Rising energy levels

With energy drinks currently the second fastest growing category within impulse soft drinks, it's important for retailers to give them the space they deserve, writes Gillian Hamill

Brand Central

18 February 2014

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AT A GLANCE: ENERGY DRINKS

Energise Sport holds a 21.6% share of the sports category with sales continuing to climb due to its €1 price-marked pack (PMP)
Whilst energy drinks are consumed most frequently by 25-34 year olds, they are also popular amongst those in the 35-44 and 16-24 age brackets, and are consumed regularly by students (Source: Mintel, Energy and Sports Drinks, September 2011)
In the on-trade 90% of energy drinks are consumed as alcoholic mixers, and with an increase in ‘nights in’ over ‘nights out’ there are a number of ways retailers can benefit from this trend in the off-trade
Mad Dog Energy Lemonade (MDEL) recently provided 10,000 cans of MDEL to students in the run up to the exam period
Energy drinks are the second fastest growing category in impulse soft drinks*
Worth £491m, the UK energy category in impulse is growing at +7%*, with big can energy formats driving the category, growing at an impressive +20% year-on-year (YOY)**
Rockstar SuperSours have already delivered over £12m of sales since launching last year*****
In the 500ml big can format, flavours are fuelling impulse market growth at +48% by value**
Six of the fastest selling 10 500ml product lines are Rockstar flavours***
Low calorie energy drink variants achieved growth of +17% YOY****
The low calorie energy market is currently worth £43m***** for retailers in the UK and is estimated to grow to £200m over the next five years****

*(Source: Nielsen Scantrack, Value Sales, MAT to 07.12.13, Total Impulse)

**(Source: Nielsen Scantrack, Value Sales, 473ml+ Single cans, Energy drinks, MAT to 07.12.13, Total Impulse)

***(Source: Estimated Retail Sales Value based on AG Barr Sales Data)

****(Source: AG Barr Sales Estimate based on current market data)

*****(Source: Nielsen Scantrack, Value Sales, Low Calorie Energy Drinks, MAT to 14.09.13, Total Impulse)

Energise

In recent years, energy drink brands have diversified into different flavours and formats; delivering greater convenience and value for consumers. Showing the extent to which energy drinks have penetrated the market, Mintel (UK) reported the sports and energy segment within the soft drinks category recorded growth of 84% since 2006 to reach €1bn in 2011. What’s more, the sports nutrition market is worth €2.7 billion globally (Source: Bord Bia). Demand has been driven primarily by younger consumers who are seeking additional sources of energy to support their busy, active and time-pressured lifestyles.

Fuelling a winning performance

The Energise brand is going from strength to strength by tapping into consumers’ needs for affordable energy. Energise Sport holds a 21.6% share of the sports category and sales continue to climb quickly as recession-hit consumers pick up the value €1 PMP (in fact Energise Sports states its cash rate of sale is more than double that of Powerade).Fuelling a winning performance

Available in Orange and Mixed Fruit flavours, Energise Sport’s isotonic formulation, with electrolytes and added vitamins, enters the blood stream faster to ensure hydration and a fuel winning performance.

Now Energise is bringing affordable energy to the stimulant energy category with Energise Edge 440ml; showing how the combination of great quality and great value stimulates consumer demand.

Energise is the only sports and energy brand that is 100% produced in Ireland. The range includes Energise Sport and Energise Edge, both delivering high quality products at a great price.

MDEL

Mad for success

Mad Dog Energy Lemonade (MDEL) continues to cement its place in the Irish market. With major listings covering retail, wholesale and forecourts, MDEL continues to grow volume and market penetration year on year. Mad Dog is receiving strong support from the student community and has recently provided 10,000 cans of MDEL to students in the run up to the exam period.

Brand awareness is also increasing rapidly through the ongoing marketing and sponsorship programme in Ireland. The Ireland based Mad Dog CCR Suzuki Motocross team will be competing in both the Irish and UK championships in 2014. Dublin born Stuart Edmonds will compete in MX1 class with Jordan Dunne from Cork competing in MX2.

The recent move into Motocross extends Mad Dog’s involvement in Motorsport having partnered with the Marussia F1 team and Sean Walkinshaw Racing in Formula 4 in 2013.

MDEL is distributed in Ireland by Vescoro Ltd. For more information visit www.vescoro.com and www.maddogenergylemonade.com or email info@vescoro.com.

