Sales of Energy Drinks Slowing (KO, PEP, DPS)

Sales of Energy Drinks Slowing (KO, PEP, DPS)

RSS

Nielsen data reported on Friday that beverage companies including The Coca-Cola Company (KO), PepsiCo, Inc. (PEP) and Dr Pepper Snapple Group Inc. (DPS) saw slower energy drink sales in the 4 weeks ended May 11th.

The firm reported that energy drink sales rose just 4.3% during the period, compared to an average 11.6% increase over the past four years.

Wells Fargo analyst Bonnie Herzog commented, “Red Bull posted +9.7% $ sales growth, most likely led by new SKUs, as its Red Bull and Diet Red Bull both posted negative $ sales growth. Monster Beverage (Nasdaq: MNST) posted the lowest $ sales growth results we have seen, +5.1% for period. Pepsico, Inc. (NYSE: PEP) and Dr Pepper Snapple Group, Inc. (NYSE: DPS) energy drinks continue to underperform the category, with $ sales changes of -18.1%, and -27.7%, respectively, while The Coca-Cola Company (NYSE: KO) energy drinks posted a strong +5.4% $ sales growth.”

The decline in sales is partially a result of campaigns against high caffeine content as well as high profile lawsuits against energy drink makers.

Both Coca-Cola and Pepsi have been expanding their presence in the energy drink market as soda sales have continued to fall. Pepsi’s Amp energy drink has about a 3% market share, while Coca-Cola’s Full Throttle has market share of approximately 1%.

Coca-Cola shares were down 40 cents, or -0.98% during Friday afternoon trading. The stock is up 11% YTD.

Pepsi shares were mostly flat during Friday afternoon trading. The stock is up 19% YTD.

Dr Pepper Snapple shares were down 40 cents, or -0.85% during Friday afternoon trading. The stock is up 5% YTD.

The Bottom Line
Shares of The Coca-Cola Company (KO) have a 2.77% yield, based on Friday afternoon’s price of $40.41.

Shares of PepsiCo, Inc. (PEP) have a 2.79% yield, based on Friday afternoon’s price of $81.24.

Shares of Dr Pepper Snapple Group Inc. (DPS) have a 3.26% yield, based on Friday afternoon’s price of $46.60.

The Coca-Cola Company (KO), PepsiCo, Inc. (PEP) and Dr Pepper Snapple Group Inc. (DPS) are not recommended at this time, holding Dividend.com DARS™ Ratings of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today