Pepsi-Cola supplanted Diet Coke as the No. 2 soda brand in the
U.S. by volume in 2014 as Americans continued to flee diet soft
drinks, according to industry data published Thursday.
Overall U.S. soda consumption contracted 0.9%, the 10th straight
yearly decline, as health-conscious consumers drop traditional
carbonated drinks for everything from water to energy drinks to
tea.
Coca-Cola Co.'s full-calorie Coke remained the country's
top-selling soda last year with a market share of 17.6% after its
volume rose 0.2%, according to Beverage Digest, a trade publication
and data service.
But Diet Coke fell to No. 3, with a soda market share of 8.5%,
after volume plunged 6.6% in 2014. PepsiCo Inc.'s full-calorie
Pepsi-Cola had a market share of 8.8% after its volumes dropped
1.8%. Diet Coke had leapfrogged Pepsi-Cola for second place in
2010.
The reversal highlights the mounting woes of diet soda, which
have fallen more sharply in the U.S. than full-calorie soda in each
of the last four years. More consumers are concerned about the
health impact of artificial, zero-calorie sweeteners such as
aspartame even though the Food and Drug Administration says such
sweeteners are safe.
Overall volumes of all nonalcoholic beverages including bottled
water rose 1.7% in the U.S. last year after dropping 1.6% in 2013,
according to Beverage Digest. Volumes at Nestlé SA's water division
rose 9.1%, boosted by popular brands such as Nestlé Pure Life and
Poland Spring.
Nestlé's market share of U.S. nonalcoholic beverages rose 0.7
percentage points to 11.0%, replacing Dr Pepper Snapple Group Inc.
as the No. 3 industry player by volume. Dr Pepper Snapple's market
share slipped 0.2 percentage points to 10.7% after volume dipped
0.1%.
Overall beverage volumes at Coke and PepsiCo each rose 0.3%.
Coke had a 33.6% market share in U.S. nonalcoholic beverages, down
0.5 percentage point from 2013. PepsiCo's market share slipped 0.3
percentage point to 25.4%.
Write to Mike Esterl at mike.esterl@wsj.com
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