Soda Wars Turn To Another Front - Sparkling Waters

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News Release: Associated Press News


NEW YORK (AP) -- The soda wars appear to be shifting at least in part to another corner of the beverage industry -- sparkling, flavored waters.

A report released Monday shows U.S. soda sales fell at an accelerated pace last year, extending a streak of declines that began in 2005. But Americans are apparently developing a taste for another type of sweet, carbonated beverage.

Last year, a small brand called Sparkling Ice saw sales more than double to $302.4 million from the previous year, according to IRI, a Chicago-based market research firm. That is still a tiny fraction of the broader soda industry but represents striking growth from 2009, when sales were just $2.7 million.

News Release: Associated Press News

NEW YORK (AP) -- Americans cut back on soda again last year, extending a trend that began nearly a decade ago.

U.S. sales volume of carbonated soft drinks fell 3 percent in 2013, according to an annual report by Beverage Digest, an industry tracker. That represents a steeper drop than the 1.2 percent decline in 2012 and the 1 percent drop in 2011.

Carbonated soft drinks still represent the biggest category in the beverage industry. But the popularity of Coke, Pepsi and other soft drinks is waning as alternatives like flavored waters pop up in beverage aisles. Soda's unhealthy image has also hurt sales.

Diet sodas are also falling at a faster rate than their regular counterparts. Industry executives blame the trend on worries people have about artificial sweeteners.

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