Non-alcoholic beverage sales in U.S. retail saw some modest acceleration in the two-week period ending August 10, as total dollar sales rose 1.3% (up from +0.3% in the four-week period) according to Goldman Sachs Equity Research’s latest analysis of NielsenIQ scanner data.
While volume sales were flat year-over-year in the two-weeks, +1.3% average pricing growth gave the sector a boost for early August. Not every category felt the lift, however. Energy drinks have struggled to rise up to maintain and surpass the recent years of rapid expansion the category experienced, and dollar sales were down 1.5% in the two-week period, weakening from -1% in the four-week period. Volume dropped 2% and average pricing was up just 0.5%. These lackluster numbers have been consistent for several months now across the biweekly Goldman/NielsenIQ reports, and they reflect a mix of decline for the category’s leader, Monster (-3.7% dollar sales, excluding Bang) and an end to the hockey stick growth curve from emerging brands like Celsius (+6.9%), C4 (+11.6%) and GHOST (+6.1%), although Alani Nu is still seeing elevated growth at +36.1%. CPG strategist Joshua Schall noted recently that although the energy drink category likely still has “massive upside potential,” the “less rosy near-term outlook” for growth appears to have Celsius (which still outpaces both Monster and Red Bull +1.5%), looking to extend into “adjacent categories such as functional water, hydration and protein.” Speaking of hydration, NielsenIQ shows that even in the hot summer months sports drinks have seen inconsistent growth, with sales down 2.2%, recovering from -4.6% in the four-week period. The two giants of the space, Pepsi’s Gatorade (-1.9%) and Coke’s portfolio of BodyArmor and Powerade (-1.4%), are certainly having an outsized impact. But Logan Paul’s colorful insurgent PRIME, which is now facing a slate of lawsuits with plaintiffs ranging from its coconut water suppliers to the U.S. Olympic Committee, has also seen sales declines pick up, falling 38% in the two-weeks (-30.5% for four-weeks). Have no fear, there’s still plenty of cause for optimism in the numbers. Carbonated soft drink sales rose 4.3% in the two-weeks, accelerating from +3.6% in the four-week period, as volume sales improved to a mere 0.8% decline (-1.6% in four-weeks). Bottled water also picked up some steam, up +0.3% in the two-week period, bouncing back from -2.2% in the four-weeks. Meanwhile, sparkling water grew 4.9% (+4.5% for four-weeks). Check out the full report on BevNET. | 
