Beverages

Discount Store News, Oct 20, 1997

When it comes to beverages, consumers want only two brands: Coke and Pepsi. They thirst for very little else, according to consumer responses to this year's Top Brands survey on beverages.

These brands also rated very high among surveyed retailers, catapulting both brands once again to Discount Store News' exclusive Power Brands list.

Coke edged Pepsi for the higher position on this list and throughout the survey. Coke was the No. 4 brand on the Power Brands list which is composed of consumer brands that score highly among surveyed consumers and discount store managers. Coke scored 354 on the power brands index or 3.5 times the average acceptance level for a top 10 brand by both consumers and retailers. The only brands to score higher than Coke included No. 1 Cannon, with an index score of 538; Kodak, 446; and Corning/Corelle/Visions, 376. Pepsi, the No. 2 beverage brand, scored 322 on the power brands index, making it the No. 7 brand on that list. It outpaced 39 other brands.

Coke and Pepsi are the only two Power Brands in the beverage category. While Coke prevailed as the more preferred of the two for the third straight year, it does not dominate Pepsi. Only four percentage points separate the two brands on the retailer list of best performing brands. The two labels are separated by six percentage points on consumers' most preferred brands list.

This year's brands survey found that 96% of consumers shop for beverages with a specific brand in mind, one percentage point higher than the 1996 survey and the highest brand preference score in the study.

On the flip side, just 42% of consumers said they would switch brands if their preferred brand was unavailable, among the lowest such scores in the survey. As a result, just 44% of consumers said they would be willing to try a private label or store brand beverage, probably an indication of higher consumer willingness to try store brand juices or even coffee. This year's result is one percentage point lower than the '96 survey, which found that 45% of consumers said they would be willing to try private label or store brand beverages. In fact, Sam's American Choice, Wal-Mart's private label brand, was the No. 3 beverage brand on retailer's best performers list, indicating the power of the Wal-Mart franchise. It was not mentioned by consumers.

In general, consumers are fairly confident they'll find the beverage brands they prefer at their favorite discount department store. On a scale of one to nine, with nine meaning very confident and one indicating a lack of confidence, consumer confidence in beverages produced a mean score of 7.59, with 50% of all polled saying they are sure they will find their preferred brand at their favorite discount store.

Consumer preference for beverages consists entirely of soft drinks, according to survey results. Coke and Pepsi dominate the consumer list, naming each as their preferred beverage brand, with 47% and 41%, respectively. Among retailers, however, the top 10 list of best performers consists mostly of soft drinks. On the list is Sam's Choice, which is available in carbonated beverages, juices and teas; Ocean Spray; Gatorade; and Snapple. Folgers coffee was No. 11, and Budweiser beer was No. 12.

Consumers named only 14 brands specifically in this category compared to 25 for retailers.

After Coke and Pepsi, consumers listed the following beverages as their 10 most preferred: 7-Up, Dr. Pepper, Sprite, Mountain Dew, A&W, Canada Dry, Diet Rite, RC, Canfield's, Kool Aid, Gatorade and Lipton. Nearly one in five said there was another brand-or other brands-they considered their favorite, and 9% said they look for private label or store brand products.

Consumers were pretty consistent in their preferences across retail chain and life stage. Coke was always No. 1, and Pepsi was always No. 2. The other brands garnered relatively few responses.

Among retailers, the same was true except for upscale discounters other than Target and retailers in the North Central and Western regions. Pepsi won out in the two regions, 88% to 87% in the South and 93% to 89% in the West. Among other upscale discounters, Coke and Pepsi tied.

Coke and Pepsi so dominate the beverage aisle at discount stores that while retailers mentioned other brands often enough to make the top 10, they received relatively few votes. The biggest exception was at Wal-Mart, where the retailer's Sam's Choice was firmly in third place with four out of 10 retailers mentioning the private label as a top performing brand. Sam's Choice was followed by Ocean Spray and Gatorade, which tied for fourth.

At Kmart, RC was the No. 3 top performer behind Coke and Pepsi, followed by Ocean Spray and Gatorade. Among Target store managers, the best performing brand after Coke and Pepsi was 7-Up.

Discounters

Brand                 1997     1996

Coke                   86%     75%
Pepsi                  82      62
Sam's/Sam's Choice     18       3
Ocean Spray            13       7
Gatorade               12       6
RC                     11       9
7-Up                    9      11
Snapple                 8       7
Sprite                  8      --
Dr. Pepper              7      12
Discount Store Shoppers

Brand   1997    1996

Coke                   47%     45%
Pepsi                  41      40
7-UP                    9       6
Dr. Pepper              8       4
Sprite                  7       7
Mountain Dew            7       7
A&W                     3       3
Canada Dry              3      --
Diet Rite               2      --
RC                      1       1