USA Soft Drinks Review 2012

Tuesday 19 February 2013, Amsterdam

Juice consumption in the USA fell by well over 5% in 2011 as the industry implemented further price increases to try and offset fast-rising concentrate costs. Orange juice in particular has suffered from the consumer resistance to such high price points and the impact of rising commodities has been felt even more strongly in the apple and cranberry segments which have declined 8% and 6% respectively in their volumes. However in common with several other beverage categories sales of some super premium products (such as Odwalla, Naked Juice, Bolthouse Farms) grew by around 10% underlining the existence of a two speed economy with more affluent households still willing and able to buy higher priced brands.

Cost pressures are predicted to ease somewhat as commodity prices steadily diminish, although despite this consumption is still expected to fall by more than 3%. The news in early 2012 that trace levels of carbendazim had been found in orange juice imported from Brazil will hardly help to stabilise demand and at best will encourage more brands to switch to the more expensive Florida juice.





Unsurprisingly the share held by frozen juice rose once again in 2011 as budget conscious households switched to lower cost alternatives (frozen juice) which are cheaper than ready to drink juice. However, frozen concentrates still only account for little more than 3% of category volume compared to almost 54% for chilled and 43% for ambient juice with ambient most impacted by the switch to lower cost alternatives to ready to drink juice.  Consumers also typically switch from more expensive single juice products to lower cost juice blends during a down turning economy.