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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- Energy drinks’ growth slows; unable to attract new consumers
- Over half of all adults aged 18+ are not interested in trying energy drinks/shots; free sample, low price keys to attract non-users
- Energy drinks’ high price a hurdle in expanding user base; energy shots leading growth
- Convenience stores command lion’s share in energy drinks market
- Brands
- Innovation driven by claims for purity, premium and ethical positioning
- The energy drinks/shots consumer
- Energy boost primary reason to drink energy drinks/shots; energy drinks need to underscore mental benefit
- High price of energy drinks/shots is the biggest barrier in growing consumer base
Insights and Opportunities
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- Consumers make own energy drink with “energy essential”
- Nutritionally fortified meal replacement energy drinks
- Expand consumer base with second-generation natural energy drinks
- Will the trend towards caffeinated spirits reduce the energy drinks’ clout in bars?
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- Figure 1: Incidence of drinking energy drinks and energy shots with alcoholic beverages, by age, April 2010
- ... but the FDA is concerned about caffeine-infused alcohol—good or bad news for energy drinks?
Inspire Insights
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- Trend 1: Caffeine Labels to Come?
- What’s it about?
- Implications for the energy drinks market
- Trend 2: A greater focus on mental benefits
- What’s it about?
Market Size and Forecast
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- Key points
- Category fails to grow consumer base; future growth may stall
- Safety concerns cast shadow on future growth
- A majority of adult consumers are not interested in energy drinks
- Ethnic consumers important for future growth
- Sales and forecast of market
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- Figure 2: FDMx and convenience store sales and forecast of energy drinks, in current prices, 2005-15
- Figure 3: FDMx and convenience store sales and forecast of energy drinks, in inflation-adjusted terms, 2005-15
Competitive Context
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- Key points
- Energy claims in other non-alcoholic beverages threaten energy drinks’ functional platform
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- Figure 4: New product launches of non-alcoholic beverage beverages with energy claims, 2005-09
- Enhanced water and tea
- Coffee, a natural caffeine source, underscores energy claims in product positioning
- Juice/juice drinks
- Sugar and gum confectionery emulate energy drink positioning
- Snacks
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- Figure 5: New product launches in food categories making energy claims, 2005-10
- Rise in energy-boosting supplements
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- Figure 6: New product launches of supplements with energy claims, 2005-10
- Rising trend toward relaxation drinks
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- Figure 7: New product launches of non-alcoholic beverages with relaxation or stress relief claims, 2005-10*
- Figure 8: Desired psychological benefits in functional beverages, by age, January 2010
Segment Performance
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- Key points
- Energy shots fuel growth during 2008-10
- Sales of market, by segment
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- Figure 9: FDMx sales of energy drinks and energy shots, by segment, 2005-15
- Figure 10: FDMx sales of energy drinks and energy shots in the U.S., by segment, 2008 and 2010
Segment Performance—Energy Drinks (Non-aseptic)
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- Key points
- Higher prices push buyers to soda
- High sugar content alienates consumers
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- Figure 11: FDMx sales and forecast of energy drinks (non-aseptic), 2005-15
Segment Performance—Energy Shots
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- Key points
- Energy shots address consumer concerns but need to educate them
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- Figure 12: FDMx sales and forecast of energy drinks, at current prices, 2005-15
Segment Performance—Energy Drink Mixes
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- Key points
- Crystal Light charts its own path to reach women seeking energy
- Monster Mixxd Energy missing the “X” factor
- Crystals threaten to overturn energy market
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- Figure 13: FDMx sales and forecast of energy drinks mixes, 2005-15
Retail Channels
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- Key points
- Consumers shop for energy drinks in a variety of channels
- Convenience stores remain the top channel but supermarkets catching on
- Walmart is second only to convenience stores in selling energy shots; supermarkets lag in attracting energy shot users
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- Figure 14: Retail channel choice to purchase energy drinks/shots, April 2010
- Sales of market, by channel
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- Figure 15: FDMx and convenience stores sales of energy drinks, by retail channel, 2008 and 2010
Retail Channels—Convenience Stores
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- Key points
- Convenience stores showcase new products
