Americans Stop Drinking Soda

Companies and Brands

Published: July 28, 2014 6:28 am

Americans have become more conscious of the effects of what they drink and eat. This is particularly true with soda, a trend that is not good for branded soda companies, particularly Coca-Cola Co. (NYSE: KO) and PepsiCo Inc. (NYSE: PEP). While their growth prospects overseas may remain, important research shows their best days in America are behind them.

According to new research from Gallup:

Nearly two-thirds of Americans say they avoid soda in their diet, while more than half say they avoid sugar. Meanwhile, more than nine in 10 Americans claim they try to include fruits (92%) or vegetables (93%) in their diet — slightly more than said this previously.

Based on the data, the vegetable industry should be thriving. However, there are no vegetable companies as large as Coke and Pepsi, so it is harder to discern the trend. Too bad, investing in large public companies that sell vegetables would be a good way to make money.

Unfortunately for the large soda companies, Americans have become educated about the fact that these drinks are bad for them. This level of education did not exist a generation ago. Now, almost everyone of any age is aware of health trouble like diabetes, which consumption of soda does not help.

Gallup researchers point out further:

Since 2002, soda and sugar have moved into the category of food a majority of Americans appear to consider bad for them. This year, more Americans than ever say they try to avoid drinking soda, while there has been little change in sentiment about avoiding sugar intake

In other words, soda is in a category of its own. People on average don’t worry about sugar as much, and Gallup indicates they worry even less about salt and carbohydrates.

Every once in a while, an entire industry falls into disrepute, and no amount of clever management or marketing can reverse the process. Soda has entered that category. Coke and Pepsi better find other businesses.

ALSO READ: America’s Most Profitable Products

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!