Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- Market thrives as Americans’ need for energy boost remains strong
- Energy shots exhibit stellar performance
- Energy drinks growth pace slows, but still impressive
- Monster shows signs of catching up with Red Bull
- Convenience store continues to be the biggest channel
- Adult consumer base expands, but only due to positive population growth
- Teen consumer base shrinks
- Energy boost remains the top attribute for consumers
- Size matters, but the biggest is not necessarily the best
- Most nonusers do not find a need to drink energy drinks and shots
Insights and Opportunities
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- Caffeine—a sales-boosting ingredient or image-destroying element?
- List the caffeine content on the packaging
- Stay away from misrepresenting the caffeine content to consumers
- Going without the caffeine
- Battle for the next big extreme sport
Inspire Trends
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- Inspire Trend: “Prove It”
Market Size and Forecast
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- Key points
- Consumers’ insatiable need for energy boost contributes to the growth
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- Figure 1: FDMx and convenience store sales and forecast of energy drinks and shots, at current prices, 2006-16
- Figure 2: FDMx and convenience store sales and forecast of energy drinks and shots, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 3: Fan chart forecast of FDMx and convenience store sales of energy drinks and energy shots, at current prices, 2006-16
- Walmart sales
Market Drivers—Health and Wellness Trends
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- Energy drinks and shots continue to be criticized for being unsafe
- Obesity and energy drinks
- Obesity rates steady, but still a cause for concern
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- Figure 4: Percentage of population aged 20+ who are overweight, obese, or extremely obese, 1988-2008
- Obesity rates among teens continue to rise
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- Figure 5: Prevalence of obesity among children and adolescents aged 2-19, 1976-2008
- Energy drinks’ key consumers less sensitive to sugar, artificial ingredients
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- Figure 6: Incidence of dieting and preference for foods without artificial additives, July 2009-September 2010
- Demographic and economic factors
- Teen population offered little growth for 2006-11, better outlook during 2011-16
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- Figure 7: Teen population by age, 2006-16
- Population trends favor energy shots more compared to energy drinks
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- Figure 8: U.S. population aged 18 or older, 2006-16
- Hispanic population boom trends signal growth for the market
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- Figure 9: Population, by race and Hispanic origin, 2006-16
- Key energy drinks consumers continue to grapple with unemployment
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- Figure 10: Unemployment status (seasonally adjusted) among civilian noninstitutional population, by age, gender, and race/Hispanic origin, July 2010-July 2011
Competitive Context
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- Key points
- Other nonalcoholic beverages make energy boost claims
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- Figure 11: Number of new products with energy boost claims in nonalcoholic beverage categories other than energy drinks, January 2010-June 2011
- But coffee continues to be the main competitor
- Myriad energy-boosting formats continue to appear in the market
- Caffeinated gum offers convenient energy boost
- Supplements with caffeine/energy boost claims offer cheaper alternative to energy drinks
Segment Performance
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- Key points
- Energy drinks lose market share to energy shots
- Sales and forecast energy drinks and shots, by segment
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- Figure 12: FDMx and convenience store sales and forecast of energy drinks and shots, at current prices, by segment, 2006-16
- Figure 13: FDMx and convenience store sales of energy drinks and shots, by segment, 2010 and 2011
Segment Performance—Energy Drinks
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- Key points
- Energy drinks continue upward growth; future outlook bright
- Sales and forecast of energy drinks
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- Figure 14: FDMx and convenience store sales and forecast of energy drinks, 2006-16
Segment Performance—Energy Shots
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- Key points
- Segment posts stellar growth
- Sales and forecast of energy shots
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- Figure 15: FDMx and convenience store sales and forecast of energy shots, 2006-16
Segment Performance—Energy Drinks Mixes
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- Key points
- Energy drinks mixes slide; sales likely to remain small
- Sales and forecast of energy drinks mixes
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- Figure 16: FDMx sales and forecast of energy drinks mixes, 2006-16
Retail Channels
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- Key points
- Convenience stores account for more than 80% of total market sales
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- Figure 17: U.S. FDMx and convenience store sales of energy drinks and shots, by channel, 2006-11
- Figure 18: Indexed growth of FDMx and convenience store retail sales of energy drinks and energy shots, by channel, 2006-11
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- Figure 19: Share of FDMx and convenience store retail sales of energy drinks and shots, by channel, 2006-11
