After falling to their lowest volume point in more than 10 years in 2008, carbonated beverages bubbled back to the top dollar spot of all supermarket categories during the 52 weeks ending June 14. Working in these drinks' favor was their low cost relative to other beverages, industry observers note. Limited discretionary income likewise fueled budget-conscious spending in other grocery categories during the past year. Shoppers bought cases of beer rather than six-packs, multi-serve frozen entrees, and extended life roll toilet tissue to save money in the long run.

Grocery lists were also chock full of meal components that could be prepared at home. Fresh bread & rolls, soup, crackers and especially pasta, instant potatoes and frozen side dishes were on heavy rotation at dinnertime, while most house parties didn't get under way until wine, salty snacks, ice cream and other celebratory foods were purchased at the supermarket.

Shoppers also relied on drug stores for their Center Store needs, and even combined fill-in trips with missions to medicate whatever ailed them. In fact, drug stores posted the most dramatic dollar sales gains in nearly all of the grocery categories SN outlines in the following pages. Frozen side dishes and instant potatoes were the only exceptions.

KEY CATEGORIES

Carbonated Beverages

Carbonated drinks slugged it out with milk during the 52 weeks that ended June 14, to regain the top dollar volume spot of all supermarket categories. True, sales of the bubbly beverage ($11.9 billion) surpassed the dairy drink's revenues ($11.5 billion) during the turbulent year, but it wasn't exactly smooth sailing for CSDs. Although they beat out the better-for-you beverage, the libation's negative health implications caused many to flee the category for safer vitamin-enhanced waters, teas and sports drinks. The shift may be responsible, in part, for the 2.6% drop in CSD unit sales experienced by supermarkets. The drug channel is also likely eating into grocer's share. Unit sales in the segment grew 3.1% during the past year. The good news for soda marketers is that the majority of carbonated beverage drinkers are here to stay, according to Mintel, Chicago. It reports that these consumers are most likely male, under 35 and not necessarily seeking a healthier option. Still, market leaders are obliging those who are with offerings like Pepsi Raw, which counts vegetable-based sweeteners among its ingredients. Coca-Cola has also increased the availability of its zero calorie Coke Zero, its most successful product launch since Diet Coke in 1982.