Milling & Baking News Corporate Profiles - November 2013 - (Page 34)

Beverages Beverages Caffeine buzz rushes through the category C affeinated beverages stimulated the beverage category in 2013 as sales of energy drinks and single-cup coffee rose in retail sales. A warning light, however, was flashing as members of Congress and the Food and Drug Administration wondered about the potential health effects of too much caffeine consumption. The energy drinks and energy shots market in the United States grew 60% from 2008 to 2012 to reach $12.5 billion, according to Packaged Facts. The market research firm projects sales of energy drinks and energy shots will grow to a value of $21.5 billion in the United States by 2017. According to Chicago-based Information Resources, Inc., U.S. retail sales of non-aseptic energy drinks reached $8.5 billion for the 52 weeks ended Sept. 8, 2013, up 5.5% from the previous 52-week period. Red Bull North America, Inc., Santa Monica, Calif., led the category with sales of $3.5 billion, up 7%. Monster Beverage Corp., Corona, Calif., was second at $3.2 billion, up 9%. Rodney Sacks, chairman and chief executive officer of Monster Beverage Corp., addressed the caffeine issue in a Feb. 27 earnings conference call. He said Monster Beverage estimated 50 billion cans of energy drinks have been sold and safely consumed worldwide over the past 25 years, including more than 8 billion Monster Energy drinks over the past 11 years. "Unfortunately, inaccurate and speculative articles continue to be published in the media regarding energy drinks," Mr. Sacks said. "We have endeavored to respond to those inaccuracies, when practical, by providing accurate and scientific facts to the media, as has the American Beverage Association." He said a 16-oz coffee from Starbucks contains about 330 mg of caffeine, which is double the approximately LEADING SINGLE-SERVE energy drink vendors 1 2 3 4 5 6 7 8 9 10 Dollar sales Red Bull North America, Inc. $3,484,948,000 Monster Beverage Corp. $3,197,671,000 Rockstar, Inc. $820,472,700 PepsiCo, Inc. $280,433,000 High Performance Beverage $279,678,100 The Coca-Cola Co. $136,916,400 North American Coffee Partnership $54,502,070 Xyience Xtreme Science $43,709,020 Dr Pepper Snapple Group $30,572,280 National Beverage Corp. $29,351,360 Total $8,492,757,000 % change from year ago 7.4% 9.2% -3.1% -16.7% 7.1% -4.8% 94.1% 1.0% -15.9% 16.2% 5.5% 160 mg of caffeine in the same-size Monster Energy drink. The F.D.A. has cited 400 mg of caffeine per day, or about 4 or 5 cups of coffee, as an amount not generally associated with dangerous negative effects. The F.D.A. has not set a level for children. Not only energy drinks and coffee, but also other caffeinated products, such as gum, concerned the F.D.A. in 2013. "Our concern is about caffeine appearing in a range of new products, including ones that may be attractive to children and adolescents, without careful consideration of their cumulative impact," said LEADING SINGLE-SERVE energy drink brands 1 2 3 4 5 6 7 8 9 10 Dollar sales Red Bull $3,327,725,000 Monster Energy $1,196,757,000 Monster Rehab $372,830,700 Monster Energy Lo-Carb $327,124,200 Rockstar $289,441,100 NOS $279,678,100 Java Monster $274,060,200 Monster Mega Energy $228,860,400 Monster Energy Zero Ultra $225,686,600 Monster Energy Absolutely Zero $215,895,300 Total $8,492,757,000 % change from year ago 5.6% 1.6% 5.4% -12.4% -3.6% 7.1% 14.8% 1.0% NA -7.9% 5.5% Data for 52 weeks ended Sept. 8, 2013 Total U.S. - Multi-outlet with C-Store (Supermarkets, Drugstores and Mass Market Retailers, Gas/C-Stores, Military Commissaries and Select Club & Dollar Retail Chains) Source: Information Resources, Inc. 34 \ November 2013 Milling & Baking News * Food Business News * Baking & Snack * Meat & Poultry Corporate Profiles

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Milling & Baking News Corporate Profiles - November 2013