The energy drinks market is the biggest and most profitable drink-now segment, now worth £1.8bn and growing at +13% (IRI).
1 in 3 soft drinks sold in convenience stores is an energy drink, with Big Can Energy driving the category growth at +17% (IRI).
The current economic landscape and subsequent cost of living concerns have resulted in almost 30% of consumers looking for lower cost alternatives. Financial pressures have also driven demand for own label products to record levels across many categories (IGD).
However, Energy is bucking the trend as 97% of sales are from brands, showing that branded energy drinks remain the clear choice for shoppers (IRI).
“Rubicon RAW has been driving incremental sales and bringing more shoppers into the category,” comments Jonathan Kemp, Commercial Director at AG Barr. “A third of Rubicon RAW sales are from new entrants to energy, whilst 70% of RAW shoppers are making it a repeat purchase (Kantar).”
Since launching in May last year, Apple & Guava has exceeded all sales expectations, selling over 1.1 million cans since launch (AG Barr Sales Data), and quickly establishing itself as the No.1 apple flavoured energy drink in the market (IRI).
A 4 x 500ml multipack was also launched last year, which met the needs of those consumers who adapted their shopping behaviour post-pandemic. The format continued to perform well as restrictions eased and has grown by over +£1.5 million within the last year alone (IRI).
“Growth in flavoured energy is linked to consumer needs changing, and shoppers are looking to the category to be exciting and varied to keep them engaged,” adds Kemp. “Rubicon RAW delivers on taste and exciting, interesting flavours allowing retailers to invigorate their energy fixture and drive incremental sales.”
Rubicon RAW has also recently benefitted from the ultimate on pack offer, celebrating its continued partnership with GB Snowsport and the beginning of their winter season.
Adrian Hipkiss, Marketing Director at Boost Drinks, comments: “Energy Stimulation drinks play a significant role in contributing to the value growth of the Soft Drinks category, growing +15% YoY (IRI), and accounting for 26% of all Soft Drink value sales (IRI).”
Boost is the only brand that is a top three in three Functional Drinks categories – Energy Stimulation, Sports Drinks and RTD Iced Coffee (IRI). Within this, Boost is the third largest brand (IRI) in the Energy Stimulation category and the number one fastest growing Sports and RTD Iced Coffee brand.
“Whilst we are dedicated to developing a range which appeals to consumers, we are also committed to being a transparent and collaborative partner to wholesalers and retailers, a core belief that inspired the Honest Broker approach that Boost is founded on – a belief that in order to help retailers achieve the best sales, open, honest and collaborative interactions are essential,” adds Hipkiss. “As such, we’re constantly monitoring the ever-evolving retail landscape and consumer trends so we can advise across all touch points, including which products our partners should be stocking and how they should be marketing them, to ensure the best success for their business.”
As the nation has become accustomed to flexi-working following the pandemic, take-home purchases have become more prominent, resulting in a growing consumer demand for 1 litre and multi-pack formats. These products continue to be a huge growth opportunity for retailers, with sales witnessing an increase of +10% YoY (IRI).
Simultaneously, shoppers continue to seek ready-to-drink, on-the-go quality energy options at everyday value prices (Cousins & Davis). Boost Original Energy is available in 1 litre, 500ml and 250ml. “The range of flavour profiles and pack sizes on offer from Boost allows consumers to rely on us as a brand that caters to an array of consumption moments, whether on the move or stocking up to enjoy at home,” says Hipkiss.
Ben Parker, GB Retail Commercial Director at Britvic, comments: “The link between sugar content and stimulant drinks is a considerable barrier to entry in the category. Stocking low or no sugar options will help retailers to maximise their sales by addressing this concern, while also enabling them to comply with HFSS legislations that have come into effect.”
In 2022 Britvic announced a reduction in the sugar content across Rockstar’s core range of energy drinks, making the six bestsellers high in fat, sugar and salt (HFSS) legislation compliant.
