Energy Drink Sales Review for 2007
Energy Drinks Continue to Grow in the New Age Beverage Category
Energy Drinks where growing at up to 75% per year just a couple of years ago. The Energy Drink growth has slowed down a bit to 12% per year according to Market Research Group, LLC, a beverage research firm. This is not necessarily bad and it’s a normal adoption curve correction. The New Age category as a whole is still growing at about 50% per year with such products as high end water, sports drinks, vitamin water, teas and other new beverages.
According to Market Research Group, the energy drink category has grown by 440% since 2002 to a whopping $6.6 Billion in 2007 and is expected to reach $9 billion in 2011. This is going on while other beverage categories like soda are at a stand still.
Growth in the mass grocery and pharmacy stores was down from 54% in 2005 to 34% in 2007 according to Information Resources Inc. This is a normal drop as energy drinks sold in these stores have been the same ones for several years without any new large players entering the market.
All of this information can be tricky to digest. You see, much of the research is done through scan data at supermarkets and other times at convenience stores. I personally look at all the scanned data from every source and then call the manufacturers to check their sales growth numbers.
Personally, I got 1,150 inquiries so far this year just from people wanting to start and Energy Drink. Plus another 500 or so that wanted so start a New Age Beverage. This gives you an idea of the amount of products coming into the market.
So is there still an opportunity. Well, yes, there is an opportunity worth $9 billion. The only thing that changed is that the existing companies are getting smarter in blocking new competition from start-ups, so just bottling an energy drink and spending a few thousand dollars in advertising is not enough. You have to concentrate on sales and distribution.
Not only sales and distribution, but your beverage portfolio has to be an important part of your strategy. Don’t be a one drink company. Learn from Hansen’s, Rockstar, Vitaminwater, Jones Soda, and create a solid beverage portfolio.
My final advice, Build a Beverage Portfolio, sell much more than just energy drinks, focus your strategy around sales and distribution, get more funding, you will need it to compete with the big boys as they are trying to block new players.
Thanks,
Jorge Olson
www.LiquidBrandsManagement.com
Energy Drinks where growing at up to 75% per year just a couple of years ago. The Energy Drink growth has slowed down a bit to 12% per year according to Market Research Group, LLC, a beverage research firm. This is not necessarily bad and it’s a normal adoption curve correction. The New Age category as a whole is still growing at about 50% per year with such products as high end water, sports drinks, vitamin water, teas and other new beverages.
According to Market Research Group, the energy drink category has grown by 440% since 2002 to a whopping $6.6 Billion in 2007 and is expected to reach $9 billion in 2011. This is going on while other beverage categories like soda are at a stand still.
Growth in the mass grocery and pharmacy stores was down from 54% in 2005 to 34% in 2007 according to Information Resources Inc. This is a normal drop as energy drinks sold in these stores have been the same ones for several years without any new large players entering the market.
All of this information can be tricky to digest. You see, much of the research is done through scan data at supermarkets and other times at convenience stores. I personally look at all the scanned data from every source and then call the manufacturers to check their sales growth numbers.
Personally, I got 1,150 inquiries so far this year just from people wanting to start and Energy Drink. Plus another 500 or so that wanted so start a New Age Beverage. This gives you an idea of the amount of products coming into the market.
So is there still an opportunity. Well, yes, there is an opportunity worth $9 billion. The only thing that changed is that the existing companies are getting smarter in blocking new competition from start-ups, so just bottling an energy drink and spending a few thousand dollars in advertising is not enough. You have to concentrate on sales and distribution.
Not only sales and distribution, but your beverage portfolio has to be an important part of your strategy. Don’t be a one drink company. Learn from Hansen’s, Rockstar, Vitaminwater, Jones Soda, and create a solid beverage portfolio.
My final advice, Build a Beverage Portfolio, sell much more than just energy drinks, focus your strategy around sales and distribution, get more funding, you will need it to compete with the big boys as they are trying to block new players.
Thanks,
Jorge Olson
www.LiquidBrandsManagement.com
Labels: beverage industry, Energy Drinks, new age beverage
posted by Jorge Olson at
2:29 PM
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