• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Current price of oil as of July 2, 2026

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Current price of oil as of July 2, 2026
RetailPepsiCo

Bottled Water Continues to Take the Fizz Out of Diet Soda

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
April 19, 2017, 2:12 PM ET
Add Fortune on Google for similar content.

Diet sodas sold by Coca-Cola and PepsiCo posted steep volume declines in 2016, dragging down demand for the total carbonated soft drink category as consumers buy more bottled waters and other healthier beverages.

Total volume for carbonated soft drinks dipped 0.8% in 2016, a drop that was less severe than 2015’s 1.2% tumble and 2014’s 0.9% decline, according to a new report from industry tracker Beverage Digest. The steepest volume declines were for Diet Pepsi (down 9.2%) and Diet Coke (falling 4.3%), with both losing market share last year though each still rank among the ten most popular soft drinks sold in the U.S. Diet Mountain Dew’s volume dropped a more modest 0.1%.

Diet sodas were at one point the industry’s savor as consumers looked to cut back on calories but increased skepticism of artificial sweeteners have led to sales weakness for those zero-calorie beverages. Most of the concerns center on aspartame, a sweetener often used in diet colas.

Diet Pepsi—which suffered a steeper volume decline in 2016 than it did in 2015—aimed to confront that narrative head on when PepsiCo (PEP) replaced Diet Pepsi with an aspartame-free version. It didn’t end up resonating and PepsiCo ended up opting to sell three different calorie-free options to appeal to two groups of consumers: those weary of aspartame and those that like the taste and don’t mind consuming the sweetener.

Full-calorie soda sales were also weak last year, as demand for Coke, Pepsi-Cola and Mountain Dew softened, Beverage Digest reports. There were some bright spots: volume increased for Sprite and Fanta, both brands that are made by Coca-Cola (KO). Dr Pepper Snapple’s (DPS) core Dr Pepper brand also grew and the parent company gained market share last year. Within carbonated beverages, PepsiCo lost share and Coca-Cola’s was flat.

Since 2004, carbonated soft drinks have shed 1.6 billion cases in volume to total about 8.6 billion 192-ounce cases last year. But encouragingly, dollar sales grew last year by about 2% to $80.6 billion because of the success Coke and other major soft drink makers have had in aggressively marketing smaller packages at higher price points and focuses less on larger discount packs. That has been a savvy move because if consumers want to cut back on soda, they might opt for a smaller serving in a can that they would deem as a treat (rather than buy a big 2 liter bottle and risk overindulging).

Meanwhile, the star performers were again bottled waters and that shouldn’t be a surprise because various data trackers have reported that Americans are drinking more bottled water than soda. Beverage Digest reported that volume growth was solid for Nestle’s (NESTLE-S-A) Poland Spring, PepsiCo’s Aquafina and Coca-Cola’s Dasani.

The big soda makers have long been aware of the tilt away from soda and toward healthier beverages and that explains why Coca-Cola and PepsiCo have each sought to remake their portfolio to be more on trend with what Americans are drinking today. At Coke, those efforts have included selling more bottled waters like Dasani and the premium-priced Smartwater. Volume gains have also been strong for flavored water Vitaminwater and dairy brand Fairlife. As a result, growth in the key North America market outpaced the total business in 2016.

That narrative is similar at PepsiCo. Naked Juice is on its way to becoming the company’s next $1 billion brand and new launches like Tropicana Essentials Probiotics and the premium-pried LIFEWTR are also on trend. Globally, the Pepsi cola trademark accounts for 12% of net revenue. But 25% of revenue comes from so-called everyday nutrition products that include bottled water and foods and drinks that are packed with grains, fruits and vegetables.

There have also been acquisitions to better compete. PepsiCo last year bought sparkling probiotic drink maker KeVita on the same day that Dr Pepper Snapple acquired Bai Brands. Industry observers expect Coca-Cola’s new CEO James Quincey, who officially took over earlier this month, will also step up efforts to boost the portfolio via acquisitions.

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Those bots sending discounts to your email is dynamic pricing in action. Get revenge on those bots by abandoning your cart
RetailConsumer Spending
Those bots sending discounts to your email is dynamic pricing in action. Get revenge on those bots by abandoning your cart
By Catherina GioinoJuly 3, 2026
3 hours ago
ts
Arts & EntertainmentNew York
NYPD confirms ‘an event that we are tracking at Madison Square Garden on Friday night,’ declines to comment on Taylor Swift wedding
By Jake Offenhartz, Kimberlee Kruesi and The Associated PressJuly 2, 2026
17 hours ago
usa
North AmericaWorld Cup
The World Cup is a smash but America still isn’t a soccer country, poll suggests
By Linley Sanders and The Associated PressJuly 2, 2026
17 hours ago
i
AsiaIndia
India and Japan just made “economic security” a shared mission
By Sheikh Saaliq and The Associated PressJuly 2, 2026
17 hours ago
j
EconomyJobs
Economy disappoints with half as many jobs created in June, and May and April gains revised downward
By Christopher Rugaber and The Associated PressJuly 2, 2026
21 hours ago
U.S. Polo Assn. CEO J. Michael Prince
SuccessThe Promotion Playbook
U.S. Polo Assn. CEO was flat-out told he wasn’t right for a promotion—so he ‘outworked’ anyone else who wanted the job for 6 months straight until they changed their mind
By Orianna Rosa RoyleJuly 1, 2026
2 days ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
17 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
21 hours ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
19 hours ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
1 day ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.