Through the new recipes, the brand is making itself even more reliable and steadfast for retailers who will be able to continue growing energy drink sales through high-impact merchandising and promotions, reflecting the brand’s wider ambition to grow the stimulants segment and extend its appeal to health-conscious shoppers.
“Through reformulation and the introduction of compliant lines across our portfolio, retailers can trust our brands to help grow their sales, complemented by high-impact merchandising and promotions,” adds Parker. More recently, Britvic expanded the Rockstar Energy range with the launch of two refreshing, zero-sugar flavours: Rockstar Refresh Strawberry & Lime and Watermelon & Kiwi to tap into the growing consumer demand for lower sugar options as part of Britvic’s Healthier People sustainability agenda. Both products are high in vitamin C, contain zero sugar and are only 21 calories per can, offering consumers more choice.
Stocking a range of core stimulants flavours and new variants has been key to the success of the category. Range expansion has been vital in keeping pace with increased demand and retailers should consider stocking a selection of products and flavours to help attract new shoppers into the category.
“The Rockstar Energy range allows retailers to do just that with a variety of great-tasting flavours,” says Parker. “Merchandising it with other stimulant brands within the energy drinks category, arranged by flavour will help to maximise sales. If there is room for multiple lines from Rockstar then we recommend retailers lead with the core range of Original and flavours: Juiced El Mango; Punched Tropical Guava; XDurance Blueberry, Pomegranate & Acai; Juiced Tropical Punch; and Rockstar Original. These represent the must-stocks for retailers and are all available in the popular big can format (500ml).”
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “Energy drinks have come a long way since they first hit the market back in the 90’s and are continuing to grow, with value sales increasing by £250m over the past twelve months (Nielsen). Energy drinks are appealing to more consumers on more occasions, and this is thanks to the arrival of new flavours, functionality and zero sugar options.”
Innovation is key to increasing sales, and Monster has supercharged sales in the energy drinks sector in recent years, moving from challenger brand status in GB to become a major driving force of growth. In fact, it’s the fastest growing major energy drink brand in GB retail (Nielsen).
The core Monster range is led by the Original variant, worth £133.6m (Nielsen) in retail. A new zero sugar variant of this fan favourite hit shelves in September: Monster Zero Sugar, offering the same full-flavoured taste of Monster Original but with zero sugar.
More than 47.7% of category innovation sales over the last year have come from Monster’s great tasting NPD (Nielsen), including Monster Lewis Hamilton Zero Sugar, Monster Juiced Aussie Lemonade, red berry flavoured Monster Ultra Rosa and Monster Ultra Peachy Keen. Monster Ultra has retained its position as GB’s no.1 zero sugar energy brand (Nielsen).
“Stocking brands that are being supported by high-profile consumer campaigns can also pay dividends,” adds Burgess. “Keep an eye out for any POS materials and digital downloads on My.CCEP.com that you can use to drive excitement in store.”
The British public’s strong emphasis on health and fitness is driving the increasing popularity of performance energy drinks, which offer added benefits to support specific tasks and activities, such as Reign Total Body Fuel.
All the products in the Reign Total Body Fuel range contain 200mg of naturally-sourced caffeine, and are enriched with branched-chain amino acids (BCAAs), which can help to prevent protein muscle breakdown, and L-Arginine, which improves blood flow and stimulates the release of growth hormones. They also contain vitamins B3, B6 and B12, which may contribute to the reduction of tiredness and fatigue to a normal energy-yielding metabolism.
“Following the launch of two new flavours in 2022 – Peach Fizz and Orange Dreamsicle – we have launched the new Mang-o-matic variant, which we expect to drive more sales – especially given the popularity of the tasty mango-flavoured variants in the Monster Energy range,” adds Burgess.
Shaun Whelan, Jack Link’s Convenience/Wholesale and OOH Controller, comments: “The jerky and biltong meat snacks category is one of the fastest growing categories in convenience.”
The category has more than doubled in value over the last five years, growing in both value and volume, and has the headroom to double again as still less than one in ten households buy it.
