Pumped up

Mountain Dew Energy is the fifth best-selling everyday energy drink

Energy drinks are increasingly not just for sporty types, but are fulfilling a more holistic lifestyle need especially for 16-34 year-olds, according to market analyst Mintel

Brand Central

16 January 2012

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At a glance: ENERGY DRINKS

During January to June 2011, Europe was the most active region for new product launches within the energy drinks category, accounting for 40% of total global launches, followed by Asia Pacific with 24%*
Manufacturers are increasingly targeting diet/low sugar variants, which registered the biggest rise accounting for 16% market share, up 10% compared to the last six months of 2010* (Source: Mintel)
Mountain Dew Energy is the fifth best-selling everyday energy drink, with a 5.9% volume share of the everyday energy drink category
Mountain Dew Energy has achieved 75% distribution throughout Ireland in the last 12 weeks
The Mountain Dew brand was named Best New C-Store Product Launch 2011 at the ShelfLife C-Store Awards
Boost’s 1 litre PET format is available in Regular Energy, Sugar Free and Energy Cola variants
Little Dragon, a range of functional food supplement drinks, was announced as winners in the “Best Shot” category at the international 2011 Beverage Innovation Functional Drinks Awards

Sports and energy drinks have grown rapidly in recent years. In fact they outperformed the market in 2008, achieving a 2% volume uplift. This is perhaps not surprising during the current uncertain financial times. Many employees are being asked to work longer hours, and energy drinks in particular provide a much needed pep to see them through their extended days.
According to market analyst Mintel, energy drinks are a popular choice for young people who “are born into a world of fast communication and instant gratification – but it looks like they need a little extra help to get through their frenzied days”. Indeed, according to the company’s latest research, energy drinks are a huge factor in keeping the so-called ‘Generation Z’ (those born in the last decade of the Millennium) going, with the majority (73%) of them drinking energy drinks, compared to only three in 10 (31%) of 55+ year-olds.

Furthermore, while taste is stated as the primary reason for buying energy drinks by 73% of 16 to 24 year-olds, up to seven in 10 (70%) of them choose energy drinks as they provide a general energy boost and almost the same number (66%) specifically indicate the improvement of their performance at work or while studying as a key reason of consumption.

Following fast-paced lifestyles

Jonny Forsyth, senior drinks analyst at Mintel, said: “The current younger generation are more impatient and keen on living a multi-dimensional, fast-paced lifestyle than has been the case for previous cohorts. It also highlights a generational difference, specifically the younger generation’s use of everyday ‘uppers’ and ‘downers’ to control their moods or enhance their performance. Therefore, in spite of having less money in their pockets, they are happy to pay for added energy to facilitate their full-on lifestyles.”

Despite being initially designed for aiding sports performance, Mintel’s research shows that the majority (70%) of all those who drink sport and energy drinks do so as a general energy booster, compared to only 59% who drink them specifically for physical activity. Furthermore, almost six in 10 (57%) users admit to drinking them in order to get through a tiring day while over half (54%) use them to wake up and over four in 10 (44%) to “pick up” their mood.

“While these drinks may have started off as aids to physical exercise, they are increasingly filling a more holistic lifestyle need especially for 16-34 year-olds. Whether it be energy to concentrate and achieve in the workplace or a booster to allow for after-work socialising when they might otherwise feel tired and want to go home, the potential for the market is huge,” Forsyth adds.

Thriving despite the downturn

Although incomes have been squeezed by the economic downturn, consumers have judged the combination of energy-giving functionality and taste as worth the premium – making energy drinks the success story within the non-alcoholic market over the past three years. Showing the importance of their energy-giving functionality among consumers, the combined markets for energy and sport drinks were estimated to reach £1.1 billion (€1.33 billion) in 2011, from £920 million (€1.1 billion) back in 2008. Moreover, Mintel forecasts that there will be a massive volume growth (85%) in the next five years meaning that the market will reach an estimated £1.8 billion (€2.17 billion) by 2016.

Mountain Dew Energy is the fifth best-selling everyday energy drink

When it comes to product innovations, the first six months of last year (January to June 2011) saw Europe as the most active region, accounting for 40% of total global launches, followed by Asia Pacific with 24%. On the other hand, North America dropped from second to third place, now constituting just under a fifth (19%) of new products. Furthermore, research from Mintel shows that manufacturers are increasingly targeting diet/low sugar variants, which registered the biggest rise accounting for 16% market share, up 10% compared to the last six months of 2010. And to appeal to increasingly health-conscious consumers, energy and sports drinks have aimed to strip out additives from their formulations, with the no additives/preservatives claim accounting for a 16% share, up 5% for the same review period.