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- Figure 16: Convenience store sales of energy drinks, 2005-10
Retail Channels—Supermarkets
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- Key points
- Private label may give a window of opportunity for grocery channel
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- Figure 17: Supermarket sales of energy drinks, 2005-10
- Figure 18: Supermarket sales of energy shots, 2005-10
Retail Channels—Drug and Other
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- Drug stores benefit from gains in energy shot sales
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- Figure 19: Drug store and other FDMx sales of energy drinks, 2005-10
- Figure 20: Drug store and other FDMx sales of energy shots, 2005-10
Retail Channels—Natural Channel/SPINS
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- Key points
- Sales of energy drinks in the natural channel
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- Figure 21: Natural supermarket sales of energy drinks and shots, at current prices, March 2008-March 2010
- Figure 22: Natural supermarket sales of energy drinks and shots, at inflation-adjusted prices, March 2008- March 2010
- Natural channel sales by segment
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- Figure 23: Natural supermarket sales of energy drinks and shots, by segment, March 2008 and March 2010
- Natural channel sales of energy drinks by organic
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- Figure 24: Natural supermarket sales of energy drinks, by organic vs non-organic, March 2008 and March 2010
Market Drivers
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- Energy drinks continue to be perceived as harmful
- Energy drinks have high amounts of sugar
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- Figure 25: Sugar content of popular energy drinks
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- Figure 26: Incidence of presently watching/controlling diet, May 2004-June 2009
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- Figure 27: Percentage of population aged 20 and over who are overweight or obese or extremely obese, 1988-2008
- Young adults population growth is unlikely to contribute to energy drinks sales growth
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- Figure 28: U.S. population, by age 18+, 2005-15
- Teen population offers better prospects in the next five years
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- Figure 29: U.S. teen population, 2005-15
- Growth in Hispanic and black segments promises growth
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- Figure 30: U.S. population, by race and Hispanic origin, 2005-15
- Limited disposable income contributes to lower overall category spending
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- Figure 31: Real Disposable Income, January 2007-January 2010
- Historically low levels of confidence discourage many from spending
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- Figure 32: Consumer Sentiment, January 2007-March 2010
Companies and Brands
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- Key points
- Beverages with lifestyle positioning win sales
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- Figure 33: FDMx sales of energy drinks and energy shots for leading companies in the U.S., 2009-10
Brand Share—Energy Drinks (Non-aseptic)
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- Key points
- Red Bull still charging ahead
- Monster Energy stomping smaller brands
- Rockstar’s aspiration to climb the chart fizzles
- North American Coffee Partnership’s DoubleShot a winning combination
- Private label’s missed opportunity, need specific target
- Other brands stealthy gaining share
- Manufacturer and brand sales of energy drinks (non-aseptic)
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- Figure 34: FDMx brand sales of energy drinks (non-aseptic), part 1, 2009-10
- Figure 35: FDMx brand sales of energy drinks (non-aseptic), part 2, 2009-10
Brand Share—Energy Shots
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- Key points
- 5-Hour Energy holds its ground
- Red Bull takes its place in market
- Manufacturer and brand sales of energy shots
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- Figure 36: FDMx brand sales of energy shots, 2009-10
Brand Qualities
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- Red Bull’s moderation wins a wider audience, but could foster greater loyalty with flavor extensions
- 5-Hour Energy: The leader in addressing concerns associated with energy drinks
- Less sugar is characterizing quality
- Available in decaf version
- Available in five of the 10 top NAB beverage flavors
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- Figure 37: Top 10 flavors of non-alcoholic beverage new product introductions in U.S., 2005-10*
- Has guidelines for safe use
- Go Girl energy drinks: Serious about beating cancer but missing a fun factor
Innovation and Innovators
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- Figure 38: Number of new energy drinks and shot new product introductions in U.S., 2005-10
- Innovations by segment
- Energy drinks— B vitamins tops the list
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- Figure 39: Top ten claims in energy drink new product launches, 2005-10
- Figure 40: Popular vitamin mineral fortifications in energy drink launches, 2005-10*
- Energy shots—highlight on-the-go energy
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- Figure 41: Top ten claims in energy shot new product launches, 2005-10
