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New Age Beverages Market
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May 1, 1996
158 Pages - Pub ID: LA432
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- Executive Summary
The Products
- Market Definition
- Product Categories
- From Fruit Fizzes to Fruitopia
The Market
- A Slowing Market Edges Past $2 Billion
- [Table] U.S. Retail Sales of New Age Beverages: By Product Category,
1991—1995 (dollars): Alternative Fruit Drinks, Gourmet/Natural
Sodas and Sweetened Flavored Waters, Flavor-Essenced Waters,
Juice Sparklers
- Market Trends
- Sales to Surpass $2.5 Billion in 2000
- [Table] U.S. Retail Sales of New Age Beverages: By Product Category,
1991—2000 (dollars): Alternative Fruit Drinks, Gourmet/Natural
Sodas, Sweetened Flavored Waters, Flavor-Essenced Waters, Juice
Sparklers
The Marketers
- Overview of Competitors
- The Alternative Fruit Drink Category
- The Gourmet and Natural Soda Category
- The Flavor-Essenced Water Category
- The Juice Sparkler Category
- The Sweetened Flavored Water Category
Distribution and Retail
- Independent Distributors Make New Age Possible
- Retail Sales by Channel
- [Graphic] The U.S. Market for New Age Beverages: Dollar Share
- by Retailer Type, 1995 (percent)
- Range of Price Points
- Range of Margins
- New Vending Machines Offer More Variety
The Consumer
- Consumers Not Restricted to Single White 18- to 25-Year-Olds
- Age and the New Age Market
- [Table] Consumer Usage Indices: By Age, 1994 (adults)
Scope and Methodology
- Market Parameters
- Methodology
- The Products
Scope of Report
- New Age Beverages Sold at Retail
History of the Products
- New Age Dawns in the 1970s
- Variety of Entrepreneurs Emerge in the 1980s
- Independent Stores and Truckers Made NYC a Good Starting Point
- New Age Beverages Catch On in Mass Market
- Snapple Becomes a 20-Year "Overnight" Success
- The Majors Dive In
Product Definition
- Positioning Makes the Product
- What People Think They're Drinking—Dominant Perceptions
- What People Are Drinking—Dominant Characteristics
Product Categories
- Five Categories
- Alternative Fruit Drinks
- Gourmet and Natural Sodas
- Flavor-Essenced Waters
- Juice Sparklers
- Sweetened Flavored Waters
Government Regulators
- Standards of Identity for Flavor-Essenced Waters
- The Common and Usual Name Standard
- The Nutritional Labeling and Education Act
- Regulations Slow Product Introductions
- Marketers Await Approval of Artificial Sweetener Alternatives
Packaging and Labeling
- Packaging With a Punch
- Glass = Gourmet
- Snapple's Gulpable Bottles Win Converts
- The Cans That Could
- Labels That Stand Out in the Crowd
- The Market
- [Graphic] Total U.S. Retail Sales of New Age Beverages,
1991-1995 (dollars)
- [Graphic] U.S. Retail Sales of New Age Beverages:
By Product Category, 1991-1995 (dollars)
Market Size and Growth
- Measuring an Elusive Market
- Sales Near $2.1 Billion in 1995
- Market Loses Momentum
- Alternative Fruit Drinks Lead with Double-Digit Growth
- Slow Growing for Gourmet/Natural Sodas and
- Sweetened Flavored Waters
- Flavor-Essenced Waters Lose Popularity
- Juice Sparkler Sales Are Flat
- Singles Serve Up Strong Gains
- [Table] U.S. Retail Sales of New Age Beverages: By Product Category,
1991—1995 (dollars): Alternative Fruit Drinks, Gourmet/Natural
- Sodas and Sweetened Flavored Waters, Flavor-Essenced Waters,
- Juice Sparklers
- [Graphic] Share of U.S. New Age Beverage Sales:
By Category, 1991 vs. 1995 (percent)
Market Composition
- Alternative Fruit Drinks Strongest, and Growing
- Original Four Categories Account for Less Than 60% of the Market
- Blended Flavors Claim Over One-Third of the Market
- Supermarkets Lead Among Retail Channels
- Young Adults Are Top Consumers
- [Table] U.S. Consumer Usage Indices: By Age, 1994 (adults)
Northeast and West Are Top Regions
- Northeasterners Prefer Tea, Westerners Are Fans of
- Flavored Sparkling Waters
- [Table] U.S. Consumer Usage Indices: By Region, 1994
Summertime Selling Is Easy
Factors Affecting Market Growth
- Slowing Growth in Disposable Income Dampens Sales
- Was Health Craze a Passing Fancy?
- NLEA Does Not Have Expected Effect
- Alcohol Consumption Continues to Slow
- Rooting for Root Beer
- Short-Attention-Span Consumers
- Are New Age Marketers Missing the Mark?
