neil kimberley bevnet dec 2013 presentation
DESCRIPTION
This is a presentation I delivered at Bevnet on the future of beverage growth in the USATRANSCRIPT
Envisioning The Next Five Years Of Beverage Growth - Neil Kimberley: @foodsfluidsbynd
Over A Decade Of Solid Growth
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
$- $20.0 $40.0 $60.0 $80.0
$100.0 $120.0 $140.0
$78.9
$117.4
US Beverages Retail Sales ($B)
Beverage Digest
Per Capita Consumption Changed
FUNCTIONALBEVERAGES
2000 2012 2018
848674
198 502
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
$- $20.0 $40.0 $60.0 $80.0
$100.0 $120.0 $140.0
$78.9
$117.4 $126.7
US Beverages Retail Sales ($B)
Beverage Digest/Foods Fluids & Beyond
Per Cap Consumption Equality By 2018
FUNCTIONALBEVERAGES
2000 2012 2018
848674 636
198 502 636
CSD Non CSD
1,046 1,176 1,272
Beverage Digest/Foods Fluids & Beyond
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0.0%
25.0%
50.0%
75.0%
100.0%
CSD Bottled Water Alternative Beverages
US Beverages Retail Sales Share Trend
Beverage Digest
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0.0%
25.0%
50.0%
75.0%
100.0%CSD Bottled Water Alternative Beverages
Extend The Current Trends…
Beverage Digest
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
0.0%
25.0%
50.0%
75.0%
100.0%
CSD Bottled Water Alternative Beverages
2018: CSDs Reach To 49.9% Share
Beverage Digest/Foods Fluids & Beyond
Non-CSD Growth Opportunity
2013 2014 2015 2016 2017 2018
$1.3 $1.4 $1.5 $1.6 $1.7 $1.8
$0.7 $0.7 $0.7 $0.7 $0.6 $0.6
Category Growth CSD Swap
$2.0 $2.1 $2.2 $2.3$2.3 $2.4
Foods Fluids & Beyond
2013 2018
$67 $63
$15 $18
$38 $46
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?
Bottle
d W
ater
Ener
gy D
rinks
Juice
/Juice
Drin
ks
Spor
ts D
rinks
RTD T
ea/R
TD C
offee
Other
Bev
erag
es
$3.2 $2.9
$1.6 $1.2 $1.9
$0.9
2013 – 2018 Non CSD Growth Forecast($B)
+5% +5% +3% +3% +5% +5%CAGR
Foods Fluids & Beyond
FiveOpportunities
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 & ChannelsPowders, Mios and Pods
4) Changing Forms & ChannelsPowders, 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