Ms. Torres: So far this year, the trends have been somewhat similar to what we saw last year. With that in mind, we've been more favorable on companies with more diversified product mixes, focusing on growing the carbonated soft drink category, which has been weak, while putting a greater focus on the better growth opportunities and that's been in non-carbonated soft drinks. That means putting a particular focus on categories such as bottled water, sports drinks and teas, where we've seen better growth in comparison to the carbonated soft drinks, which have had continued declines.
TWST: How bad are the declines?
Ms. Torres: It's still relatively low, 0.5%, 1% or so. Our beverage companies
are actually predicting declines of 1% to maybe even 2% in carbonated soft
drinks in the near future, even though they are trying to reinvigorate and
stimulate this category with some new brands. But reality sets in as consumers
are focusing more on health and wellness products and that's why you see the
strength behind non-carbs. There is that modest decline, but declines are bad in
the carbonated soft drink category.
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