Soda market losing sparkle as alternatives take off

Still drinking sugar-sweetened soda?

Well, soda is passe. And many industry analysts don't think an agreement this week to ban sodas from schools will have much of an impact on Coca-Cola Co., PepsiCo., and other beverage giants that sell everything from green tea to bottled water.

These days, many teenagers and young adults prefer to swill a Gatorade or a Red Bull as down a Coke or a Pepsi. Meanwhile, health-conscious consumers are often opting for flavored waters and low-calorie juice drinks.

''Sodas have lost their mystique," said Marcia Mogelonsky, senior analyst for Mintel International, which tracks product launches. ''My 13-year-old son is a perfect example. He wants to drink Red Bull."

Because of shifting tastes, and because so little was sold at schools in recent years, phasing out sugary sodas is ''a hollow gesture," she said.

US soda sales slipped 1.3 percent in the 52-week period ended March 19, while energy drinks, which include Red Bull, surged 62.8 percent, according to Chicago market-research firm Information Resources Inc.

Other growing categories include ready-to-drink coffee and teas at 20.5 percent, sports drinks at 20.1 percent, and bottled water at 17.8 percent. Many non-carbonated segments are experiencing explosive growth but still remain small compared to overall soda sales.

''The big growth products are things like water and Gatorade," said John Sicher, editor and publisher of Beverage Digest.

As tastes go, cola can be deemed old hat.

At Polar Beverages in Worcester, president Ralph D. Crowley Jr. has high hopes for a recent Polar offering called Pomegranate Dry, whose ingredients include juice and carbonated water.

What's behind the demand for so-called energy drinks with brand names like Monster Energy and Rockstar is that consumers are craving caffeine, which many of these drinks have.

''You have one, and you're not sleeping for a week," Crowley said.

Containers of Full Throttle, Monster Energy, and Red Bull purchased yesterday noted on their labels that they contained caffeine but didn't specify how much. In that regard, they were similar to a bottle of Coke, which noted the presence of caffeine but not the amount.

A call to the company that markets Monster Energy, Hansen Natural Corp., was not returned. A year ago, Hansen shares traded at just over $30. Yesterday shares closed at $139.25 -- a jump that would jolt even the sleepiest investors.

Energy drinks, however, make some nutrition specialists uneasy as obesity becomes a bigger issue in America. Red Bull has 110 calories for an 8.3-ounce serving and 27 grams of sugar, compared to 100 calories and 27 grams of sugar for an 8-ounce can of Pepsi.

''They're at least as bad as soda," said Caroline M. Apovian, director of the Nutrition and Weight Management Center at the Boston Medical Center.

But calorie-conscious trends have also shaped the beverage industry. When low-carbohydrate diets were popular, some beverage companies adapted their juice lines, said Mintel's Mogelonsky.

In early 2004, Minute Maid, a brand of the Coca-Cola Co., launched Minute Maid Light, which, according to the company website, contains five calories per eight-ounce serving.

Ocean Spray Cranberries Inc., meanwhile, just launched a Diet Ocean Spray line to complement its regular and light versions of Cranberry Juice Cocktail. The diet version has five calories per eight ounces, versus 130 calories for its regular cocktail and 40 calories for the Light cocktail.

But not all ''light" drinks are created equal. Last year, Dunkin' Donuts debuted Latte Lite, which weighed in at 70 calories for a 10-ounce cup. Meanwhile, Starbucks' Caramel Frappuccino Light coffee is 140 calories for a 12-ounce cup.

While still associated with their signature soft drinks, Coke and Pepsi long ago branched out into other beverage lines, following the trends. Coke brands include Dasani water and the Full Throttle energy drink. Pepsi has the sports drink Gatorade and Tropicana juices.

Partly because the companies are so diversified, the school ban on soda will have little impact on the bottom line, said Gary Hemphill, a managing director at the consulting firm Beverage Marketing Corp.

''We have something for everyone for every time of the day," said Dave DeCecco, a spokesman for Pepsi-Cola North America.

Chris Reidy can be reached at reidy@globe.com.