ESTTA Tracking number:
`
`ESTTA1314013
`
`Filing date:
`
`10/04/2023
`
`IN THE UNITED STATES PATENT AND TRADEMARK OFFICE
`BEFORE THE TRADEMARK TRIAL AND APPEAL BOARD
`
`Proceeding no.
`
`91247241
`
`Party
`
`Correspondence
`address
`
`Submission
`
`Filer's name
`
`Filer's email
`
`Signature
`
`Date
`
`Attachments
`
`Plaintiff
`PepsiCo, Inc.
`
`PAUL J REILLY
`BAKER BOTTS LLP
`2001 ROSS AVENUE
`DALLAS, TX 75201
`UNITED STATES
`Primary email: nytmdpt@bakerbotts.com
`Secondary email(s): julie.albert@bakerbotts.com, paul.reilly@bakerbotts.com
`212-408-2500
`
`Plaintiff's Notice of Reliance
`
`Julie Beth Albert
`
`paul.reilly@bakerbotts.com, julie.albert@bakerbotts.com, car-
`oline.duncan@bakerbotts.com, lucy.soyinka@bakerbotts.com,
`john.mitchell@bakerbotts.com, nytmdpt@bakerbotts.com
`
`/Julie Beth Albert/
`
`10/04/2023
`
`NOR Exhibit T 1 of 3.pdf(4691207 bytes )
`NOR Exhibit T 2 of 3.pdf(4702880 bytes )
`NOR Exhibit T 3 of 3.pdf(5054181 bytes )
`NOR Exhibit U.pdf(4943136 bytes )
`NOR Exhibit V 1 of 2.pdf(4910359 bytes )
`NOR Exhibit V 2 of 2.pdf(4494791 bytes )
`Ex. W public.pdf(30248 bytes )
`Ex. X public.pdf(30222 bytes )
`
`

`

`Exhibit T
`Exhibit T
`
`

`

`
`
`THE NEWSLETTER
`THE FACT BOOK
`COKE/PEPS!| SYSTEM BOOKS
`BOTTLER TERRITORY MAPS
`
`VOLUME 68 / SP. 2
`FOUNDED 1982
`BEVERAGE-DIGEST.COM
`E-MAIL ALERTS
`
`
`CONFERENCES APRIL 19, 2017
`
`THE BEVERAGE INDUSTRY'S LEADING INFORMATION RESOURCE FOR BREAKING NEWS, ANALYSIS & DATA
`
`Special issue: U.S. Beverage Business Results for 2016.
`Pius: Coke North America Chief Sandy Douglas Joins June Conference (Details Pg. 3).
`
`2016 LRB Growth Holds at +2.2%. Coca-Cola and PepsiCo Slow Slightly.
`
`covers liquid refreshment beverages (LRBs) and its components: Carbonated soft drinks (CSDs -including energy
`drinks); bottled water; and non-carbs (sports drinks, ready-to-drink teas, juice drinks, etc), Tables show: 1) top-5 LRB
`companies, 2) top-9 CSD companies, 3) top-10 LRB Megabrands {definition pg.3)}, 4) top-10 CSD brands.
`
`LRBs
`
`CSDs
`
`Companies Ranked by LRB Volume 2016
`
`Companies Ranked by CSD Volume 2016
`
`Coca-Cola
`
`PepsiCo
`Nestie Waters
`
`Dr Pepper Snapple*
`
`Total LRB Business
`
`LRB Share
`32.9
`24.8
`11.6
`10.3
`2.6
`17.8
`100.0
`
`Share +/-
`-0.4
`0.4
`+0.2
`0.2
`OL
`+0.9
`
`n/a
`
`*1n early 2016, Dr Pepper Snappie did not renewa license to
`distribute Country Time reacy-to-drink juice drinks. On a comparabie
`basis, Dr Peoper Sneppie’s LRB increase would have been +0.6%,
`** Includes CSDs & water.
