BEVERAGES
Specialty
Where the Gains Are
RTD Tea and Coffee
C-store sales, 52 weeks ending Dec. 29, 2013
C-store sales, 52 weeks ending Dec. 29, 2013
While not gaining at the double-digit clip of 2012, energy-drink sales
in c-stores rose a respectable 6.2% in 2013 to reach $6.7 billion in the
52 weeks ending Dec. 29, 2013, according to IRI. Unit sales grew nearly
86%.
Nielsen figures show c-store energy-drink dollar sales up 7.7% in
the 52 weeks ending Jan. 25, 2014, to reach $6.2 billion, with units up
9.9%.
Sales of sports drinks, according to IRI figures, hit the brakes in
2013, with units off 2.5%. Nielsen data shows a tepid 1.6% bump up
in units for the 52 weeks ending Jan. 25, 2014.
In other beverages, RTD coffee saw a healthy 10% jump in dollar
and unit sales, driven by the North American Coffee Partnership’s Starbucks line, according to IRI.
Drink type
C-store sales
($ millions)
PCYA* Unit sales
(millions)
PCYA*
Energy drinks
$7,521.4
4.1%
3,035.0
5.9%
• Non-aseptic
$6,704.5
6.2%
2,775.3
7.6%
$803.5
–8.8%
254.5
–8.0%
$13.3
–55.4%
5.3
–46.5%
$2,454.0
–0.3%
1,435.4
–2.5%
• Energy shots**
• Energy-drink mix
Sports drinks
RTD tea***
$1,229.0
RTD cappuccino/
iced coffee
$733.3
2.2%
10.3%
975.7
269.5
–0.6%
10.0%
While c-store sales of ready-to-drink (RTD) teas appear stuck in
neutral—IRI data shows units off 0.6% for the 52 weeks ending
Dec. 29—RTD coffee and cappuccino saw unit sales up 10%.
The segment is dominated by brands from North American Coffee
Partnership, a joint venture between Starbucks and PepsiCo.
Ready-to-Drink Teas by Brand
$182.9
6.2%
93.9
7.0%
Shelf-stable
non-fruit drinks
$53.8
–6.5%
34.5
–8.2%
Source: IRI
C-store sales, 52 weeks ending Jan. 25, 2014
–6.5%
257.2
–5.8%
Lipton Brisk Tea
$153.2
6.3%
139.4
3.9%
Lipton Pure Leaf
$125.1
25.1%
71.2
26.3%
Gold Peak
$96.4
12.5%
57.8
13.6%
AriZona Arnold Palmer
$86.3
–5.3%
83.1
–4.6%
$1,229.0
2.2%
975.7
–0.6%
Total (including brands
not shown)
Ready-to-Drink Coffees by Brand
C-store sales
Brand
($ millions)
4.5%
150.6
2.1%
Starbucks Doubleshot
$249.2
2.7%
91.1
1.9%
$42.8
**
20.0
**
Private label
$5.9
–10.9%
Starbucks Doubleshot
Light
$5.0
11.9%
1.9
12.7%
$733.3
10.3%
269.5
10.0%
Total (including brands
not shown)
Sports drinks
$2,317.5
2.5%
1,324.8
1.6%
RTD tea
$1,308.3
1.1%
$685.9
12.2%
.1
Sources: The Nielsen Co., Dr Pepper Snapple Group
Percent increase in sales of energy
drinks in 2013, according to IRI
** See p. 16 for brand ranking
12.4%
3.5 –16.2%
Source: IRI
9.9%
251.7
(millions)
$424.7
2,517.8
RTD coffee
PCYA* Unit sales PCYA*
Starbucks Frappuccino
7.7%
–1.6%
(millions)
$269.4
$6,165.9
982.5
PCYA* Unit sales PCYA*
AriZona
Energy drinks
74
($ millions)
Starbucks
RTD milk/milk
substitutes
* Percent change from a year ago
C-store sales
Brand
Customer in Focus
The negative buzz about potential health concerns surrounding energy
drinks has given some consumers pause, according to research by Mintel.
