More and more shoppers have bought into energy this year. An additional 400,000 energy shoppers have come into the category in the last 12 months, generating an extra £15 million for retailers (Kantar).
Now worth £1.7bn and growing at +13%, the energy drinks market is the biggest and most profitable drink-now segment (IRI).
Over 1 in 3 soft drinks sold in convenience stores are an Energy drink, with Big Can Energy driving growth at 18% (IRI).
“Flavoured Energy accounts for over half of all volume sold (IRI), so it’s important to offer a wide range to cater for all tastes,” comments Adrian Troy, Marketing Director at AG Barr. “Shoppers are demanding an exciting and varied category so flavours are crucial to success. Over £131m of category sales were generated from flavoured NPD last year (IRI).”
Rubicon RAW has quickly established itself as an important part of the category. Launched just 18 months ago, it is already the third largest flavoured big can energy brand in the market (IRI) and has sold over 20 million cans.
60% of the brand’s sales have been incremental by recruiting new and lapsed energy consumers (IRI) and current consumers are also buying Rubicon RAW more frequently than other brands in the market.
In May 2022 the fourth flavour launched into the Rubicon RAW range, Rubicon RAW Apple & Guava.
The new flavour exceeded expectations in research with 90% of shoppers saying that they would buy it again and 87% rating it as good or excellent (JVA).
“Flavours drive growth in the Energy category and you won’t find a much more iconic flavour than IRN-BRU Energy. The energy drink from the UK’s No. 1 flavoured carbonate brand (IRI) combines the flavour of BRU’s top secret essence with taurine, caffeine and B vitamins,” adds Troy. “IRN-BRU Energy is growing at +20%, six times faster than the total energy market (IRI) and we know it delivers incremental sales as half of IRN-BRU Energy shoppers buy it in addition to their normal energy product.”
In December 2021 we added a 500ml format offering retailers another pack format to allow them to build on these incremental sales. IRN-BRU Energy 500ml is available in full sugar and no sugar and Barr recommends stocking both variants as each attracts a different type of shopper.
“Big Can Energy plays an important role in the category driving growth of 22% (IRI),” says Troy. “It delivers against many consumer needs – shoppers see it as better value, the range of flavours in Big Can tick the box for those looking for taste and refreshment and of course the bigger the can, the bigger the boost.”
Barr launched Rubicon RAW as a 500ml Big Can and in December 2021 introduced a 500ml IRN-BRU Energy to provide shoppers with more Big Can flavour choices.
The company also launched a 4x 500ml multipack for Rubicon RAW which met the needs of those consumers who adapted their shopping behaviour during the pandemic. The format continues to perform well now restrictions have eased.
“The energy market is changing, and consumer needs have changed,” Troy continues. “Energy is no longer the reserve of the traditional young gamers. Innovation has seen the consumer base shift. Because of this shift in demographic over the years, brands need to appeal to a wide range of consumers with a wide range of interests. TGI research highlighted that energy drinkers have interests ranging from music, theatre, photography and experimenting with food. Whilst some are gamers, they’re also adventurous and career driven.”
The 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.
Barr launched its levy-free Rubicon RAW range last year to meet the needs of this new energy audience. 60% of sales have been incremental by recruiting new and lapsed energy consumers (IRI), and current consumers are buying it more frequently than other brands in the market, helping drive category sales.
Rubicon RAW appeals to existing energy shoppers who are looking for great taste or something that meets their needs better as they mature.
The No. 1 reason consumers like Rubicon RAW is that it’s made with 20% real fruit juice (JVA), which together with caffeine from green coffee beans and B-vitamins provides a big energy hit that is full of flavour. Adrian Hipkiss, Marketing and International Business Director at Boost Drinks, comments: “The vast amount of time spent at home over the last few years, has carved the way for at- home consumption. This in turn, has encouraged more people to purchase multipack and take-home formats.
“Although we have now returned to a pre-pandemic sense of normality, it’s fair to say that certain shopper habits are here to stay. For instance, due to the rise of flexi-working, coupled with the re-emergence of social gatherings, and the return of group sport activity, we anticipate there to be a continued demand for multipacks, as this format caters best towards these occasions.”
