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June 26, 2015

Fashion Friday: How Coca-Cola Mastered Fashion Brand Licensing

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Coca-Cola's brand image, as an obvious symbol of Americana, Western consumerism and pop culture is a powerful icon. The brand has worked tirelessly through product placement and designer collaboration to make Diet Coke the it-drink of the fashion industry.  This podcast examines the marketing tactics that helped Coke achieve this status, from packaging innovation and personal relationships to product history.  Listen for complete insights.

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June 23, 2015

Coffee Fest: A Review of the North American Market and Key Hot Drinks Trends

The Coffee Fest trade show took place on Navy Pier in Chicago from June 5 to June 7, hosting a wide range of players in the coffee and hot drinks industry, including coffee shop owners, baristas, roasters, distributors, manufacturers and more. Here, Euromonitor International’s drinks research analysts Mark Strobel and Eric Penicka presented on ‘The State of the North American Coffee Market’. Below are some key points from the presentation as well as other notable trends from Coffee Fest.

Euromonitor’s Presentation on the State of the North American Coffee Market

CoffeeFestGlobally, retail coffee is a US$85 billion dollar industry and North America is among the largest and fastest growing of all regions worldwide. In the US, coffee pods have dominated conversations as its value share of the market has grown from nearly negligible a decade ago, to a US$4 billion industry in 2014. However, their growth spurred on by the Great Recession is expected to taper off in the next five years. Pod’s stalling growth will in part be a result of increased consumer appreciation of coffee in the US, where third-wave, independent coffee shops have gained ground. Furthermore, specialty coffee shop growth can largely be attributed to the millennial age group which has changed consumer trends across industries and will only grow in importance in the years to come as their purchasing power advances.

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June 14, 2015

InterBev 2015: Different Points of Emphasis for the Big 3

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

View Howard Telford's profile on LinkedIn

This past week, the InterBev 2015 trade show was held in Chicago, in conjunction with FMI Connect 2015 (Food Marketing Institute) and United Fresh. Euromonitor International, a media partner of the event, also attended the show.

Prominent among event exhibitors were familiar soft drinks companies, as well as smaller players in the world of soft drinks manufacturing, packaging and retailing. A variety of new products and retail strategies were on display, as beverage companies sought to convince their grocery retail partners of the strong role that branded, packaged beverages can continue to play in the store. A common emphasis on healthier, lower calorie options is not new or surprising, but each of the so-called “big 3” in US soft drinks had their own particular spin on tackling the problems plaguing the soft drinks industry in 2015. 

PepsiCo’s aggressive, multipronged US innovation strategy continues at an impressive pace, across beverages and packaged snacks, in both retail and foodservice channels. At InterBev/FMI, the company offered an array of samples and new products for attendees, stressing the synergies between its snacks and beverages portfolios. The company boasts that its successful new brands and SKUs have lifted overall retail sales for the company in the US.

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May 29, 2015

Top 5 Beverage Trends at NRA Show 2015

The National Restaurant Association (NRA) Show took place in Chicago from May 16 to 20. The show and its BAR event hosted attendees from around the world who saw the latest in packaged foods, hot and soft drinks, alcoholic drinks, cooking equipment, and software for the restaurant industry. Below are the top 5 beverage trends that the Euromonitor research team of Eric Penicka, Mark Strobel, and Virginia Lee observed.

Dry-Cider1. Dry Cider: As cider continues to have staggering growth in the US, cider companies are attempting to appeal to a wider group of consumers. In a bid to disprove common perception that ciders are for women, cider companies have focused on dry and bitter product development. Ciders featuring craft beer’s beloved hops were featured in Angry Orchard’s Hop’n Mad Apple and the Colorado Cider Company’s Grassho-ah. Beyond hops, semi-dry and dry ciders are being formulated to increase session-ability. Woodchuck’s Gumption blends American sweet eating apples and British dry cider apples to create a semi-sweet cider to assist consumers in transitioning to dry ciders. At the Demo Lounge, Wirtz Beverage Group used Seattle Cider Co’s gin botanical cider to create a Seattle “75” cocktail.

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May 19, 2015

The Paradox of Choice in Soft Drinks

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In a world with more choices than ever before, effective curation is key. This podcast discusses the growing importance of curation in soft drinks. While consumers demand choice, they also seek guidance, and brands which can provide this—whether they are retailers, foodservice operators, or manufacturers—can reap significant long-term benefits.

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May 12, 2015

Brazil's Business Environment: Consumption in Economic Slowdown

250_brazilBusiness-v1.0On the surface, Brazil looks like an attractive market. It is the seventh largest global economy and has a population of 200 million, with high consumer expenditure and high demand for commodities.
But Brazilians are spending less, industrial confidence is deteriorating, and inflation is rising, meaning a future of slow growth and economic recovery.

