Non-alcoholic Beverages: The Consumer - US - August 2006

TABLE OF CONTENTS

• Introduction and Abbreviations
• Introduction
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Decline in the three biggest segments slows down growth in the $82 billion non-alcoholic beverage market
• Age influences the non-alcoholic beverage purchase behavior
• Gender difference influences beverage choices
• Motivation for trying a new beverage
• Presence of children in the household
• Racial differences drive growth in many non-alcoholic beverage segments
• Supermarkets remain the top choice of retail channel to purchase non-alcoholic beverages
• Market Drivers
• Introduction
• Obesity trends influence the non-alcoholic beverage market
  • Figure 1: Prevalence of overweight and obesity among adults aged 20+, 1980-2002
  • Figure 2: Per capita consumption of carbonated beverages, bottled water and sports drinks, 2000-05
• Demographic influences
• Children and teens
  • Figure 3: Consumption of non-alcoholic beverages by adults, teens, and pre-teens, January-September 2005
  • Figure 4: U.S. children and teen population, by age, 2001-11
• Young adults
  • Figure 5: Incidence of consumption of selected RTD beverages in the past seven days, by type of beverage, by age, January-September 2005
  • Figure 6: U.S. population of young adults aged 18-34, by age, 2001-11
• Ethnic population drives growth in non-alcoholic market
  • Figure 7: Incidence of consumption of RTD beverages in the past seven days, by race/ethnicity, January-September 2005
  • Figure 8: Population, by race and Hispanic origin, 2001-11
• Lifestyle trends
• Convenience
  • Figure 9: Incidence of immediate consumption and take-home consumption at all channels, 1999-2004
  • Figure 10: Beverage attributes driving purchase, by age, March 2006
• Health and wellness
  • Figure 11: Top five positioning claims for juice and juice drinks, 2004 and 2005
• Organic positioning claims draw consumers' attention
  • Figure 12: Number of positioning claims for organic non-alcoholic beverages, 2003-05
• Summary of Consumer Behavior and Attitudes
• Introduction and research methodology
• Consumption of non-alcoholic beverages
• Age influences the non-alcoholic beverage purchase behavior
• Gender difference influences beverage choices
• Motivation for trying a new beverage
• Consumption driven by presence of children in the household
• Racial differences drive growth in many non-alcoholic beverage segments
• Supermarkets are top channel for non-alcoholic beverages
• Personal and Household Consumption
• Incidence of consumption of non-alcoholic beverages
  • Figure 13: Consumption of RTD non-alcoholic beverages consumed in the past seven days, 2001 and 2005
  • Figure 14: Consumption of RTD non-alcoholic beverages in the past seven days, by gender, January-September 2005
  • Figure 15: Consumption of RTD non-alcoholic beverages in the past seven days, by age, January-September 2005
  • Figure 16: Consumption of RTD non-alcoholic beverages in the past seven days, by household income, January-September 2005
  • Figure 17: Consumption of RTD non-alcoholic beverages in the past seven days, by race/ethnicity, January-September 2005
• Mean level of consumption of non-alcoholic beverages
  • Figure 18: Mean consumption of RTD non-alcoholic beverages in the past seven days, by gender, February 2006
  • Figure 19: Mean consumption of RTD non-alcoholic beverages in the past seven days, by age, February 2006
  • Figure 20: Mean consumption of RTD non-alcoholic beverages in the past seven days, by race/ethnicity, February 2006
  • Figure 21: Mean consumption of RTD non-alcoholic beverages in the past seven days, by region, February 2006
• Household usage of fluid milk
  • Figure 22: Household usage of milk, by number of people in the household, January-September 2005
  • Figure 23: Types of milk used by households, by head of household age, January-September 2005
  • Figure 24: Types of milk used by households, by household income, January-September 2005
  • Figure 25: Types of milk used by households, by race/ethnicity, January-September 2005
  • Figure 26: Types of milk used by households, by presence of children, January-September 2005
• Amount of milk consumed in households
  • Figure 27: Number of milk glasses used by HH on average day, by presence of children, January-September 2005
• Teens and children
  • Figure 28: Consumption of RTD non-alcoholic beverages in the past seven days by adults, teens, and children, January-September 2005
• Children's consumption of milk
  • Figure 29: Consumption of milk among children, 2003 and 2005
• Purchase Behavior, Sources and Attitudes Towards CSDs
• Motivation for trying a new beverage
  • Figure 30: Motivating factors for trying a new beverage, by gender, June 2006
  • Figure 31: Motivating factors for trying a new beverage, by age, June 2006
  • Figure 32: Motivating factors for trying a new beverage, by race/ethnicity, June 2006
• Beverage purchase behavior
  • Figure 33: Beverage purchase behavior (group 1), by age, June 2006
  • Figure 34: Beverage purchase behavior (group 2), by age, June 2006
  • Figure 35: Beverage purchase behavior (group 1), by race/ethnicity, June 2006
  • Figure 36: Beverage purchase behavior (group 2), by race/ethnicity, June 2006
• Health perception of beverages
  • Figure 37: Health perception of various beverages (group 1), by gender, June 2006
  • Figure 38: Health perception of various beverages (group 2), by gender, June 2006
  • Figure 39: Health perception of various beverages (group 3), by gender, June 2006
  • Figure 40: Health perception of various beverages (group 1), by age, June 2006
  • Figure 41: Health perception of various beverages (group 2), by age, June 2006
  • Figure 42: Health perception of various beverages (group 3), by age, June 2006
  • Figure 43: Health perception of various beverages (group 1), by race/ethnicity, June 2006
  • Figure 44: Health perception of various beverages (group 2), by race/ethnicity, June 2006
  • Figure 45: Health perception of various beverages (group 3), by race/ethnicity, June 2006
• Diet status
  • Figure 46: Diet status, by gender, June 2006
  • Figure 47: Diet status, by age, June 2006
  • Figure 48: Diet status, by income, June 2006
• Dieting disconnect: Consumers fail to understand the nutrition realities of NABs
  • Figure 49: Incidence of beverage consumption by respondentents on a diet, January-September 2005
• Choice of retail channels to purchase non-alcoholic beverages
  • Figure 50: Source of non-alcoholic beverages purchased in past week, by gender, June 2006
  • Figure 51: Source of non-alcoholic beverages purchased in past week, by age, June 2006
  • Figure 52: Source of non-alcoholic beverages purchased in past week, by race/ethnicity, June 2006
• Appendix: Trade Associations