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Carbonated Beverages Going Flat
October 01, 2006
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Anyone over 25 years old can remember the peak of the “Cola Wars.” The phrase was coined in the 1980s and 90s to describe the mutually-targeted marketing and advertising campaigns between Coca- Cola of Atlanta, Ga., and Pepsi-Cola of Purchase, N.Y.

The two largest beverage companies in North America each wanted to convince consumers that their particular carbonated potion was consumer preferred.While taste is ultimately a personal choice, there was no disputing the fact that cola was king. From year-to-year, soft drink consumption grew. As recently as 1998, carbonated soft drinks (CSDs) continued to show no less than three percent annual volume growth.

In the year immediately before the turn of the century however and the four years since 2000, the growth of CSD consumption dropped. Regardless, CSDs still ended each year with plus volume growth according to beverage industry watchdog and newsletter Beverage Digest.

2005 marked the first time in at least two decades that Americans bought fewer CSDs
than the year before. Sales volume fell .2 percent in the United States from 2004, as
consumers, perhaps seeking a healthier beverage alternative, began consuming more
waters, teas, dairy-based beverages and sports drinks like PowerAde and Gatorade.

While the percent decline is not significant, the trend has opened eyes amongst major
CSD companies and brands.

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