Soda Industry Looking To Mini Cans To Give Major Boost To US Sales
LOS ANGELES, August 13, 2014
(Off The Menu)
– The U.S. soda industry isn’t doing well. According to a recent report by Moody’s, sales of diet and low-calorie sodas in America fell 5% in 2013 while carbonated soft drinks sales fell 2.6%, in part from heightened consumer attention on healthier diets and the effects of corn syrup and artificial sweeteners.
To that end, the industry has begun offering its sodas in mini cans, selling its beverages in 7.5-ounce sizes instead of traditional 12-ounce cans and hoping that the higher unit price will help boost its bottom line.
The reason behind offering less soda for a higher per-ounce price is simple: Companies are betting that U.S. health-conscious consumers will be more willing to drink soda if offered in a smaller size, so that they can enjoy the beverages while still feeling like they’re watching their calorie intake. One consumer quoted in a recent Thomson Reuters article said it best: “I can have my sweet fix but not feel guilty for having so much.”
Is it working? If you ask the major players, the answer is yes. Coca-Cola, the world’s largest soda maker, said there was double-digit growth in mini cans even while sales volumes of sparkling beverages in North America were flat. Smaller sizes, which include mini cans, accounted for more than 60% of the volume growth in traditional Coke.
Meanwhile, Pepsi’s mini can business in the U.S. has grown 24% so far in 2014 and was up 34% last year. The company said that this year, it has also seen a significant increase in the number of in-store displays of mini cans.
For the industry as a whole, mini can sales grew 3% in 2013 while the rest of the carbonated soft drink category dropped, according to market research firm Euromonitor.
If these numbers are any indication, expect mini cans of soda to keep popping up at grocery stores. Expect to keep paying more to have less.
Nevin Barich is the Food and Beverage Analyst for Industry Intelligence. Email him here or follow him on Twitter here.
Related News: this box contains exclusive content that is accessible only to Industry Intelligence subscribers. Click a link to learn more.
- Global cold form blister packaging market expected to reach US$8.63B by 2024, report finds; health care segment broadly prefers utilizing cold forming packaging materials, with segment accounting for 48.3% of market volume in 2015
- UK households are failing to recycle 16 million plastic bottles/day, according to research; number of plastic bottles not being recycled could amount to 29 billion by 2020
- US packaging demand forecast to rise 3.5%/year through 2020, supported by increases in nondurable goods output and growth in consumer spending, report finds; pharmaceutical packaging demand to rise 5.4%/year, the fastest pace among leading markets
- BOPET film demand projected to exceed 4 million tonnes in 2016, up by over 1 million tonnes since 2010 due to strong consumption in packaging, technical uses; China the leading consumer, with 37% of global market
- Retail-ready packaging to reach global value of US$82B in 2021, growing 4%/year from 2016, report finds; late adoption of RPP in North America means there is still reasonable growth in the region, while Western European demand is maturing and slowing