Rush Of Energy
BY ELIZABETH FUHRMAN
The tides are turning for many beverage categories. While the carbonated soft drink and beer categories are merely treading water with flat sales, the energy drink category is surging with a more than 50 percent increase in sales this year. Bottled water, ready-to-drink coffee, ready-to-drink tea and sports drinks follow close behind with substantial dollar sales increas-es of 25 percent, 23.2 percent, 22.6 percent and 20.8 percent, respectively. But sales don’t tell the whole picture. Innovations and marketing in CSDs and beer, along with developments in juice drinks and dairy-based drinks, are beer,
helping to turn sales in these categories around. What
follows is a category-by-category look at the state of the beverage
industry, including the top brands, new products, innovations and future
It should come as no surprise that the fastest-growing
beverage category would possess the same energy it gives to consumers. Growing more than twice as fast as any other
category, with a 54.3 percent increase in sales for the year ending June
18, according to Information Resources Inc., Chicago, energy drinks topped
nearly $535.5 million in sales.
While growth of the energy drinks category is not
surprising, Red Bull’s 9.6 percent drop in market share might be.
Monster saw an almost 5 percent increase in market share, followed by
Rockstar, Full Throttle and SoBe No Fear, with 1.8 percent, 3.6 percent and
1.2 percent increases, respectively.
Newcomer Tab Energy from Coca-Cola – which moved
immediately into the Top 10 – is an energy drink created especially
for women. The crisp and lightly carbonated pink beverage is sugar-free,
with 5 calories per 10.5-ounce can. Tab Energy isn’t the only
female-targeted energy drink. Brad Beverages Inc., West Hollywood, Calif.,
hit the market with Her Energy Drink, in regular and diet versions, this
year. The pink lemonade-flavored drink is
fortified with calcium, ginseng and antioxidants for active women.
Hansen Beverage Co.,
Corona, Calif., added to its energy drink lineup through a licensing
agreement with Lost – the apparel and surfboard manufacturer –
with another energizing variety. Lost now includes Lost Five-O, made with
50 percent juice in 16-ounce and 24-ounce cans. The drink is targeted as a
morning pick-me-up or as a mixer for cocktails, the company says.
Rockstar Inc., Las Vegas, also added juice to its line
with Rockstar Juiced, an energy/juice hybrid with 70 percent juice. Made
with all-natural mango, orange and passion fruit juices, Rockstar Juiced
gets its energy content by blending with Original Rockstar.
Coca-Cola revved up Full Throttle with a new flavor
variety in Full Throttle Fury and Full Throttle Fury Sugar Free.
These new line extensions have a citrus flavor and
come in bright red cans, featuring the brand’s signature logo, flame
graphics and “brash personality,” the company says.
Hybrid energy drinks are
growing just as quickly as the rest of the category. Following
PepsiCo’s Mountain Dew MDX, Coca-Cola North America introduced Vault
and Vault Zero nationwide the year. Vault, an energy soda, delivers a
citrus taste with less carbonation than most sodas, and the high octane of
an energy drink. Vault and Vault Zero – a no-sugar version of the
brand – are available in 20-ounce, 1-liter, 2-liter, and 12-ounce
|Global functional drink volume (MILLIONS OF LITERS)
|Source: Euromonitor International, 2006|
From the juice category, Naked Juice, Azusa, Calif.,
created all-natural 100 percent juice smoothies called Strawberry Kiwi Kick
and Orange Mango Motion, the super-premium juice version of an energy
drink. With no added sugar, no artificial flavors, colors or preservatives,
the “Naked Energy” is derived from ingredients such as green
tea extract and guarana that provide 43 mg. of caffeine per serving.
Combining energy and tea, Ferolito, Vultaggio &
Sons introduced Arizona Green Tea Energy Drink, a green tea-based energy
drink. Available in regular and diet, the energy drink is all natural and
lightly carbonated with a blend of vitamins,
minerals and herbs. BI
|Top energy drinks(individual brands)|
|CHANGE VS.MARKET % SALES PRIOR YEAR
|SOBE NO FEAR||$27,317,530||100.4||5.1||1.2|
|SOBE ADRENALINE RUSH||$20,536,700||11.5||3.8||-1.5|
|Source: Information Resources Inc., Total food, drug and mass merchandise (excluding Wal-Mart) for the 52 weeks ending June 18, 2006.|