The Nielsen Company

The Nielsen Company

December 10, 2007 10:00 ET

Canadian Households Spent Over $8 Billion on Beverages in 2007

Nielsen's annual beverage study shows beverages consistently part of Canadian shopping baskets

MARKHAM, ONTARIO--(Marketwire - Dec. 10, 2007) - The Nielsen Company today announced the release of the 2007 edition of the annual Beverage Study. The report provides confirmation that Canadians have a healthy thirst for beverages. The $8.4 billion in sales of beverages represents a 5% increase in National All Channels sales, on pace with total grocery product sales of +5% for the 52 weeks ending September 1, 2007.

The 2007 study offers a variety of insights on consumer's attitudes and preferences about beverages, such as:

- Beverage products are included in the shopping basket 45% of the time

- The average Canadian household spends $506 on beverage products throughout the year, representing 14% of their annual Grocery spend

- Seventeen of the thirty one beverage categories available on the shelf are showing growth of +5% or higher

- Regionally, the highest growth in the beverage categories belongs to Alberta, with a 9% dollar sales increase over the previous year

- Sales increases were evident in both Hot Beverages (+6%) and Cold Beverages (+5%)

"It isn't a surprise that Canadians continue to be enthusiastic about beverage categories" said Dave Mann, Senior Vice President Marketing and Sales, The Nielsen Company. "Innovation in everything from on-the-go packaging to "better for you" green iced tea to new diet energy drinks has given the consumer a beverage choice for almost any occasion. What was interesting in this year's Beverage Study, is that the increases were consistent across every region and channel demonstrating clearly that the focus beverage manufacturers continue to apply to new products is paying off right across the country."

"In addition to their demand for flavour and variety in beverage options, consumers will continue to seek products that support their health and wellness," Mann continued. "The Better For You (BFY) beverage segment, which includes products that are diet, sugar-free, low sodium, or organic, now accounts for 29% of total beverage sales nationally across all channels."

Other areas impacting the beverage category which manufacturers should keep in mind include seasonality, managing the shelf effectively and the impacts of globalization on traditional retailing. Quenching your thirst may be a simple thing for the consumer, but for the manufacturers and retailers competing in this aggressive category it's anything but!

About the Beverage Study

The Nielsen Beverage Study combines consumer data from Homescan and PanelTrack surveys and retail tracking data sourced from scanning within MarketTrack™. Information provided includes key performance metrics and trends across 31 beverage categories, and helps clients understand market size, key contributing items/categories/segments, fair share of shelf, and consumer targetting opportunities.

About The Nielsen Company

The Nielsen Company is a global information and media company with leading market positions in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (NetRatings and BuzzMetrics), mobile measurement, trade shows and business publications (Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com.

Note to Editors: Look for this news release and other Nielsen news on the Internet at http://www.acnielsen.ca.

Contact Information