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As the beverage industry continues to deal with economic convulsions, Beverage Marketing examines the continued impact of the economic meltdown on the beverage industry. Recent and developing conditions and trends are explored with data provided to illustrate the effect of the economic downturn on previous growth expectations. This report looks at market trends on a category-by-category basis and plots the likely path recovery will take. It also discusses some of the ongoing issues and fundamental changes that may affect the market's future in the aftermath of unprecedented economic shifts.

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FOCUS REPORT

THE U.S. BEVERAGE INDUSTRY CONFRONTS ECONOMIC CHALLENGES

The Economic Downturn pg..........1

• Overview pg..........1
• Effect on the Beverage Industry pg..........2

Economic Impact on Companies pg..........10

• Coca–Cola Company pg..........10
• PepsiCo pg..........11
• Other Companies pg..........13

Beverage Category Analysis pg..........17

• Carbonated Soft Drinks pg..........17
• Bottled Water pg..........20
• Fruit Beverages pg..........21
• Coffee pg..........22

Industry and Consumer Responses pg..........23

• M&A Slowdown pg..........23
• Private Label pg..........24
• Channel Shifting pg..........27
• Economy's Impact — Case Study pg..........28
• Summary pg..........30

Exhibits pg..........32

EXHIBIT

THE U.S. BEVERAGE INDUSTRY CONFRONTS ECONOMIC CHALLENGES

1 U.S. Beverage Market Actual and Projected Volume by Category 2007 — 2009 pg..........32

2 U.S. Beverage Market Actual and Projected Volume Share by Category 2007 — 2009 pg..........33

3 U.S. Beverage Market Actual and Projected Volume Change by Category 2007 — 2009 pg..........34

4 U.S. Beverage Market Actual and Projected Per Capita Consumption by Category 2007 — 2009 pg..........35

5 U.S. Beverage Market Actual and Projected Retail Dollar Sales by Category 2007 — 2009 pg..........36

6 U.S. Beverage Market Actual and Projected Retail Dollar Sales Share by Category 2007 — 2009 pg..........37

7 U.S. Beverage Market Actual and Projected Retail Dollar Sales Change by Category 2007 — 2009 pg..........38

8 U.S. Beverage Market Actual and Projected Retail Price Per Gallon by Category 2007 — 2009 pg..........39

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