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Energy Drinks Generated the Most Revenues

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Presentation on theme: "Energy Drinks Generated the Most Revenues"— Presentation transcript:

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2 Energy Drinks Generated the Most Revenues
According to Beverage Industry’s 2017 State of the Industry report, the energy-drink category generated the most revenues among all miscellaneous beverages categories, or $ billion (52 weeks ending May 14, 2017). Energy drinks accounted for $11.06 billion of the total, a 4.0% increase from 2016, while energy shots’ total dollar sales were $1.09 billion, a 6.4% decrease. Beverage Marketing Corporation estimates the energy-drink category will reach $18.5 billion in total sales by 2020; however, the energy-shot sub-sector is expected to continue to decline, or an additional 1.8% by 2020.

3 Americans Love Their Cup of Joe
Coffee was the second-largest category, at a total of $8.18 billion, with ground coffee the largest sub- sector, at $4.02 billion, but that was a 2.2% decrease from 2016. Although a small segment of the coffee category, cold-brew coffees had the largest YOY change, or %, and total dollar sales of $ million. Single-cup coffees accounted for $3.91 billion of the category and sales increased 2.3% from 2016. The coffee category forecast is an annualize rate increase of 0.4% through 2022, reaching a total of $13.6 billion. Research reveals coffee drinkers are becoming more sophisticated in their choices, which is why traditional coffee brands have stagnated.

4 Tea Is Healthy to Drink…and Sell
Beverage Industry reported the teas category of miscellaneous beverages totaled $6.02 billion in dollar sales, with canned and bottled teas responsible for $3.62 billion of the total, which was a 3.4% increase (52 weeks ending May 14, 2017). Refrigerated teas had the largest sub-sector increase, or +7.1%, with total dollar sales of $1.23 billion, while loose-leaf and bagged teas experienced a modest gain of +1.4%, on total dollar sales of $1.17 billion. The healthy attributes of tea are the primary drivers of the category’s interest among consumers. Approximately one-third of consumers are attracted to teas’ longevity or therapeutic benefits.

5 Active Lifestyles Rely on Sports Drinks
The sports-drinks category generated total dollar sales of $6.62 billion, with the non-aseptic sub- sector responsible for virtually all of the total, at $6.53 billion, or a 4.7% increase (52 weeks ending May 14, 2017). The sports-drinks mixes sub-sector accounted for just $88.67 million of the category’s dollar-sales total, which was a -1.8 decrease from 2016. The Beverage Marketing Corporation has forecasted a 4.4% compound annual growth rate (CAGR) for this category of miscellaneous beverages through 2020, reaching total dollar sales of $8.5 billion.

6 High-Sugar Content Has Brought Many Juices Low
Three of the four juices sub-sectors generated total dollar sales of $1.88 billion; however, dollar sales for juice concentrates were not provided in the Beverage Industry report, but they did increase 4.5% for this sub-sector (52 weeks ending May 14, 2017). Total dollar sales for the top brands in the shelf- stable bottled tomato/vegetable juice/cocktail sub- sector declined 1.5%, to $455.6 million, and refrigerated juice and juice drink smoothies also declined, or 3.4%, to $883.1 million. Industry analysts attribute the stagnant or declining condition of the juice category to consumers’ concern for high-sugar content; however, raw, or unpasteurized juices; cold- pressed, or HPP juices; and fringe juices, such as coconut water, are proving popular.

7 Dairy Alternatives Offer the Options Consumers Want
The three dairy-alternative sub-sectors in the Beverage Industry report – refrigerated almond milks, refrigerated soy milks and kefirs – generated total dollar sales of approximately $1.38 billion (52 weeks ending May 14, 2017). Almond milks accounted for $1.02 billion of the total dollar sales, with soy milks contributing $ million and kefirs $118.5 million. Industry analysts forecast a decline in the total dairy products market in which milk accounts for approximately 68% of the entire market; however, dairy alternatives are projected to have a compounded annual growth rate (CAGR) of 2.8% through 2020.

8 Advertising Strategies
Suggest grocers and other channels where miscellaneous beverages are sold to promote a Mix-and-Match package to introduce and generate consumers’ interest in these beverages. The package could consist of 6 choices at a discounted price. Retailers may find it beneficial to offer youth and adult athletic teams free samples of sports drinks for an entire team during a game with coupons for a future purchase. Because coffee drinkers are becoming more sophisticated in their choices, consider a weekend special that includes a display of more exotic blends and whole-bean brands, free samples and coupons for a future purchase.

9 New Media Strategies Retailers and independent coffee shops may want to share recent news stories about the growing body of research about the health benefits of coffee and tea in a Website blog and on social media pages. Use social media to conduct a poll/survey to ask consumers who regularly exercise and/or are weekend warriors to tell their stories about the use of various miscellaneous beverages to help them hydrate. Use the table at the top of page 4 of the Profiler as a guide for social media posts, highlighting information about these consumer preferences, the brands you carry and a digital coupon for customers’ favorites.

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