Soft drink word of mouth has declined since 2011 while tech brand talk has increased, according to research by The Keller Fay Group. Apple has surpassed Coca-Cola to become the most talked about brand. The biggest decline in soft drink chatter was among teens and hispanics but there were also double-digit declines among those age 35-44 and affluents. Part of the equation which bucked the overall trend was social media chatter about soft drinks, which increased but grew from a much smaller base than face-to-face conversation. One bright spot which saw an increasing percentage of talk was Coca-Cola's Fanta brand. Overall sentiment about soft drinks did not change.

1. © 2014 Keller Fay Group | Not to be quoted or distributed without written permission
Word of Mouth & Soft Drinks
June 2014

2. Key Findings
2
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.

3. Soft Drink WOM Declined Since 2011
3
40 38
36
34
20
25
30
35
40
45
2011 2012 2013 2014
(Projected)
Billions
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 1.00
5
10
15
20
25
2011 2012 2013 2014
(Projected)
Billions
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.

4. 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®

5. 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.

6. The Biggest Declines in CSD WOM is
Seen Among Teens & Hispanics
6
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 Millennials
18-34
45-69 Moms 13-17 Affluent
($75K+)
35-44 Dads Hispanic African
American
Billions
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®

7. Offline Soft Drink WOM Down; Social Media Up
7
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®

8. Soft Drink Sentiment Stable Since 2011
8
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®

9. 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
9

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