Retail Channels—Supermarkets
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- Energy drinks remain profitable for supermarkets
- Energy shots offer growth opportunity for the channel
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- Figure 20: U.S. sales of energy drinks and shots at supermarkets, 2006-11
Retail Channels—Convenience Stores
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- Convenience stores will continue to garner top share for energy drinks/shots
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- Figure 21: U.S. sales of energy drinks and shots at convenience stores, 2006-11
Retail Channels—Other Channels
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- Energy shots can bring long-term growth for the channel
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- Figure 22: U.S. sales of energy drinks and shots in other FDMx channels, 2006-11
Companies and Brands
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- Key points
- Red Bull loses market share; faces stiff competition from Monster
- Living Essentials uproots Rockstar from third place
- Coca-Cola and PepsiCo continue to lose market share
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- Figure 23: FDMx energy drinks and shots sales of leading companies, 2010 and 2011
Brand Share—Energy Drinks
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- Key points
- Red Bull continues to lead the segment; eschews flavors
- Monster Energy exhibits the highest growth; continues with the innovation streak
- Rockstar remains a distant third; innovates on function rather than flavor
- Coca-Cola and PepsiCo fail to impress
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- Figure 24: FDMx brand sales of energy drinks, 2010 and 2011
Brand Share—Energy Shots
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- Key points
- Living Essentials’ 5-Hour Energy rules the segment
- Red Bull pulls out of energy shot segment
- Private labels have growth opportunity in energy shots
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- Figure 25: FDMx brand sales of energy shots, 2010 and 2011
Innovations and Innovators
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- Pace of innovation continues to slow in 2011
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- Figure 26: Number of new energy drinks and energy shots product introductions in the U.S., 2006-11**
- Seven out of top 10 claims in energy drinks are health related
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- Figure 27: Top 10 claims in new energy drinks products in the U.S., 2006-11**
- Energy shots claims
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- Figure 28: Top 10 claims in new energy shots products in the U.S., 2007-11**
- New energy drinks/shots products tout healthy and natural energy boost
- Organic energy drinks and shots proliferate
- Energy drinks/shots claims beyond providing energy boost
Marketing Strategies
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- Overview
- Creating a lifestyle brand
- Testimonials from consumers
- Engaging a “celebrity” spokesperson
- Television ads
- 5-Hour Energy ad focuses on functional attributes, competes with coffee
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- Figure 29: 5-Hour Energy—People wait for, make, and fuss with their morning coffee, TV ad, 2011
- 5-Hour Energy underscores “fix the tired” in ads
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- Figure 30: 5-Hour Energy—Fix the Tired, TV ad, 2011
- Red Bull ads feature cartoons as well as real-life athletes
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- Figure 31: Red Bull—Ryan Doyle runs through a European city, TV ad, 2011
- Figure 32: Red Bull—Boy gets dating leads from priest, TV ad, 2011
The Energy Drinks Consumer—Usage, Frequency, and Brands
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- Key points
- Energy drinks consumer base grows, primarily due to population growth
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- Figure 33: Consumption of energy drinks, by gender, age, education, households with children, and region; January 2006-December 2010
- Energy drinks display gain in volume consumption
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- Figure 34: Average volume* consumption of energy drinks, by gender, age, education, households with children, and region; January 2006-December 2010
- Energy shot consumption grows considerably from 2010-11
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- Figure 35: Incidence of buying energy drinks and shots for self and household, April 2011
- Men significantly more likely than women to buy energy drinks/shots for self
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- Figure 36: Incidence of buying energy drinks and shots for self, by gender, April 2011
- Women are more likely than men to buy energy drinks for household
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- Figure 37: Incidence of buying energy drinks and shots for household, by gender, April 2011
- Red Bull continues to be on top; 5-Hour Energy grows its base
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- Figure 38: Incidence of using energy drinks/shots brands, by age, October 2009-December 2010
- Monster Energy is the most consumed energy drinks brand
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- Figure 39: Average volume consumption of energy drinks, by choice of brands, by age, October 2009-December 2010
Reasons and Occasions for Drinking Energy Drinks
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- Functional benefits remain the top reasons to drink energy drinks/shots
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- Figure 40: Reasons for drinking energy drinks and energy shots, April 2011
- Impact of gender on reasons for using energy drinks and energy shots
