THE NEWSLETTER
`THE FACT BOOK
`
`COKE/PEPSI SYSTEM BOOKS
`BOTTLER TERRITORY MAPS
`OONFERENCES
`
`-
`
`MARCH 26, 2015
`VOLUME 66/ N0. 7
`
`FOUNDED 1982
`BEVERAGE-D|GEST.0OM
`TWITTER UPDATES
`
`THE BEVERAGE lNDUSTRY'S LEADING INFORMATION RESOURCE FOR BREAKING NEWS, ANALYSIS & DATA
`
`Special Issue: U.S. Beverage Business Results for 2014.
`
`214W B
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`
`Each March, Q1 publishes summary all-channel U.S. beverage results for the previous year. Es data
`covers liquid refreshment beverages (LRBs) and the components thereof: CSDs (including energi drinks); bottled
`water; and non-carbs (sports drinks, ready-to-d rink teas,juice drinks, etc). Tables show: 1) top-5 LRB companies.
`2) top9 CSD companies plus 'other.' 3) top-10 LRB Mega brands (definition below). 4) top-10 CSD brands.
`
`In 2014, LRB volume was up +1.7% vs down -1.6% in 2013. Previous year results: up +1% in 2012
`|.BB_B9_su|1s,
`and +0.8% in 2011. At least part of the improvement in 2014 was a return to stronger growth of bottled water.
`In
`
`LRBs
`
`cSDs
`
`companies Ranked by LRB Volume 2014
`
`Companies Ranked by CSD Volume 2014
`
`LRB Share Share +/-
`33.6
`0.5
`
`Coca Cola Co *
`
`Pepsico
`Nestle Waters
`Dr Pepper Snapple *
`
`25.4
`11.0
`10.7
`
`2.7
`Cott **
`16.6
`All other
`100.0
`Total LRB Business
`* See explanation in text for teatment of
`Coke's discontinuation of Nestea and DPS's
`discontinuation of Welch's.
`
`0.3
`+0.7
`0.2
`
`0.2
`+0.5
`n/a
`
`Vol +/-
`+0.3%
`
`+0.3%
`+9.1%
`0.1%
`
`6.2%
`+4.6%
`+1.7%
`
`Coca Cola Co.
`
`Pepsico
`Dr Pepper Snapple
`Cott Corp.
`
`National Beverage
`Monster Beverage Co
`Red Bull
`Rockstar
`Big Red
`All other
`
`CSD Share
`42.3
`
`Share +/-
`0.1
`
`27.5
`17.1
`4.2
`
`2.9
`1.7
`1.3
`0.7
`0.7
`1.6
`
`0.2
`+0.2
`0.3
`
`flat
`+0.1
`flat
`flat
`flat
`+0.3
`
`n/a
`
`** Includes C$Ds and water. Excludes Non carbs
`
`Total CSD Category
`
`100.0
`
`Top-10 LRB Megabrands 2014
`
`Top-10 CSD Brands 2014
`
`Coke
`
`Pepsi
`Mt. Dew
`
`Dr Pepper
`Gatorade
`Nestle Pure Life
`Sprite
`Dasani
`
`Poland Spring
`Arizona
`
`LRB share
`17.3
`
`share +/-
`0.7
`
`8.7
`5.8
`
`5.1
`4.6
`3.8
`3.7
`2.6
`
`2.1
`2.0
`
`0.4
`0.1
`
`0.2
`+0.1
`+0.3
`flat
`+0.1
`
`+0.1
`0.1
`
`.
`
`.
`
`.
`
`.
`
`.
`
`Coke
`
`Pepsi Cola
`Diet Coke
`
`Mt. Dew
`Dr Pepper
`Sprite
`Diet Pepsi
`Fanta
`
`Diet Mt. Dew
`Coke Zero
`
`CSD Share
`17.6
`
`Share +/-
`+0.2
`
`8.8
`8.5
`
`6.9
`6.8
`6.0
`4.3
`2.2
`
`2.0
`1.8
`
`0.1
`0.5
`
`flat
`+0.1
`+0.1
`0.2
`+0.2
`
`0.1
`0.1
`
`Violators are liable for actual damages or statutory damages up to $100,000.
`
`Page 1 of 5
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`SENJU EXHIBIT 2315
`
`LUPIN v. SENJU
`
`IPR2015—01105
`
`

`
`addition, the CSD rate of decline was much less deep than in 2013.
`In 2013, the CSD category was down -3%; it was down -1.2% in 2012.
`
`In 2014, the CSD category was down -0.9%.
