Progressive Grocer - May 2009 - (Page 100)

Nonfoods Red Bull’s energy shots, which are debuting in June, will challenge 5-hour Energy’s lead in the segment. Boost By Joseph Tarnowski A Healthy Energy shot drinks are expected to hit $1.2 billion in sales by 2010. he energy shot drink market apparently has been consuming a lot of its own products, if its sales growth is any indication. In North America and Europe, the category, which is an extension of the energy drinks market, grew 130 percent in units sold — 188 million — in 2008, representing a sales value of $423 million, according to a new report from drinks consultancy Zenith International. Zenith anticipates that the combined markets of as the subcategory increasingly permeates HBC North America and Europe will reach a unit volume departments. of over 500 million, and a retail value approachEnergy shots are an extension of the regular energy ing $1.2 billion by 2010, spreading into new mar- drinks market, typically packed in 2-ounce (60-ml) kets and regions. shrink-wrapped plastic bottles. “Standard 250-ml and Such growth is drawing an increasing number of super-sized 500-ml energy drinks may contain too players to the field, with several new launches the much volume and too many calories for certain conpast few months alone; in June, Red Bull will sumption occasions such as driving,” says Zenith Marexpand its energy options in the United States with ket Intelligence consultant and functional drinks ediRed Bull Energy Shot and Red Bull Sugarfree Shot. Energy Shot Dollar Sales Pass 1/4 Billion in C-Stores Indeed, this growth in Dollar Sales Unit Volume the convenience market — Liquid Vitamins/ which accounts for more Supplements/ than half of dollar sales Energy Shots $262,071,333 88,550,633 ($262 million of it, accord52 Weeks Ending March 21, 2009 ing to recent Nielsen figSource: The Nielsen Company, total U.S. ScanTrack Convenience ures) — has prompted the National Association of Convenience Stores tor Jenny Foulds. “Energy shot drinks are a major (NACS) to develop a new subcategory in health new opportunity for the energy drinks category. They and beauty care (HBC) called liquid vitamins, sup- can be carbonated or noncarbonated; berry-, juiceplements & energy shots (4 ounces or less) to dif- or even dairy-based; [and] with very wide-ranging ferentiate sales volume and growth in energy shots potential positioning and target markets.” from vitamins and supplements (non-liquid). The NACS’ classification of energy shots as part of Nielsen Company also added the subcategory to the HBC segment hints at how these products difthe convenience store shopper scan data it collects. fer from their energy drink cousins. This will likely also happen in the grocery industry, “Most energy drinks contain high amounts of 100 • Progressive Grocer • May 2009 A H E A D O F W H AT ’ S N E X T T sugar,” says Carl Sperber, director of corporate communications for Novi, Mich.-based Living Essentials, which produces 5-hour Energy, the market leader. “There are from 21 to 27 grams of sugar in each 8-ounce serving of some popular energy drinks. Most energy shots, on the other hand, contain no sugar, and sugar contributes to the crash effect.” If energy shots aren’t high in sugar, how do they work? Energy shots use a mix composed of various vitamins and amino acids. 5-hour Energy, for example, uses a blend of B vitamins — vitamin B6, vitamin B12 in conjunction with niacin (vitamin B3), and folic acid (vitamin B9) — and a combination of the amino acids tyrosine, phenylalanine, taurine, malic acid and glucuronolactone. It also includes caffeine comparable to a cup of premium coffee. Many of these vitamins are essential to the body’s proper functioning, says Sperber. “It’s difficult to find a molecule in our bodies that doesn’t rely on vitamin B6 for its production,” he notes. “Vitamin B6 plays a key role in the production of amino acids and is used in the creation of DNA. It helps the nervous system function properly, increases the amount of oxygen carried in our blood and helps maintain our immune system. Vitamin B12 is essential because it’s critical in the development of red blood cells and the processing of carbohydrates into energy.” The complete Zenith study is available at www.zenithinternational.com. ■ www.progressivegrocer.com http://www.zenithinternational.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - May 2009

Progressive Grocer - May 2009
Contents
Nielsen's Shelf Stoppers/Spotlight: Candy/Chocolate Candy
Market Snapshot: Tampa-St. Petersburg, Fla.
The 76th Annual Report of the Grocery Industry: Opportunity Knocking
Industry Ranking: The Super 50
Independents Report: IGA's Stores Down Under Are Experts at Giving Back
Lempert Report: Sustainable Agriculture is the Key to Feeding the World
Store of the Month: Angels in the City
United Fresh Product Forecast: Save-A-Lot Savors Suite Life at United Fresh
Meat/Seafood: A Signature Cut
Show Preview: IDDBA's Dairy-Deli-Bake 2009
Beverage Alcohol: A Heads-Up for Hops
Confectionery: Eye Candy
Hand-Held Frozen Entrees: Holding On
Coffee: Bean Counters
Private Label Trends: Private Practice
HBC: A Healthy Boost
Technology Case Study: Employ Automated Hiring
Equipment: Reach for Safety
What's Next Editors' Picks for Innovative Products
General Merchandise Taking Stock

Progressive Grocer - May 2009