Soda loses prominence
April 28, 2006
For the first time in 20 years, soda sales are down. But profits are up.
“Several states, like California, have banned soda in the school cafeterias. This is encouraging for students and does not adversely impact the schools,” said Amanda Purcell, Policy Director for the California Center for Public Health Advocacy. “Students are performing better without soda and schools have been able to find alternative means of income.”
The impact hasn’t been completely negative for beverage companies.
“Also, I understand some people are concerned about business and labor ramifications for those industries, and it is important to understand that while these companies’ soda sales have decreased, their juice, power drinks and energy drinks have increased,” Purcell said.
Health concerns are increasing among health experts who feel there are better alternatives to drinking soda.
“Drinking soda can cause weight gain and insomnia in some sensitive people,” said Meg Dullman, nutrition intern at Recreation Services. “If a person wants something to drink, water is best, or if you are working out for over an hour, a sports drink like Gatorade would be allowable.”
According to the March Beverage Digest report, last year’s sales of carbonated drinks decreased .2 percent. However, companies reported profits of $68.1 billion in 2005, an increase of $2.2 billion since 2004. Companies attribute this profit to higher prices of products and new fast-selling products like energy drinks.
Since 1996, sales for carbonated drinks have shown less and less growth, leaving corporations to find new ways to stimulate the market.
“The Coca-Cola system strives to maintain a continuous stream of innovation by expanding our broad beverage portfolio to include a wide variety of beverage choices,” said Kevin Morris, vice president of public affairs for the Coca-Cola Company.
Many companies have diversified their products. For example, Coca-Cola produces Powerade, Minute Maid and others. PepsiCo owns Gatorade, Aquafina, Tropicana, and Propel Fitness Water, among others.
NIU students feel greater variety is the primary cause of lagging soda sales.
“People are steering away from soda, because there are so many other choices, like fruit-flavored water, energy drinks, etc,” said Krista Barnes, senior marketing major.
Becky Potts, a senior journalism major, agrees.
“I think the decrease in sales is due to the wider variety of soda available and advertised to the public,” Potts said.
At least one student believes campus soda sales are as strong as ever.
“It is my opinion that, if anything, students at NIU drink more soda,” said Katie Bauhard, graduate student in nutrition and dietetics. “I personally drink Coke or Pepsi whenever I want soda.”