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- Figure 41: Reasons for drinking energy drinks, by gender, April 2011
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- Figure 42: Reasons for drinking energy shots, by gender, April 2011
- Impact of age on reasons for buying energy drinks
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- Figure 43: Reasons for drinking energy drinks, by age, April 2011
- Afternoon is the primary occasion to drink energy drinks/shots
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- Figure 44: Energy drinks/shots consumption by occasion, April 2011
- Energy drinks consumption by occasion and age
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- Figure 45: Energy drinks consumption by occasion, by age, April 2011
Attitudes and Behavior: Packaging Size, Flavor Choices, and Product Attributes
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- Packaging size choice among energy drinks users
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- Figure 46: Energy drinks purchase by size of packaging, by gender, April 2011
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- Figure 47: Energy drinks purchase by size of packaging, by age, April 2011
- Orange and lemon/lime are the top energy drinks flavors
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- Figure 48: Flavor preference in energy drinks, by gender, April 2011
- Low price and flavor variety are the top attributes
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- Figure 49: Importance of different product attributes when buying energy drinks, by gender, April 2011
- Attitudes toward energy drinks
- Energy drinks with no side effects to find favor among half of all drinkers
- Multipacks continue to be popular for value proposition
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- Figure 50: Attitudes toward new products, ingredients, and packaging, by age, April 2011
- Parents pull back on buying energy drinks due to safety concerns
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- Figure 51: Attitudes toward energy drinks’ safety, new products, and packaging, by gender, April 2011
Reasons for Not Drinking Energy Drinks
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- Most nonusers do not feel the need for energy drinks
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- Figure 52: Reasons for not drinking energy drinks and energy shots, April 2011
- Nonusers aged 18-24 are more likely than the average to report “no need” for energy drinks
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- Figure 53: Reasons for not drinking energy drinks, by age, April 2011
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- Figure 54: Reasons for not drinking energy shots, by age, April 2011
Impact of Race and Hispanic Origin
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- Hispanics continue to the biggest consumer; blacks show attrition
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- Figure 55: Consumption of energy drinks, by race/Hispanic origin, January 2006-December 2010
- Energy drink volume consumption declines among the key groups
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- Figure 56: Average volume* consumption of energy drinks, by race/Hispanic origin, January 2006-December 2010
- Red Bull shows top penetration among Hispanics
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- Figure 57: Incidence of using energy drinks/shots brands, by race/Hispanic origin, October 2009-December 2010
- Impact of race/ethnicity on reasons for buying energy drinks
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- Figure 58: Reasons for drinking energy drinks, by race/Hispanic origin, April 2011
- Occasions to drink energy drinks
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- Figure 59: Energy drinks consumption by occasion, by race/Hispanic origin, April 2011
- Packaging size
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- Figure 60: Energy drinks purchase by size of packaging, by race/Hispanic origin, April 2011
- Flavors
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- Figure 61: Energy drinks purchase by flavor, by race/Hispanic origin, April 2011
The Teen Consumer
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- Teen consumer base shrinking
- Male teens aged 15-17 are the biggest consumer
- Energy drinks consumption declines among Hispanic, black, and white teens during 2008-10
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- Figure 62: Trends in the consumption of energy drinks among teens, by gender, age, and race/Hispanic origin, January 2006-December 2010
- More than one in 10 teens drinks energy shots
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- Figure 63: Incidence of drinking energy shots among teens, by gender and age, May 2011
- Teens decrease energy drinks volume consumption
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- Figure 64: Volume* consumption of energy drinks among teens, by gender, age, and race/Hispanic origin, January 2006-December 2010
- Monster Energy is the most popular brand among teens
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- Figure 65: Brands of energy drinks consumed by teens, by age and gender, October 2009-December 2010
- Hispanic teens have a bigger brand repertoire
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- Figure 66: Brands of energy drinks consumed by teens, by race/ethnicity, October 2009-December 2010
- Volume consumption by brand
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- Figure 67: Average volume consumption of energy drinks among teens, by choice of brands, by age, October 2009-December 2010
Teens—Attitudes toward Energy Drinks
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- Most teens buy energy drinks with their own money
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- Figure 68: Incidence of buying energy drinks by parents and/or self, by gender and age, May 2011