- "Trojan Horse" Marketers Take a Bite Out of Sales
- Overwhelming Profusion of Products
- Two—and More—Can Play at Single-Serve
- Goliaths Expand Market by Legitimizing It
- ...But Gen X Does Not Want Legitimate
- Supermarkets Are Also Image-Spoilers
- Alternative Sweeteners Offer Life Support for New Age
- Other New Ingredients Could Also Spur Growth
- ...Or Hinder It: Coffee Comes Knocking...
- ...As Does Chocolate
- Is the Caffeine Issue Dead?
- Other Beverages Get Healthier
- [Graphic] Projected U.S. Retail Sales of New Age Beverages,
1996-2000 (dollars)
Projected Market Growth
- Sales to Surpass $2.5 Billion in 2000
- Alternative Fruit Drinks to Grow 55%
- [Table] Projected U.S. Retail Sales of New Age Beverages: By Product
Category, 1996-2000 (dollars): Alternative Fruit Drinks,
Gourmet/Natural Sodas and Sweetened Flavored Waters,
Flavor-Essenced Waters, Juice Sparklers
- The Marketers
The Marketers
- Approximately 100 Marketers of New Age Beverages
- Newcomers Brave the New Age
- But Total Number Will Not Grow
- Large Independents Blend In
- And Then There Was One
- Going Abroad
- Going Public
- Shooting Stars
- Some Reject New Age Label
- [Chart] Selected U.S. Marketers of New Age Beverages:
By Brand and Product Category
Marketer and Brand Shares
- Snapple Is Overall Leader
- Other Top-Echelon Brands
- [Table] Estimated Marketer Share of U.S. New Age Beverage Sales:
By Brand, 1995 (percent)
- Market Share by Consumer Usage
- [Table] Consumer Usage of New Age Beverages:
By Brand, 1994 (adults)
Competitive Overview
- Easy Entry at Genesis of Market
- The Industry Matures
- Competition Within Industry Intensifies
- Private Labels Increase
- Price-Value Plays a Growing Part
- The Shakeout Begins
Competitive Focus: Alternative Fruit Drinks
- The Hot Category
- RTD Tea: Lipton Leads in Volume, Snapple in Sales
- Four Brands Earn Eight in Ten RTD Tea Dollars
- Tea for Two: Partnerships Abound
- Advertising Budgets Make It Big
- Long-Term Success Requires Differentiation
- Keeping Up with the Snapples
- Shelf-Space Battles Intensify
- Flavor of the Week Frenzy Begets Unusual Blends
- Lipton, Others Brew Their Teas
- Quick Roll-Out the Rule
- Snapple's Focus Provides Edge
- Seagram Drops Back
- Coca-Cola Switches Gears
- Disappointment in Fruitopia: Is It the Psychedelics or the Taste?
- Coca-Cola Keeps the Faith: $150-Million Production Investment
- PepsiCo to Add Entry
Competitive Focus: Other Categories
- Gourmet and Natural Sodas: Different Brands for Different Channels
- West End, Soho Choose Substance Over Style
- "Supermarketed" Brands Falter
- Original New York Seltzer and Soho: In Search of Sales Past
- Growth in Root Beer?
- Flavor-Essenced Waters: Distribution Is Key
- Little Action in the Category
- Perrier Offers Sophistication, Quietly
- The Glamour Is Gone
- Most Marketers Miss Out on the Single-Serve Revolution
- Still Water Spill-Over Could Enliven Category
- Mendocino Offers More Minerals, Interesting Flavors
- Juice Sparklers: New Age Start-Up Falls Behind
- Jam Giant Maintains Trio of Natural Brands
- Category Breaks Two Marketers
- Sweetened Flavored Waters: Tough Competition in Slow Market
- 2 Calorie Quest Breaks the Diet Barrier
- 2 Calorie Quest's Success Draws Imitators
- Seagram Pulls Support for 2 Calorie Quest
- Clearly Canadian Digs In
- Sport Caps Create Interest
- It's the Water
Competitive Profiles
- Quaker Oats North American Beverage Co.
- PepsiCo, Inc.
- Coca-Cola Co.
- Ferolito, Vultaggio & Sons
- Triarc Companies, Inc.
- Clearly Canadian Beverage Corp.
- J.M. Smucker Co.
- The Seagram Beverage Co.
- Adirondack Beverages
- Everfresh Beverages, Inc.
- Hansen Natural Corp.
- Original New York Seltzer
- Seaborn Beverages Co.
- Soho Beverages, Inc.
- Talking Rain Beverage
- Water Star Bottling
- West End Products Co.
