Boundless Energy

Jul 30, 2007 12:00 PM, By KELLY GATES

The proliferation of new energy drinks is presenting a host of merchandising challenges for retailers


         Subscribe in NewsGator Online   Subscribe in Bloglines

Buzz-enducing beverages present lucrative opportunities for supermarkets. But for many retailers, the energy drink deluge is amounting to caffeine overload.

“We are bombarded with new energy drinks all the time, and only a few of them are surviving,” said Tom Winter, grocery director for Dorothy Lane Market, Springboro, Ohio.

“We barely have room for the top sellers like Red Bull or Monster. A few years ago, this wasn't even a category, so now we're trying to figure out where to put the few brands that we carry.”

Solid sales increases of 20% or more, year after year, are spurring product introductions in one of the supermarket's fastest-growing categories. Sales of energy drinks in the channel rose 31% to $570 million during the 52 weeks ending June 17, according to Chicago-based Information Resources Inc.

Despite the influx of brands and limited shelf space, Winter isn't too charged up. Most of the upscale retailer's shoppers don't come in search of energy drinks, he said.

Instead, local consumers go to c-stores for these beverages.

“I've noticed that the energy drink sections there are enlarging to accommodate more variety,” Winter said. “It's not just the younger people who want them, it's truck drivers and delivery people who need a drink to keep them alert and awake.”

At Fresh Encounter stores, Findlay, Ohio, Red Bull continues to reign supreme, but the category is very fragmented there too, said Eric Anderson, senior vice president of marketing and advertising for the 30-store chain.

“There are too many energy drinks out there to name,” he said. “Every bottler is introducing their own energy drink. The teen and early 20s demographic are inhaling them.”

Fresh Encounter put shippers of energy drinks in high-traffic areas to encourage impulse purchases. Anderson noted that energy drinks also take up additional cooler space at the chain's stores during the summer months, but he attributes the change to direct-store-delivery vendors adjusting the mix in the cases.

“I predict that the category will always have a place,” said Anderson. “[Energy drinks] will not replace more traditional soft drinks, but will certainly add to the overall mix. We may begin seeing more organic versions and hybrid sports drinks.”

Want to use this article? Click here for options!
© 2010 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Subscribe / Renew to Supermarket News

Supermarket News

The most reliable source of industry news and insight...in print and online.


Refresh: A Whole Health Blog

Bob Vosburgh

Bob Vosburgh:

Read More Refresh

Most Viewed News

Read More News

SN Videos

Insights From SN’s Marketer of the Year

Jon Wendel, senior vice-president of Marketing, Hy-Vee, discusses the role that Marketing plays at his company.

Misconceptions About Hispanic Shoppers

Sidney Hopper, COO of United Supermarkets’ Amigos banner, clarifies some misunderstandings about Hispanic shoppers.

Recession still impacting beef

From Delta Farm Press, another Penton Media publication.

View All


Related Penton Sites



Plan a food industry meeting with MeetingsNet.

Subscribe to SN

Latest Cover

IRI Times & Trends

Price, Promotion & Merchandising: CPG retailers and manufacturers are locked in a dance that seeks to bring much sought-after price relief to consumers without jeopardizing thread-bare margins. In the January 2010 issue of Times & Trends, IRI looks at "Balancing the Call Between Value and Price Relief."

View All IRI Reports

Upcoming Events

Feb. 27-March 3, 2010
AFFI Frozen Food Convention
American Frozen Food Institute
Manchester Grand Hyatt
San Diego
703.821.1350

Feb. 28-March 5, 2010
Today's Managers, Tomorrow's Leaders 2010
Food Industry Leadership Center at Portland State University
and Food Marketing Institute

Skamania Lodge
Stevenson, Wash.
503.725.8181 or 202.452.8444

View All Upcoming Events

More Premium Content

Olive and Well

Olive and Well

Olive bars are by no means new to supermarkets. During the past decade, many retailers installed olive and antipasto bars...

Self-Contained

Self-Contained

It's no secret that consumers have turned to brown-bag lunches and meals prepared at home to help cope financially.

Smart Cards

Smart Cards

Greeting cards signify a celebration, but for supermarkets the celebration has died down a bit.

Culture of Growth

Culture of Growth

Like many products, yogurt faced slowing sales during the recession.

Subscribe to Premium Content Today!

Subscribe to Premium Content Today!

Corporate Finance

Read in-depth coverage of quarterly reports.

Marketing Trends

New promotions, new pricing, new products.

Subscribe to Premium Content