March 27, 2013 at 09:31 AM EDT
Soda Consumption Hits Lowest Level Since 1996 (KO, PEP)

According to new data from Beverage-Digest, United States soda consumption fell in 2012 for the eight straight year, hitting levels not seen since the 1990′s.

Consumption per person fell to levels not seen since 1987, as consumers have turned to energy drinks and bottled water in order to quench thirst.

The world’s largest soda company, The Coca-Cola Company (KO), and PepsiCo, Inc. (PEP) have been brainstorming new ways to boost sales as the popularity of soda has waned.

In the 1990′s, soda consumption grew by an average of 3% each year, but by 1999 growth began to slow. Then in 2005 soda consumption finally started to decline. 2012′s level of consumption was the lowest since 1996.

Hurting soda consumption volume has been the consciousness of consumers to move away from sugary drinks like soda to more healthy options like water. Moreover, for those consumers seeking a caffeine pick-up, energy drinks have been the go to product in recent years.

Coca-Cola shares were down 16 cents, or -0.39%, during pre-market trading on Wednesday. PepsiCo shares were inactive during pre-market trading.

The Bottom Line
Shares of Coca-Cola Company (KO) have a dividend yield of 2.75% based on last night’s closing price of $40.69 and the company’s annualized dividend payout of $1.12 per share. Shares of PepsiCo, Inc. (PEP) have a dividend yield of 2.88% based on last night’s closing price of $78.92 and the company’s annualized dividend payout of $2.27 per share.

The Coca-Cola Company (KO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. PepsiCo, Inc. (PEP) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 stars out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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