Soft drinks aren't the only big profit-makers in the beverage industry anymore. New age beverages, teas, juices and sports drinks are growing in popularity and gaining a significant portion of the industry. One particular beverage has seen steady growth. Amazingly enough, it's water.
Yes, water, the most natural of all bottled beverages, this non-carbonated thirst quencher is now a 35 billion dollar industry, growing at an average 8.7 percent each year; 13.9 percent in 1999 alone (Beverage Marketing Corporation; U.S. Bureau of the Census). Concessionaires are cashing in on this growth, as manufacturers see distribution numbers rise.
The
thirst for bottled water in the U.S. began back in the mid-'70's; however,
sales have soared in the past five years since Coke and Pepsi entered
the market. Scott Finlow, marketing manager for Aquafina, a PepsiCo product,
attributes this growth to a number of factors: "First, the face and
consumption behavior of the American consumer has shifted; boomers have
become more health conscious; their kids grew up with bottled water and
actually think that bottled water is cool. Couple that with the fact that
bottled water is now produced in more convenient packaging and available
almost everywhere and you've got a recipe for strong growth that we foresee
continuing."
This is
a partial version of the complete story that appeared in the Spring 2001issue
of Concession Profession, the magazine for NAC members. To
become a member of NAC
click here. Members that would like to receive the complete story
can call the NAC office at (312) 236-3858.