July 24, 2014 - Blogs
Carbonated soft drinks (CSDs) have long been a stable category—until now. Consumers are looking for a more meaningful experience, including more interesting flavors, more authenticity, more discovery and products that are not mass-produced.
The neighborhood around the old fortress brands is changing. New options with newer finishes and unique experiences are making buyers rethink their CSD occasions. It’s a similar scenario to the beer and spirits world, when microbrews and small-batch handcrafted upstarts surrounded the leaders and started gobbling up the market.
These days, the fortress brands are beginning to blend in amidst a sea of new and interesting brands. This is happening in other categories as well, including water, energy and snacks.
As we emerge from a scrimp-and-save economy that was so focused on value pricing, the pent-up desire for a better experience will stretch the value equation for many occasions. Consumers are back to treating themselves again, and are willing to splurge and explore.
The premium experience is definitely growing faster than the mainstream experience. But the store-name value brands are growing faster, too. There are more options in the CSD neighborhood that meet the market demand for every experience.
As consumers increasingly focus on the parameters of their lifestyles—with their beverage selections playing a large part of their routines—beverage manufacturers need to take note, and build CSD brands that will enhance consumers’ lives.
For a closer look at CSDs and their market, read the original article, “CSDs: Prime Real Estate. Renovations Needed," in the free SupplySide Beverage Insights Magazine: Carbonated Soft Drinks.
Carbonated soft drinks (CSDs) have long been a stable category—until now. Consumers are looking for a more meaningful experience, including more interesting flavors, more authenticity, more discovery and products that are not mass-produced.
The neighborhood around the old fortress brands is changing. New options with newer finishes and unique experiences are making buyers rethink their CSD occasions. It’s a similar scenario to the beer and spirits world, when microbrews and small-batch handcrafted upstarts surrounded the leaders and started gobbling up the market.
These days, the fortress brands are beginning to blend in amidst a sea of new and interesting brands. This is happening in other categories as well, including water, energy and snacks.
As we emerge from a scrimp-and-save economy that was so focused on value pricing, the pent-up desire for a better experience will stretch the value equation for many occasions. Consumers are back to treating themselves again, and are willing to splurge and explore.
The premium experience is definitely growing faster than the mainstream experience. But the store-name value brands are growing faster, too. There are more options in the CSD neighborhood that meet the market demand for every experience.
As consumers increasingly focus on the parameters of their lifestyles—with their beverage selections playing a large part of their routines—beverage manufacturers need to take note, and build CSD brands that will enhance consumers’ lives.
For a closer look at CSDs and their market, read the original article, “CSDs: Prime Real Estate. Renovations Needed," in the free SupplySide Beverage Insights Magazine: Carbonated Soft Drinks.
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