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1 results

  • The Competition of Beverage Products in Current Market: A Composite Demand Analysis

  • Yan Heng, Lisa A. House, Hyeyoung Kim
  • Journal:
    Agricultural and Resource Economics Review / Volume 47 / Issue 1 / April 2018
    Published online by Cambridge University Press:
    10 August 2017, pp. 118-131
    • Article
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  • The beverage sector plays an important role in consumers' daily diet. Recent declines in fruit beverage and soft drink consumption may be a reflection of changing consumers' lifestyles and perceptions. This study uses recent scanner data to develop a demand analysis to examine the competition of various beverages. To obtain reliable demand and elasticity estimates, we test for valid aggregations using the generalized composite commodity theorem. Results suggest that while consumers substitute refrigerated juice with low calorie drinks, a larger proportion of consumers substitute regular soft drinks with fruit drinks.