Thursday, January 25, 2007

Sip the new coffee

An interesting article in the Chicago Tribune a few days ago mentioned the rise of soft drink consumption based on the research from one of the watchdogs… now whether you’d like to call your beverage ‘pop’ or ‘coke’ or ‘soda’ (check this mosaic out) it doesn’t matter.

The article highlights recent research conducted byNPD Group (a NY based consumer research firm) that points to a near doubling of the number of people who consume a carbonated soft drink at breakfast from 1990 to 2006. Over the same period, the data shows roughly a 10% drop in coffee consumption at breakfast during that period, making a concession that the statistics do not include coffee that is consumed apart from that at meals - aka the Starbucks phenomenon. A primary driver for this growth is the youth market. According to Harry Balzer from NPD, the youth market is driving the growth, with the heaviest soft drink consumption at breakfast being in the 18 to 25 age group. Adults too were quoted in the article as tapping the carbonated concoctions - full-sugar or the diet version—first thing in the morning… my buddy Liz is one of them.

This must sound like sweet music to the ears of the carbonated beverage giants. Trying to ride the upswing in consumption, the Coca-Cola Company is releasing a fortified version of Diet Coke® in the near future. It might just be a gamble that pays off, as the domestic market is seeing growth on both fronts—general fortification and functional foods that address specific health condition… a trend that is projected to continue for the coming years. If that happens, then it won’t be long before Pepsi jumps the bandwagon to try to grab the market share with a ‘me too’ product… with a 'twist' of course!!!

If consumers are already drinking soft drinks for breakfast, marketing is going to seize the opportunity and I don’t doubt R&D will put out fortified versions…… it makes sense… the only challenge then would be to fortify without altering the established flavor profiles, as consumers can be finicky where their soda is concerned.

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