`
`Coca-Cola*
`
`PepsiCo
`Dr Pepper Snapple
`Cott
`
`National Beverage
`Monster Beverage*
`Red Bull
`Rockstar
`
`Big Red
`All other
`
`flat +0.6%
`
`CSD Share
`42.5
`26.4
`17.6
`3.8
`3.0
`2.3
`i5
`0.8
`0.8
`13
`100.0
`
`Share +/-
`flat
`0.6
`+03
`“O41
`flat
`+0.4
`flat
`flat
`flat
`flat
`
`n/a
`Total CSD Category
`*tncludes Coca-Cola's mid-2015 transfer of NOS and Full Throttle energy
`brands to Monster Beverage in return for Monster's natural sodas
`
`including Blue Sky, On a comparable basis, Coca-Cola's 2016 CSD
`volume change would have been roughly flat and Monster's volume
`increase would have been +4.3%,
`
`Top-19 LRB Megabrands 2016
`
`Top-10 CSD Brands 2016
`
`Coke
`
`Pepsi
`Mtn Dew
`Gatorade
`
`Dr Pepper
`Nestle Pure Life
`
`Aquafina
`Poland Spring
`
`LAE Share
`16.0
`7.6
`5.5
`43
`48
`3.9
`3.7
`2.8
`24
`2.3
`
`Share +/-
`-0.6
`0.6
`-0.2
`+001
`0.1
`flat
`flat
`+01
`+0.2
`+0.2
`
`Vol +/-
`“1.5%
`-5.3%
`-0.7%
`+42%
`+0.7%
`+4.5%
`+3.4%
`+5.3%
`+10.9%
`+10,9%
`
`Coke
`
`Pepsi-Cola
`Diet Coke
`
`Dr Pepper
`Mtn Dew
`
`Sprite
`Diet Pepsi
`Fanta
`Diet Mtn Dew
`Coke Zero
`
`CSD Share
`17.8
`8.4
`7.9
`7.0
`6.7
`6.5
`mer
`2:5
`20
`1.9
`
`Share +/-
`+0.1
`0.2
`0.3
`+0.1
`-D.1
`#0.3
`-0.3
`+0.2
`flat
`
`WARNING: Unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law.
`Violators are liable for actual damages or statutory damages up to $100,000.
`
`ROCKSTARO5970
`
`PPP008-0000001
`
`

`

`In 2016, LRB volume was up +2.2%, matching the increase in 2015. Previous year results: up +1.6%
`LRB Results.
`in 2014, down -1.6% in 2013, and up +1% in 2012. Strong bottled water sales, including from brands such as
`Dasani (Coca-Cola), Aquafina (PepsiCo) and Poland Spring (Nestle), helped drive the LRB increase once again. Strong
`non-carbonated beverage growth offset a -0.8% decline in CSD volume. Those CSD losses also marked a
`deceleration from the -1.2% decline in 2015, helping LRB results. Dr Pepper Snapple’s LRB growth was muted after
`it chose not te renew a license for Country Time ready-to-drink juice drinks early in 2016. Meanwhile, trademark
`Gatorade, which includes Propel, posted solid growth and a slight share gain, helping the brand edge past Dr Pepper
`to take the No, 4 spot on the top-10 LRB Megabrands list.
`
`CSD Category.
`
`In 2016, CSD volumetotaled about8.6 billion 192-0z cases. The category has lost 1.6 billion cases
`
`energy drinks, CSD volume was down about -1.2%, BD estimates. Pricing and Dollars. BD estimates that all-
`channel CSDpricing last year was up about +2.8%, Total CSD dollars were up about +2% to $80.6 billion from $79
`billion in 2015 and $77.4 billion in 2014. In recent years, the major soft drink makers have focused on dollar growth
`by aggressively marketing smaller, more convenient packages at a higher price per ounce while reducing emphasis
`on large discount packs such as 2-liters and 12-pack cans. PerCapita Consumption. Annual per capita CSD
`consumption in the U.S. fell to about 642 8-oz servings in 2016. That compares to 650 servings in 2015. The decline
`in per capita consumption was a function of lower volume and a modest increase in U.S. population. Previous years’
`CSD per capita consumption: 663 in 2014, 674 in 2013 and 700 in 2012 (slight updates to prior-year population
`estimates annually by the U.S. Census Bureau may mean per cap comparisons to previous years are not exact). Fact
`Book. BD will provide detailed information on the categories, companies and brandsin its soon-to-be published Fact
`Book, 22nd Edition. Click here for more details.
`
`CSD Companies. Coca-Cola and PepsiCo each lost CSD volume in 2016. Coca-Cola's CSD performance moderated
`slightly last year to -0.7% from -0.8% in 2015. PepsiCo’s decline held at -3.1%. Dr Pepper Snapple’s volume grew
`+0.8% last year, a meaningful improvement over its 2015 performance of -0.1%. Dr Pepper also gained CSD share
`while PepsiCo lost share and Coke's share wasflat. Energy drink companies Monster, Red Bull and Rockstar each
`boosted volume, but at a rate that was slower than in 2015 (not including the addition of NOS and Full Throttle for
`Monster}. In addition, Monster gained share while shares for Red Bull and Rockster wereflat.
`
`
`€SD Brands. Diet Coke Slows Decline AgainDespite Persistent Diet Segment Woes. Among the top-10 CSD
`brands, flavored traditional CSDs outperformed the category, with Dr Pepper, Sprite and Fanta all gaining volume and
`share. The top-3 brands, Coke, Pepsi-Cola and Diet Coke, all performed better in 2016 compared to 2015 despite
`declines, helping the category overall. Brand Coke won a slight share gain. Both Pepsi-Cola and Mtn Dew lost share.
