Table of Contents
Issues in the Market
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- Key themes
- Definition
Future Opportunities
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- It’s time to grow up
- Bridging the gap between youth and ‘middle age’
- Transcending occasions for usage
- A greater focus on mental benefits
- Embracing feminisation
Market in Brief
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- Market proves recession-proof
- Energy drinks account for majority of sales
- Need to increase penetration
- A continually innovating market
- Dominated by the few
- The future is bright
Internal Market Environment
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- Key points
- Consumer confusion reigns
- A competitive price point
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- Figure 1: Average retailer price of drink categories in the off-trade, June 2009
- Proving functionality
- Targeting beyond active young males
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- Figure 2: Proportion of people meeting physical activity recommendations in England, by gender and age, 2006
- Helping the middle-aged to be more active
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- Figure 3: Trends for those who claim to do some form of sport or exercise at least once a week, by age, 2004-08
- Targeting hard-working Brits
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- Figure 4: Share of employees working over 48 hours a week and claiming their jobs have a high pace of work – Europe, by country, 2005
- Countering the energy ‘dip’
- On-trade in flux creates opportunities for others
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- Figure 5: Number of nightclub admissions and pub outlets in UK, 2005-08
Broader Market Environment
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- Key points
- European legislation could transform the market
- Caught in the crossfire of the health police
- The problems of an ageing population to a youth-oriented market
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- Figure 6: Structure of the UK population, by age, 2004-14
- Consumers with less to spend
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- Figure 7: Trends in PDI and consumer expenditure in the UK, 2004-14
- Green shoots of recovery?
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- Figure 8: Trends in consumer confidence, 1988-2009
- Figure 9: Trends in the impact of the economic downturn on consumers, January and June 2009
- What will the summer bring?
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- Figure 10: Trends in average summer sunshine hours in UK* compared to sales of energy/sports drinks, 2002-08
Competitive Context
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- Key points
- The recession has changed the rules of the game
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- Figure 11: Trends in value sales for non-alcoholic drinks, 2004-08
- Figure 12: Trends in consumption of non-alcoholic drinks, by type, 2004-08
- Opportunity to increase ‘share of throat’
- Stealing share from water and soft drinks
- Stealing share from tea and coffee
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- High level of NPD
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- Figure 13: Sports and energy drinks new product development (NPD), by type of activity, cumulative 2007-09*
- More competition from own-label
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- Figure 14: Innovation in new products, by brands and own-label, 2006-09
- Shift towards sports drinks
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- Figure 15: Innovation in new products, by category, 2006-09
- The rise of energy shots
- Healthier options
- Controlling energy levels
- A mental edge
- New mixer for spirits
- Own-label launches
Market Size and Forecast
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- Key points
- Market to hit billion mark in 2009
- Recession has minimal impact on the market
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- Figure 16: UK volume and value sales of energy and sports drinks, 2004-14
- Sports drinks growing share of total market
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- Figure 17: Share of volume sales of energy and sports drinks in total market, 2004-14
- Factors used in the forecast
Segment Performance
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- Key points
- Total energy drinks market continues to flourish
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- Figure 18: UK volume and value sales of the energy drinks market, 2004-14
- Both stimulant and energy drinks growing strongly
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- Figure 19: UK volume and value sales of energy drinks, by type, 2007-09
- Sports market also showing impressive growth
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- Figure 20: UK volume and value sales of the sports drinks market, 2004-14
- Isotonic sports drinks dominating sector
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- Figure 21: UK volume and value sales of sports drinks, by type, 2007-09
Market Share
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- Key points
- Increased competition from new entrants and own-label
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- Figure 22: Brand shares in UK value sales of energy drinks, 2007-09
- Lucozade losing share but still dominating sports drinks
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- Figure 23: Brand shares in UK value sales of sports drinks, 2007-09
Companies and Products
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- Key points
- Britvic/PepsiCo
- Coca-Cola Enterprises (CCE)
- GlaxoSmithKline (GSK)
- My Goodness Ltd
- Red Bull Company (RBC)
- Other companies
- Pussy
- Focus 5-hour energy
Brand Elements
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- Key points
- Brand map
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- Figure 24: Attitudes and usage of sport and energy drink brands, April 2009
- Brand qualities of sport and energy drink brands
- Lucozade is most refreshing, but Red Bull still seen as a fad?
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- Figure 25: Personalities of various sport and energy drink brands, April 2009
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- Figure 26: Key personality aspects of various sport and energy drink brands, April 2009
- Experience of sport and energy drink brands
- Lucozade most used, For Goodness Shakes! lacks awareness
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- Figure 27: Consumer usage of various sport and energy drink brands, April 2009
- Brand intentions for sport and energy drink brands
- Health concerns hit Red Bull?
