Competition in Energy Drink

In: Business and Management

Submitted By daris
Words 721
Pages 3
Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages

Executive Summary
Beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. Energy drinks, sports drinks, and vitamin-enhanced beverages were the stars of the beverage industry during the mid-2000s. Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies' lineup of brands. On the other hand, Fifth consecutive year data show that U.S. consumers had purchased fewer carbonated soft drinks than the year before. Carbonated soft drinks sales would continue to decline as consumers developed preferences for bottled water, sports drinks, fruit juices, readyto-drink tea, vitamin-enhanced beverages, energy drinks, ready-to-drink coffee, and other types of beverages.
Even though the global beverage industry was projected to grow from $1.58 trillion in 2009 to nearly $1.78 trillion in 2014 as beverage producers entered new geographic markets, developed new types of beverages, and continued to create demand for popular drinks., beverage producers also were forced to contend with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers' strategies promoted reckless behavior. Although sports drinks and vitamin-enhanced beverages were also available in most delis and many restaurants, vending machines, and sometimes at events, most consumer buy alternative drinks in convenience stores which accounted for about 75 percent of energy drink sales. The big company usually distribute those alternatives drinks together with carbonated drinks.

Analysis Economic condition (US crisis) is one…...

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