A Study of the Impacts of Low-Carb OJ on the Demand for OJ

Abstract

This study used the uniform substitute specification of the Rotterdam demand system to study the impacts of low-carb orange juice (OJ) drinks on the demand for five brands of 100% OJ and OJ blends using weekly ACNielsen scanner observations for the period from June 15, 2002 to October 23, 2004. The results of this study indicate that the uniform substitute assumption cannot be rejected. The results found in this study suggest that the sales of low-carb OJ drinks had a negative impact on the sales of OJ and OJ blends.