[July 4, 2005] According to the Beverage Marketing Corporation, each person in the United States consumes on average 192 gallons of liquids a year. About 13 % of that is alcoholic beverages, generating about $150 billion in revenues in 2004, and the remaining 87% non-alcoholic beverages generating about $100 million in annual sales in 2004.
The trio of Anheuser-Busch, Miller, and Coors controls 80% of the alcoholic beverage market. About $66 billion in non-alcoholic beverage revenue came from the sale of 10 billion cases of carbonated soft drinks. Coca-Cola, Pepsi, and Cadbury Schweppes accounted for 90% of that business. Interestingly enough, the U.S. market has nearly 450 different soft drinks to choose amongst.
Sales of carbonated soft drinks (CSD) have slipped each year since 1999, with much of that business going to the bottled water segment. Sales of non-alcoholic beverages such as bottled water, milk, coffee, tea, fruit juices, vegetable juices, sport and energy drinks accounted for $34 billion. .In 2004, 3.3 billion cases of bottled water, sports drinks, and juice drinks were sold. The newest kid on the the block is the energy drink, with the biggest one year increase, up 74% to 60 million cases in 2004.
New product developments within the beverage industry to watch include:
• The quick rise and popularity of energy drinks
• The introduction of a category or "organic" drinks
• Inclusion of antioxidants, nutrients and minerals, vitamins, sugar substitutes, and exotic fruits, designed to add taste and refreshment, but also promote health
• Price drops among beverages competing directly with CSD's
• Efforts to differentiate levels and tiers within a category
• More hybrid citrus/energy drinks
• Competition for shelf space
• Promotional activity increases on the internet and on cable television
• Creative "buzz" marketing initiatives
• Alliances with sports, entertainment, food, and tourism industries
• Competition for shelf space
• Life style and age-segment targeted marketing
[January 19, 2008] When Starbucks first appeared on the scene, the category Coffee Houses was its oyster. No more styrofoam cups full of weak, hot water. Here was a place to enjoy a coffee experience. Many people heard about Starbucks and bought into the whole scene...for others, it was a chance to drink a great cup of coffee, though never more than that. Niche players found some success, and a few players such as Dunkin Donuts made a bigger splash, while addressing unmet consumer needs.
But in 2007, McDonalds announced plans to upgrade their coffee, following other recent changes that gained popular support. Not too long after that announcment, Starbucks founder Howard Schultz announced his return to Starbucks as CEO. His stated goal is "to restore "the brand and in-store experience. Harry Roberts is returning to the company as senior VP and chief creative officer. He will be responsible for 'the customer in-store experience, merchandise strategy and the overall look and feel of the company's stores'. Terry Davenport was moved to senior VP of marketing to lead brand strategy. He will be responsible for 'the company's overall marketing plan, product development, consumer insights and innovation for food and beverage, among other things'.