Consumer goods companies operating in Brazil need to adapt their strategy to integrate the global market place. What are the reasons behind this slowdown and how can organisations work it to their advantage? 

Download our white paper today to learn:

› How Brazil’s rapid currency depreciation has affected its economy and consumers 

› Which consumer industries are slowing down and which have new opportunities

› Why the middle class is changing Brazil’s economic landscape

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April 28, 2015

Is US RTD Tea Arizona a Multinational Brand in the Making?

Hope.LeeAnalyst Insight by Hope Lee - Senior Beverages Analyst

US number one health and wellness RTD tea brand Arizona is actively stretching itself outside its homeland and exploring opportunities abroad. Its recent achievements in some European markets should alert local small start-ups and major players. Private and family-owned business AriZona Beverage Co LLC’s key brand Arizona’s prominent position in world’s HW RTD tea category is underpinned by its healthy, natural formulation and premium positioning. In 2014, the company lost some share in its core US market in the face of strong competition from The Coca-Cola Co (TCCC), PepsiCo/Unilever and Nestlé. In 2014 Arizona maintained its leadership in both US RTD tea and HW RTD tea by retail value, as most of its offerings are associated with health and wellness credentials. Arizona has also expanded into bottled water and juices, as it is looking to diversify in the US soft drinks market. International expansion seems one of its priorities to sustain growth momentum.

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Challenges and Opportunities in Targeting the Senior Consumer

250_seniorConsumer-v1.0The senior market is a lucrative market to explore. The population over 60 stood at 912 million in 2014, representing 12.6 percent of the global population. By 2030, this segment will account for 18 percent, reaching 1.5 billion globally. While China is the fastest growing ageing market with over 60s forecast to grow by more than 46 percent between 2014 and 2030, Japan has the oldest population, with a massive 33 percent aged over 60. Japan is a model on the impact of this demographic shift, showing the effects of different methods of governmental intervention and product development opportunities.

 

 

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Key findings:

  • E-health, home assistance and elderly-friendly services will drive technology developments in the senior market, with health being the most dynamic consumer expenditure category through 2030.

  • Efficacy and natural features remain key features when it comes to marketing beauty products to the over 60s.

  • Demand for luxury goods focusing on heritage and craftsmanship is popular among senior consumers.

  • As senior consumers usually invest in timeless, quality clothing, an older population will have a negative impact on sales volume in the apparel market.

  • Presbyopia represents a key market driver in eyewear.

April 24, 2015

PepsiCo’s Q1: Promising Signs in a Global Soft Drinks Re-alignment

Howard TelfordAnalyst Insight by Howard Telford - Senior Beverages Analyst

View Howard Telford's profile on LinkedIn

Yesterday, PepsiCo released its first quarter earnings report. Global company organic revenue grew by 4.4%, with beverages accounting for 1.5% of this top-line figure, trailing an impressive performance for the company’s Frito Lay snacks business. The company continued to enjoy volume growth in key emerging markets, despite weakness in Europe, although suffered from exposure to foreign currency volatility in international markets.

Last year, Euromonitor International put forward four recommendations to keep PepsiCo strong in the changing global environment for non-alcoholic beverages. What progress has the company made in addressing these concerns, based on its start to fiscal 2015?

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April 20, 2015

Opportunities and Challenges in Specialty Food Ingredients

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Thursday, April 23 | 9 a.m. CDT / 3 p.m. BST

The supply of speciality ingredients to the international food and drinks market presents varied opportunities and challenges.

Adding value is a priority for the global food and beverage industry, with consumers no longer looking for simple nutrition or hydration but demanding far more in terms of taste and quality, health and wellness, naturalness, and convenience. There are also many issues at supply level that are having a significant impact on business strategies, including economic challenges, sustainability, and regulatory issues.  Our presentation will discuss the activities of ingredients companies and their response to the opportunities and challenges in today’s global market.

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Recent Posts

Fashion Friday: How Coca-Cola Mastered Fashion Brand Licensing

Coffee Fest: A Review of the North American Market and Key Hot Drinks Trends

InterBev 2015: Different Points of Emphasis for the Big 3

Top 5 Beverage Trends at NRA Show 2015

The Paradox of Choice in Soft Drinks

Brazil's Business Environment: Consumption in Economic Slowdown

Is US RTD Tea Arizona a Multinational Brand in the Making?

Challenges and Opportunities in Targeting the Senior Consumer

PepsiCo’s Q1: Promising Signs in a Global Soft Drinks Re-alignment

Opportunities and Challenges in Specialty Food Ingredients