Blacks and Non-Alcoholic Beverages - US - April 2012

Published by: Mintel International Group Ltd.

Published: Apr. 2, 2012

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Advertising

Abbreviations and terms

Abbreviations

Terms

EXECUTIVE SUMMARY

The market

Market factors

Figure 1: Types of beverage preferred by consumers, by race/Hispanic origin, July 2010-September 2011

Black teens

Figure 2: Types of beverage preferred by teens, by race, April 2010-June 2011

Expenditure on non-alcoholic beverages

Figure 3: Average expenditures by consumer units on non-alcoholic beverages, by Blacks and other race, 2006-

16

Retail channels

Figure 4: Preferred retailer when purchasing non-alcoholic beverages, by age, December 2011

The consumer

U.S. Black population

Figure 5: Population, by race/Hispanic origin, 2006-16

Beverage characteristics consumers look for

Figure 6: Preferences when choosing beverages, by gender and age, December 2011

Attitudes toward beverages

Figure 7: Correspondence map, December 2011

What we think

ISSUES IN THE MARKET

What factors affect Black consumers’ purchase of non-alcoholic beverages?

What do Black consumers consider when purchasing non-alcoholic beverages?

How are retail channels influencing Black consumers’ non-alcoholic beverage purchases?

INSIGHTS AND OPPORTUNITIES

Expand the beverage scope

Beverages are not just for young Black consumers

INSPIRE INSIGHTS

Trend: “Premiumization and Indulgence”

Trend: “Non-Standard Society”

THE CONSUMER

Key points

Household expenditure

Figure 8: Average expenditures by consumer units on non-alcoholic beverages, by Blacks and other race,

2006-10

Figure 9: Indexed average expenditures for non-alcoholic beverages, by Blacks and other race, 2006-10

Types of beverage preferred by adults

Figure 10: Types of beverage preferred by consumers, by race/Hispanic origin, July 2010-September 2011

Black teens enjoy many beverages

Figure 11: Types of beverage preferred by teens, by race, April 2010-June 2011

Types of beverage purchased by Blacks

Coffee and tea are most consumed by older Black women

Figure 12: Beverages purchased, by gender and age, December 2011

Beverage purchases vary by household income

Figure 13: Beverages purchased, by household income, December 2011

Attitudes toward beverage choices

Figure 14: Correspondence map, December 2011

Figure 15: Attitudes toward beverages, December 2011

Impact of recession on beverage purchase behavior

Black consumers are looking to save money on beverages

Figure 16: Beverage purchasing habits, by gender and age, December 2011

Blacks of all economic strata are turning to sales

Figure 17: Beverage purchasing habits, by household income, December 2011

COFFEE AND TEA

Key points

Expenditure on coffee and tea

Figure 18: Average expenditures by Blacks and other race consumer units on coffee and tea, 2006-10

Figure 19: Average expenditures by consumer units on coffee and tea, indexed to all consumer units, 2006-10

Household consumption of coffee and/or tea

Figure 20: Consumption of coffee and/or tea, by race/Hispanic origin, July 2010-September 2011

Blacks’ consumption of coffee

Frequency and average per day

Figure 21: Likelihood of drinking coffee and frequency, by gender and age, December 2011

Young and middle-aged Black men consume the most cups

Figure 22: Average number of cups of coffee drank by Black consumers on an average day, by gender and

age, December 2011

Middle-aged Blacks most likely to be drinking more coffee at home

Figure 23: Coffee drinking habits, by gender and age, December 2011

Household income has little effect on coffee-drinking habits

Figure 24: Coffee drinking habits, by household income, December 2011

Attitudes toward coffee

Figure 25: Attitudes toward coffee, by gender and age, December 2011

Regular tea

Figure 26: Likelihood of consuming regular tea (in bags or packages) and preferred brands, by gender and

age, July 2010-September 2011

Iced tea

Figure 27: Likelihood of consuming iced tea (ready-to-drink) and preferred brands, by gender and age, July

2010-September 2011

MILK AND MEAL REPLACEMENT BEVERAGES

Key points

Household consumption of milk

Figure 28: Likelihood of consuming milk and average number of cups or glasses of milk consumed per

household, by race/Hispanic origin, July 2010-September 2011

Figure 29: Type of milk (liquid in bottles and cartons) consumed by Black households, by the presence of

children in household, July 2010-September 2011

Blacks’ attitudes toward milk and protein beverages

Both soy and whole milk are considered healthy

Figure 30: Attitudes toward dairy/dairy substitute beverages, December 2011

Energy, excitement, and convenience

Figure 31: Attitudes toward milk and protein beverage choices by type of beverage, by gender and age,

