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

Boyer's Food Markets, Orwigsburg, Pa., has added an energy drink endcap to 15 of its 17 stores, said Anthony Gigliotti, vice president of sales and marketing. Most of the retailer's locations have also gained two front-end mini-coolers and an additional 4 feet of shelf space, both devoted to energy drinks.

“At our stores, the energy category is fueled by the 16-ounce drink, which accounts for 61% of the category,” Gigliotti told SN. “Boyer's energy category is up 119% vs. the previous year.”

These bigger cans are in high demand throughout the industry, said Gary Hemphill, managing director for Beverage Marketing, New York.

“I've seen some segmentation in terms of packaging, with 16-ounce cans becoming much more popular than the slim-line 8-ounce cans Red Bull originally marketed,” he said.

Other sizes are popular too. Red Bull was the first to introduce a 12-ounce can, hoping to attract more soda drinkers, said company spokeswoman Nyla Hassell.

“It's a potential entry point for new consumers migrating from carbonated soft drinks in search of premium products that energize,” she said. “Red Bull Energy Drink 12-ounce also attracts users who think 16 ounces is too much but want more than an 8-ounce functional energy drink. We've already seen evidence that the 12-ounce package is driving the energy drink category, as well as total Red Bull brand volume.”

Pepsi-Cola has done a wealth of research to determine what consumers want. The manufacturer discovered that bigger is indeed better.

“Current trends are leading to larger packaging, and other beverage companies are making them as well,” said Naughton.

While packages are getting bigger, some brands are offering slimmed-down versions of their original energy drinks. Coca-Cola introduced sugar-free Vault Zero in 2006.

Red Bull and SoBe come in both diet and sugar-free varieties. Lesser-known brands like Go Girl, Energy 69, N Motion and Crunk also have sugar-free offerings.

“There have also been a lot of low-carb energy drinks entering the market in recent years,” said Hemphill.

Companies like Monster, Kronik and Unbound make low-carb products, and some, like Rockstar and XS, offer zero-carb energy beverages.

BEVERAGE WATCH

Carbonated beverage and refrigerated juice and drink purchases followed those of milk, which maintained its position as the most frequently shopped-for beverage.

CATEGORY % OF PENETRATION* % OF HOUSEHOLDS REPEATING PURCHASES PURCHASE CYCLES** PURCHASE OCCASIONS PER BUYER
Milk
96.8
94.6
24
23.9
Carbonated Beverages
94.8
90.5
34
19.1
Refrigerated Juices/Drinks
80.9
68.8
50
9.6
Bottled Water
76.8
63.5
51
8.4
Beer/Ale/
Alcoholic Cider
37.3
25.1
60
7.9
Wine
33.3
21.3
70
6.0
Source: IRI's Calendar Year 2006 Consumer Insight Builder
* Percent of U.S. households buying at least once in club, convenience, dollar, drug, grocery, mass and supercenter channels during the 52 weeks ending Dec. 31, 2006.
** Average number of days between repeat purchases by household.

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

Food Safety Challenges and Solutions

Supervalu’s Dr. John Hanlin addresses food safety issues in local sourcing, sanitation and cold chain.

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.

View All




Related Penton Sites



Plan a food industry meeting with MeetingsNet.

Subscribe to SN

Latest Cover

IRI Times & Trends

2009 CPG Year in Review: A Market Redefined by Personalized Shopping. IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. The February 2010 issue of Times & Trends explores economic, channel, department and category performance over the past year.

View All IRI Reports

Upcoming Events

March 22-24, 2010
2010 IRI Reinventing CPG and Retail Summit
Information Resources Inc.
JW Marriott San Antonio Hill Country
312.726.1221

March 25-27, 2010
Global Pet Expo
American Pet Products Association and Pet Industry Distributors Association
Orange County Convention Center
Orlando, Fla.
203.532.0000 or 443.640.1060
pida@ksgroup.org

View All Upcoming Events

Subscribe to SN

More Premium Content

newsletter image

SN Free Daily Update

The food trade’s leading daily news service. Register Here

Home Use

Home Use

Value, convenience and product uniqueness are familiar criteria for supermarket buyers scanning the exhibit floor for new products...

Ready to Go

Ready to Go

Twice-a-week fish fries and roasted, three-legged chickens get some of the credit for keeping prepared-food sales up at Dash's Market in Buffalo, N.Y.

In the Soup

In the Soup

As a shopper enters the condensed soup segment of a grocery store, her internal clock begins to tick.

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