Boost energy sales to the maximum

Retailers should ensure they get the energy category right to maximise profits, says soft drinks expert A G Barr.

Worth £491m, the UK energy category in impulse is growing at +7%*1, with big can energy formats driving the category, growing at an impressive +20% year-on-year (YOY)**

"Energy drinks are the second fastest growing category in impulse soft drinks* and have been the key driver of growth in soft drinks for a number of years now," says Adrian Troy, head of marketing for A G Barr.

A key trend is the development of flavours in the energy category. In the 500ml big can format, flavours are fuelling impulse market growth at +48% by value.** Rockstar is leading this growth and six of the fastest selling 10 500ml product lines are Rockstar flavours.****

Rockstar offers a range of six flavours with vibrant packaging. Amongst the core 16-24 market, Rockstar is sought out as a better tasting energy drink with consumers really connecting with the range of flavours.****

Rockstar now dominates the flavours sector with its innovative NPD, which A G Barr believes represents an unmissable opportunity. Rockstar SuperSours have already delivered over £12m of sales since launching last year.*****

A G Barr has also launched a new flavoured zero sugar big can energy drink.
"Another big trend in the energy market is the growth of low calorie variants at +17% YOY," ****** says Troy. "The low calorie energy market is currently worth £43m****** for retailers and is estimated to grow to £200m over the next five years.*******

"However, there is currently little consumer choice available in this growing sector and the launch of Rockstar Pure Zero will fulfil both the demand for a low calorie option and the demand for great-tasting flavoured energy. Rockstar Pure Zero is available in a 500ml big can format in our popular Fruit Punch flavour. The new variant offers the full Rockstar energy hit with zero sugar.

"The launch of Rockstar Pure Zero will fill a genuine need in the market and retailers should stock up to keep their energy sales soaring in 2014," adds Troy.

*(Source: Nielsen Scantrack, Value Sales, MAT to 07.12.13, Total Impulse)

**(Source: Nielsen Scantrack, Value Sales, 473ml+ Single cans, Energy drinks, MAT to 07.12.13, Total Impulse)

***(Source: Nielsen Scantrack, AC Wtd UROS, 473ml+ Single cans, Energy Drinks, 12 wks to 07.12.13, Total Impulse)

****(Source: Out of the Box Shopper Insight, Feb 2012)

*****(Source: Estimated Retail Sales Value based on A G Barr Sales Data)

******(Source: Nielsen Scantrack, Value Sales, Low Calorie Energy Drinks, MAT to 14.09.13, Total Impulse)

*******(Source: A G Barr Sales Estimate based on current market data)

Getting a Kick out of life

"Energy drinks in the off-trade account for approximately three-quarters of the overall energy category, which continues to demonstrate growth due to increasing consumer demand, the development of new SKUs including flavours and pack formats, and an acceptance of energy drinks within the soft drinks category," says Simon Green, marketing director at Global Brands Ltd which includes the Kick energy drink brand within its portfolio.

"Whilst energy drinks are consumed most frequently by 25-34 year olds, they are also popular amongst those in the 35-44 and 16-24 age brackets, and are consumed regularly by students.* Today’s 25-44 year old regular consumers were the early adopters of energy drinks and the first generations to drink them both as a soft drink and a mixer. As more 16+ consumers purchase energy drink products, the category is likely to grow.

"Consumers have various needs that should be considered when displaying and merchandising energy drinks in convenience stores. Keeping 250ml and 500ml cans cooled will meet the needs of the grab-and-go consumer, whilst large multi-packs suit those buying for an event or to chill at home to consume in the week. In the on-trade 90% of energy drinks are consumed as alcoholic mixers, and with an increase in ‘nights in’ over ‘nights out’ there are a number of ways retailers can benefit from this trend in the off-trade. The first is stocking a product with a great taste profile that will mix well with spirits; Kick was developed with mixability in mind and in blind taste tests was preferred by two-thirds of consumers over the market leader. By stocking a quality product, consumers are more likely to purchase energy drinks to mix with spirits over other mixers. Secondly, retailers should also look to stock energy drinks alongside their spirits range as this will reinforce the at home opportunity for the spirit and energy drink mixers consumers purchase in the on-trade."

*(Source: Mintel, Energy and Sports Drinks, September 2011)

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