Boston, MA -- (ReleaseWire) -- 06/17/2014 -- Juice consumption continued to decline in 2013. Off-trade volume sales of juice fell by 2% in 2013; a fourth consecutive year of decline but equal to the review period negative CAGR of 2%. Health concerns were the major drivers of the drop in volume sales. The increased focus on health and wellness has led some consumers to move away from 100% orange juice. While 100% orange juice has positive health attributes, such as vitamin C, more consumers have begun to read the labels of the products they purchase, and what they find is that 100% orange juice has a high content of sugar and is thus not as appealing in terms of health. Adding to the decline of juices is First Lady Michelle Obama's "Let's Move" campaign to reduce childhood obesity. One of the aims is to lower the intake of sugar and calories by children, which detracts from the consumption of 100% orange juice.
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The Coca-Cola Co is the leading juice manufacturer with an 18% off-trade value share in 2013, down slightly from 2012. The company leads through its Minute Maid, Simply and Odwalla brands and its excellent distribution network. Coca-Cola has strategically positioned its juice products to attract different types of consumers. The Minute Maid brand is positioned to attract the general consumer. Odwalla is its super premium brand, positioned to attract consumers who are concerned with both the environment and wellbeing. The Odwalla products are branded as naturally healthy and earth-friendly, thus enabling Coca-Cola to charge a premium for them. The Simply brand is positioned for consumers who prefer fruit juice with no additives. However, consumers in the US are increasingly focused on calorie and sugar content, which is undermining the company's sales in this category.
Concerns about the healthiness of juice are expected to reduce demand for juices over the forecast period. Off-trade value sales of juice are projected to decline by 5% over 2013-2018 to reach US$16.7 billion, while off-trade volume sales will decline by 7%, to reach 8.4 billion litres. The high sugar content of juice as well as the availability of low calorie alternatives such as functional bottled water and liquid concentrates will constrain demand for juice products.
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