John Sicher
John Sicher
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I think people have a growing interest in beverages which are lighter and have actual or perceived functional benefit. I think we've seen a decline in regular soft drinks for some time.
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The antitrust laws would make it hard for Coke and Pepsi to buy more carbonated soft drinks brands.
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Turner is simply one of the best in the U.S. beverage business. Growing carbonated soft drinks today is a challenge, and Turner is very well equipped to do that with Big Red.
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Between Coke and Pepsi, Coke's innovation pipeline was stronger in carbonated soft drinks. That made the difference. But fundamentally, both these companies need to be moving in the noncarbonated direction.
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Traditional carbonated soft drinks have got a tough road ahead. The migration to water and sports drinks and other noncarbonated drinks seems to be permanent.
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But soft drinks sales overall are holding up well. If you're looking at the first-quarter U.S. volume growth this year for both Coca-Cola and PepsiCo, it's important to consider that other factors were at play including bad weather and anti-U.S. sentiment around the world.
bad both consider drinks factors growth holding including looking overall sales sentiment soft volume weather year
But soft drinks sales overall are holding up well, ... If you're looking at the first-quarter U.S. volume growth this year for both Coca-Cola and PepsiCo, it's important to consider that other factors were at play including bad weather and anti-U.S. sentiment around the world.
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I think the bottom line is people will, over the holidays, heavily consume soft drinks, bottled water, teas and juices.
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The carbonated soft drink category is fundamentally in trouble. I anticipate there will be some sporadic growth of a few regular brands and some diets, but the outlook doesn't look good for the category.
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Results are starting to improve, but the company is still a work in progress.
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I think certainly there's a certain set of American consumers interested in healthy beverages. Water is certainly a healthy beverage. There has been a great deal of bottled water, a huge proliferation in the last four or five years since it was bottled in convenience packaging.
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People in general are responding to beverage products with health and wellness benefits. The trend is unmistakable and is going to gain traction in the years to come.
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Texas certainly has a cachet in other parts of the country.
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We estimate that the diet category could actually surpass the regular soda category in about 12 to 15 years,