`
` . In 2014, CSD volume totaled about 8.8 bil 192-oz cases. That level of volume means that the
`category has lost -14 bil cases since 2004 — the peak volume year — when total volume was 10.2 bil cases. Total
`
`U.S. CSD volume is now back to where it was in mid-1990s. B.D includes energy drinks in CSDs, B12 estimates
`that without energy drinks, the CSD category was down about -1.2%. Prlglng gng DgIIgr_s. Q estimates that all-
`channel CSD pricing last year was up about +2.5%. That means total CSD dollars were up about +1.4% to $77.4
`
`In 2013, the overall retail value of the CSD category
`bil from $76.3 bil in 2013 and from $77.1 bil in 2012.
`declined for the first time since _B_Q began tracking. Multiple senior executives at the big beverage companies
`
`have recently indicated that they are focusing strongly on dollar growth, using such tactics as package downsizing
`with higher per/ounce pricing. . Per capita CSD consumption in the U.S. fell to about
`674 eight-ounce servings per person per year. That compares to a per cap of 675 for 2013. The declining per
`caps are a function of volume falling and the U.S. population modestly increasing.
`In 2012, CSD per capita
`consumption was 701, down from 714 in 2011 and from 728 in 2010. The level of per capita consumption in
`
`2014 is the lowest since about 1986. Ea.1:1_B.o.Qk. ED will provide detailed infonnation on the categories,
`companies and brands in its soon-to-be published 2015 Eagjgmk. There is an order form on page 4 of this pdf
`document. To order, print out the order form and fax it back to us at 914-244-0774; or email: sicher@beverage-
`digest.com.
`
` . Coca-Cola Co and PepsiCo each lost CSD volume in 2014. Dr Pepper Snapple's volume was
`about flat. DPS discontinued handling Welch's in 2014, and the volume results in the table reflect the decline in
`Welch's from 2013 to 2014.
`If Welch's were excluded from both 2013 and 2014, DPS's CSD volume would have
`
`In 2014, Ooke
`been up slightly; about +0.3%. Both Coke and PepsiCo improved their CSD performance in 2014.
`was down -1.1% vs down -2.2% in 2013. PepsiCo's CSD volume was down -1.4% in 2014 vs its -4.4% decline in
`
`2013. Both Coke and Pepsico lost share. The energy drink companies — Monster, Red Bull and Rockstar — each
`posted stronger than overall industry performance and gained or held share.
`
`
`
`
`
`
`
`
`
`
`
`
` = . =_- -_. _. = : . : . = = =; z: : M.DVlI. Among
`
`the top-10 CSD brands, the main news here is that Pepsi regained the #2 spot, having lost it to Diet Coke in 2010.
`
`Diet CSDs in general have been hobbled by poor performance in the last few years, as some consumers seem to
`be having a withdrawal of enthusiasm for aspartame and other legacy diet sweeteners.
`In 2014, brand Pepsi's
`volume was down -1.8%. Diet Coke's volume fell -6.6%. Among the top-10 brands, Coke has five, PepsiCo has
`four and DPS has one. Fanta is actually a flavor line, but so counts it as a single brand as the individual flavors
`are not named, branded or marketed separately, and _B_Qestimates that 80+% of the Fanta volume is orange.
`
`Coke, Dr Pepper, Sprite and Fanta gained share. Brand Coke's volume was up, but just barely. However the brand
`was up, after multiple years of decline. The last time brand Coke grew was 2000. Dr Pepper, Sprite and Fanta
`also posted volume growth.
`In the 2014 rankings, Fanta passed Diet Mt. Dew to become the #8 brand; Diet Mt.
`Dew dropped to #9. . Among the top-10 CSD brands, the regulars out-performed the diets. For
`example, brand Coke was up a bit, while Diet Coke and Coke Zero were down. Brand Pepsi was down -1.8%, but
`
`Diet Pepsi declined much more: down -5.2%. Same patterns applied to Mt. Dew and Dr Pepper. Diet Dr Pepper is
`not a top-10 brand; its volume was down -7.9%.
`
` . fig estimates that in 2014, LRB volume totaled about 15.4 bil cases, up +1.7%
`from 15.2 bil cases in 2013. LRB volume was down -1.6% in 2013; up +1% in 2012; up +0.8% in 2011; and up
`
`In 2013, none of the top LRB companies grew volume. That changed dramatically in 2014. Both
`+1.7% in 2010.
`Coke and Pepsico posted slight LRB volume growth, with volume up +0.3%. Nestle posted strong volume growth
`of +9.1%.
`In addition to being the biggest CSD company, Coke is also the biggest LRB company with a 33.6 share
`vs PepsiCo's 25.4.