“The jerky and biltong meat snacks category is becoming more popular in the convenience sector as we see more and more shoppers search out high protein, tasty convenient snacks that are seen to be healthier alternatives to traditional snacks,” adds Whelan. “The opportunity to meet shopper demand and unlock additional sales is huge.”
Jack Link’s Beef Jerky Original 25g has the highest unit rate of sale of any product in the category, providing shoppers with an accessible opportunity to enter into the category. The Beef Jerky is available in two other flavours – Sweet & Hot and Teriyaki, while a Biltong is also available.
Shoppers will always look for value for money, and they are more mindful of the choices they make.
Total sales for the jerky and biltong meat snacks category is growing at 44% in value and 37% in units – Jack Link’s is driving this growth with 60% value growth and 50% volume growth (Nielsen Oct).
“This high growth may surprise many, but it is driven by more shoppers buying into the category who are willing to pay for the high protein benefits from brands they trust,” says Whelan. “Jack Link’s is investing to build category awareness and trial and so it is the UK’s number one brand unlocking this high protein, high growth, high profit opportunity.”
This year Red Bull launched its most successful NPD yet: The Summer Edition with the taste of Juneberry. Selling 2.5 million cans and delivering £8.4 million in sales, the new launch demonstrated Red Bull’s strength in delivering on flavours.
Following this, in October, Red Bull unveiled its first ever limited Red Bull Winter Edition to the UK. Available now, Red Bull Winter Edition Spiced Pear offers the perfect blend of pear, accented with a dash of cinnamon and is already showing promising signs of delivering growth, so the brand anticipates an equally strong performance over the winter months.
The launch aims to remove the taste barrier and tap into the growing trend of flavoured Energy Drinks – presenting a compelling opportunity to reach more consumers. The brand is hoping to repeat the success of its Summer Edition, and consumer testing indicates the demand is there. The new flavour performed well in trials, delivering strong purchase intent. A huge 76% said they would purchase a Festive flavoured Energy Drink and 49% of these was particularly due to the Festive flavour.
The range includes 250ml, 250ml PMP and 355ml Sugarfree. The launch of Red Bull Winter Edition Spiced Pear is being supported with a range of tailored POS to raise awareness in-store across all key touchpoints. Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, comments: “Within energy, stimulation has been the strongest performing segment over the last five years, making up 80% of the category.”
Alongside stimulation sales, sport drinks have performed well since the pandemic. This tallies with a broader increase in focus on health following the impact of Covid-19. Penetration of sport drinks grew by 66% (Kantar) from February 2020 to February 2022. While a lower base than stimulation, the trend within sport drinks matches the upward swing in the broader sports & energy segment.
The sport and energy drinks segments have continued to deliver significant value for retailers this year, acting as a real driver for the soft drinks category as a whole. In fact, both sport and energy drinks are growing ahead of the category, currently seeing 80.5% (Nielsen) and 16.9% (Nielsen) value sales growth respectively.
“The health & well-being trend is here to stay,” adds Gouldsmith. “Our analysis of the last 10 years of soft drink sales data shows that key health aspects (lower in sugar; added vitamins; more natural drinks) of soft drink consumption have grown when compared with 2014. The number of occasions where soft drink shoppers cite health as the major reason for their purchase grew to 8.3% (Kantar) in 2022 from 1.8% in 2014.”
Volume sales of low- and no-calorie soft drinks grew by 8.7% during 2022 (BSDA), and this segment now makes up almost 70% (BSDA) of total soft drink sales, which means both wholesalers and retailers should stock up on low- and no-sugar drinks to capitalise on this trend.
Within the energy segment specifically, consumers continue to seek healthier low sugar or more natural options with low-sugar energy in 25% growth and natural energy in 23% growth (Nielsen).
Lucozade Energy is moving its 380ml single SKUs to 500ml bottles only, including Lucozade Energy Orange and Original, the Lucozade Energy Apple, Cherry and Caribbean Crush flavours and Lucozade Zero Pink Lemonade. The move will also see the introduction of a price-marked variant, RRP £1.50, available for the first time in 500ml format, offering a bigger bottle and better value for Lucozade Energy drinkers.
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