Project: Demand Projections Segmented by Income for the Highly Competitive Non-Alcoholic Beverage Complex
Award Year: 2002
Amount of award, fiscal 2002: $25,000.00
Institution: Texas A&M University
Principal Investigator: Oral Capps
Status: Completed
Detailed Objective: This study examines the factors that affect consumer demand for nonalcoholic beverages by poverty- and non-poverty status households. Household purchase data from the 1999 A.C. Nielsen Homescan survey will be used. Using weekly purchase data, own-price, cross-price, and income elasticities of demand for non-alcoholic beverages will be estimated and analyzed. The study will assess whether consumption of milk and certain juices may be displaced by soft drinks and other beverages. It will also consider possible links between any such displacement and calcium deficiency among children and adolescents, as well as links between increased consumption of soft drinks and other beverages and higher calorie intake and obesity in children.

The project will consider intake of calcium (through milk and fortified fruit juices), sugar (through fruit juices and carbonated drinks), caffeine (through coffee and carbonated soft drinks), and calories (through bottled water and low-calorie soft drinks) for poverty and nonpoverty households. A demand systems approach will be used for model estimation. The models to be tested include the Almost Ideal Demand System (AIDS); Rotterdam model; and CBS or NBR.

Topic: Food Prices and Demand, Obesity
Dataset: AC Nielsen Data
Capps, O., Jr., A. Clauson, J. Guthrie, G. Pittman, and M. Stockton. Contributions of Nonalcoholic Beverages to the U.S. Diet, Economic Research Report No. 1, USDA, ERS, March 2005.