“Those who are active in the segment have either added or kept consumption the same in 2013 compared to 2012,” the research firm says
in its latest report on the category. “Yet the media attention had some
effect, with 11% of respondents drinking fewer energy drinks and 8%
cutting back on energy shots in 2013.” Almost four in 10 respondents
who were drinking fewer energy drinks said it was because they believed
the beverages were not good for their health, Mintel reports.
*** Canned/bottled only. Refrigerated teas totaled $189.1 million (up. 1.1%) and 108.2 million units sold (up 1.7%), according to IRI.
C S P C ateg o ry Man a g emen t H a n d bo o k 2 014
BEVERAGES
Specialty
Energy-Drink Trends
Red Bull gained nearly a point in share during the 52 weeks ending Dec. 29, 2013, to provide more than 38% of c-store energy-drink sales, according to IRI.
Data for the last quarter of 2013 shows that the eight of the top 10 UPCs picked up dollar and unit sales, with the 16-ounce Monster the top-selling item.
Market Share: Energy Drinks by Brand
Energy Drinks by Brand
C-store sales, 52 weeks ending Dec. 29, 2013
C-store sales, 52 weeks ending Dec. 29, 2013
Brand
C-store
sales
PCYA* Unit sales PCYA*
(millions)
($ millions)
Brand
Dollar share
Point change
ny Red Bull
38.7%
0.9
Red Bull
$2,595.2
8.6%
896.4
10.7%
ny Monster Energy
12.6%
–0.7
Monster
$847.9
0.8%
378.7
1.4%
ny Monster Rehab
4.3%
–0.4
Monster Rehab
$289.1
–1.8%
130.1
–1.0%
ny Java Monster
3.7%
0.2
Java Monster
$251.0
12.0%
100.6
13.9%
ny Nos
3.6%
0.0
Nos
$244.2
7.5%
117.3
10.9%
ny Monster Energy Zero Ultra
3.4%
3.0
Monster Energy Zero Ultra
$231.0
662.8%
105.6
653.9%
ny Monster Energy Lo-Carb
3.4%
–0.9
Monster Energy Lo-Carb
$231.0
–15.5%
97.1
–16.2%
ny Rockstar
3.3%
–0.4
Rockstar
$222.1
–4.0%
108.9
–3.1%
Monster Mega Energy
$217.1
2.3%
70.9
3.1%
Monster Energy
Absolutely Zero
$149.3
–21.2%
64.6
–23.3%
$7,521.4
4.1%
3,035.0
5.9%
Total (including brands not
shown)
Latest Quarter: Energy UPCs
C-store sales, 13 weeks ending Dec. 29, 2013
Monster (16-oz.)
$196.9
10.2%
89.6
9.5%
Red Bull (12-oz.)
$181.4
12.1%
62.4
12.4%
Red Bull (8.4-oz.)
$122.1
–3.5%
55.8
–4.0%
Red Bull (16-oz.)
$95.4
6.0%
25.0
5.9%
$53.8
12.0%
17.6
13.2%
(16-oz.)
$52.7
76.2%
23.9
72.9%
Red Bull (20-oz.)
$49.5
4.4%
10.7
4.2%
5-hour Energy Extra
Strength (berry, 1.93-oz.)
$42.3
–10.0%
12.7
–9.6%
Rockstar Energy (16-oz.)
$39.7
3.2%
20.7
5.1%
Red Bull (12-oz.)
$39.6
7.0%
13.5
6.9%
$1,807.1
7.9%
730.5
10.1%
Monster Mega Energy
(24-oz.)
Monster Energy Zero Ultra
Total (including UPCs not
shown)
Source: IRI
39+13+43222S
ny Monster Mega Energy
3.2%
–0.1
ny Monster Energy Absolutely Zero
2.2%
–0.8
21.6%
N/A
ny Others****
Source: IRI
Category Management Tip
According to Nielsen data covering the 24 weeks ending Jan. 25, 2014,
tea dollar sales in c-stores are growing, with premium teas accounting for
the bulk of the increase. Ivan Alvarado, director of category management
for Dr Pepper Snapple Group, says retailers can drive margin by enhancing
the position and space of premium teas. “Focus on brands that will help
drive profitability (penny profit) for your tea category by placing them in
more visible positions and ensure sufficient space is provided to these
brands,” says Alvarado.
