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BEVERAGE DIGEST
Special Issue: U.S. Beverage Results for 2011.
Top-10 CSD Companies 2011 CSD Share Share +/-0.1 -0.8 flat +0.4 flat +0.2 +0.2 +0.1 +0.1 -0.1 n/a

MARCH 20, 2012 VOLUME 61 / NO. 6 FOUNDED 1982 BEVERAGE-DIGEST.COM TWITTER UPDATES

CSDs Declined for 7th Straight Year. LRBs Were Up +0.8%. Among Big Soft Drink Companies: Dr Pepper Snapple Does Best in CSDs. Coke in LRBs. Fanta Top Performing CSD Brand. Dasani Fastest Growing LRB Megabrand.
Each March, BD publishes summary all-channel U.S. beverage results for the previous year in a Special Issue. In previous Special Issues, BD has focused on carbonated soft drink (CSD) results, as that category is the biggest and most important. However, as bottled water and non-carbs have grown, they have become a bigger part of the total LRB (liquid refreshment beverage) universe. LRBs include: CSDs; bottled water; and non-carbs (sports drinks, readyto-drink teas, juice drinks, etc). This year, BD is publishing four data sets, showing for each: market share by volume; market share change; and volume performance. The four data sets are: 1) top-10 CSD companies. 2) top-5 LRB companies. 3) top-10 CSD brands. 4) top-10 LRB Megabrands (definition below).
Top-5 LRB Companies 2011 Vol +/-1.0% -3.9% -0.7% +5.7% +0.1% +14.9% +17.0% +28.0% +5.4% n/a -1.0% Coca-Cola Co * PepsiCo Dr Pepper Snapple Nestle Waters Cott All other Total LRB Business

LRB Share Share +/34.0 26.9 11.1 9.9 3.7 14.3 100.0 -0.2 -0.6 -0.2 -0.2 +0.1 +1.1

Vol +/+0.2% -1.3% -0.6% -1.4% +4.4% n/a +0.8%

Coca-Cola Co. PepsiCo Dr Pepper Snapple Cott Corp. National Beverage Monster Beverage Co Red Bull Rockstar Big Red Private label/other Total CSD Category

41.9 28.5 16.7 5.2 2.8 1.2 1.0 0.6 0.6 1.5 100.0

n/a

* Includes declining volume from Spring brand bottled water which has been discontinued; without Spring, Coke up +1% (see text).

Top-10 CSD Brands 2011 CSD Share

Coke Diet Coke Pepsi-Cola Mt. Dew Dr Pepper Sprite Diet Pepsi Diet Mt. Dew Fanta Diet Dr Pepper 17.0 9.6 9.2 6.7 6.4 5.7 4.9 2.0 1.9 1.8

Top-10 LRB Megabrands 2011 Vol +/-1.0% -4.0% -4.8% -1.5% +0.5% +0.1% -8.2% +0.4% +3.0% -2.5% Coke Pepsi Mt. Dew Dr Pepper Gatorade Sprite Nestle Pure Life Dasani Aquafina Arizona

Share +/flat -0.3 -0.3 -0.1 +0.1 +0.1 -0.4 flat +0.1 -0.1

LRB Share Share +/18.8 10.0 6.0 5.3 4.2 3.8 3.5 2.1 2.0 2.0 -0.4 -0.7 -0.1 flat +0.3 flat