In fact, recent insight illustrates that total energy take-home formats (including 1 litre and 4x pack multipacks) value sales are +10% YOY (IRI).
Boost’s Original 1 litre range accounts for 95% of the total 1 litre energy stimulation unit sales (IRI).
The reduction of sugar intake is becoming a key shopper priority across all areas. In fact, the desire to opt for healthier alternatives, is an emerging shopper habit within the Energy and Stimulation category. Research points out that Sugar Free Energy Stimulation sales are now £243m which is 22% of Energy Stimulation sales in value at Total Market level (IRI) – showcasing a significant increase of +65%, since 2020 (IRI).
“To best cater towards this prominent demand, low sugar / no energy products should be stocked in easy to find locations across wholesaler depots,” adds Hipkiss. “At Boost Drinks, we are proud to see our Boost Energy Original Sugar Free Range performing significantly well – a popular choice for consumers. Wholesalers should also keep in mind, that as we start off the New Year on a fresh start, health-conscious consumers will be seeking healthy alternatives to kick off the year. With this in mind, consider visibly displaying the healthy options including Boost Sport and Protein at the forefront of your fridges and shelving spaces.”
Boost Drinks holds a leading position performing strongly amongst the biggest flavours in the sports and energy category. The functional drinks brand holds 4 of the top 5 selling flavoured SKUs (IRI). Of these, Boost Red Berry is the largest selling 250ml Stimulation Flavour SKU, contributing 23% of sales to the sector (IRI).
Diversifying its flavoured energy range further, Boost Drinks reformulated its popular Fruit Punch Energy 250ml SKU and tapped into the 500ml can category – the largest selling can segment (IRI), with its Juic’d range. Available in four refreshing flavours (Tropical Fruit Sour Punch, Mango & Tropical Blitz, Watermelon & Lime Twist and Pineapple & Guava Punch ) and made with 5% real fruit juice, the £1.00 price-marked range, offers fantastic value price point for consumer groups.
In addition to the brand’s popular flavoured energy ranges, Boost Sport also holds a dominant position, outpacing the category growth pattern at +84% value growth YOY (IRI). As the #2 Sports drink brand in value and volume, selling more unit sales than the #3 and #4 brands combined (IRI), Boost Sport is available in an array of refreshing flavours including Tropical Berry, Orange, Mixed Berry and Citrus.
“As the nation travelled less throughout the duration of the pandemic, shopper habits have certainly evolved,” says Hipkiss. “The vast amount of time spent at home has led consumers towards multipack and take-home formats. However, as we return to a pre-pandemic sense of normality and with the new era of flexible working, recent insight illustrates that this is not a trend of the past.”
Value sales for energy take-home formats (including 1 litre and 4x pack multipacks) are growing at +10% YOY (IRI), suggesting that the demand for take-home and multipack formats is a prominent trend that is here to stay.
Boost Original is the number one 1 litre energy stimulation drink, making up 95% of the total 1 litre energy stimulation unit sales (IRI).
“Keeping this insight in mind, take-home products continue to be a huge growth opportunity and wholesalers should provide a diverse range of pack formats and take-home offerings to maximise profitability,” continues Hipkiss.
Flavours now account for 38% of stimulation sales (IRI). This is a huge trend for wholesalers to keep an eye on as stocking a full range of flavoured products will certainly help to drive sales, growth and profitability. Within this fast-growing category, Boost Red Berry is Boost Drinks’ largest selling 250ml Stimulation Flavour SKU, contributing 23% of sales to the sector (IRI).
Taking into consideration the Fruit Punch flavour is the largest stimulation flavour on unit sales, with a significant 28% share and 28% YoY growth (IRI), Boost Drinks has expanded its popular Energy Stimulation range with the re-formulation of its Fruit Punch flavoured 250ml SKU. In addition to this, Boost Drinks also introduced its biggest ever NPD launch – Juic’d. The 500ml range is made with 5% real fruit juice and is price marked £1.00 on pack.
Marking the brand’s biggest foray into the fastest growing can category, sales of 500ml cans are booming with 28% growth (worth £232m, IRI) and 39% growth in the category from flavoured 500ml variants alone (IRI).
