The Nonalcoholic Beverage Market is Projected to Grow
According to data published by Allied Market Research, the non-alcoholic drinks market size is estimated to grow at a CAGR of 4.4% to reach $2,090 billion by 2022. The research attributes the projections to ongoing advancements in the nonalcoholic drinks market with innovative efforts have further enhanced their demand. The report also indicates that recent innovations, which embed functional benefits and natural or organic ingredients in manufacturing of drinks is anticipated to enable the market to reach to a wider segment of audiences. Market segments such as energy drinks, sport drinks, and hot drinks are expected to witness good growth in the near future. Koios Beverage Corp. (CSE: KBEV), The Coca-Cola Company (NYSE: KO), SodaStream International Ltd. (NASDAQ: SODA), PepsiCo, Inc. (NASDAQ: PEP), Cott Corporation (NYSE: COT)
Health and wellness have significantly posed positive impact on the food and beverages industry in recent years. Increase in awareness of various health problems associated with alcohol has shifted the consumer preference from alcoholic drinks towards healthy, often organic nonalcoholic drinks. According to Future Market Insights, “Functional beverages are non-alcoholic drinks that keeps one’s body hydrated and provide overall nutritional well-being. These are fortified drinks that prevent or help address health issues across all age groups… Energy drinks is the largest segment in functional beverages followed by sports drinks and nutraceutical drinks… North America is the largest market for functional beverages as it contains innovative varieties of drinks that are customized for all age groups and strata.”
Koios Beverage Corp. (CSE: KBEV) listed on the Canadian Securities Exchange, earlier in the week the company announced that, “Koios Beverage Corp. (CSE: KBEV)…is pleased to announce that further to its news release on April 13, 2018, the Company’s common shares will resume trading on the Canadian Securities Exchange (the “CSE”) under the symbol “KBEV” at market open on May 1, 2018, following the publication by the CSE of its bulletin granting final approval of the Company’s listing application in connection with its transaction (the “Transaction”) with Koios, Inc. (“Koios”) completed on April 13, 2018 that constituted a “fundamental change” of the Company within the meaning of the policies of the CSE. A listing statement describing the Company and Koios, as well as the terms of the Transaction and associated transactions, prepared in accordance with the policies of the CSE, is available on SEDAR at www.sedar.com…
About the Company’s Business – The Company, through its wholly-owned subsidiary Koios, is an emerging functional beverage company which has an available distribution network of over 2,000 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well. Together these distributors represent over 80,000 brick and mortar locations across the United States from sports nutrition stores to large natural grocery chains including Whole Foods and Sunflower markets. Through its partnership with Wishing-U-Well, Koios also enjoys a large presence online, including being an Amazon choice product.
Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products can enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain. Koios is one of the only drinks in the world to infuse its products with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity.”
The Coca-Cola Company (NYSE: KO) is the world’s largest total beverage company, offering over 500 brands to people in more than 200 countries. Recently, the company reported Solid Operating Results for the first quarter. Net revenues declined 16% to $7.6 billion for the quarter, impacted by a 26% headwind from refranchising of bottling territories. Organic revenues (non-GAAP) grew 5% for the quarter, driven by concentrate sales growth of 4% and price/mix growth of 1%. During the first quarter, the company expanded its portfolio and continued to drive revenue growth. The company’s unit case volume grew 3% with an acceleration in smaller, immediate consumption packaging as revenue growth management initiatives were successfully executed in the market. The company’s portfolio continued to evolve and expand through world-class innovation, expansion of the lift, shift and scale model and bolt-on M&A, anchored by continued strength in core brands. These disciplined growth strategies, underpinned by a stronger and aligned system along with a winning culture, helped to drive the business forward.
SodaStream International Ltd. (NASDAQ: SODA) is the leading manufacturer of home beverage carbonation systems. Recently, the company announced its results for the quarterly period ended March 31, 2018. For the quarter ended March 31, 2018, Revenue increased $28.3 million, or 24.6%, to $143.6 million compared to $115.3 million in the same period in 2017 driven by growth in most of the Company’s geographic regions, primarily Germany, U.S., Canada and Australia. Changes in foreign currency exchange rates (“FX”) positively impacted revenue by approximately $12.0 million, mainly driven by the strengthening of the Euro/U.S. Dollar exchange rate. For 2018, the Company currently expects full year revenue to increase approximately 15% over 2017 revenue, up from its previous guidance of approximately 12%.
PepsiCo, Inc. (NASDAQ: PEP) is one of the world’s leading food and beverage companies with over $63 billion in net revenue in 2017 and a global portfolio of diverse and beloved brands. On February 8, 2018, the company announced the launch of bubly, a new sparkling water that combines refreshing and delicious flavors with an upbeat and playful sense of humor to shake up the sparkling water category while keeping it real with no artificial flavors, no sweeteners, and no calories. Available across the U.S. beginning February 2018, bubly is available in eight crisp flavors that are as fun to say as they are to drink: limebubly, grapefruitbubly, strawberrybubly, lemonbubly, orangebubly, applebubly, mangobubly and cherrybubly. The introduction of bubly comes just one year after the launch of PepsiCo’s premium bottled water LIFEWTR, and further validates the company’s commitment to its water portfolio.
Cott Corporation (NYSE: COT) is a leading route based North American and European water, coffee, tea, extract and filtration solution service provider with the largest volume-based national presence in the North American and European home and office bottled water delivery industry and a leader in custom coffee roasting and blending of iced tea for the U.S. foodservice industry. On March 21, 2018, the company announced the completion of the cash tender offer by its wholly owned subsidiary, CR Merger Sub, Inc., for all of the outstanding shares of common stock of Crystal Rock Holdings, Inc. at an offer price of $0.97 per share, net to the seller in cash, without interest but subject to any required withholding taxes. Crystal Rock is a 100 year old direct-to-consumer home and office water, coffee, filtration and office supply service delivery business serving customers throughout New York and New England.
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