`In 2014, Nestle passed Dr Pepper Snapple to become the #3 LRB company, due to the strong
`growth of its water business. Dr Pepper Snapple, mainly a CSD company, fared relatively well in the declining CSD
`
`categonn but that meant only flattish volume. As was the case with DPS and Welch's in CSDs, in the case of
`
`Page 2 of 5
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`BEVERAGE DIGEST
`
`|
`
`MARCH 26, 2015
`
`|
`
`Page 2
`
`

`
`Coke, Nestea had no volume in Coke's portfolio in 2014. Coke discontinued handling it, and Nestle took it over.
`Had it been excluded from Coke's portfolio for both 2013 and 2014, BD estimates Coke's LRB volume would have
`been up +0.4% instead of up +0.3%. BD's all-channel volume data does not always entirely correlate with the
`volume reported in the public companies' published financial results. 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.
`
`LRB Megabrands. BD defines a "Megabrand" as a brand or trademark with total volume of more than 100
`million 192-oz cases. So, for example, Megabrand Coke includes Coke, Diet Coke, Coke Zero, Cherry Coke and all
`other iterations of the Coke trademark. Megabrand Pepsi includes brand Pepsi, Diet Pepsi, Pepsi Next, etc. In
`2014, the biggest Megabrand by far was Coke, with an 17.3 share of LRB volume. Its volume was down -2.4%.
`Brand Coke was up very slightly, but Diet Coke was way down. Megabrand Pepsi was down -2.9% vs its decline in
`2013 of -5.9%. The strongest performing top Megabrand was Nestle Pure Life with volume up +8.9%. A look at
`the top megabrands tells the story, in a nutshell, of where the growth is coming from: bottled water. Nestle Pure
`Life was up +8.9%; Dasani +8.2; and Poland Spring up +7.9%. Just below the top-10, Aquafina Megabrand
`posted growth of +7%. Among the top-10 Megabrands, Coke had three with an aggregate share of 23.6.
`PepsiCo had three with an aggregate share of 19.1.
`
`Methodology. BD tracks LRB volume in all channels including retail, vending and fountain. BD's all-channel data
`and volume performance of companies/brands may differ from companies' data and is, in the end, based on BD's
`evaluation, analysis and estimates.
`
`John Sicher, Editor & Publisher
`
`© 2015 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
`Website: www.beverage digest.com. E-mail: customerservice@beverage digest.com.
`One year subscription $865. 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 $85, prepaid orders only. ISSN 0738 8853. Printed in U.S.A.
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`BEVERAGE DIGEST
`
`| MARCH 26, 2015 |
`
`Page 3
`
`Page 3 of 5
`
`

`
`Facts and Analysis
`
`The Beverage Industry's
`Key Source for Data,
`
`o LRBs
`
`0 CSDs
`
`0 Energy Drinks
`0 Bottled Water
`
`0 Ready-to-DrinkTeas
`
`0 Sports Drinks
`
`0 Juices and Juice Drinks
`
`FACT BOOK 2015 is your one-stop
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`
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`reference for key data and information
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`on CSDs, Energy Drinks, Bottled Water
`and Non-Carbs.
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`0 Performance and Growth
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`THE FACT BOOK IS A Mu§T-HAVE PUBLICATION FOR:
`- Industry Executives
`- Financial Executives
`- Marketing Executives
`- lndustryAnalysts
`- Suppliers to thelndustry
`- Investment Bankers
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`0 And Mum More!
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`0 Pricing
`° Per Capita Consumption
`° Packaging '"f0Tmati0"
`' '""°Vati°"
`° G'°ba' Data a"d Markets
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`Page 4 of 5
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`

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`Beverage-Digest FACT BOOK 2015
`
`Key industry data, facts and analysis. All in one volume.
`
`Find out which companies are gaining and losing.
`
`Learn which brands and categories are succeeding,
`and which aren't.
`
`Discoverwhich products are growing and which are declining.
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`Liquid Refreshment Beverages: CSDs, Energy Drinks, Bottled Water,
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`Enhanced Water, Sports Drinks, Teas, Juices and more.
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`0 Volume and share data for the key soft drink
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`0 Total Refreshment Beverage data
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`0 Megabrands
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`the competitive universe
`
`0
`
`International coverage
`
`0 Regional U.S. Brand and LRB Leadership Data.
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`0 Global soft drink corporate share data for approximately
`95 countries, plus per capita consumption
`
`0 Brand and segment CSD breakdowns for cola, lemon lime,
`citrus, etc., showing volume and market share
`
`0 Consumption data, by beverage category,
`forthe U.S. and Europe
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`Botlied water, sports drinks, RTD teas and
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`
`components of LRBs
`
`o Calories and Beverages by major
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`category and the changes overtime
`
`0 Who’s leading the industry who's slipping
`
`0 Demographic Infonnation: CSD per
`
`0 Non carb beverages by segment and company
`
`capita consumption and CSD volume
`
`0 Details on the U.S. bottled water market
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`performance for the higher-population
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`Page 5 of 5