Diet sodas sold by Coca-Cola and PepsiCo posted steep volume declines in , dragging down demand for the total carbonated soft drink category as consumers buy more bottled waters and other healthier beverages. Total volume for carbonated soft drinks dipped 0.

Pepsi beats Coke thanks to junk food - Sep. 29,

The steepest volume declines were for Diet Pepsi down 9. Diet Mountain Dew's volume dropped a more modest 0. Diet sodas were at one point the industry's savor as consumers looked to cut back on calories but increased skepticism of artificial sweeteners have led to sales weakness for those zero-calorie beverages.

Most of the concerns center on aspartame, a sweetener often used in diet colas. Diet Pepsi—which suffered a steeper volume decline in than it did in —aimed to confront that narrative head on when PepsiCo pep replaced Diet Pepsi with an aspartame-free version.

It didn't end up resonating and PepsiCo ended up opting to sell three different calorie-free options to appeal to two groups of consumers: Full-calorie soda sales were also weak last year, as demand for Coke, Pepsi-Cola and Mountain Dew softened, Beverage Digest reports. There were some bright spots: Dr Pepper Snapple's dps core Dr Pepper brand also grew and the parent company gained market share last year.

Within carbonated beverages, PepsiCo lost share and Coca-Cola's was flat.

Since , carbonated soft drinks have shed 1. That has been a savvy move because if consumers want to cut back on soda, they might opt for a smaller serving in a can that they would deem as a treat rather than buy a big 2 liter bottle and risk overindulging.

Meanwhile, the star performers were again bottled waters and that shouldn't be a surprise because various data trackers have reported that Americans are drinking more bottled water than soda. Beverage Digest reported that volume growth was solid for Nestle's nestle. The big soda makers have long been aware of the tilt away from soda and toward healthier beverages and that explains why Coca-Cola and PepsiCo have each sought to remake their portfolio to be more on trend with what Americans are drinking today.

At Coke, those efforts have included selling more bottled waters like Dasani and the premium-priced Smartwater. Volume gains have also been strong for flavored water Vitaminwater and dairy brand Fairlife.

As a result, growth in the key North America market outpaced the total business in That narrative is similar at PepsiCo. There have also been acquisitions to better compete.

PepsiCo last year bought sparkling probiotic drink maker KeVita on the same day that Dr Pepper Snapple acquired Bai Brands. Industry observers expect Coca-Cola's new CEO James Quincey, who officially took over earlier this month, will also step up efforts to boost the portfolio via acquisitions. Most Powerful Women In the Fight Against Sexual Harassment, Money Trumps Morals. Mylan EpiPen Maker Mylan Saves Millions in Taxes Thanks to Huge Stakes in Coal Companies. Bottled Water Continues to Take the Fizz Out of Diet Soda.

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