December 2011

Non-dairy cream substitutes

Figure 32: Likelihood of household consumption of non-dairy cream substitutes (to put in coffee or on cereal)

and preferred brands, by race/Hispanic origin, July 2010-September 2011

SOFT DRINKS

Key points

Carbonated beverages

Expenditure on carbonated beverages

Figure 33: Average expenditures by Blacks and other race consumer units on carbonated beverages, 2006-10

Figure 34: Average expenditures by consumer units on carbonated beverages, indexed to all consumer units,

2006-10

Consumers of carbonated beverages

Figure 35: Types of carbonated beverage preferred by consumers, by race/Hispanic origin, July 2010-

September 2011

Young Black women are prime consumers of soda

Figure 36: Types of carbonated beverage preferred by Black consumers, by age and gender, July 2010-

September 2011

Cola brand preferences differ by region

Figure 37: Regular cola drinks (carbonated, non-diet) and brands consumed by Blacks in the last seven days,

by region, July 2010-September 2011

Figure 38: Faygo carbonated soft drink, 2008

Figure 39: Shasta Tiki punch carbonated soft drink, 2004

Young Black women index highest for many non-cola sodas

Figure 40: Other regular carbonated (non-cola) soft drinks (non-diet) consumed by Blacks in the last seven

days, by gender and age, July 2010-September 2011

Powdered soft drinks

Figure 41: Household consumption of powdered soft drinks and preferred brands, by race/Hispanic origin,

July 2010-September 2011

JUICES

Key points

Expenditure on fruit and vegetable juices

Figure 42: Average expenditures by Blacks and other race consumer units on fruit and vegetable juices, 2006-

10

Figure 43: Average expenditures by consumer units on fruit and vegetable juices, indexed to all consumer

units, 2006-10

Household consumption of juices

Figure 44: Household consumption of juices, by race/Hispanic origin, July 2010-September 2011

Orange juice

Figure 45: Household consumption of orange juice in bottles, cans or cartons and prefer brands, by presence

of children in the home, July 2010-September 2011

Other fruit juices and drinks

Figure 46: Household consumption of other fruit juices and drinks (excluding carbonated drinks, orange, tomato,

and vegetable juice) and preferred brands, by presence of children in household, July 2010-September 2011

Preferred flavors

Figure 47: Preferred flavors of other fruit juices and drinks (excluding carbonated drinks, orange, tomato and

vegetable juice), by presence of children in household, July 2010-September 2011

BOTTLED WATER, ENERGY AND SPORTS DRINKS

Key points

Bottled water

Many Blacks drink non-carbonated bottled water

Figure 48: Types of bottled water consumed by race/Hispanic origin, July 2010-September 2011

Black women are the most likely to consume bottled water

Figure 49: Types of bottled water consumed by Blacks, by gender and age, July 2010-September 2011

Young Black women like flavored bottled water

Figure 50: Types of bottled water consumed by Blacks, by gender and age, July 2010-September 2011

Energy drinks

Young and middle-aged Blacks consume energy drinks

Figure 51: Likelihood of consuming energy drinks, by gender and age, July 2010-September 2011

Brand preferences differ by age

Figure 52: Likelihood of consuming energy drinks and preferred brands, by age, July 2010-September 2011

Thirst quencher and sports/activity drinks

Figure 53: Likelihood of consuming thirst quencher and sports/activity drinks and preferred brands, by age,

July 2010-September 2011

THE SHOPPING EXPERIENCE

Key points

Product characteristics that impact purchasing decisions

Figure 54: Preferences when choosing beverages, by gender and age, December 2011

Retail channels

Household income only slightly impacts preferred retail channels

Figure 55: Stores shopped for non-alcoholic beverages, by household income, December 2011

Household size impacts preferred retail channels

Figure 56: Preferred retailer when purchasing non-alcoholic beverages, by number of person/people per

household, December 2011

Young Blacks purchase at c-stores

Figure 57: Preferred retailer when purchasing non-alcoholic beverages, by age, December 2011

