Beverages

Drug Store News,  May 20, 2002  

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Tallying the business across carbonated beverages, beer, wine, iced tea, bottled water and just about every other drinkable category, sales of beverage products reached nearly $4 billion in drug chains last year, riding double-digit increases with the lone exceptions of hard liquor and wine.

But of all of these categories, perhaps the most crucial element has been the growth in carbonated beverages, which has continued for the past several years.

Of course, the heightened promotional activity through the last half of 2001 had to have an impact. While the how-low-can-you-go pricing environment certainly may have impacted profits in carbonated beverages, higher margin categories like bottled water, which grew almost 27 percent in drug stores, help make up the difference. And even if customers came to the drug store for the best price on 12-packs of soda, chances are they left with more than that. The average market-basket climbs 20 percent in drug with each carbonated beverage purchase.

Top 10 brands in drug

Brand/segment                        $ Sales (*)  % change

Coke Classic (+)--
carbonated beverages                   $205.2       11.9%
Pepsi (+)--carbonated beveragees        146.6        6.1
Budweiser--beer                         138.2        6.6
Bud Light--beer                         136.9       13.2
Diet Coke (+)--carbonated beverages     109.8       15.3
Miller Light--beer                       77.8        0.7
Sprite (+)--carbonated beverages         66.3        8.1
Diet Pepsi (+)--carbonated               66.2       13.3
 beverages
Mountain Dew (+)--carbonated             57.7        1.5
 beverages
Coors Light--beer                        52.7       10.1

(+)Source: ACNielsen (as provided by Coca-Cola) for the 52 weeks ended
Dec. 29.

(*)Sales in millions
Top 10 gainers in drug

Brand/segment                      $          %       $ (*)
                                 sales (*)  change  change

Coke Classic (+)--               $205.2      11.9%  $21.8
carbonated beverages
Bud Light--beer                   136.9      13.2    16.0
Diet Coke (+)--                   109.8      15.3    14.6
carbonated beverages
Dasani-bottled water               18.1     115.9     9.7
Dr. Pepper (+)--                   47.8      23.8     9.2
carbonated beverages
Budweiser--beer                   138.2       6.6     8.6
Pepsi (+)--                       146.6       6.1     8.4
carbonated beverages
Diet Pepsi (+)--                   66.2      13.3     7.8
carbonated beverages
VeryFine Fruit20--bottled water     9.9     222.8     6.8
Gatorade--isotonics                35.7      21.8     6.4

(+)Source: ACNielsen (as provided by Coca-Cola) for the 52 weeks ended
Dec. 29

Source: Information Resources Inc. for the 52 weeks ended Dec. 30

(*)Sales in millions
Beverages scorecard

                                Total F/D/M (*)     Drug stores
Category/                      $         % chg.         $
segment                    sales (**)  vs. yr. ago  sales (**)

Carbonated beverages       $14,751.7      3.5%      $832.7
Beer/wine/
alcoholic cider              8,020.0      6.7        908.2
Refrigerated
juices/drinks                4,420.1     -0.7         36.7
Wine                         4,019.9      4.6        353.6
Shelf-stable
bottled juices               3,536.7      1.8        145.9
Bottled water                2,421.8     20.2        174.1
Isotonics                      994.5     12.2         76.4
Ready-to-drink
tea/coffee                     661.7      6.2         54.3
Spirits/liquors                   NA       NA        752.1
Premixed coctails/coolers         NA       NA         30.3

                           Drug stores     Drug chains only
Category/                    % chg.         $         % chg.
segment                    vs. yr. ago  sales (**)  vs. yr. ago

Carbonated beverages           15.3%    $689.1         16.0%
Beer/wine/
alcoholic cider                 8.5      785.2         12.5
Refrigerated
juices/drinks                   6.5       33.7          7.9
Wine                            1.7      327.1          3.7
Shelf-stable
bottled juices                 -4.0      125.4         -2.8
Bottled water                  24.1      152.3         26.9
Isotonics                      31.2       65.9         34.0
Ready-to-drink
tea/coffee                      9.5       46.0          9.2
Spirits/liquors                -2.9      682.9         -0.5
Premixed coctails/coolers      -0.5       27.6          2.0

Source: Information Resources Inc. for 52 weeks ended Dec. 30

(*)Total F/D/M excludes Wal-Mart

(**)Sales in millions

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