CNN – Consumers are turning away from pricier Starbucks coffee, McDonald’s Big Mac meals, Doritos chips, Monster energy drinks and Heineken beer. But they can’t stop guzzling Coke and Dr Pepper.
Both Coca-Cola and Dr Pepper said last week on quarterly earnings calls that they sold more soda cases last quarter. During the third quarter of this year, total soft drink volumes grew 1.3% from a year ago, according to data from Evercore ISI.
It’s a comeback for soda, which was in decline for two decades over the health effects of sugary drinks. Frequently drinking sugar-sweetened beverages like soda is associated with a range of chronic health problems, including weight gain, obesity, type 2 diabetes and heart disease, according to the Centers for Disease Control.
“This is so different than five, ten years ago,” said Robert Ottenstein, an analyst at Evercore ISI. “There’s been a huge change in attitude. These products were declining 4% a year for a long time.”
The World Health Organization also said last year for the first time that aspartame, a popular artificial sweetener found in diet sodas, should be categorized as “possibly carcinogenic to humans.”
But consumers right now seem willing to brush off health concerns.
They view sugary Coke and Dr Pepper, or newer sugar-free sodas like Coke Zero, as a more affordable treat than other choices like an energy drink, flavored tea, a bag of chips or a candy bar.
The average price of 16 ounces of potato chips in September was $6.46, while a 2-liter soft drink was $2.00, according to the Bureau of Labor Statistics.
New marketing and renewed interest from younger consumers are also boosting soda brands …
