Pricing environment finally turning around...great for Cotts margins and profitability going forward
Nielsen data ending March 14, shows liquid teas with double-digit dollar sales growth.
Total carbonated soft drinks (CSD), excluding energy drinks, saw flat dollar sales (+0.3% for 12-weeks) in the latest XAOC Nielsen period during the four-weeks ending March 14, 2015, driven by equal unit pricing increases of +4.5% and equal unit volume declines of -4.3%, reported Wells Fargo Securities.
Wells Fargo reported that Coca-Cola continues to lead pricing growth in CSDs with particularly strong +7.9% growth, significantly outpacing its peers. For the same four-week period, liquid teas returned to double-digit dollar sales growth (+10.3%) (vs +9.5% for 12-weeks) while sports drinks were up only +0.9% (vs +3.5% for 12-weeks). Bottled water dollar sales were up +4.1% and Energy dollar sales were up a solid +13.0%, led by sequential improvements in both Monster and Red Bull.
“Despite the negative impact on equal unit volumes, we remain encouraged by Coca-Cola’s pricing initiatives and the overall impact the improved pricing should have on category sales,” said Bonnie Herzog, managing director, beverage, tobacco and convenience research for Wells Fargo.