`Once again, Diet Coke and Diet Pepsi suffered the deepest volume losses amid consumer skepticism ofartificial
`sweeteners such as aspartame. Diet Coke's volume fell -4.3%, which was still an improvement over a -5.6% decline
`in 2015 and a -6.6% decline in 2014, Diet Pepsi's volume decline accelerated to -9.2% from a -5.8% decline in 2015,
`The company brought back an aspartame-sweetened version of Diet Pepsi last year after some long-time Diet Pepsi
`drinkers rejected an aspartame-free version. Both are on the market now and are part of the Diet Pepsi result. Diet
`Min Dew, on the other hand, slowed its volume decline meaningfully to -0.1%, from -4.8% in 2015 while its share was
`flat. Coke Zero made a slight volume gain last year. Among the top-LO brands, Coke has five, PepsiCo has four and Dr
`Pepper Snapple has one. As in the past two years, regular CSDs in the top-LO brandslist generally outperformed
`diets.
`
`
`LRB Category and Companies. BD estimates that in 2016, LRB volume totaled about 16.1 billion cases, up +2.2%
`from about 15.7 billion cases in 2015. Coke’s +0.8% LRB volume growth slightly outperformed PepsiCo’s +0.6%
`growth. Both represented a deceleration in LRB growth over 2015 (+0.9%for both). Despite LRB volume growth, Coke
`and PepsiCo each lost share last year amid strong volume gains by bottled water companies and an acceleration in
`volume growth in the “all other” category, which includes energy drinks. Nestie’s growth also decelerated, to +3.9%
`
`reported in the public companies’ published financial results. They follow certain accounting rules, andBD publishes
`actual volume data. Pius, BD's all-channel data does not include refrigerated juices such as Tropicana, Minute Maid
`and Simply.
`
`BEVERAGE-DIGEST
`
`|
`
`APRIL 19,2017
`
`{|
`
`Page2
`
`ROCKSTAR05971
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`

`

`LRBMegabrands. BDdefines a “Megabrand” as a brand or trademark with total volume of more than 100
`million 192-07 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.
`
`
`Gatorade Edges Past Dr Pepper as No. 4 Megabrand. Gatorade and Dr Pepper switched the fourth and fifth places
`on the top-10 Megabrands list for 2016. This carne after Gatorade gained a tenth of a share point and Dr Pepper
`lost a tenth. Both brands added volume. In 2016, the strongest performing top-10 Megabrands were Aquafina (which
`includes FlavorSpiash) and Poland Spring. Aquafina returned to the top-10 megabrands list at #9 in 2015, having
`been bumped off in 2043. (Arizona fell out of the list in 2015.) PepsiCo finished 2016 with four entries on the top-10
`Megabrands list and an aggregate share of 20.4, slightly jess than the 20.8 share it had in 2015. Coke, meanwhile,
`had three brands with an aggregate share of about 22.5, compared to 23 in 2015. The biggest Megabrand by far
`was Coke, with a 16 share of LRB volume. Coke’s LRB volume decline decelerated to -1.5% compared to -2.6% in
`2015. Megabrand Pepsi declined -5.3% compared to a -3.9% decline in 2015. Significant LRB growth continued to
`come from bottled water, as evidenced by the Megabrands list. However, growth for three of four water brands (Pure
`Life, Dasani and Aquafina) slowed in 2016 compared to 2015. Poland Spring’s volume growth accelerated.
`
`Methodology. BD tracks LRB volumein ail channels including retail, vending and fountain. BD's all-channei 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 of available information at publication.
`
`
`Coke North America President Sandy Douglas Joins Market Smarts Program.
`
`Also Joining: Goldman Sachs Analyst Judy Hong and Fizz Corp. CEO Ted Wright.
`
`Registration Open for BD’s ‘Market Smarts’ Conference on June 12 inNYC.
`Coke North America President Sandy Douglas will present at BD’s June Market Smarts conference at the Eventi
`Hotel in New York City, shortly after Coke’s new leadership team takes office. Also joining are Judy Hong, beverage
`analyst for Goldman Sachs, and Ted Wright, CEO of word-of-mouth marketer Fizz Corp. Other speakers include Dr
`Pepper Snapple’s Sheila Bonner, Honest Tea’s Seth Goldman, Wells Fargo’s Bonnie Herzog and RBC’s Nik Madi, New
`speakers are added weekly. Space will be limited, so secure your seat nowfor the industry's most influential
`conference. Save $100.00 by registering immediately before rates increase on May 2.
`Click for registration information.
`
`
`
`© 2017 Zenith Global Ltd, AH rights reserved, Beverage Digest is published by Zenith International Ltd.
`No part of this publication may be reproduced or transrnitted in any print.or electronic format without written permission of the gublisher.
`Richard Hall, Publisher. Guane Stanford, Executive Editor. Monica Kvamme, Market Consultant.
`Phone: (404) 444-1848. Website: www.beverage-cipesicom. E-mail: dslanford@beverage-cigest.com.
`One-year subscription $905, American Express, Mastercard and Visa aecepted.
`Sample copies avaiable. Subscriptions non-cancelable excepl pursuant to specific limited promotionat offers.