Marketing and New Product Trends
- Branching Out from the New Age
- Extending the New Age Market
- Niche Marketing
- Differentiation by Ingredients
- New Age Turns Esoteric
- New Flavor Carriers Lemonade and Cider
- All Aboard the Low-Cal Bandwagon
- Marketers Wish—and Wait— for Approval
- of Aspartame Alternatives
- [Chart] Selected New Product Introductions:
New Age Beverages, May 1994—March 1996
Consumer Advertising Expenditures
- Entry of Majors Ups the Ante
- Quaker Oats Tops List at $43 Million
- [Table] National Measured Advertising Expenditures for
New Age Beverages: 1993 and 1994 (dollars)
- Spending Declines in First Three Quarters of 1995
- [Table] National Measured Advertising Expenditures for
New Age Beverages: 1st Three Quarters 1994 and 1995 (dollars)
- Smaller Marketers Join In
- Many Marketers Do Not Advertise
Consumer Advertising Positioning
- Youth Orientation Ubiquitous...
- ...and Problematic
- "Old Age Parents" Not Seen as a Plus
- But What's Good for the Environment ...
- Negative Advertising in the New Age
- Coke Parts Company with the 1960s
- Quaker Oats Abandons "Quirky"—and Wendy
- Mistic Gets Mystic in 1995
- Mistic Gets Personal in 1996
- Adirondack Aims for the Thinker
- Saratoga's Toga!: It's All About Labels
- McKenzie River Raps
Consumer Promotions
- Integrated Ad-Promo Campaigns
- Events Are a Traditional Marketing Forum
- New Age Athletics
- Fruitopia Takes a Tour
- Fruitopian Connections
- Marketers Step Up Sampling
- Couponing As Usual
Trade Advertising and Promotions
- Major Trade Journals
- Ads Offer Fun and Fortune
- Brand Testimonials and Product Options
- Examples of Trade Ads
- Distribution And Retail
Distribution
- Early New Agers Rely on Contractors
- Non-Beverage Distributors Also Are Players
- Strong Relationships with Distributors Are Essential
- Takeovers a Cause for Distributor Anxiety
- Majors Mean Double Trouble for Minors
- Snapple Debuts Company-Owned Bottling Plant
- Distribution Another Area of Vertical Integration
Retail
- Retail Sales by Channel
- [Graphic] The U.S. Market for New Age Beverages:
- Dollar Share by Retailer Type, 1995 (percent)
- Range of Retailers
- Range of Price Points
- Range of Margins
- The Perils of Packaging Changes
At the Retail Level: Supermarkets
- Multi-Serve Sales Give Supermarkets an Edge
- But Supermarkets Lose Share Due to Single-Serves
- Quaker Oats' Clout Completes Snapple's Supermarket Penetration
- Proliferation of Brands Leads to Trimming from the Bottom
- Private Labels Increase
At the Retail Level: Convenience Stores
- Convenience Stores Important as Introductory Channel
- Front-End Placement Is Critical
At the Retail Level: Health and Natural Food Stores
- A Breed Apart
- Some Opt for the Road Less Traveled
At the Retail Level: Vending
- Over One in Five Operators Have Dedicated New Age Machines
- Snapple's Vendor-Friendly Attitude
- New Machines Offer More Options
- Designer Dispensers Create Recognition
- New Packaging Targets New Delivery Points
- The Consumer
The Consumer
- Generally Characterized as 18—25 and White...
- ...But Other Groups More Likely to Use
- Note on the Simmons Market Research Bureau
- Simmons Beverage Categories
- Generalizations About New Age Beverage Users
Consumer Focus: RTD Iced Tea
- Bottles Are Most Popular Package
- African-Americans Are Best Consumers
- Young Adults, Singles Most Likely to Use Bottled
- [Chart] Demographic Characteristics Favoring Use
of RTD Iced Tea, 1994 (adults)
- Lipton Claims the Most Consumers
- Young Adults, Northeasterners More Likely to Use Snapple
- [Chart] Demographic Characteristics Favoring Use of RTD Iced Tea:
By Brand, 1994 (adults)
Consumer Focus: Sparkling Water, Seltzer, Natural Soda
- Consumers Prefer Stronger Flavors
- Gap Between Flavored and Flavor-Essenced Widens
- Use of Flavored Beverages Linked to Age, Family Status, and Race
- Flavored Beverage Consumption Not Linked to Income
- Use of Flavor-Essenced Water Linked to Profession and Education
- Higher Income Is Also an Indicator
- [Chart] Demographic Characteristics Favoring Use of Sparkling
Water/Seltzer/Natural Soda, 1994 (adults)
- Snapple and Clearly Canadian Claim the Most Consumers
- Mistic and Snapple Get Younger Adults' Vote
- Parents Prefer Clearly Canadian
- Perrier Most Preferred by College Graduates;
- Canada Dry Users Not Upscale
- Use of All Brands Skews to Minorities
- [Chart] Demographic Characteristics Favoring Use of Sparkling
Water/Seltzer/Natural Soda: By Brand, 1994 (adults)
Consumer Focus: Juice-Added Carbonated Soft Drinks
- Almost One in Six Adults Are Users
- African-Americans (Again) the Best Consumers
- [Chart] Demographic Characteristics Favoring Use of Juice-Added
Carbonated Soft Drinks, 1994 (adults)
Appendix: Addresses Of Selected Marketers
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