2. LOW-FIZZLE SALES
According to Beverage Digest, total volume for US carbonated soft drinks decreased 0.8%, marking the 12th consecutive year of declines, although 2016’s decline was less than the declines for 2014, or 0.9%, and 2015, or 1.2%.
Dollar sales for 2016 actually increased approximately 2%, to $80.6 billion, primarily because major companies have been marketing small-size packages at higher price points instead of larger discount packs.
Information Resources, Inc. (IRI) reported that the decline continued into 2017, at approximately 0.01% for the 52 weeks ending May 14, 2017, with total sales exceeding $27.6 billion at US multi-outlets and convenience stores.

3. BOTTLED WATER BUBBLES TO THE TOP
2016 was the year US bottled water sales surpassed soft drinks for the first time; however, a May 2017 Trend Source survey revealed that 92% of respondents said they had consumed both bottled water and soda during the past 6 months.
Although the general trend of healthier eating and drinking has contributed to bottled water’s ascendency, more consumers are also drinking a greater variety of beverages.
Despite bottled water outperforming the overall soft-drink category, ginger ale sales increased 9% and natural soft drinks increased 16% during 2016; however, natural soft drinks accounted for less than 1% of the total market.

4. CONSUMERS CAUGHT IN THE BRAND-LOYALTY NET
According to the Trend Source survey, soft drinks consumption per week was relatively equal across age groups: 20–29, 2.1; 30–39, 2.5; 40–49, 2.3; 50–59, 2.3; 60+, 2.2.
Brand loyalty appears to be so strong among soft drinks consumers that 50% would be very unlikely to stop drinking if the price of their favorite brand increased 10% more than other brands.
The long-term advertising effort of the major soft drinks companies has also created much greater brand loyalty, as 75% of survey respondents said they had a favorite soft drink brand, but only 62% for energy drinks and 45% for sports drinks.

5. HEALTH CONCERNS AREN’T DISAPPEARING
Despite the brand loyalty that the major soda drinks companies have generated for decades, media stories continue to report on the connection between soft drinks consumption and a variety of health concerns, including obesity and diabetes.
In response to health concerns and claims, Coca-Cola, Dr. Pepper Snapple and PepsiCo are all committed to reduce the amount of sugary drink calories Americans consume by 20% prior to 2025.
On a 0–5 scale, the score for light soft drinks consumers (less than 4/month) was 4.6 for those who would stop drinking soda if it causes a severe illness within one year; for heavy consumers (2 or more/day), the score was 4.1.

6. BIGGEST BUBBLE BARONS
According to BrandFinance Global 500 list of top beverage brands, Coca-Cola and Pepsi are #1 and #2 in total brand value, at $34.18 billion and $18.95 billion, respectively.
PepsiCo, however, remained #3 ahead of The Coca-Cola Co., #4, on the list of top beverage companies by capital investments during 2016, at $3.04 billion and $2.26 billion, respectively.
During late October 2017, Coca-Cola completed its refranchising initiative, returning the ownership of bottling operations to almost 70 independent bottlers. This refranchising included 350 distribution centers and more than 50 production facilities.

7. A PEEK INSIDE THE HEADS OF INDUSTRY PROFESSIONALS
Of the more than 1,000 responses from industry professionals to a May BeverageDaily.com survey, 20.5% said they would spend much more for marketing/promotion during 2017, compared to 3.5% spending much less.
The survey also found that 78% (strongly agree, 19%, and agree, 59%) were more positive about the future of their company than one year ago.
Premium products were the #1 trend among these industry professionals, at 56%; followed by functional products, 51%; new flavors or concepts, 45%; new packaging sizes or formats, 30%; value products, 28%; and personalized products, 13%.

8. ADVERTISING STRATEGIES
Retailers may want to consider a “Pick Two” bundle, discounting the price when consumers select two soft drinks brands in their newer, smaller packaging/packs.
To offset any decline in the most-popular soft drinks brands, retailers should consider more promotions for ginger ale, natural soft drinks and similar products.
The Media Audit data suggests there may be opportunities to market/promote soft drinks as an “upscale” beverage among higher-income consumers ($150,000+), possibly bundling soft drinks with the purchase of high-end steak and seafood grilling items.

9. NEW MEDIA STRATEGIES
Ask customers to share videos of how they have established a balance between soft drinks consumption and other non-alcoholic beverages, so they can still enjoy their favorite soft drinks brands.
Find, curate and share online news stories of the efforts of major companies, Coca-Cola, Dr. Pepper Snapple and PepsiCo, to reduce the amount of sugary drink calories Americans consume.
Ask customers to record and post videos of their pairing of various menu/meal choices with soft drinks during the seasons: family gatherings for Thanksgiving and Christmas, summer grilling and picnics, etc. and a refreshing break during spring and fall cleaning.