`Published 22 limes per year plus Special issues and email alerts. Single copies or maps $85, prepaid orders only.
`ISSN O738-88523.
`
`BEVERAGE-DIGEST
`
`|
`
`APRIL 19,2047
`
`|
`
`Page 3
`
`ROCKSTARO05972
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`
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`

`
`FACT BOOK 22ND EDITION (COMING SOON)
`The Beverage industry'sSKey Source for Data, Facts and Analysis |
`
`The Fact Book is the must-have publication for industry executives, suppliers, analysts, investment
`bankers and marketing executives.
`
`Find out which companies are gaining and losing.
`¢
`¢ Learn which brands and which categories are succeeding, and which aren’t.
`¢ Discover which products are growing and which declining.
`
`Contains data-rich charts, tables and analysis
`you will not find anywhere else. The Bever-
`
`age Digest Fact Book 22nd edition provides
`comprehensive and detailed information on
`
`subjects including:
`
`¢ Updated market data for 2016
`¢ Thirty years of historic data
`¢ Performance and growth metrics
`
`¢ Top -10CSD State-by-state data
`¢ Total liquid refreshment beverage metrics
`
`¢ Per-capita consumption
`
`«
`
`Pricing
`
`¢ Beverage and calories analysis
`¢ Packaging and bottling
`
`information
`
`TO eeee
`
`: 201 7 FACT BOOK$950
`SLI CK
`If you haveaUERIBNESabout——— Digest sieduers or have a epee data need,i, pesadoemail
`marketingintelligence@beverage-digest.com.
`
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`

`
`MAY 7, 2028
`
`
`VOLUME 69 / SP. 4
`FOUNDED 1982
`STEM BOOKS
`COKE/PE
`
`BOTTLER TERRITORY MAPS
`BEVERAGE-DIGEST.COM
`CONFERENCES
`E-MAIL ALERTS
`
`
`THE BEVERAGE INDUSTRY’S LEADING INFORMATION RESOURCE FOR BREAKING NEWS, ANALYSIS & DATA
`
`Special issue: All-Channel U.S. Beverage Value and Volume Analysis for 2017.
`
`U.S. LAB Dollar Sales Grew +1.6%: Volume Up +2.4%.
`CSD Dollars Up +1.3% As Higher Pricing Offsets Volume Decline.
`CSDs,BottledWaterDroveLRBValueGrowthof$2.7billion.SportsDrinksDecline.
`Dr Pepper, Sprite, Fanta, Coke Zero Sugar Grow Volume and Dollars.
`For the first time, BD is publishing combined al--charinel volume and value data for US. liquid refreshment
`beverages (LRB) and, separately, carbonated soft drinks (CSD). Value nas become an important metric to consider
`when judging beverage industry health and performance during the current era of premiumization and market
`fragmentation. This is especially true with CSDs. While valurne remains an important measure of long-term consumer
`demand, executives have focused increasingly on dollar sales growth as they raise prices (both rate and mix) amid
`volume sales declines. Value provides an important measure of the effectiveness of pricing strategies when viewed in
`conjunction with demand.
`
`Liquid Refreshment Beverage (LRB} Megabrands*
`
`2017 All-Channel Volume & Dollar Performance for Top-10 Largest
`
`Pepsi
`
`Min Dew
`
`Dr Pepper
`
`Gatorade
`
`Nestle Pure Life
`
`Poland Spring
`
`Select Energy Megabrands
`
`Monster
`
`Red Bull
`
`Rockstar
`
`Vol +/-
`
`2.0%
`
`& Rank
`
`a
`
`45%
`
`-3.8%
`
`0.5%
`
`2.9%
`
`3.0%
`
`3.8%
`
`Fiat
`
`2.6%
`
`2.5%
`
`Vol Rank
`
`Val Shr
`
`Vol Shr +/-
`
`0.5
`
`0.4
`
`-0.2
`
`Flat
`
`0.2
`
`0.4
`
`O41
`
`4
`
`:
`
`5
`
`‘
`
`:
`
`17
`
`19
`
`43.9
`
`6.4
`
`4.7
`
`43
`
`3.9
`
`3.6
`
`me
`
`12
`
`C7
`
`0.4
`
`Violators are liable for actual damages or statutory damages up to $100,000.
`
`* Megabrand = Brand or trademark with >1O0M casestotal volume.
`
`includes all variations under trademark. (le. regular, diet, caffeine, etc.)
`
`WARRMING: Unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law.
`
`ROCKSTAR05974
`
`

`

`Carbonated Soft Drink (CSD) Brands*
`
`2017 All-Channel Volume & Dollar Performance for Top-10 Largest
`
`Vel Rank
`
`YolShr
`
`Vol Shr +/-
`
`4
`
`2
`
`3
`
`4
`
`5
`
`6
`
`.
`
`47.7
`
`8.3
`
`7.8
`
`7A.
