![]() “Energy drink mixes offered a cheaper alternative to non-aseptic energy drinks, which consumers welcomed during the recession,” according to Mintel. Nearly half of consumers who do not drink energy drinks or shots believe the beverages are too expensive, according to Mintel.įor price-conscious consumers, energy drink mixes have emerged as a value alternative to ready-to-drink energy beverages. The high price of energy drinks is the biggest barrier to energy drink companies growing their consumer base, Mintel reports. “It’s just a natural slowdown in the category.” “It’s just impossible to continue to have those growth rates for longer periods of time,” he says. The combination of an economic downturn and aggressive pricing, promotion and marketing strategies by beverage companies in other categories, such as carbonated soft drinks, has been a recipe for slowing growth for energy drinks, says Tom Mahlke, president of Crunk Energy Drinks, Roswell, Ga. Taking advantage of this trend, earlier this year value-priced grocer Aldi, Batavia, Ill., released Gridlock, a 16-ounce energy drink that retails for $0.89. Sales of private label energy drinks were $12.9 million in measured channels during the time period, SymphonyIRI data show, and the average price of energy drinks fell slightly to $2.54. ![]() “… These are high-margin products, and, given the growth in the category, private label has started to enter.” “I think has to do with the category maturing more so than being recession related because growth in the category has been slowing down for the last several years,” he says. ![]() The category has seen price points fall though, and private label and niche brands have emerged in the category as well, Haffner says. From 2005 to 2010, energy drink sales increased by 106 percent in current prices, Mintel reports. In 2009, new energy drink introductions fell by 64.3 percent to 134 in the United States.īut Mintel still expects the category to grow by 53 percent in current prices from 2010 to 2015, according to the company’s “July 2010 Energy Drinks and Energy Shots” report. In 2008, 375 new energy drinks were released in the United States, according to Chicago-based Mintel International’s Global New Products Database. I’d say from a strictly numerical perspective, it’s hard to tease that apart.”Īs category growth slows, so has the introduction of new products. “The category is slowing down, and the recession happened. “It’s a little problematic because the two are happening at the same time,” says Richard Haffner, industry manager at Euromonitor International, Chicago. supermarkets, drug stores, gas and convenience stores, and mass merchandise retailers, excluding Wal-Mart, during the 52 weeks ending June 13, 2010, according to SymphonyIRI Group, Chicago. The total energy drink category grew by 3.1 percent in U.S. Slowing growth and lower price points have emerged in an energy drinks category once defined by a meteoric rise and premium pricing, but industry analysts and beverage manufacturers say it is unclear whether the recession or category maturation are to blame.
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