Beverage Industry

Rush Of Energy

July 1, 2006
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 trendsetters.
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 cans.
Global functional drink volume (MILLIONS OF LITERS)
SUBSECTOR2005FORECAST 2006
SPORTS DRINKS9,767.510,498.1
ENERGY DRINKS1,946.22,206.8
ELIXIRS331.5355.3
TOTAL12,045.113,060.2
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)
  DOLLAR
% BRAND
CHANGE VS.MARKET % SALES PRIOR YEAR CHANGE VS.SHARE
RED BULL$248,721,30027.946.4-9.6
MONSTER ENERGY$66,270,220147.612.44.7
ROCKSTAR$57,146,50086.310.71.8
FULL THROTTLE$33,679,430258.16.33.6
SOBE NO FEAR$27,317,530100.45.11.2
AMP$21,703,94026.44.1-0.9
SOBE ADRENALINE RUSH$20,536,70011.53.8-1.5
TAB ENERGY$6,037,725NA1.11.1
SOBE LEAN$4,637,515469.20.90.6
POWERADE$4,491,713-8.70.8-0.6
CATEGORY TOTAL$535,468,20054.3100.00.0
Source: Information Resources Inc., Total food, drug and mass merchandise (excluding Wal-Mart) for the 52 weeks ending June 18, 2006.