`
`6.9
`
`6.6
`
`3.5
`
`2.7
`
`Flat
`
`G.2
`
`0.3
`
`0.4
`
`.
`
`0.2
`
`0.2
`
`6.2
`
`Val +/-
`
`1.2%
`
`2.8%
`
`AS%
`
`9.9%
`
`AO%
`
`-3.9%
`
`“7.2%
`
`5.0%
`
`§ Rank
`
`a
`
`3
`
`eo
`
`6
`
`8
`
`8
`
`o
`
`qo
`
`12
`
`$ Shr
`
`da6
`
`Lb
`
`Sh
`
`15
`
`75
`
`65
`
`SA
`
`28
`
`20
`
`S Shr af.
`
`Od
`
`Oo
`
`O02
`
`D2
`
`O48
`
`D2
`
`Og
`
`O2
`
`ot
`
`Coca-Cola
`
`Pepsi-Cola
`
`Diet Coke
`
`Dr Pepper
`
`Diet Pepsi
`
`Fanta
`
`S20
`
`LAB Category Volume and Dollar Performance 20417 (Ranked by Volume)
`Volume
`
`csp
`
`Bottled Water (packages less than 2L)
`
`Sports Drinks
`
`RTD Tea
`
`Juice/Brinks
`
`RTD Coffee/Dairy-based/All Other
`
`Total LRB
`
`Case Vol (ma)
`
`Vol +/- (maj
`
`Val +/-
`
`8,526.2
`
`6,430.5
`
`4,090.0
`
`883.0
`
`743.3
`
`429.8
`
`18,0728
`
`-LLL.G
`
`376.6
`
`5A
`
`0.2
`
`20.0
`
`15.2
`
`246.7
`
`-1.3%
`
`6.2%
`
`0.5%
`
`Flat
`
`3.7%
`
`3.7%
`
`LAM
`
`Value
`
`Saf tba)
`
`SiG
`
`$0.9
`
`S08
`
`SOL
`
`So4
`
`S08
`
`S ibn)
`
`SEG
`
`goad
`
`go 0
`
`S16
`
`SoG
`
`$38
`
`$198.7
`
`Coke Zero Sugar
`
`Diet Mtn Dew
`
`9
`
`40
`
`2.0
`
`19
`
`0.4
`
`Flat
`
`3.8%
`
`“3.4%
`
`14
`
`47
`
`Oud
`
`* BD defines CSDs to include energy drinks, which factor Into rank and share results.
`
`in 2017, the liquid refreshment beverage industry grew +1.6%by dollars after adding $2.1 billion of value to
`LRBs.
`reach $135.7 billion (table immediately above), Still, this was less than half of the value added in 2016. CSDs and
`bottled water drove most of the LRB value growth last year. LRB volume growth also decelerated, to +1.4% from
`+2.2% in 2016.
`
`GSBs. As noted in the table immediately above, dollars for carbonated soft drinks - which by BD definition includes
`energy drinks - grew +1.3%, which was slower than the +2.0% gain achieved in 2016. BD estimates that aill-channel
`CSD pricing last year was up by about +2.6%, slightly less than the +2.8%realized the previous year. Pricing growth
`for the category offset 4 -1.3% volume decline, which represented a deeper volume decline compared to -0.8% in
`2016. CSDs now have declined for 13 consecutive years. Dollars from carbonated soft drinks represented well more
`than half of total LRB value and CSDs werethe largest category. Annual per capita CSD consumption in the U.S. fell
`to about 628 8-o7 servings in 2017. That compares to G42 servings in 2016. The decline in per capita consumption
`was a function of lower volume and @ modest increase in U.S. population. Previous years’ CSD per capita
`consumption: 650 in 2015, 663 in 2014 and 674 in 2013 (slight updates to prior-year population estimates annually
`by the U.S. Census Bureau may mean per cap comparisons to previous years are not exact).
`
`Bottled Water. The second largest LRB category by value, singie-serve bottled water (packages less than 2L) still
`trailed CSDs by more than $57billlon (second table above). Bottled water added about $900 million in value,
`prowing +3.8%. That represented about half of the +7.5%growth rate posted in 2016. Volume growth of +6.2%
`outpaced dollar growth.
`
`
`
`
`
`BEVERAGE-DIGEST=| MAY 7,2018 | Page 2
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`Sports Drinks. The category posted a meaningful negative swing in 2017 (second table, page 2), with dollars and volume
`declining. In 2016, sports drinks grew on both measures (+5.0%dollars; +3.9% volume). Declines were led by Gatorade
`and full-calorie Powerade.
`
`million 192-o0z cases (lable, page 1). So, for example, Megabrand Coke includes Coke, Diet Coke, Coke Zero Sugar, Cherry
`Coke and all other iterations of the Coke tradernark. The brand families listed in the “LRB Megabrands’” table are ordered
`by volume. Value ranks aiso are included for the listed brands, with gaps representing megabrands that weren't large
`enough to make the top-10 list on a volume basis. Select energy brands were included because of their importance ona
`value basis. For all of the top-five megabrands and No. 7 Sprite, value shares were larger than volume shares. Conversely,
`the four water brands on the list all have higher volume shares than value shares. Energy brands listed have significantly
`higher value shares than volume shares. No. 9 Lipton is not listed in the table on page 1 because the brand’s volume cid
`not make the top-10.