- Teens prefer 16-oz. energy drinks packaging
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- Figure 69: Energy drinks consumption by size of packaging among teen energy drinks users, by gender and age, May 2011
- Attitudes toward energy drinks’ safety, flavors, and brands
- Teens drinking fewer energy drinks due to the knowledge of harmful effects
- Berry- and citrus-flavored energy drinks most popular among teens
- Resealable packaging important to teens
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- Figure 70: Attitude toward energy drinks’ safety, flavors, brands, and packaging, by gender and age, May 2011
Custom Consumer Group
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- Men aged 18-34 are the key consumers in the market
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- Figure 71: Incidence of drinking energy drinks, by gender and age, April 2011
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- Figure 72: Energy drinks volume consumption, by gender and age, April 2011
- Bigger packaging size plays a role in the way people use energy drinks
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- Figure 73: Attitude toward reasons to drink energy drinks by packaging size consumer use, April 2011
- Occasion of drinking determines the reason for drinking
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- Figure 74: Attitude toward reasons to drink energy drinks by occasion of drinking, April 2011
Cluster Analysis
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- Naturally Refreshing
- Demographics
- Characteristics
- Opportunity
- Energy Indifferent
- Demographics
- Characteristics
- Opportunity
- Boosted Buzzers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 75: Energy drink clusters, April 2011
- Figure 76: Reasons for drinking energy drinks, by energy drink clusters, April 2011
- Figure 77: Time/occasion of drinking energy drinks, by energy drink clusters, April 2011
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- Figure 78: Attitudes toward new energy drinks products, ingredients, and packaging, by energy drink clusters, April 2011
- Figure 79: Factors influencing the purchase of energy drinks, by energy drink clusters, April 2011
- Cluster demographic tables
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- Figure 80: Energy drink clusters by gender, April 2011
- Figure 81: Energy drink clusters by age, April 2011
- Figure 82: Energy drink clusters, by household income, April 2011
- Figure 83: Energy drink clusters, by race, April 2011
- Figure 84: Energy drink clusters, by Hispanic origin, April 2011
- Cluster methodology
SymphonyIRI/Builders Panel Data: Key Household Purchase Measures
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- Overview
- Consumer insights on key purchase measures—SS energy drinks
- Brand map
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- Figure 85: Brand map, selected brands of SS energy drinks buying rate, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 86: Key purchase measures for the top brands of SS energy drinks, by household penetration, 2010*
Appendix—Other Useful Tables
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- Reasons and occasions for drinking energy drinks
- Impact of children in household on reasons for using energy drinks and energy shots
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- Figure 87: Reasons for drinking energy drinks, by presence of children, April 2011
- Figure 88: Reasons for drinking energy shots, by presence of children, April 2011
- Occasions to drink energy drinks and energy shots
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- Figure 89: Energy drinks consumption by occasion, by presence of children, April 2011
- Figure 90: Energy shots consumption by occasion, by presence of children, April 2011
- Attitudes and behavior: Packaging size, flavor choices, and product attributes
- Packaging size
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- Figure 91: Energy drinks purchase by size of packaging, by presence of children, April 2011
- Flavors
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- Figure 92: Flavor preference in energy drinks, by age, April 2011
- Figure 93: Flavor preference in energy drinks, by presence of children, April 2011
- Importance of different attributes when buying energy drinks
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- Figure 94: Importance of different product attributes when buying energy drinks, by presence of children, April 2011
- Figure 95: Importance of different product attributes when buying energy drinks, by age, April 2011
- Importance of difference attributes when buying energy drinks
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- Figure 96: Importance of different product attributes when buying energy drinks, by race/Hispanic origin, April 2011
- Attitudes toward energy drinks
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- Figure 97: Attitudes toward new products, ingredients, and packaging, by gender, April 2011
- Figure 98: Attitudes toward new products, ingredients, and packaging, by race/Hispanic origin, April 2011
- Reasons for not drinking energy drinks
- Impact of gender
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- Figure 99: Reasons for not drinking energy drinks, by gender, April 2011
- Figure 100: Reasons for not drinking energy shots, by gender, April 2011
- Reasons for not drinking energy drinks, by race/Hispanic origin
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- Figure 101: Reasons for not drinking energy drinks, by race/Hispanic origin, April 2011
- Figure 102: Reasons for not drinking energy shots, by Race/Hispanic origin, April 2011
Appendix: SymphonyIRI/Builders Panel Data Definitions
Appendix: Trade Associations
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