Envisioning The Next Five Years Of
Beverage Growth
- Neil Kimberley: @foodsfluidsbynd
Over A Decade Of Solid Growth
$78.9
$117.4
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
US Beverages Retail Sales ($B)
Beverage Digest
Per Capita Consumption Changed
FUNCTIONAL
BEVERAGES
848
674
198 502
2000 2012 2018
CSD Non CSD
1,046 1,176 +130 Total Servings
(174) CSD Servings
+304 Non-CSD Servings
Beverage Digest
Growth Projected At ~1.4%
CAGR
$78.9
$117.4 $126.7
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
US Beverages Retail Sales ($B)
Beverage Digest/Foods Fluids & Beyond
Per Cap Consumption Equality By 2018
FUNCTIONAL
BEVERAGES
848
674 636
198 502 636
2000 2012 2018
CSD Non CSD
1,046 1,176 1,272
Beverage Digest/Foods Fluids & Beyond
0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
US Beverages Retail Sales Share Trend
Beverage Digest
0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
Extend The Current Trends…
Beverage Digest
0.0%
25.0%
50.0%
75.0%
100.0% 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
CSD Bottled Water Alternative Beverages
2018: CSDs Reach To 49.9% Share
Beverage Digest/Foods Fluids & Beyond
Non-CSD Growth Opportunity
$1.3 $1.4 $1.5 $1.6 $1.7 $1.8
$0.7 $0.7 $0.7 $0.7 $0.6 $0.6
2013 2014 2015 2016 2017 2018
Category Growth CSD Swap
$2.0 $2.1 $2.2 $2.3
$2.3 $2.4
Foods Fluids & Beyond
$67 $63
$15 $18
$38 $46
2013 2018
CSD Bottled Water Alt Beverages
$119B
$127B
$8B of Growth, $11B of Opportunity
+4% CAGR
+4% CAGR
-1% CAGR
Foods Fluids & Beyond
What Will Grow?
$3.2
$2.9
$1.6
$1.2
$1.9
$0.9
Bottled Water Energy Drinks Juice/Juice
Drinks
Sports Drinks RTD Tea/RTD
Coffee
Other Beverages
2013 – 2018 Non CSD Growth Forecast
($B)
+5% +5% +3% +3% +5% +5%CAGR
Foods Fluids & Beyond
Five
Opportunities
1) Retail Opportunity For Non-CSD’s
• More Space
• More Promotions
• More Merchandising
• Pressure To Perform
• Slotting
• Incremental Support
Dynamics
• More Space
• More Promotions
• More Merchandising
• Pressure To Perform
• Slotting
• Incremental Support
Get ReadyDynamics
• Greater Interest From Big
Bevcos
• Category Management
 Pricing
 Promotion
 Assortment
• Build Strategic Partners
 Retailers
 Distributors
1) Retail Opportunity For Non-CSD’s
2) Consumer Evolution
Premium Hydration
2) Consumer Evolution
Premium Hydration Natural Lift
2) Consumer Evolution
“Snackification”
2) Consumer Evolution
“Snackification” Real Natural Simplicity
3) Opportunity At The Base of The Pyramid
3) Opportunity At The Base of The Pyramid
4) Changing Forms & Channels
Powders, Mios and Pods
4) Changing Forms & Channels
Powders, Mios and Pods Online Sales
5) The Sweetener Revolution (If It Arrives)
5) The Sweetener Revolution
But… The More Things Change, The More
They Stay The Same
Vision Differentiation Tenacity
Neil Kimberley
VP Strategy Essentia Water
@foodsfluidsbynd

Neil Kimberley Bevnet Dec 2013 Presentation