Vol +/-1.5% -5.5% -1.0% +0.4% +8.0% -0.5%

-0.1 -1.7% +0.2 +11.0% flat +2.1% +0.2 +9.3%

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Results: CSD Category. In 2011, CSDs declined -1%, a bit worse than the category's performance in 2010, when it was down -0.5%. Total CSD volume -- 9.274 bil 192-oz cases -- is down to about the level it was back in 1996. BD includes fast-growing energy drinks as part of CSDs; without energy drinks, the category would have been down closer to -1.5%. BD estimates that all-channel CSD pricing was up about +3%. That means CSD total retail dollars grew +2% to about $75.7 bil. Throughout most of the 1990s, the CSD category grew in the +3% range annually, but then its performance began to slow in 1999. It has been in decline since 2005. Per Capita Consumption. Per capita CSD consumption in the U.S. fell to 714 eight-ounce servings in 2011, down from 728 in 2010. That is the lowest it has been since 1987. CSDs, while still the biggest category, are playing a declining role in Americans' beverage consumption. Fact Book. BD will provide detailed information on the three LRB categories (CSDs, bottled water and non-carbs), the companies and brands in its soon-to-be published 2012 Fact Book. There is an order form on our website at: www.beverage-digest.com Results: CSD Companies. The big-three companies -- Coke, PepsiCo and Dr Pepper Snapple (DPS) -- each lost volume in 2011. DPS's market share was flat. Coke lost -0.1 share points. PepsiCo was down -0.8. The energy drink companies -- Monster, Red Bull and Rockstar -- each posted double-digit volume growth and gained share. Results: CSD Brands. Among the top-10 CSD brands, Coke has the #1 and #2 brands with Coke and Diet Coke. PepsiCo has the #3 and #4 brands with Pepsi and Mt. Dew. Among the top-10 brands, Coke has four, PepsiCo has four and DPS has two. In 2011, Fanta moved ahead of Diet Dr Pepper in the rankings. Fanta's +3% volume growth made it the strongest performing top-10 CSD brand. Diet Pepsi's -8.2% volume decline was the steepest. Six of the top-10 brands lost volume; four grew. Results: LRB Category and Companies. BD estimates that in 2011, total LRB volume totaled about 15.2 bil cases, up +0.8% vs 2010. In 2010, LRB volume was up +1.7%. In addition to being the biggest CSD company, Coke is also the biggest LRB company with a 34 share to PepsiCo's 26.9 share. Among the top-three companies, only Coke grew LRB volume. BD's all-channel LRB data does not completely correlate with the published financial results from Coke, PepsiCo and some other public companies. They follow certain accounting rules, and BD publishes actual volume data. Plus, BD's all-channel data does not include refrigerated juices such as Tropicana, Minute Maid and Simply. So, for example re Coke, it said in early 2010 it had "exited" the warehouse delivery bottled water business, mainly the Spring brand; it has excluded that business from its reported results for 2009, 2010 and 2011, treating it as a discontinued business. In BD's all-channel data, Coke's LRB volume in 2011 was up +0.2%, but it would have been up +1% if Spring and its volume decline were excluded. Results: LRB Megabrands. BD defines a "Megabrand" as a brand or trademark with total volume of more than 100 million 192-oz cases. So Megabrand Coke includes Coke Classic, Diet Coke, Coke Zero, Cherry Coke and all other iterations of the Coke trademark. Megabrand Gatorade includes Gatorade and G2. Megabrand Mt. Dew includes regular, diet, Code Red, etc. In 2011, the biggest Megabrand by far was Coke, with an 18.8 share of LRB volume. Its volume was down -1.5%. Megabrand Pepsi was down -5.5%. The three strongest performing Megabrands were Dasani, up +11%; Arizona up +9.3%; and Gatorade up +8%. Within the Gatorade Megabrand, brand Gatorade was up +7.3% and G2 was up +10.3%. Among the top-10 Megabrands, Coke had three with an aggregate share of 24.7. PepsiCo had four with an aggregate share of 22.1. Dr Pepper Snapple, Nestl and Arizona each had one brand in the list of top-10 Megabrands. In 2011, Arizona moved up in the Megabrand ranking from #11 to #10, as Poland Spring, which had been #8 in 2010, slipped out of the top-10. Methodology. BD tracks CSD and LRB volume in all channels including retail, vending and fountain. BD's all-channel data is based on BD estimates, which, in some cases, may differ from companies' data and is, in the end, based on BD's evaluation, analysis and opinion.

John Sicher, Editor & Publisher

sicher@beverage-digest.com

| 914-244-0700

2012 Beverage Digest is published by Beverage Digest Company L.L.C. All rights reserved. No part of this publication may be reproduced or transmitted in any print or electronic format without written permission of the publisher. John Sicher, Editor & Publisher; Thomas Fine, Managing Editor; Anna Huerta, Circulation Director; John C. Maxwell, Contributing Editor. Correspondence: P.O. Box 621, Bedford Hills NY 10507. Deliveries: 2 Depot Plaza, Suite 101A, Bedford Hills NY 10507. Phone: (914) 244-0700. Fax: (914) 244-0774. Website: www.beverage-digest.com. E-mail: sicher@beverage-digest.com. One-year subscription $805 in U.S./Canada, $905 elsewhere. Fax subscription $985 to all locations. American Express, Mastercard and Visa accepted. Sample copies available. Subscriptions non-cancelable except pursuant to specific limited promotional offers. Printed on recycled paper. Published 22 times per year (plus additional Special Issues). Single copies or maps $75, prepaid orders only. ISSN 0738-8853. Printed in U.S.A.

BEVERAGE-DIGEST

MARCH 20, 2012

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