Progressive Grocer - November/December 2009 - (Page 80)

Grocery Energetic Sales? Sales of energy drinks and shots have been soaring — but has the economy shot down category growth of the premium drinks? By D. Gail Fleenor here appears to be no end to the new brands and types of energy drinks and shots that continue to vie for shelf space and consumer dollars. Teens and overworked adults have been grabbing these pick-me-ups on an everincreasing basis since the products debuted in the United States in 1997. While the market for energy drinks may have slowed some over the past year due to the recession and health concerns, sales still have plenty of get-up-and-go. A Lively Category T In 2008, energy drink sales hit $4.7 billion in the convenience store, food, drug and mass merchandiser channels, excluding Wal-Mart, according to Chicagobased research firm Mintel. Between 2004 and 2009, sales rose 197 percent (prices adjusted for inflation). Mintel forecasts energy drink sales to increase 54 percent (prices adjusted for inflation) from 2009 to 2014. Red Bull, Hansen Natural, Rockstar International, PepsiCo and Coca-Cola Co. account for about 93 percent of energy drink FDMx sales. The category is consolidating, however; Rockstar signed a distribution deal with PepsiCo this year, while Coca-Cola took over distribution of Monster Energy in late 2008.• Progressive Grocer • November/December 2009 Energy shots, still relatively new to the market, showed strong growth in 2008 despite the recession. Sales of shots doubled from 2007 to 2008, to reach $67 million in FDMx, according to Mintel. As big-name brands like Red Bull enter the shots segment, the research firm forecasts increased growth. Some analysts question, however, whether this growth will cannibalize drink sales. Currently, over 50 percent of energy drink sales occur in convenience stores, which is where the largest group of users — young males — generally shop. Demographics of energy drink consumers are changing, however. “The consumer base has broadened a lot,” says John Sichler, editor/publisher, Beverage Digest. “Originally, young adults were using energy drinks as mixers at bars. Now, adult office workers are grabbing the drinks for afternoon pickme-ups, as are adult drivers on long trips.” Mintel reports that 48 percent of energy drinks are www.progressivegrocer.com A H E A D O F W H AT ’ S N E X T http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - November/December 2009

Progressive Grocer - November/December 2009
Contents
Nielsen’s Shelf Stoppers/Spotlight: All Departments/Ramen Noodles
Progressive Grocer’s Category Captains Awards: Recession Planning
Consumer Insights: Innovate to Differentiate
Independents Report: Determining Relative Worth
Lempert Report:The Trends That’ll be Tops in 2010
Store of the Month: A New Brand of Winn-Dixie
Beverage Alcohol: Glass Half Full
Sports/Energy Drinks: Energetic Sales?
Category Management: Categorical Shifts
Holiday/Super Bowl Meat Promotions: Bowled Over
PG’s Annual Deli/Bakery/ Prepared Foods Roundtable: Bringing Value to the Table: Part 2
Packaging Trends: Sheer Innovation
Price and Promotion Optimization Software: Optimization Plus
Signage: Above and Beyond
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - November/December 2009