**** Brands with less than 2% share
C S P C at e g o ry M a n agement Handb ook 2 0 1 4
75
BEVERAGES
Specialty
Sports-Drink Trends
C-store sales, 52 weeks ending Dec. 29, 2013
After strong gains in 2012, sports drinks saw sales decelerate in 2013, according to figures from IRI and Nielsen. PepsiCo’s Gatorade Perform supplied
more than two-thirds of dollar sales in the 52 weeks ending Dec. 29, 2013, and nine of the top 10 UPCs in the final quarter of the year, IRI reports.
Quarterly Look: Sports Drink UPCs
C-store sales, 13 weeks ending Dec. 29, 2013
C-store sales
UPC
PCYA*
($ millions)
Unit sales
PCYA*
(millions)
Gatorade Perform Thirst Quencher (Lemon Lime, 32-oz.)
$24.5
–1.8%
12.3
–3.2%
Gatorade Perform Thirst Quencher (Orange, 32-oz.)
$21.6
–1.9%
10.8
–3.3%
Gatorade Perform Thirst Quencher (Cool Blue, 32-oz.)
$21.5
–0.4%
10.7
–2.1%
Gatorade Perform Thirst Quencher (Fruit Punch, 32-oz)
$21.5
–3.2%
10.7
–5.1%
Gatorade Perform Thirst Quencher Frost (Glacier Freeze, 32-oz.)
$19.2
4.7%
9.6
3.8%
Gatorade Perform Thirst Quencher (Glacier Cherry, 32-oz.)
$16.2
N/A
7.9
N/A
Powerade Ion4 (Mountain Berry Blast, 32-oz.)
$16.1
–4.2%
11.1
–0.2%
Gatorade Perform Thirst Quencher (Fruit Punch, 20-oz.)
$15.9
5.0%
11.1
4.1%
Gatorade Perform Thirst Quencher (Lemon Lime, 20-oz.)
$14.9
8.2%
10.4
6.7%
Gatorade Perform Thirst Quencher (Cool Blue, 20-oz.)
$14.6
15.7%
10.3
14.5%
$453.4
6.4%
262.6
5.5%
Total (including UPCs not shown)
Sports Drinks by Brand**
Market Share: Sports Drinks by Brand
Brand
Dollar share
Point change
C-store sales
Brand
($ millions)
ny Gatorade Perform
66.6%
–0.7
Gatorade Perform
ny Powerade Ion4
14.7%
–2.8
ny Gatorade G2 Perform
6.3%
–0.8
ny Gatorade
5.7%
4.9
ny Powerade Zero Ion4
2.6%
–0.4
ny Powerade
2.4%
1.7
ny Others***
1.7%
N/A
76
66+15+632
PCYA* Unit sales PCYA*
(millions)
$1,629.0
–1.3%
908.7
–2.9%
Powerade Ion4
$359.3
–16.1%
256.6
–15.1%
Gatorade G2
Perform
$153.6
–12.1%
86.9
–14.3%
Gatorade
$138.7
596.5%
67.6
590.7%
Powerade Zero Ion4
$62.7
–12.8%
42.4
–11.1%
Powerade
$59.6
235.9%
44.5
227.4%
Private label
$10.0
0.0%
9.1
18.1%
Gatorade G2
$9.6
3.0%
5.3
–1.1%
Bodyarmor
$7.3
73.7%
3.1
85.0%
Gatorade X Factor
$3.6
30.0%
1.7
20.7%
$2,447.0
–0.3%
1,433.0
–2.4%
Total (including
brands not shown)
Source: IRI
* Percent change from a year ago
** Brands with less than 2% share
*** Non-aseptic only
C S P C ateg o ry Man a g emen t H a n d bo o k 2 014