© 2014 Keller Fay Group | Not to be quoted or distributed without written permission

Word of Mouth & Soft Drinks

June 2014

Key Findings

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Soft drink word of mouth (WOM) volume declined since 2011, while sentiment remained stable.

Teens & Hispanics contributed most to the decline.

Offline soft drink WOM went down, while social media-based WOM grew since 2011.

Coca-Cola lost its WOM lead to Apple & Walmart.

Soft Drink WOM Declined Since 2011

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40 38 36

34

20

25

30

35

40

45

2011 2012 2013 2014(Projected)

Bill

ion

s

Annual Beverage WOM Impressions

Soft Drinks Beverage Alcohol Still Beverages Sport/Energy Drinks Coffee

17 19 19

16

7.6 7.3 6.9 5.0

3.8 3.6 3.5 3.2 1.0 1.2 1.1 1.0 0

5

10

15

20

25

2011 2012 2013 2014(Projected)

Bill

ion

s

Note a smaller

scale than left chart

© 2014 Keller Fay Group, Source: TalkTrack®

Change in WOM

Change in Sales*

2011 vs. 2012 -3% -1.2%

2012 vs. 2013 -6% -3%

*According to Beverage-Digest

A steeper decline was noted in soft drink WOM than sales.

WOM for Most Soft Drink Brands Decreased Since 2011; Fanta is the Sole Exception

Brand Change vs.

2011

-7%

-9%

-15%

-8%

-10%

-17%

-14%

-26%

+11%

-23%

Change in WOM Volume Among Top 10 Most Discussed Soft Drinks

2011 vs. 2013

4 © 2014 Keller Fay Group, Source: TalkTrack®

Apple Replaced Coca-Cola as the Most Talked About Brand in America, Starting in 2013; Among Key Demo Segments, Apple or Walmart Are #1 in 2012 and 2013.

© 2014 Keller Fay Group, Source: TalkTrack®

2010 2011 2012 2013

Total Public

Men

Women

Teens

Millennials (18-34)

35-44 year olds

45-69 year olds

Hispanics

African-American

Affluent (+75K)

Dads

Moms

5

#1 Most Talked About Brand Among Segments

The findings are generally consistent

with 2014 in-progress. However, Coca-Cola

reclaimed the lead in the beginning of 2014

among those 35+, Hispanics & dads.

The Biggest Declines in CSD WOM is Seen Among Teens & Hispanics

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CSD talk also dropped by double digits for women, those 35-44, & Affluents

Key Contributors to the Decrease?

0

5

10

15

20

25

Men Women Millennials18-34

45-69 Moms 13-17 Affluent($75K+)

35-44 Dads Hispanic AfricanAmerican

Bill

ion

s

2011 2013

-12% -6%

-28% -10% -26% -4% -4% -14%

Boxes show % change

since 2011

Annual Soft Drink WOM Impressions Among Segments

© 2014 Keller Fay Group, Source: TalkTrack®

Offline Soft Drink WOM Down; Social Media Up

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Soft Drinks

Face-to-Face -8% -6% -9%

Social Media +23% +39% +31%

Changes in Projected WOM Impressions Since 2011

Face-to-Face, 84%

Phone, 9%

IM/Text, 3%

Social Media,

2%

Email, 2%

Other, 1%

Mode of Soft Drink Conversations, 2013 Steep declines in soft drink WOM were noted by all

modes of conversation, with the one exception being social media which grew by 23%.

© 2014 Keller Fay Group, Source: TalkTrack®

Soft Drink Sentiment Stable Since 2011

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70% 70% 71%

0%

15%

30%

45%

60%

75%

Soft Drink Positive WOM

2011 2012 2013

19% 20% 20%

0%

15%

30%

45%

60%

75%

Soft Drink Negative & Mixed WOM

2011 2012 2013

Sentiment of Soft Drink WOM - % Positive & % Negative/Mixed

© 2014 Keller Fay Group, Source: TalkTrack®

TalkTrack® Methodology

• Keller Fay Group’s TalkTrack®, a national syndicated

program measuring word of mouth in all forms –

face-to-face, over the phone, and through the

Internet.

– Over three-quarters of all conversations occur

face-to-face, as depicted in the pie chart.

• The study involves 36,000 online consumers

annually, yielding approximately 360,000

conversational mentions of brands.

• Respondents are representative of the US

population aged 13 to 69, use a diary to keep track

of their brand conversations, then complete an

online survey to gather detailed information about

these conversations.

Face-to-Face 77%

Phone 15%

Online 6%

Other 2%

Mode of Conversations Across All Categories

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© 2014 Keller Fay Group | Not to be quoted or distributed without written permission

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