Market Trends

1. Market Trends • Consumer: • In early 2000 consumer began moving toward increasing health awareness, leading to declining sales for traditional colas.(1) • Consumers demanded healthier beverages, or those perceived as healthier, like diet colas, fortified fruit juice, bottle water and sports and energy drinks (1) • Non-carbonated beverages : • Fastest growing segment of the industry (1) • In 2004bottled water overtook juices as the second largest market segment, with sales worth US$9.2 billion • -With total U.S. category volume rose 8.6% in 2004 over the 2003 volume level, exceeding 6.8 billion gallons. In 2004, more bottled water was consumed by U. S. residents than any other beverage except carbonated soft drinks (23.8 gallons per person).(2) • -Market segment expected to #1 in United States by 2010. A annual growth of 16%(1) • The Sports drinks segment grow almost 56 percent between 1997 and 2002. (2) • Sports drinks have developed into a major international soft drink segment. (1) • International markets: • Bottled water has long been a major category in certain parts of the world.(1) • Asia and South America markets to show the largest growth rate in non carbonated soft drinks outpacing North America. (1) • Conditions: • In 2002 more than US$393 billion worth of soft drinks produced world wide.(1) • The largest soft drink market being the United States followed by Japan, Mexico, Germany, China and Brazil. (1) • The United States also leads in capita consumption, averaging in excess of 52 carbonated soft drinks per year. (1) • Large Multinational companies dominate large portions of nearly every segment. (1) • Coca-cola and Pepsi dominate the landscape. In 2004 accounting for 36% of all global sales. (1) • In the sports drink market there is an increasing movement to market more to Hispanic and Women consumer. (2) • Criticism has been placed on sports drinks by health professionals, for high sugar content which leads to tooth decay.(2) (1) Business & Company Resource Center – “Soft Drinks and Bottled Water” 9/6/2007 (2) Business & Company Resource Center – “Premium Bottled Beverage” 9/6/2007

2. Competition Coca Cola: Established 1886 in Atlanta, Georgia 2006 Total sales of $24.088 Billion U.S. Market Share – 44.1% Direct Competition- POWERade, POWERade Option, Aquarius, and Vitamin Water Indirect Competition- Dasani, Dasani Plus, Dasani Flavors, BonAqa, Viva!, Ciel, Wilkins, Spring! and Spring! Flouride to Go Cadbury Schweppes: Established 1969 in London, England 2006 Total sales of $7.427 Billion U.S. Market Share- 14.7% Direct Competition- Accelerade Indirect Competition – None Cott Corp: Established ? 2006 Total sales of $1.7718 Billion U.S. Market Share- 1.2% Direct Competition- GL-7 Indirect Competition – So Clear Monarch Beverage Co: Established 1965 in Atlanta, Georgia 2006 Total sales of $? (Private company) U.S. Market Share – less than 1% Direct Competition- All Sport Body Quencher Indirect Competition- None • www.beverage-digest.com/editorial/000218s.html 9/10/07 • www.thecoca-colacompany.com 9/9/07 • www.cadburyschweppes.com 9/9/07 • www.slashfood.com/2007/04/12/cadbury-schweppes-taps-into.. 9/9/07 • Cott Corp. 2006 Annual Report • www.monarchbeverages.com