“Finally, we know that demand is on the rise for drinks that incorporate natural ingredients, provenance and nutritional benefits,” says Hipkiss. “With this in mind, Rio is a top 5 ranked SKU in Fruit Carbonates based on unit rate of sale and has the second largest wholesaler sales rates to retailers (IRI). This shift in consumer appetite is only set to keep growing, so it’s vital for wholesalers to take this into account with a stock range that reflects this evolving consumer appetite.”
Considering the ever-growing demand for the natural, tropical, and fruity flavours, Boost recently unveiled Rio’s Sunshine Sells campaign. The launch saw various consumer activations and fruitful sampling opportunities across the country, reciprocated amongst the trade with in-depot sampling and exclusive trade competitions to celebrate the campaign launch.
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), comments: “The energy drinks segment is worth more than £840 million (Nielsen) in convenience and the growth it’s shown over the past year shows no signs of slowing. This is what we mean by the Energising Break growth driver in our Refresh Tomorrow soft drinks category vision, which identifies an opportunity for further sales growth in the next three years.”
Monster is the no.1 deliverer of value growth in the whole of the GB soft drinks market, worth £455m and adding more than £100m of value in the past year alone (Nielsen). To keep the range popular with customers, we’ve continued to innovate when it comes to flavour.
CCEP recently launched Monster Khaotic – a shake-up of one of the original Monster Juiced variants – and Ultra Gold, which blends a juicy pineapple taste with the renowned Monster energy blend, giving consumers a refreshing energy boost with no calories and no sugar. The introduction of new flavours helps to maintain momentum behind the Monster brand.
In addition to a strong core range, Monster Ultra is now the No.1 zero sugar energy drinks range in GB (Nielsen) and the Monster Juiced range continues to grow, highlighting shopper demand for great tasting products and zero sugar options.
Earlier this year CCEP launched the Relentless Zero Sugar range, which includes two flavours, Peach and Raspberry, and bold new pack design to broaden the appeal of the brand. Relentless Zero Sugar Peach and Relentless Zero Sugar Raspberry boast a light and refreshing energy blend without the sugar.
A Red Bull spokesperson comments: “Multipacks have shown a strong double-digit increase of +12.4% MAT (Nielsen), and driving 47% incremental growth (Kantar), with 8.7% more multipack shoppers in the last 52 weeks (Kantar) in addition to existing shoppers trading up from single cans to multipacks (Kantar), so now is the perfect time for wholesalers and retailers to stock up on multipacks.”
With Energy Drink 250ml 4-pack being the No.1 bestselling multipack in the Sports & Energy category (Nielsen) and a variety of flavours and pack sizes to meet consumer needs, Red Bull multipacks make the perfect functional option for shoppers to stock up on for at-home consumption.
For a long time now, sugar has played a key role in the Sports & Energy category as consumers increasingly pick up Sugarfree and Zero formats that appeal to the more health-conscious shopper. Sugarfree variants have been growing penetration by 48.8% (Kantar) and, in independent markets, Low or No Sugar variants have seen faster growth than Full Sugar, with 21.8% growth vs Full Sugar 16.9% (Nielsen).
“Flavours are a proven way of bringing new shoppers to the Energy Drinks category and are driving 83% incremental growth,” adds the spokesperson. “Stocking Red Bull Editions, such as the Red, Apricot and Tropical Editions, will ensure stores appeal to a wider shopper demographic.”
Within Sports & Energy, flavoured variants have grown by 19.9% (Nielsen) and Red Bull Editions have grown by 165.3% (Kantar). With tropical and exotic flavours growing 23% more than all other mainstream flavours on offer (Nielsen), now is the perfect time for wholesalers and retailers to stock up on the Red Bull Editions 250ml range to capitalise on the demand for flavoured variants and maximise sales.
Larger formats have driven more than £233m in value to the category, seeing significant growth of +17.3% vs YA (Nielsen), with 49.7% more shoppers purchasing these larger formats compared to last year (Kantar). It is therefore vital for wholesalers to stock these larger variants so retailers can provide consumers with a longer-lasting functional boost.
Committed to offering consumers choice when it comes to their energy drink consumption, Red Bull launched its Apricot-Strawberry flavour 2022 Summer Edition in March. After a successful launch – it is the best NPD so far for Red Bull amassing over £2.2m in the first 6 months of launching (Nielsen) – it will be a permanent flavour.