Energy on-the-go

Mountain Dew Energy is a uniquely popular citrus flavoured energy drink. Available to consumers in a 500ml PET, Mountain Dew Energy offers the perfect on-the-go energy boost.

This iconic global brand was launched in Ireland in March 2011. Appealing to young male adults with its youthful personality and vibrant design, the launch of this global brand was rolled out in the Irish market through a heavy weight sampling campaign which targeted universities and urban sports events nationwide.

Having witnessed a positive reception throughout Ireland, the global brand is now the fifth best-selling everyday energy drink, and has a 5.9% volume share of everyday energy. Mountain Dew Energy has achieved 75% distribution in the last 12 weeks. The successful roll out of this brand throughout Ireland has not gone unnoticed as the brand has been acknowledged as the Best New Product launch at the 2011 C-store Awards.

Boost offers attractive cash margins for retailers

Boosting retailers’ revenues

Boost is the perfect pick me up choice, according to Simon Gray, managing director of Boost Drinks. Not only does it offer great taste, great value and great performance, it also presents retailers with a great opportunity to unlock new revenue with its attractive cash margins, says Gray.

Post recession, consumers are continuing to seek out value alternatives to premium brands, as well as showing a preference for longer drinks and larger bottle formats, which represent greater value for money.

Boost’s iconic 1 litre PET format is the ideal choice, available in Regular Energy, Sugar Free and Energy Cola. Not only does it offer great value, it has the re-sealable advantage, so it’s perfect for sharing or for mixing with larger drinks like cocktails at parties. It can also be enjoyed on its own as a refreshing and energising soft drink.

Boost’s Sugar Free variant is also perfect for anyone looking for an energising drink or mixer but without the associated calories and a great option for those calorie conscious consumers who don’t want to gain weight.

Getting the right point of sale in place plays a major role in directing and educating consumers, adds Simon Gray.

To get the best return on their space, retailers should be stocking established brands like Boost. Providing a comprehensive variety of flavours and pack formats to offer choice and confidence in the brand is also important. Stocking Boost in the chiller for impulse and ambient as a take home option can also help to boost sales.

The strength of a mighty Dragon

Little Dragon is a range of award winning concentrated 60ml functional food supplement drinks, developed by Dragon Nutrition, to help with today’s busy lifestyles. Whether consumers need assistance as a result of their hectic social life, or to kick-start a fitness regime or help resist everyday stress, Little Dragon has a shot for every individual.

Announced as winners in the “Best Shot” category at the international 2011 Beverage Innovation Functional Drinks Awards, the range is now on sale in Ireland and the UK, and through Amazon.co.uk, with Little Dragon products being used by top sportspeople and teams in Ireland and the UK. The range includes:

Little Dragon 24g Hydrolysed Protein – Provides as much protein as four whole eggs or a 4oz sirloin steak without the fat and cholesterol. Packed with B-vitamins, the easily absorbed amino acid boost can be taken before/after a workout, or when you need an extra protein boost or protein-rich snack between meals.

Little Dragon Pre Workout – Pre-Workout is a stimulating shot formulated to release energy for a vigorous workout. Packed with amino acids, caffeine for extra stimulation and B-vitamins to aid energy metabolism.

Little Dragon B-Vit Gold with Curcumin – Handle a hectic social life with B-vitamins and golden Curcumin, an extract of turmeric used in traditional Indian (Ayurveda) medicine, to help you get on with your day.

Little Dragon Power Focus – support memory, concentration, reasoning, focus and maintain normal mental performance with this B-vitamin packed amino acid boost. Perfect for everyday stressful situations in work, at home, in college, commuting or sports.

Little Dragon Intense Energy – An intense blast of energy without sugar, helping to avoid that sugar crash often associated with energy drinks. With few calories this on-the-go-shot contains caffeine, B-vitamins and amino acids to help stimulate and fight fatigue.

Visit www.dragon-shots.com for more information. Dragon Nutrition is a scientific company focused on developing and manufacturing cutting edge functional drinks and liquid food supplements. The company also offers private label and own brand solutions.

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