Change in Consumer Habits Results in Declining Sales of Carbonated Drinks in China

Newly published statistics have revealed that the market sales for carbonated drinks fell to less than 1 percent in China, despite huge expenditures poured in by soft drink companies on advertising, the China Daily reported.

A report from Wal-Mart showed that the sales of carbonated drinks dropped by 15 percent year on year.

Feng Jinlong, who works with Wal-Mart, attributed the decline in sales to the change of customers' taste.

"Sales of carbonated drinks have dropped this year. This is probably because our consumers are changing their drinking habits," Feng said.

According to the report, some street survey results support Feng's views.

"Normally I just drink water because I think carbonated drinks are unhealthy," a customer said in the survey.

"Commercial beverages are high in sugar. People are more health-conscious now. I just drink some fresh juice once in a while," said another.

Global statistics show that Coca-Cola's sales fell 3 percent in the second quarter of this year as compared with last year's figure.

The report added that the leading beverage maker shifted its focus to other products to reverse the decline in sales.

Coca-Cola CEO Muhtar Kent said that the company plans to keep its operations vibrant in China.

"We continue to offer more choice every day with juices, with sports drinks, with our teas and with our many other beverages and great sparkling beverages. So we have the best, widest portfolio," Kent said.

On the other hand, Pepsi has partnered with Chinese e-retailer Jingdong to launch a new vegetable protein-based beverage as a way to meet the consumer demand.

Coca-Cola has reportedly acquired Culiangwang from state-owned China National Cereals, Oils and Foodstuffs Corporation for $400 million as the global company plans to produce drinks made from whole grains.

The company has also inaugurated two new manufacturing facilities in China to expand its production capacity.