`
`
`CSD Brand Ranking and Changes. As shownin the first table on page 2, Sprite moved up one spot to No. 5 in the 2017
`volume ranking, surpassing base Mtn Dew (doesn’t include extensions such as Code Red). Coke Zero Sugar also moved
`up one spot to No. 9, edging past Diet Mtn Dew. Dr Pepper, Sprite, Fanta and Coke Zero Sugar each grew dollars and
`volume. Brands that do not appear on the CSD value list are as follows: No. 4 Redbull, No. 7 Monster, No. 11 Rockstar,
`No. 13 Canada Dry. Coca-Cola’s top CSD brands generally outperformed PepsiCo’s top brands in 2017, PepsiCo has said it
`will boost media and advertising spending this year to close the performance gap. Coca-Cola credits the company’s
`recenth-completed bottler refranchising program for contributing to its perforrnance. Coca-Cola’s key diet sodas also fared
`better than PepsiCo’s core diets, even as the segment overall was troubled due to consumer skepticism over artificial
`sweeteners, such as aspartame, and a shift to bottled still and sparkling waters. PepsiCo has now completed a shift back
`te the original version of Diet Pepsi following a reformulation to remove aspartame. The change turned off core
`consumers and the product was unable to attract new drinkers. Meanwhile, Diet Coke has added flavored versions to its
`lineup that have shown early signs of success, according to Coca-Cola executives.
`
`Revenue. Reported revenuesfor the top-3 U.S.-based soda companies in 2017 are as follows: Coca-Cola North America
`generated net revenue of $10.6 billion after adding $427 million for an increase of +4%. PepsiCo North America
`Beverages’ net revenue declined $326 million, or -2%, to $20.9 billlon. Dr Pepper Snapple added $250 million in net
`revenue, or +4%, te reach $6.69 billion.
`
`Methodology. BD tracks LRB volume and value in all channels including retail, vending and fountain. BD's ail-channel
`data may differ from tne companies' data and is based on the publication’s evaluation, analysis and estimates of
`avaliable information both publicly and from confidential sources.
`
`Fact Book, 23rd Edition. See attached for more information.
`
`
`
`|Duane Stanford, Executive Editor dstanford@beverage-digest.com
`
`
`
`© 2018 Beverage Digest. AH rights reserved. Beverage Digest is published by Zenith Gi
`.
`tranamittedin any print or electronic format without written permission of the guolisher.
`No part of this publication may be reproduced or
`
`
`Richard Hall, Publisher.
`ane Stanford, Executive Editor. Monica Mvarnme, Market Consultant.
`Phone: (404) 444-1848. Website: www.beverage-digest.cam. E-mail: dstanford@heverage-digest.cam.
`One-year subscription $825. American Express, Mastercard and Visa accepted.
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`plus special issues and email alerts. Single copies er rnaps $85, prepaid orders only.
`ISSN 0738-8853.
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`REVERAGE-DIGEST—| MAY 7, 2018 | Page 3
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`bankers and marketing executives.
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`Find out which companies are gaining and losing.
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`¢ Learn which brands and which categories are succeeding, and which aren’t.
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`age Digest Fact Book 23rd edition provides
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`
`subjects including:
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`¢ Updated market data for 2017
`
`¢ Thirty+ years of historic data
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`¢ Performance and growth metrics
`
`¢ Pricing
`¢ Total liquid refreshment beverage metrics
`
`¢ Per-capita consumption
`
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`MARCH 23, 2016
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`VOLUME 67 / SP. 4
`FOUNDED 1982
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`BEVERAGE-DIGEST.COM
`E-MAIL ALERTS
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`STEM BOOKS
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`BOTTLER TERRITORY MAPS
`CONFERENCES
`
`THE BEVERAGE INDUSTRY'S LEADING INFORMATION RESOURCE FOR BREAKING NEWS, ANALYSIS & DATA
`
`Special issue: U.S. Beverage Business Results for 2015.
`
`
`2015 LRE Growth Accelerates to +2.2%. Coke and Pepsi Tie In LRB Performance.
`
`CSDs Down For 11th Year As Decline Deepens. Dr Pepper Edges Past Mt. Dew for #4 Siot.
`AquafinaReturnsteTop-10LRBMegabrandsListat#9.Sprite,FantaVolumeUp.
`Fach March, BD publishes summary all-channeil U.S. beverage results for the previous year. BD's data
`covers liquid refreshment beverages (LRBs) andits components: CSDs (including energy crinks); bottled
`water: and non-carbs (sports drinks, ready-to-drink teas, juice drinks, etc). Tables show: 1} top-5 LRE companies.
