Is it too Late for the Beverage Industry to Save Soda?

When we further broke down the patterns of discussion around ingredients, health consciousness, and consumer preferences, ingredients emerged as the most discussed topic, thanks to the ongoing social dialogue on healthy consumption.

The ingredient discussion reinforces that people check labels before buying a product, which can dissuade someone from making a purchase.

Ingredients that most deter consumers are:

• Additives
• Aspartame
• High fructose corn syrup
• Hormones

Aspartame is most discussed with soda. Another culprit is high fructose corn syrup found in soda and juice. Once considered a healthier alternative to soda, juice has now become similarly shunned due to its high sugar content.

Qualifying this discussion with consumer sentiment paints a clearer picture.

When we analyzed the conversations on social to glean specific sentiment associated with these ingredients, we found that, unsurprisingly, most were negative. Aspartame topped the list as people called it a cancer-causing substance which also induces mood swings. High fructose corn syrup, a cheaper alternative to sugar, is also discussed negatively for its association with diabetes.

The declining soda consumption likely prodded Dr Pepper Snapple to look for greener pastures. Keeping with consumer trends, the company paid $1.7 billion to buy Bai brands, that’s popular for making drinks with plant-based ingredients with antioxidants and without artificial sweeteners. With Bai, the Dr Pepper Snapple stable includes non-carbonated drinks like Deja Blue water, Snapple Iced tea, Mott’s apple juice, Nantucket juices and chocolate drink Yoohoo.

If consumers are canning soda, what are they drinking instead?

Coffee’s strong brew

As noted earlier, coffee is the most-discussed beverage occupying 30 percent share of voice in the conversation about beverages. Not only is it the most discussed beverage, it’s also one that is talked about most positively.

Coffee consumption among Americans has also been on the rise. According to the National Coffee Association, in 2010, only 1 in 10 coffee-drinkers had a cup at lunch. That figure had risen to 1 in 4 by 2016. And between 2008 and 2016, past-day consumption of gourmet coffee beverages rose from 13% to 36% among 18-24 year olds, and from 19% to 41% for those 25-39.

Digging deeper into coffee preferences aside from flavors, consumers also talk about the types of coffee they want to purchase or drink. Specialty coffee, defined as coffee produced in microclimates, is a coffee trend that has held steady throughout the years.

The concurrent trends of falling soda sales and rising coffee consumption has left soda-makers in the lurch while opening a field of opportunities for new caffeinated drinks.

“We’re seeing these coffee drinks now that actually resemble soda…It’s a way to get into the segment, because coffee is natural and healthy and tracks with consumer trends,” James Watson, a Rabobank senior beverage analyst told the Washington Post. For instance, Stumptown Coffee Roasters released a “Sparkling Cold Brew” last year in aluminum cans, which it promoted as a summer “road soda.”

Keurig Dr Pepper… an interesting cocktail?

Analysts have spilled a lot of ink explaining the relative benefits for both companies. On social, the audience rejoiced at the news and treated the merger as if it was inevitable.