No Diet Coke In The House: U.S. Soda Sales Continue To Decline

Nevin Barich

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Last weekend, I was at my friend Reggie’s house, having lunch with him, his wife Anna and two children. As we were about to sit down to a wonderful home-cooked meal (Anna is a great cook), I was asked what I wanted to drink.

“You guys have any Diet Coke?” I asked.

My question was met by a long, uncomfortable silence by both Reggie and Anna. Finally, Anna broke the silence.

“Nev,” she said, “we don’t have soda in the house. We haven’t for years. You still drink that stuff?”

Indeed I do. But for that meal, I settled for water.

Increasingly, more people are becoming like my friends, at least according to recent data. A report last month by trade publication Beverage Digest stated that sales of soda drinks decreased about 1.2% in the U.S. in 2016, falling for the 12th year in a row, as demand was hit by consumers choosing healthier options and a slew of sugar taxes aimed at stemming obesity and diabetes.

The per capita consumption of soda drink fell to about 642 8-ounce servings last year, the lowest level since 1985, when the Beverage Digest began tracking consumption trends. Interestingly, however, total sales dollars increased 2% to $80.6 billion as soft drink makers aggressively pushed smaller packs at higher prices per ounce, while lowering emphasis on large discounts packs.

So why the decline in soda sales? Well for one, a couple of major components in soda are high fructose corn syrup and sugar, two ingredients that U.S. consumers are slowly becoming more conscious of.

"I think there's becoming this greater awareness about sugar, and that's nice to see that people are really becoming interested in all these sugars that have been added to our food supply," said Julie Walenta, registered dietician/nutritionist at Guthrie Hospital in New York.

Additionally, cites all over the country have been implementing special taxes on sugary drinks, which is leading to a drop in soda consumption. Berekley, California, was the first U.S. city to implement such a tax in 2015 and since then, sales have fallen nearly 10% while water consumption has increased, according to a recent study. Also, Coca-Cola recently announced that its sales volume in Philadelphia is down 32%, citing the city’s tax on sugary drinks as the main reason.

Soda sales are down and they don’t figure to rebound anytime soon. So next time you’re at a friend’s house, ask for water.

Nevin Barich is the Food and Beverage Analyst for Industry Intelligence and is also Menuism’s fast food expert. Email him at Nevin.Barich@industryintel.com or follow him on Twitter.

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