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The Non-alcoholic Beverage Market in the United States: Demand Interrelationships, Dynamics, Nutrition Issues and Probability Forecast Evaluation

There are many different types of non-alcoholic beverages (NAB) available in
the United States today compared to a decade ago. Additionally, the needs of beverage
consumers have evolved over the years centering attention on functionality and health
dimensions. These trends in volume of consumption are a testament to the growth in the
NAB industry.
Our study pertains to ten NAB categories. We developed and employed a unique
cross-sectional and time-series data set based on Nielsen Homescan data associated with
household purchases of NAB from 1998 through 2003.
First, we considered demographic and economic profiling of the consumption of
NAB in a two-stage model. Race, region, age and presence of children and gender of
household head were the most important factors affecting the choice and level of
consumption.
Second, we used expectation-prediction success tables, calibration, resolution,
the Brier score and the Yates partition of the Brier score to measure the accuracy of predictions generated from qualitative choice models used to model the purchase
decision of NAB by U.S. households. The Yates partition of the Brier score
outperformed all other measures.
Third, we modeled demand interrelationships, dynamics and habits of NAB
consumption estimating own-price, cross-price and expenditure elasticities. The
Quadratic Almost Ideal Demand System, the synthetic Barten model and the State
Adjustment Model were used. Soft drinks were substitutes and fruit juices were
complements for most of non-alcoholic beverages. Investigation of a proposed tax on
sugar-sweetened beverages revealed the importance of centering attention not only to
direct effects but also to indirect effects of taxes on beverage consumption.
Finally, we investigated factors affecting nutritional contributions derived from
consumption of NAB. Also, we ascertained the impact of the USDA year 2000 Dietary
Guidelines for Americans associated with the consumption of NAB. Significant factors
affecting caloric and nutrient intake from NAB were price, employment status of
household head, region, race, presence of children and the gender of household food
manager. Furthermore, we found that USDA nutrition intervention program was
successful in reducing caloric and caffeine intake from consumption of NAB.
The away-from-home intake of beverages and potential impacts of NAB
advertising are not captured in our work. In future work, we plan to address these
limitations.

Identiferoai:union.ndltd.org:tamu.edu/oai:repository.tamu.edu:1969.1/ETD-TAMU-2010-05-7911
Date2010 May 1900
CreatorsDharmasena, Kalu Arachchillage Senarath
ContributorsCapps, Oral
Source SetsTexas A and M University
Languageen_US
Detected LanguageEnglish
Typethesis, text
Formatapplication/pdf

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