`2) top-9 CSD companies plus “other.” 3) top-10 LRB Megabrands (definition below). 4) top-10 CSD brands.
`
`LREs
`
`CSDs
`
`Companies Ranked by LRB Volume 2035
`
`Companies Ranked by CSD Volume 2015
`
`Coca-Cola*
`
`PepsiCo
`Nestle Waters
`
`Dr Pepper Snapple
`
`LRE Share Share +/-
`33.2
`-O4
`
`25.1
`114
`
`105
`2.7
`
`474
`
`-0.3
`+04
`
`0.2
`flat
`
`+0.5
`
`n/a
`490.0
`Total LRB Business
`* BD estimates that Coke’s 2045 mid-year swap of energy
`
`Vol +/-
`+0.9%
`
`+0.9%
`+5.8%
`
`+0.2%
`+0.5%
`
`+6.0%
`
`4+2.2%
`
`brands including NOS and Full Throttle to Monster in return for
`
`natural soda, tea and juice brands including Hansen’s,
`
`Peace and Hubert’s were offsetting. ** Includes CSOs & water;
`reflects addition DS Services water brands and excludes non-carbs,
`
`Coca-Cola
`
`PepsiCo
`
`Dr Pepper Snapple
`Cott
`
`National Beverage
`
`Monster Beverage
`Red Bull
`
`Rockstar
`
`Big Red
`All other
`
`Total CSD Category
`
`17.3
`
`AO
`
`3.8
`
`19
`
`15
`0.8
`
`C.F
`
`13
`100.0
`
`CSD Share Share +/-
`+02
`42.5
`27.0
`
`-0.5
`+0.2
`
`-O.2
`
`+O.4
`
`+02
`
`+0.2
`
`+O.4
`
`flat
`
`0.3
`
`n/a
`
`Top-L0 CSB Brands 2015
`
`Violators are liable for actual damages or statutory damages up to $100,000.
`
`WARRMING: Unauthorized electronic, print or fax reproduction in whole or in part is a violation of Federal Law.
`
`Top-10 LRB Megabrands 2015
`
`LRE Share Share +/-
`16.5
`0.8
`
`8.2
`
`5.6
`AS
`
`4B
`
`48
`
`3.7
`2.8
`
`22
`
`2.4
`
`-0.5
`
`0.2
`0.2
`
`+0.2
`
`+0.2
`
`fat
`+0.2
`
`+0.2
`
`flat
`
`Poland Spring
`
`Vol +/-
`2.6%
`
`-3,.9%
`
`~1.0%
`0.8%
`
`+6.1%
`
`45.3%
`
`+2.7%
`+6.7%
`
`Coke
`
`Pepsi-Cola
`Diet Coke
`
`Dr Pepper
`Mt. Dew
`
`Sprite
`
`Diet Pepsi
`Fanta
`
`+11.4%
`
`Diet Mt. Dew
`
`+6.5%
`
`Coke Zero
`
`CSD Share Share +/-
`47.7
`+04
`
`6.6
`
`&.1
`
`6.9
`
`6.8
`
`6.2
`
`44
`
`2.4
`
`2.0
`
`1.9
`
`-0.2
`
`-0.4
`
`+04
`
`O41
`
`+02
`
`0.2
`
`+0.2
`
`flat
`
`+04
`
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`in 2015, LRB volume was up +2.2%, an acceleration from the +1.7% increase in 2014. Previous
`LRE Results.
`year results: down -1.6% in 2013, up +1£% in 2012 and up +0.8% in 20141. The result was helped by stronger
`sales of bottled waters including Aquafina and Dasani. Cott's +0.5% LRB increase includes bottled water volume
`from DS Services (formerly DS Waters), which Cott acquirec in December 2014. Strong non-carbonated beverage
`growth offset a deeper -1.2% decline in CSD volume compared to 2014, when CSDs declined -0.9%. On June 12,
`Coca-Cola turned over energy drinks including NOS and Full Throttle to Monster Beverage and took on certain
`natural soda, tea and juice drinks, including Hansen’s and Peace Tea, that were previously owned by Monster.
`The transfers were part of an equity deal between the companies. BD estimates that these brand swaps mostly
`offset each other in terms of volume.
`
`in 2015, CSD volume totaled about 8.7 billion 192-0z cases. The category has lost 1.5 billion
`GSD Category.
`cases since it reached peak volume in 2004 at 10.2 billion cases. BDincludes energy drinks in its CSD total.
