Progressive Grocer - January 2011 - (Page 74)

Beverages Energy Drinks Get a Jolt Nonalcoholic products are among those targeted by lawmakers. By Bob Gatty W ith governments at all levels taking shots, the energy drink market in the United States appears to be flattening, and continuing negative publicity isn’t helping. Of course, reports of kids getting sick and even dying after consuming alcoholladen energy drinks haven’t exactly been good for the category. But it’s not just alcohol-based drinks — currently being targeted by the U.S. Food and Drug Administration (FDA) and other government agencies — that are in the crosshairs. Some states, municipalities and school districts have acted to ban the sale of nonalcoholic energy drink products to teenagers, and the chorus in favor of such bans seems to be growing louder. Last August, Chicago-based research firm Mintel released survey results showing that energy drink/shot manufacturers are having trouble attracting new customers, despite a 136 percent boost in sales from 2005 to 2009. In fact, 74 percent of those surveyed said they don’t consume energy drinks/shots, and 69 percent of those nonusers don’t care to try them. Mintel’s Global Market Navigator found that Americans consume 3.05 liters of energy drinks per capita annually, but energy drink market penetration remained flat at 15 percent of all adults over age 18 during 2007 to 2009. Energy drink/shot nonusers cite high prices (48 percent), too much caffeine (43 percent) and a general feeling that energy drinks/shots just aren’t good for you (43 percent) as reasons for not consuming them in the past three months. “Sales of energy drinks and shots have remained relatively strong for the last few years, but the same core group of customers continues to buy them,” reports Garima Goel Lai, senior analyst at Mintel. “The category added only 1 million new energy drinks users aged 18-plus during 2007 to 2009, compared to 9.3 million new users during 2005 to 2007, so manufacturers are eager to grow that number again.” According to the survey, 71 percent of energy drink users and 80 percent of energy shot users consume them for an energy boost, while 57 percent use them to stay awake, and 60 percent, for mental alertness. Energy drink/shot consumers, meanwhile, are more likely to use energy shots (30 percent) than energy drinks (23 percent) to enhance sports performance. However, a study published by the Washington-based American Psychological Association in December showed that although consuming energy drinks in moderation can enhance an individual’s response time, benefits disappear once consumption becomes a habit. In another study, researchers from the University of Buffalo, in New York, have found a link between teens who consume a large quantity of such drinks and risky behavior. Drink Bans Imposed Last September, the Charlottesville-based Virginia High School League, which oversees all public schools in the state, imposed a new energy drink policy that forbids athletes from consuming energy drinks during participation in practices and competition, because of “potential serious safety and health issues.” The penalty for violating the rule is a warning to the member school, with possible stricter penalties for additional violations. The action was in response to growing concern that consumption may be unsafe for adolescent athletes, as the beverages are often used for fluid replacement — unsuitable following 74 • Progressive Grocer • January 2011 A H E A D O F W H AT ’ S N E X T

Table of Contents for the Digital Edition of Progressive Grocer - January 2011

Progressive Grocer - January 2011
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Medications and Remedies/antacids
Mintel Global New Products: Salty Snacks, Meat Snacks and Popcorn, Q2-Q3 2010
Best Practices: Are We There Yet?
Store of the Month Special Edition: My H-E-B
Marketing: Circular Paradox
Gma President’s Note: United We Stand
Pg Special Events: Pg Honors 2010 Top Women, Green Grocers at Gala Event
Retailer Spotlight: Winn-Dixie’s Awakening
Category Management: Mutual Benefi Ts
Special Section: Progressive Grocer Independent: For Retailers, by Retailers
Condiments: A Matter of Taste
Butter/margarine: Promise for the Future
Desserts: Sweet Solutions
Energy Drinks/shots: Energy Drinks Get a Jolt
Winter Produce: Season of Plenty
Meat Merchandising Study: Meat to Meals
Candles/Air Fresheners: Beyond Common Scents
Front End: The Front End Checkout: A Microeconomic Model of the Store
Cough and Cold: A Tissue Please?
Whole Health: Feeling Good in 2011
Futuretech: It’s a Mad, Mobile World
Progressive Voices: Retailers’ Value Equation = Customer-Benefit Costing
Ovens and Rotisseries: Heating Up
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - January 2011