According to Business Insider ” Coca-Cola reported that Diet Coke “returned to volume growth in North America” for the first time in years. What they aren’t reporting is that the growth is small enough to need a magnifying glass and that no, Millennials are still not drinking soda.
Where have all the real journalists gone? Business Insider, the content mill, is known for hiring people who can write but have no business background at all. If this writer had a lick of business sense she would have known that a bump in sale would come as consumers try new products, but that the likelihood that bump would be sustained is minimal.
Consumer analytics provider Connexity says that soda brands are failing to win over the 18 to 24 demographic, despite new strategies designed to appeal to a younger, more health-conscious crowd. With the media spotlight turned firmly on sugar, following the implementation of a government tax in many countries across the world – such as Saudi Arabia, where they imposed a 50% tax on sugary drinks in June – many consumers around the world are seeking healthier alternatives.
As a result, Millennials drink much less soda (or pop or whatever you want to call it). And that number is declining every year.
A recent Morgan Stanley report illustrates how the shift to energy drinks and sports drinks in the past decade is partially to blame. But while that’s good news for America’s health, it’s very bad news for investors like Warren Buffett, who have always considered Coca-Cola the gold standard of consumer staples.
Coke’s largest audience is 35 to 44 yet Coca-Cola spent two years on the Diet Coke relaunch and says it asked more than 10,000 people for their thoughts. But in general, consumer appetite for soda, both regular and diet, is shrinking. People are turning away from the artificial sweeteners used to flavor diet sodas — including the new Diet Coke flavors.
I still stand behind my prediction that Diet Coke will continue to lose market share after this slight bump due to a new design and flavors. Consumers still don’t like soda and in the end so called “journalists” should ask harder questions than believe press releases.