With the performance of the Red Bull Editions portfolio growing across all metrics – achieving a +83.5% uplift in sales, now totalling £11.2million (Nielsen) – the new SKU delivers all of the functional benefits of Red Bull Energy Drink, along with a juicy surge of apricot and strawberry that combine to deliver a sweet, refreshing flavour.
The latest Red Bull Summer Edition is also available in a Sugarfree option. Insight has shown that Sugarfree variants have grown spend by 30.5% (Kantar), and this new Edition will appeal to health-conscious shoppers who increasingly opt for low- or no-sugar variants.
“As the No.1 single serve energy drink in the UK (Nielsen), there’s a reason that Red Bull is appreciated worldwide by athletes at the top of their game,” says the spokesperson. “Red Bull Energy Drink 250ml is already the perfect pack size for a functional energy boost enjoyed alongside exercise. Delivering naturally occurring amino acids and B-Vitamins, Red Bull Energy Drink is the leading choice for consumers looking to maintain and support active, healthy lifestyles.”
Energy drink brand, Rockstar, is fuelling fans’ thirst for gaming with a new Xbox partnership, which includes bespoke limited edition cans, unmissable Xbox prizes, and a trail 1-month Xbox Game Pass Ultimate membership.
Limited-edition cans are featuring bold artwork from the three iconic games: Halo Infinite, Fallout and Elder Scrolls Online. Each limited-edition can includes a QR code that gives players a one-month membership to Xbox Game Pass Ultimate (RRP: £10.99) and also gives fans a chance to win a range of Xbox prizes, including the next generation Xbox Series S console.
Ben Parker, Great Britain Retail Commercial Director at Britvic says: “Stimulant energy is the largest category in impulse (Nielsen), with stimulant shoppers spending 80.3% more than soft drink shoppers in OOH on average (Kantar). Our latest partnership and on-pack promotion with Xbox is sure to boost sales even further for retailers.”
The limited-edition Rockstar Energy Drink cans are available to purchase in 500ml offerings across the grocery and convenience channels.
Matt Gouldsmith, Channel Director, Wholesale, Suntory Beverage & Food GB&I, comments: “Energy drinks have grown 50% (Nielsen) in value in the past five years, with consumer choice and a strong range of relevant flavours crucial to the category’s success. In fact, new flavours are also important for retailers to drive excitement and target different shopper demographics.
“To capitalise on this profitable category, retailers should stock up on both on-the-go and drink-later formats of the biggest energy brands like Lucozade Energy, which has a seen 10% (Nielsen) year-on-year growth and is now worth over £318M (Nielsen).”
The stimulation energy drinks category is worth over £1BN (IRI) and is experiencing strong growth, increasing by +57% in the last five years, with a further +20% (Nielsen) predicted growth in the next few years. “The sports drinks segment is also incredibly buoyant,” adds Gouldsmith. “Sports drink shoppers are loyal, and if retailers don’t have the brand, format or flavour they’re looking for, they may go elsewhere. This means leading brands like Lucozade Sport, which has seen year-on-year growth of almost 38% (Nielsen) in the convenience channel, are an incredibly important part of any chiller.”
Health and wellness have continued to be important to consumers as the world has emerged from the pandemic. In fact, 25% (IGD) of shoppers are more influenced by health when shopping than pre-pandemic, and at least a third of shoppers want to reduce sugar in their diet (Nielsen).
We’ve been seeing a long-term trend towards drinks with lower sugar, and the low- or no-calorie segment continues to outperform regular soft drinks, with almost 70% (BSDA) of total soft drink sales.
Stimulation drinks is the fastest-growing soft drinks segment in recent years (IRI), with 75% of adults reporting concerns about tiredness. However, many shoppers still don’t think stimulant drinks are for them.
This is why Suntory brought Lucozade Alert to shelves last year; high in caffeine and with Vitamin B3 to help reduce tiredness. The range responds to a clear consumer need for a stimulation drink which tastes great, is low calorie and more relevant to a wider audience. This presents a great opportunity help retailers drive maximum sales.
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