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PEP Pepsico

116.17 -0.06 (-0.10 %)

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Americans may be drinking less Pepsi and Coke than ever before, but the death of soda isn’t happening anytime soon.

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…