Carbonated soft drink volumes have been in decline for years and, in a recent report, broker JPMorgan said volumes could keep falling until at least 2025.
Carbonated soft drink volumes have been falling for the last few years, squeezing earnings at CCA and Schweppes Australia.
Not exact matches
Coca - Cola Amatil is preparing to blitz television screens with multi-million dollar marketing campaigns to boost sales of
carbonated soft drinks and bottled water after seeing the first rebound in beverage
volumes in Australia for years.
CCA is understood to have done internal modelling on the impact of the price rises, which could accelerate a multi-year decline in
volumes for
carbonated soft drinks, but has not released its forecasts.
Its
carbonated soft drink business grew 0.4 points by
volume in the past year and its main growth platform, Indonesia, is still relatively small and holds a few risks.
Nevertheless, the strong
volume growth in water is likely to offset price reductions and weakness in
carbonated soft drinks, underpinning modest earnings growth in the June half.
Analysts say non-alcoholic beverage
volumes rose 7 per cent in supermarkets in the six months ending June, with a 34 per cent surge in bottled water offsetting a 3 per cent decline in
carbonated soft drinks.
Coca - Cola is confident that Coke Life, the beverage giant's first new cola variety in seven years, will restore sales and
volume growth to its beverage portfolio and the entire
carbonated soft drink category, which is under pressure as consumers shun sugary
drinks in favour of healthier beverages.
CCA is still the market leader in
carbonated soft drinks, which account for 66 per cent of the bottler's sales, but sparkling
volumes have been in decline for years and JPMorgan believes
volumes could keep falling until at least 2025.
Over time, lower - income families purchased less
volume shares of both sugar - sweetened and nonsugar
carbonated soft drinks, which were taken up by families in the high - income bracket.