- Energy drinks vs. energy shots: A comparative analysis on new product trends
- Energy shots—functional benefits
- Energy drinks suitable for…
- Energy drinks rely on flavor
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Advertising and Promotion
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- Overview
- Differentiation by addressing consumer concerns
- Hydrive—Man can't be jittery when he throws 96 yard pass
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- Figure 42: Hydrive, TV ad, 2009
- 5-Hour Energy— helps you keep you cool
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- Figure 43: 5-Hour Energy, TV ad, 2010
- 5-Hour Energy: helps you keep you cool
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- Figure 44: 5-Hour Energy, TV ad, 2009
- Acutefruit— 100% fruit juice gives all natural energy boost
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- Figure 45: Acutefruit, TV ad, 2009
- Red Bull’s twist on classics leave memorable impression
- Red Bull helps grandma ward off bad wolves
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- Figure 46: Red Bull, TV ad, 2010
- Red Bull makes Watson more clever than Holmes
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- Figure 47: Red Bull, TV ad, 2010
Incidence of Use, Volume Consumption and Brand Usage
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- Key points
- Trended energy drinks usage
- Roadblocks to increasing user base
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- Figure 48: Consumption of energy drinks, by gender, age, education, households with children and region, January 2005-December 2009
- Energy drinks volume consumption
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- Figure 49: Average volume* consumption of energy drinks, by gender, age, education, households with children, and region, January 2005-December 2009
- Energy drink and shots usage
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- Figure 50: Consumption of energy drinks and energy shots, by age, April 2010
- Red Bull cedes consumer base to other brands
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- Figure 51: Brands of energy drinks/energy shots consumed, by age, November 2008-December 2009
- Volume consumption by brand
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- Figure 52: Average volume consumption of energy drinks, by choice of brands, by age, November 2008-December 2009
Reasons for Using Energy Drinks
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- Key points
- Energy shots have higher functional benefit appeal to users than energy drinks
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- Figure 53: Reasons for drinking energy drinks and energy shots, April 2010
- Impact of gender on reasons for using energy drinks
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- Figure 54: Reasons for drinking energy drinks, by gender, April 2010
- Reasons for using energy drinks by age
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- Figure 55: Reasons for drinking energy drinks, by age, April 2010
Reasons For Not Drinking Energy Drinks
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- Price remains the biggest barrier to increasing consumer base
- Health and safety concern about energy drinks keeps new users away from the category
- Demystify the ingredients
- Allocate resources to create awareness among non drinkers
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- Figure 56: Reasons for not drinking energy drinks and energy shots, April 2010
Attributes that can Favorably Influence Non-users
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- Key points
- A majority of non drinkers are not interested in the category
- Decreasing prices and free samples can grow consumer base
- Natural ingredients, reducing caffeine and sugar can bring in new consumers
- Flavor choice and packaging guidelines each can influence 10% of all non-energy drinks drinkers
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- Figure 57: Attributes that can favorably influence energy drinks/energy shots consumption among non-drinkers, by drinks vs shots, April 2010
- Young adults aged 18-24 most likely to respond favorably to motivating factors
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- Figure 58: Attributes that can favorably influence energy drinks consumption among non-drinkers, by age, April 2010
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- Figure 59: Attributes that can favorably influence energy shots consumption among non-drinkers, by age, April 2010
Incidence of Drinking More or Less Energy Drinks Than Last Year and Reasons For Drinking Less
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- Energy drinks/shots consumption incidence on the increase after the recession
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- Figure 60: Incidence of using more or less energy drinks and energy shots compared to last year, by drinks vs shots, April 2010
- Reasons for drinking less energy drinks than last year
- Recession responsible for reducing consumption
- Energy shots pose stiff competition
- Too costly to drink on a regular basis
- Health concerns instigate lower consumption
- Competition from other non-alcoholic beverages with energy claims
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- Figure 61: Reasons for drinking less energy drinks compared to last year, April 2010
Attitudes Towards Energy Drinks
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- Flavor variety is important to a majority of energy drinks users
