Nutritional Outlook

Nutritional Outlook, December 2016

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■ NUTRITIONAL OUTLOOK global marketing December 2016 global marketing Staying Power Energy drink makers must keep up with today's consumer trends, including clean-label and healthy. by innova Market insights T he energy drink of today is a healthier, more mature version of its younger self. Just take a look at how the market has changed. For one, the market is less diversifed than it once was. As mainstream soft drink companies moved in with global brands, the number of players in the energy drink space has shrunk considerably, and the number of global new product launches recorded by Innova Market Insights has fallen consis- tently over the past fve years. Whereas en- ergy drinks accounted for 5% of global soft drink launches in June 2010–2011, energy drinks accounted for just 3.2% of soft drink launches in June 2015–2016. Launch activ- ity remains slightly higher in the U.S., where 4.25% of soft drinks introduced in 2015–2016 were energy drinks. In order to cap- ture new consumers and retain existing customers, energy drink leaders like Red Bull, Monster, and Rockstar are ad- dressing some of the biggest topline con- sumer trends today, such as zero-calorie, reduced-sugar, and clean-label. Companies are also focusing heavily on adding new drink formats and flavors, sometimes with limited or seasonal edi- tions. Recent launches from major players include a new Citron flavor added to the Monster Energy Ultra zero-calorie/zero- sugar line, and a Killer Citrus product in the Rockstar Revolt portfolio. There is also interest in marketing energy drinks that offer the consumer additional health benefits. Reduced Sugar As global concerns over high sugar con- sumption grow, energy drink makers have in- troduced more reduced-sugar and sugar-free options. Most of the leading players have at least one zero-sugar or zero-calorie product line within their portfolio. Based on the U.S. energy drinks launches Innova Market Insights recorded in June 2015–2016, 21% of launches featured sugar- free claims (and up to 29% if low-sugar and no-added-sugar claims are also included). Clean Label Interest in clean labeling has also grown in recent years. Over one-ffth of energy drinks launches we tracked featured claims re- lated to "naturalness" and/or freedom from additives/preservatives; if organic claims are also included, that percentage rises to nearly 30%. Natural Ingredients Te use of natural ingredients is also increas- ing, including options like honey, green tea, and green cofee bean extracts, as well as the traditional favorite, guarana. Te Starbucks Refreshers energy drink line has traditionally featured cafeine from green cofee beans. In 2016, the company extended the brand with two new lines fea- turing coconut water, an on-trend ingredient with natural isotonic properties. Te Rocky Mountain High energy drinks brand celebrates a more unusual ingredi- ent in energy drinks—hemp. Te company recently extended this product line with a Mango favor, complete with a low-calorie positioning at just 15 calories per can. Tea Consumers are also increasingly interested in the energy benefts other types of drinks ofer, evidenced by the claims marketers now make related to energy/alertness. Take tea. After energy drinks themselves, iced tea products feature the most energy-related claims, with 13% of launches using this type of positioning. In the tea category, an interesting launch in the frst half of 2016 was PepsiCo's exten- sion of its Brisk iced tea brand with Brisk Maté Energizing Iced Tea. Tis on-trend bev- erage combines Brisk iced tea and the en- ergizing South American plant yerba maté. Another tea brand, the bottled-tea brand Photo from brisk Photo from rocky mountain high Brisk harnesses energy from the South American botanical yerba maté for its new Brisk Maté Energizing Iced Tea. Rocky Mountain High energy drinks combine 100 mg of hempseed extract, 120 mg of caffeine, plus guarana, ginseng extract, beet sugar, beta-carotene, and more. 14

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