Soft Drink Sales Rose Sharply in 1998

Soft drink sales jumped 3.4% in the United States in 1998 — an increase of nearly 330 million cases over 1997 — based on preliminary statistics released this month from Beverage Marketing Corp.

America's most popular beverage, soft drinks grew faster than any other beverage category on a pure volume basis. Industry volume topped 10 billion cases for the first time, up from nearly 9.8 billion cases in 1997. Per capita consumption reached 56.1 gallons — an all-time high.

Two Giants Step Up Pressure
"Coca-Cola and a rejuvenated Pepsi-Cola have stepped up the pressure," said Michael Bellas, chairman, Beverage Marketing Corp., a New-York-based research and consulting firm for the global beverage industry. "Both are growing faster than the overall market. And when the elephants dance, the ants get crushed."

Both companies saw their volume increase 4.5%. The Coca-Cola Co. led the industry with a 44.6% share of market, up from the 44.1% share the company held in 1997. The company experienced solid volume growth, thanks to strong showings from Sprite, Barq's and Minute Maid.

Pepsi-Cola Co. saw its market share increase to 31%. Mountain Dew, Mug and newly introduced Pepsi One drove the company's growth. Dr. Pepper/Seven Up Inc. remained the third largest soft drink company with 14% of the market, and 2% total volume growth. The Dr. Pepper brand dominated the company's growth, up 5.8%.

Growth Rate Strong
The industry's 3.4% growth rate was the strongest in the last three years. Among flavors, root beer, lemon-lime and heavy citrus products grew the fastest, as they have throughout the '90s. Private label products were essentially flat as the aggressive pricing of national brands make them even more appealing to consumers. The industry remains increasingly consolidated at the top, with Coke, Pepsi and Dr. Pepper/Seven Up accounting for 90% of the industry.

Leading Soft Drink Companies

	1998 Share	Share Change
Coca-Cola	44.6	+0.5
Pepsi-Cola	31.0	+0.3
Dr Pepper/Seven Up	14.0	-0.2
Cott Corporation	2.6	-0.2
National Beverage	1.9	-
Triarc/Royal Crown	1.2	-0.3
Monarch	0.7	-0.1
Double Cola	0.4	-
Big Red	0.2	-
Seagram Mixers	0.2	-

Source: Beverage Marketing Corp.

Leading Soft Drink Brands

	1998 Share	Share Change
Coca-Cola Classic	20.6	-0.1
Pepsi-Cola	14.5	-0.4
Diet Coke	8.6	+0.1
Mountain Dew	6.6	+0.3
Sprite	6.5	+0.3
Dr. Pepper	5.9	+0.1
Diet Pepsi	5.0	-0.1
Seven Up	2.1	-0.1
C-F Diet Coke	1.8	-
Minute Maid	1.2	+0.2

• Minute Maid includes diet and regular
Source: Beverage Marketing Corp.