Beverages purchased at convenience stores

Larger households may not always have savings in mind

Figure 58: Non-alcoholic beverages purchased at convenience stores by Black consumers, by number of

person/people in the household, December 2011

Age impacts beverage purchases at c-stores

Figure 59: Non-alcoholic beverages purchased at convenience stores by Black consumers, by age, December

2011

MARKETING STRATEGIES

Key points

Attitudes toward beverage advertising

Figure 60: Attitudes toward beverage advertising, by gender and age, December 2011

TV advertising

7 UP

Figure 61: 7 UP, TV ad, October 2011-March 2012

Fanta

Figure 62: Fanta, TV ad, April 2011

Capri Sun

Figure 63: Capri Sun, TV ad, April- September 2011

Gatorade

Figure 64: Gatorade, TV ad, August-September 2011

Ozarka Natural Spring Water

Figure 65: Ozarka Natural Spring Water, TV ad, April-June 2011

International Delight

Figure 66: International Delight, TV ad, February-April 2012

TruMoo Chocolate Milk

Figure 67: TruMoo Chocolate Milk, TV ad, December 2011

ONLINE STRATEGIES

Coca-Cola

My Coke Rewards “Pay it Forward”

Figure 68: Apprenticeship Experience with a Celebrity History Maker, online ad, March 2012

McDonald’s 365 Black

Figure 69: McDonald’s 365 Black, online ad, March 2012

U.S. BLACK POPULATION

Key points

Figure 70: Population, by race and Hispanic origin, 2006-16

Figure 71: Population, by race/Hispanic origin, 1970-2020

Figure 72: Asian, Black, and Hispanic populations, 1970-2020

Age

Generations by race

Figure 73: Generations, by race/Hispanic origin, 2011

Black population by age

Figure 74: U.S. Black population, by age, 2006-16

Figure 75: Population, by age, 2006-16

U.S. Black geographic concentration

Figure 76: Black geographic concentration, by region, 2007

Black population by state

Figure 77: Top 10 states with largest Black population, 2010

Figure 78: Top 10 states with largest Black population, 2008

Population by geographic concentration

Figure 79: States/regions with the highest share of Black residents, 2008

Black metros

Figure 80: Metropolitan status of Black households, 2006 and 2011

Figure 81: Top 10 states ranked by change in black population, 2000-2010

Figure 82: Top 10 metropolitan areas with the largest number of Black residents, 2010

Black purchasing power

Black income

Figure 83: Median household income, by race and Hispanic origin of householder, 2010

Figure 84: Household income distribution for all households and Black households, 2010

Income of Black households versus total U.S. households

Figure 85: Share of Black households with incomes of $50K or more versus total U.S. households, 2002 and

2008

Purchasing power by race/Hispanic origin

Figure 86: Purchasing power, by race/Hispanic origin, 1990-2015

Figure 87: Purchasing power, by race/Hispanic origin, 1990-2015

Figure 88: Top 10 states/regions with the largest share of Black buying power, 2010

Figure 89: Top 10 states, by rate of growth of Black buying power, 1990-2010

Affluent Blacks

Black households

Figure 90: Average household size, by race/Hispanic origin/race of householder, 2001 and 2008

Figure 91: Presence and ages of children in the household, by race/Hispanic origin, 2011

Figure 92: Marital status, by race and Hispanic origin, 2011

Country of origin/heritage

African immigrants

Caribbean immigrants

Geographic location

APPENDIX—OTHER USEFUL INFORMATION

Figure 93: Fruit juice flavors consumed, by gender and age, July 2010-September 2011

Figure 94: Dairy and dairy replacement drinks consumed, by gender and age, July 2010-September 2011

Figure 95: Non-alcoholic beverages purchased by stores shopped (supermarket, Walmart, convenience store,

mass merchandiser, and gas station), December 2011

Figure 96: Non-alcoholic beverages purchased by stores shopped (drug store, club store, vending machine,

and natural food store), December 2011

APPENDIX—TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

CONSUMER RESEARCH

Primary Data Analysis

Sampling

Global Market Insite (GMI)

Secondary Data Analysis

Experian Simmons National Consumer Studies

Statistical Forecasting

Statistical modelling

Qualitative insight

The Mintel fan chart

Weather analogy

APPENDIX: WHAT IS MINTEL?

Mintel provides industry-leading market intelligence

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Abstract

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