NEW YORK -- Following about 20 years of growth, sales volume in the United States soft drink industry declined for the first time in 2005, reports The Wall Street Journal.
The newspaper writes that soft drink volume dropped 0.2 percent last year in the $68.1 billion U.S. market, citing steady gains for bottled water, sports drinks, premium coffees and other noncarbonated beverages. Some analysts also attribute the sales volume decline to "a lack of soft-drink innovation and increasing concerns about obesity hurting sugary sodas in particular."
Perhaps the most troubling news about the industry, writes the newspaper, is that diet soft drink sales are also fizzling.
"Diet Coke volume was essentially flat after posting a 5 percent gain in 2004. Diet Pepsi volume dropped 1.9 percent following a nearly 7 percent increase in 2004," writes the Journal.
John Sicher, editor and publisher of Beverage Digest, told the newspaper, "I thought diet sodas could continue to grow and lift this category, but I think that's questionable at this time."
Coke spokesman Dan Schafer told the Journal that the company was encouraged by holding on to the U.S. market share after losing share the previous two years.
Meanwhile, Pepsi "has been able to better weather the soda downturn" with a stronger lineup of noncarbonated drinks, such as Gatorade and Lipton teas.