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- Figure 28: Consideration of various sport and energy drink brands, April 2009
- Brand satisfaction for sport and energy drink brands
- For Goodness Shakes! not so good
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- Figure 29: Satisfaction with various sport and energy drink brands, April 2009
- Brand commitment to sport and energy drink brands
- Lucozade users most loyal, Powerade lacks emotion
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- Figure 30: Commitment to various sport and energy drink brands, April 2009
- Red Bull
- What the consumer thinks
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- Figure 31: Attitudes towards the Red Bull brand, April 2009
- Strengths
- Room for improvement
- Lucozade
- What the consumer thinks
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- Figure 32: Attitudes towards the Lucozade brand, April 2009
- Strengths
- Room for improvement
Brand Communication and Promotion
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- Key points
- Adspend set to slow
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- Figure 33: Main monitored media above-the-line advertising spend on sports and energy drinks and adspend: sales ratio, 2004-09
- Above-the-line advertising by media channel
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- Figure 34: Main monitored media above-the-line advertising spend on sports/energy drinks, by media type, 2007-09
- Activity by advertiser: 2006-08
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- Figure 35: Leading advertisers for sports/energy drinks, 2006-08
- Figure 36: Top ten most advertised brands of sports/energy drinks, 2006-08
Channels to Market
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- Key points
- A decline in convenience shopping
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- Figure 37: UK value sales of sports drinks, by outlet type, 2007-09
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- Figure 38: UK value sales of energy drinks, by outlet type, 2007-09
- Growing influence of the major supermarkets
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- Figure 39: Share of multiple retailer in food sales, 2007/08 and 2008/09
The Consumer – Usage of Energy/Sports Drinks
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- Key points
- A need to expand the user base
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- Figure 40: Trends in penetration and volume sales of energy/sports drinks, 2004-08
- Increasing frequency amongst existing consumers
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- Figure 41: Frequent consumption (at least twice a week) of sports/energy drinks, 2004-08
- Targeting youth at the expense of others
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- Figure 42: Trends in highest volume consumption of energy/sports drinks (VII), by gender and age, 2004-08
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- Figure 43: Agreement with health statements, by gender, February 2009
- Huge crossover of energy and sports drinkers
- Simplify, don’t alienate
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- Figure 44: Crossover in consumption between energy and sports drinks, April 2009
Attitudes towards Energy Drinks
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- Key points
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- Figure 45: Attitudes towards energy drinks – all adults and drinkers, April 2009
- Barriers and non-barriers to entry
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- Figure 46: Difference between users and non-users, April 2009
- Even users not convinced by value for money
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- Figure 47: Attitude towards thinking energy drinks are expensive for what they are, by age, April 2009
- Consumers question energy drinks’ functionality
- Navigating busy lifestyles
- Stealing share from other drinks categories
- Health concerns
Attitudes towards Sports Drinks
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- Key points
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- Figure 48: Attitudes towards sports drinks – all adults and drinkers, April 2009
- Barriers and non-barriers to entry
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- Figure 49: Difference between users and non-users, April 2009
- Clearer functional benefits compared to energy drinkers…
- …but also cynicism about whether they represent value
- Authenticity is a key competitive advantage
- Versatility beyond sport
- Tastier than energy drinks
- Confusion about jargon
Targeting Opportunities for Energy Drinks
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- Key points
- Identifying targets
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- Figure 50: Size of the attitudinal groups for energy drinks, April 2009
- Figure 51: Energy drinks target groups differentiated on key attitudinal statements, April 2009
- The Converted
- Who are they?
- Next steps
- Taste Averse
- Who are they?
- Next steps
- Hedonists
- Who are they?
- Next steps
- Unbelievers
- Who are they?
- Next steps
- Disengaged
Targeting Opportunities for Sports Drinks
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- Key points
- Identifying targets
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- Figure 52: Size of sports drinks attitudinal groups, April 2009
- Figure 53: Sports drinks attitudinal groups differentiated on key attitudinal statements, April 2009
- Serious about Sport
- Who are they?
- Next steps
- Taste-conscious
- Who are they?
- Next steps
- Cynical about Value
- Who are they?
- Next steps
- Disengaged
Appendix
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- Consumer research
- ACORN
- Advertising data
- Abbreviations
Appendix – Internal Market Environment
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- Figure 54: Agreement of sports/energy drink consumers with lifestyle statements, 2008
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Appendix – Consumer Usage for Sports/Energy Drinks
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- Figure 55: Consumption of energy drinks in the last 12 months, by demographics, 2008
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- Figure 56: Usage of energy drink brands, by demographics, April 2009
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- Figure 57: Usage of sports drink brands, by demographics, April 2009
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Appendix – Consumer Attitudes towards Energy Drinks
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- Figure 58: Most popular statements on energy drinks, by demographics, April 2009
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- Figure 59: Next most popular statements on energy drinks, by demographics, April 2009 (continued)
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- Figure 60: Other statements on energy drinks, by demographics, April 2009 (continued)
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- Figure 61: Most popular statements on sports drinks, by demographics, April 2009
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- Figure 62: Next most popular statements on sports drinks, by demographics, April 2009 (continued)
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Appendix – Targeting Opportunities for Energy Drinks
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- Figure 63: Energy drinks attitudinal groups, by statements about energy drinks, April 2009
- Figure 64: Target groups, by demographics, April 2009
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- Figure 65: Energy/sports drinks drunk in the past year, by target groups, April 2009
- Figure 66: Energy/sports drinks drunk in the past year, by target groups, April 2009
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Appendix – Targeting Opportunities for Sports Drinks
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- Figure 67: Sports drinks attitudinal groups, by statements about sports drinks, April 2009
- Figure 68: Sports drinker attitudinal groups, by demographics, April 2009
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- Figure 69: Energy/sports drinks drunk in the past year, by sports drinker target groups, April 2009
- Figure 70: Sports drinker target groups, by sports brands drunk, April 2009
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