Page 45 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Food and Drink | Soft Drinks

Soft Drinks

Perfect storm of challenges

siphons category strength

Brands respond with marketing and innovation

Regulations Because of health issues
Consumers still reached for carbonated
beverages, but not as often.
some national and local jurisdictions
limited where brands could sell
products (not near schools) and in
Demographics, health issues and what sizes (no giant drinks).
changing tastes continued to pressure
the sector, even in fast growing markets.
The category rose in brand value, but Choice Although the category is the
only by 4 percent.
target of regulations and health
concerns it keeps expanding and
fragmenting.
The population that traditionally drove
cola sales, young people, is smaller in Occasion remains key Colas continue
mature markets. Consuming fewer
carbonated beverages, young people to market their brands for treats or
turned to alternatives like energy drinks indulgence, understanding that for the
consumer ordering a slice of pizza and
and waters enhanced with vitamins.
a beverage, immediate pleasure is the
primary concern.
Coconut water was especially popular in
the US, falling under the general rubric of
healthy, enhanced hydration. But even Innovation and

alternatives can raise issues. To counter experience
Top 15 Soft Drinks
the concern with sugar level, Tropicana,
the orange juice brand owned by
PepsiCo, added a line extension called To achieve a level of personalization and Brand Value Brand
Tropicana 50, which contains half the unique experience, Coke partnered with
Green Mountain Coffee, the company % Change Value Brand
amount of sugar.
that makes single-serve coffee pods that 2014 vs 2013
2014 $M
Contribution
include a selection from Starbucks. Coke
Consumption of CSDs (Carbonated Soft intends to offer a range beverages 1
Coca-Cola
67,712
5
5%
Drinks) declined for the ninth straight In a separate innovation aimed at reviving
year in the US, with a 3 percent drop
prepared at home by the consumer.
the soft drinks category and remaining 2 Diet Coke 12,972 -5% 3
in 2013, according to Beverage Digest. relevant, Coke launched Coca-Cola Life
The innovation is aimed especially at 3
Red Bull
10,873
4
3%
The industry publication reported that Millennials. It assures having the beverage in Latin America, with cans that look like 4 Pepsi 9,318 -5% 3
4%
CSD volume in the US retreated to its when and where you want it. It also Coke but are green to emphasize both
1995 level.
sustainability and health. The drink
5
Nescafé
6,676
4
18%
personalizes the product and delivers it uses a combination of real sugar and
Main brands, such as Coke, Pepsi, with a unique experience in an at-home artiicial sweetener.
6 Tropicana 5,178 8% 4
variation of Coke’s Freestyle vending
Mountain Dew and Dr. Pepper machine, which enables consumers to 7
Nespresso
4,970
4
11%
outperformed their diet versions because mix about 100 lavors.
Betting that there’s still a growing market
of consumer concern with artiicial of young people who will drink 8 Fanta 4,879 23% 2
sweeteners, according to Beverage carbonated beverages that are made
Digest. These other trends emerged:
The approach is also based on the without corn syrup and preservatives, 9
Sprite
4,545
3
10%
success enjoyed by Nespresso, which has 10 Gatorade 4,115 10% 3
created an experience around coffee and offered with some sense of
drinking at home. With all its lavor personalization and authenticity, 11
Minute Maid
2,483
3
8%
Starbucks is introducing a line of sodas
options, Nespresso has made coffee into prepared by baristas in its cafés.
Deinition
12 Mountain Dew 2,331 -7% 3
more of a treat.
13
Diet Pepsi
2,158
3
-3%
The soft drink category includes
these non-alcoholic ready-to- 14 Dr. Pepper 2,115
-5%
3
drink beverages: carbonated
15
Aquaina
1,778
2
New
soft drinks (CSDs), juice, bottled
water, functional drinks (sport Source: Valuations include data from BrandZM and Bloomberg.
Note: Diet Coke includes Diet Coke, Coca-Cola Light and Coca-Cola Zero.
and energy), coffee and tea (hot Brand contribution measures the inluence of brand alone on earnings on a scale of 1 to 5, ive highest.
and iced).

88 BrandZM Top 100 Most Valuable Global Brands 2014
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