Sports, Energy Drink-Contenders Punch it Up
While Gatorade still enjoys a mammoth 80-plus share in the bottled sports drink category, other entries continue to hang in there. An increasingly active consumer base, combined with the maturation of the category’s credibility, has made it a profitable place to be … even for those bringing up the rear.
Seven sublines of Gatorade now exist beyond the
original flavors (Lemon Lime, Orange, Fruit Punch), which remain the
biggest sellers. Frost, Fierce, X Factor, All Stars, Ice, Xtremo! and the
newest addition, Endurance Formula, all cater to different preferences.
Gatorade Endurance Formula, for example, contains twice the sodium (200
mg.) and three times the potassium (90 mg.) of regular Gatorade as well as
chloride, calcium and magnesium. The new formula is designed to replace the
fluids and electrolytes lost in sweat during longer, more intense
activities such as all-day tournaments or training for marathons.
Global functional drink sales (millions of dollars) |
|||
Subsector | 2004 | Forecast 2005 |
|
Functional drinks | $24,943.9 | $27,473.7 | |
Sports drinks | $15,368.3 | $16,683.2 | |
Energy drinks | $8,774.4 | $9,944.9 | |
Elixirs | $801.2 | $845.6 | |
Source: Euromonitor International, 2005 |
Gatorade’s nearest competitor, Powerade, is
concentrating on its own success by innovation. The brand has been growing
robustly for the past several years and saw a 17 percent increase in sales
this year. Powerade is now leveraging its relationship with the NBA’s
LeBron James, and has introduced Flava 23, the first sports drink actually
designed by a superstar athlete, and the first to be launched in
conjunction with a related comic book.
Like sports drinks, the energy drink category is
dominated by one product – Red Bull – but that hasn’t
stopped smaller companies from grabbing their share of the remaining half.
Innovators and mavericks alike have had success in this category, with high
profit margins making it an attractive proposition.
Top energy drinks by brand | |||||
Brand | Dollar Sales | % Change Vs. Prior Year | Market Share | % Change Vs. Prior Year | |
Red Bull | $192,954,700 | 67.3 | 57.7 | -1.2 | |
Rockstar | $30,352,410 | 105.8 | 9.1 | 1.5 | |
Monster Energy | $26,137,550 | 206.9 | 7.8 | 3.5 | |
Sobe Adrenaline Rush | $18,249,200 | 31.1 | 5.5 | -1.7 | |
AMP | $17,084,970 | 31.8 | 5.1 | -1.5 | |
Sobe No Fear | $13,352,710 | 91.7 | 4.0 | 0.4 | |
Full Throttle | $8,886,300 | NA | 2.7 | 2.7 | |
Hansen’s Energy | $2,252,797 | -37.3 | 0.7 | -1.2 | |
Hansen’s Lost Energy | $2,184,804 | 623.8 | 0.7 | 0.5 | |
Rip It | $1,803,258 | NA | 0.5 | 0.5 | |
Category Total | $334,742,800 | 70.3 | |||
Source: Information Resources Inc., Total food, drug and mass merchandise (excluding Wal-Mart) for the 52 weeks ending June 12, 2005 |
Effective May 31, Coca-Cola North America and Coca-Cola
Enterprises have taken on distribution rights for Rockstar Energy Drink.
The cola companies will carry the product in most of the United States and
Canada, with the exception of the West, Northern California and the
Northwest, where Rockstar will maintain its current contracts. Under the
agreement, Russ Weiner, Rockstar Inc.’s president and chief executive
officer, will retain brand ownership. Coca-Cola and CCE will share profits
on Rockstar, but the companies aren’t disclosing the details.
Rockstar expanded its energy drink selection this year
by adding a 24-ounce Diet and Original Rockstar to its 16-ounce and
8.4-ounce sizes. Also per the distribution agreement, Rockstar will be
removing Rockstar Cola from the CCE distribution territories.
Another top contender is Hansen, with myriad product
offerings including Monster, Lost and Enerade. Lost Energy Drink, which
launched last year, offered an option for younger consumers who were missed
by other energy drinks. It teamed with the surfing industry’s Lost
International LLC to license the name, and decorated the can with art that
is identified with the surf and skate cultures. In 2004, Hansen also
introduced four-packs of Monster Energy drinks including a Lo-Carb version,
and toward year end, launched new Monster Energy Assault energy drink in
16-ounce camouflage cans.
In December 2004, Hansen launched a new non-carbonated
energy juice under the Rumba brand name in 16-ounce cans. Rumba Energy
Juice is a 100 percent juice product that targets male and female morning
beverage consumers and is positioned as a substitute for coffee,
caffeinated sodas and 100 percent orange or other juices. BI
Top bottled sports drinks by brand | ||||
Brand | Dollar Sales | % Change Vs. Prior Year | Market Share | % Change Vs. Prior Year |
Gatorade | $562,991,300 | 8.8 | 47.5 | -1.4 |
Powerade | $169,898,770 | 17.1 | 14.3 | 0.6 |
Gatorade Frost | $122,919,700 | -0.5 | 10.4 | -1.3 |
Gatorade Fierce | $96,230,170 | 2.1 | 8.1 | -0.8 |
Gatorade X Factor | $80,169,440 | 241.2 | 6.8 | 4.5 |
Gatorade All Stars | $73,958,870 | 35.0 | 6.2 | 1.1 |
Gatorade Ice | $40,098,760 | -43.3 | 3.4 | -3.3 |
Gatorade Xtremo | $23,006,310 | 24.9 | 1.9 | 0.2 |
Private Label | $7,120,344 | -10.1 | 0.6 | -0.1 |
Gatorade Endurance Formula | $4,842,265 | NA | 0.4 | 0.4 |
Category Total | $1,186,059,000 | 12.0 | ||
Source: Information Resources Inc., Total food, drug and mass merchandise (excluding Wal-Mart) for the 52 weeks ending June 12, 2005 |