`Without energy drinks, CSD volume was down about -1.5%, BD estimates. Pricing and Dollars. BD estimates
`that all-channel CSD pricing last year was up about +3.3%. Total CSD dollars were up about 2.1% to $79 billion
`from $77.4billion in 2014 and $76.3 billion in 2013. In recent years, the major soft drink makers have focused
`on dollar growth by aggressively marketing smaller, more convenient packages that garner a higher price per
`ounce while taking the focus off large discount packs such as 2-liters and 12-pack cans. Per Gapita
`Consumption. Annual per capita CSD consumption in the U.S. fell to about G50 8-07 servings in 2015. That
`compares to G63 servings in 2014. The decline in per capita consumption factored lower volume and a modest
`increase in U.S. population. In 2013, CSD per capita consumption was 674, down from 700 in 2012 and 714in
`2O1L1. Per capita consumption in 2015 was the lowest since about 1985. FactBook. BDwill provide detailed
`information on the categories, companies and brands in its soon-to-be published 2016 Fact Book. Click here for
`more details. Order forms will be available in the coming weeks.
`
`CSD Companies. Coca-Cola and PepsiCo each lost CSD volume in 2015. Coca-Cola’s CSD performance improved
`last year to -0.8%fram -1.1% in 2014. PepsiCo’s performance worsened to -3.1% from -1.4%. Dr Pepper
`Snapple’s volume was down -0.1%last year, slightly worse than its flat performance in 2014. Coke and Dr Pepper
`each gained CSD share while PepsiCo lost share. Energy drink companies Monster, Red Bull and Rockstar each
`boosted volume and gained share. In addition, all three performed better in 2015 than in 2074.
`
`
`CSD Brands. Dr Pepper Edges Mt. Dew te take #4 Slot. Coke’s Sprite and Fanta Add Volume, Boost Share.
`Among the top-10 CSD brands, Dr Pepper made the biggest news in 2015 by surpassing Mt. Dew. Dr Pepper
`logged a slight volume gain and picked up a4 tenth of a share point while Mt. Dew volume declined -2.8%as its
`share fell a tenth of a share point. Consumer skepticism of artificial sweeteners such as aspartame continued to
`depress sales of diet brands. Diet Coke’s volume fell -5.6%, better than the -6.6%decline in 2014. Diet Pepsi
`volume declined -5.8%, compared to a -5.2% decline in 2014. The company introduced an aspartame-free version
`late last year that coincided with an acceleration of the brand’s decline. Both Diet Coke and Diet Pepsi lost share
`last year. Diet Mt. Dew, which fell behind Fanta on BD’s 2074 CSD brands list, declined -4.8% in volume while its
`share remainec flat. Diet Mt. Dew’s decline was deeper than the -3% decline in 2014. Coke Zero made slight
`volume and share gains last year. Arnong the top-10 brands, Coke has five, PepsiCo has four and Dr Pepper
`Snapple has one. Brand Coke declined -1.0%after growing slightly in 2014. Pepsi-Cola declined -3.2%,
`underperforming its 2014decline of -L.8%. As in 2014, regular CSDs in the top-10 brands list generally
`outperformed diets.
`
`LRBCategoryandCompanies. BD estimates that in 2015, LRB volume totaled about 15.8 billion cases, up
`+2,.2% from 15.4 billlon cases in 2014. LRB volume increased +1.7% in 2014, decreased -1.6% in 2013 and
`gained +1%in 2012. Coke and PepsiCo each boosted LRB volurne +0.9%last year. Nestle posted growth of
`+5.8%, a deceleration from +9.1% growth in 2014. Coke is the largest CSD company and the largest LRB
`company. Despite volume growth, Coke and PepsiCo lost share last year amid strong volume gains by bottled
`water makers. BD's all-channel volume data does not always entirely correlate with the volume reported in the
`public cornpanies' 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.
`
`
`
`BEVERAGE-DIGEST=| MARCH 29,2016 | Page 2
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`LRE Megabrands. 6D defines a “Megabrand” as a brand or tradernark with total volume of more than 100
`million 192-07 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.
`Aquafina Returns.
`in 2015, the strongest performing top-10 Megabrand was Aquafina (which includes
`FlavorSplash), with volume up +11.4%. The brand returned to the top-10 megabrands list at #9, having been
`bumped off in 2013. Arizona fell out of the list in 2015. PepsiCo finished 2015 with four entries on the top-10
`Megabrands list and an aggregate share of 20.8. Coke, meanwhile, had three brands with an aggregate share af
`23. The biggest Megabrand by far was Coke, with a 16.5 share of LRB volume. its volume was down -2.6%, as
`both Coke and Diet Coke lost volurne, compared to -2.4% in 2014. Megabrand Pepsi was down -3.9% compared
`to a -2.9% decline in 2014. Significant LRE growth continued to come from bottled water, as evidenced by the
`Megabrands list. Nestle Pure Life was up +5.3%; Dasani +6.7%; and Poland Spring up +6.5%.
`
`Methodology. BD tracks LRB volume in all channels including retail, vending and fountain. BD's all-channel data
`and volume performance of cornpanies/brands may differ from companies’ data and is, in the end, based on
`BD's evaluation, analysis and estimates.
`
`Registration Open for BD’s ‘Market Smarts’ Conference on June 13.
`Latest Speaker Confirmed: Gilberto Maldonado, General Manager for DPSG’s Grupo Penafiel.
`P