- Caffeine and “other” ingredients— important consideration in buying energy drinks
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- Figure 62: Attitudes toward flavor and ingredients in purchasing energy drinks, by age, April 2010
- Price is a clinching factor for a third of energy drinks drinkers
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- Figure 63: Attitudes towards price/economy in purchasing energy drinks, by age, April 2010
- Nearly a third of energy drinks drinkers value brand as the most important attribute
- Energy drinks are prized over soda for functional boost and image
- Energy drinks users find energy shots a better alternative to boost energy
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- Figure 64: Attitudes toward “other” attributes of energy drinks, by age, April 2010
Attitudes and Behavior Toward Purchasing Energy Drinks/Shots at Retail
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- Figure 65: Attitudes and behavior toward purchasing energy drinks/shots at retail, by age, April 2010
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Impact of Race and Hispanic Origin
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- Figure 66: Consumption of energy drinks, by race/Hispanic origin, January 2005-December 2009
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- Figure 67: Average volume* consumption of energy drinks, by race/Hispanic origin, January 2005-December 2009
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- Figure 68: Attitudes and behavior toward purchasing energy drinks/shots at retail, by race/Hispanic origin, April 2010
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The Teen Consumer: Usage, Frequency and Brands
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- Key points
- Trended energy drinks usage—teens
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- Figure 69: Trends in the consumption of energy drinks among teens, by gender, age, and race/Hispanic origin, January 2005-December 2009
- Energy drinks usage frequency—teens
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- Figure 70: Volume* consumption of energy drinks among teens, by gender, age and race/Hispanic origin, 2005 and 2008
- Brand popularity among teens
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- Figure 71: Brands of energy drinks consumed by teens, by age and gender, November 2008-December 2009
- Volume consumption by brand
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- Figure 72: Average volume consumption of energy drinks among teens, by choice of brands, by age, November 2008-December 2009
Cluster Analysis
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- Boosters
- Demographics
- Characteristics
- Opportunity
- Duds
- Demographics
- Characteristics
- Opportunity
- Sharpies
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 73: Energy drink clusters, April 2010
- Figure 74: Consumption of energy drinks and energy shots, by energy drink clusters, April 2010
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- Figure 75: Reasons for drinking energy drinks, by energy drink clusters, April 2010
- Figure 76: Attitudes toward flavor and ingredients in purchasing energy drinks, by energy drink clusters, April 2010
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- Figure 77: Attitudes toward price/economy in purchasing energy drinks, by energy drink clusters, April 2010
- Figure 78: Attitudes toward “other” attributes of energy drinks, by energy drink clusters, April 2010
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- Figure 79: Attitudes and behavior toward purchasing energy drinks/shots at retail, by energy drink clusters, April 2010
- Cluster demographics
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- Figure 80: Energy drink clusters, by gender, April 2010
- Figure 81: Energy drink clusters, by age group, April 2010
- Figure 82: Energy drink clusters, by household income group, April 2010
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- Figure 83: Energy drink clusters, by Hispanic origin, April 2010
- Cluster methodology
Custom Consumer Groups
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- Red Bull loyalists are less likely to use the diverse brand selection
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- Figure 84: Cross-tabulation of incidence of drinking energy drinks, by brand and brand most consumed, November 2008-December 2009
- Energy drink consumption among Mosaic groups
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- Figure 85: Incidence of energy drinks usage by key mosaic groups, November 2008-December 2009
- Food and beverage variety seekers are more likely to drink energy drinks
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- Figure 86: Incidence of energy drinks usage by attitudes toward health and food lifestyle, November 2008-December 2009
SymphonyIRI/Builders Panel Data: Key Household Purchase Measures
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- Energy drinks: An overview
- SS non-aseptic energy drinks: consumer insights on key purchase measures
- Brand map
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- Figure 87: Brand map, selected brands of SS energy drinks non-aseptic, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 88: Key purchase measures for the top brands of SS energy drinks non-aseptic, by household penetration, 2009*
Appendix: SymphonyIRI/Builders Panel Data Definitions
Appendix: Trade Associations
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