Energy Drinks Innovation Report 2014

zenithinternational 2014 Energy Drinks Innovation

A review of recent key trends and new product development

August 2014

Research Note In undertaking its research for this report, Zenith has utilised its internal data library and global databases, alongside other third party sources and interviews with the industry. Throughout its on-going research, Zenith also depends upon the goodwill and co-operation of operators active in the marketplace, and, as such, seeks to achieve a high level of accuracy.

Liability This document contains information and may contain conclusions and recommendations. Every effort has been made to ensure that the information is accurate and that the opinions expressed are sound. However, Zenith International Ltd cannot be made liable for any errors or omissions or for any losses or consequential losses resulting from decisions based on the information.

Important notice on distribution This report should not be quoted, referred to or transmitted to another party, in whole or in part, with out the prior written consent of Zenith International Ltd. Should you desire to release a copy of this report to another party for information purposes, we request you and the requesting party to indemnify Zenith International from any liability related to the report distribution. Such readers however will not be considered “users� of this report.

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Contents

The contacts at Zenith International in connection with this report are:

Section Christina Fritts Consultant Zenith International Ltd., UK Tel: +44 1225 327918 cfritts@zenithinternational.com

Esther Renfrew Market Intelligence Director Zenith International Ltd., UK Tel: +44 1225 327900 er@zenithinternational.com Zenith International Ltd 7 Kingsmead Square Bath BA1 2AB United Kingdom T +44 (0) 1225 327900 F +44 (0) 1225 327901 www.zenithinternational.com

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Page

1. Introduction and scope

4

2. Category overview

7

• • • • •

Common ingredients and descriptions Commentary: new product development trends Commentary: global and regional trends Challenges Opportunities

3. Brand profiles

22

3.1 Brand profiles: Flavour Innovation

23

3.2 Brand profiles: Low Calorie / Low Sugar Energy Drinks

47

3.3 Brand profiles: Ingredient Innovation

57

3.4 Brand profiles: Natural & Organic Energy Drinks

65

3.5 Brand profiles: Added Functionality

84

3.6 Brand profiles: Limited Edition Energy Drinks

93

3.7 Brand profiles: Packaging Innovation

102

3.8 Brand profiles: Cross-Category Energy Drinks

110

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1. Introduction and scope

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1. Introduction and scope Energy drinks innovation

Overview The aim of this report is to assess developments in the energy drinks sector, identifying and summarising trends and new innovations in order to understand what opportunities exist for new product development.

Scope A global market overview of trends and developments, featuring brand profiles to benchmark against leading and innovative energy drinks products worldwide, tracking recent innovation within the energy drinks category as well as investigating the future outlook of the market.

This report contains detailed profiles of products launched from 2012-2014, organised by the following categories:

     

New flavours Low calorie/ low sugar Innovative energy-boosting ingredients Natural propositions Organic ingredients Added functionality (drinks with functionality beyond energy boost claims, such as health and wellness and cognitive enhancement)  Limited edition launches  Innovative packaging concepts  Cross-category products (including energy boosting waters and fruit juices) Products profiled in this report contain features that span a variety of trends shaping the future of the energy drinks sector, including:     

Fruit flavours Sour flavours Cocktail-inspired flavours Sugar-free ‘Zero’ energy drinks (no sugar, calories, carbohydrates)  Cognitive performance functionality

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      

Health and wellness Health and fitness Limited edition releases Juice and energy Water and energy RTD tea and energy RTD coffee and energy

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1. Introduction and scope Energy drinks innovation Definition: energy drinks For the purpose of this report, Zenith has limited its research scope using the following definition:  Traditional glucose based ready-to-drink energy drinks and functional or stimulation energy drinks which claim a particular energy boost from caffeine, guarana, taurine and ginseng or other herbs or some combination of these ingredients.

Exclusions This innovation overview does not include sports drinks that are marketed specifically to replace minerals/energy lost during exercise.

Dilutables, such as powders and liquid water enhancers, that claim a particular energy boost are not included in this report.

Coverage Innovation and new product development shaping the global market for energy drinks launched from January 2012 through August 2014.

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3. Brand profiles

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Flavour Innovation Cocktail-flavoured

Pirate Energy Paradise Beverage, Blue Matrix Labs, USA http://bluematrixlabs.com/ Product information: Paradise Beverage (a brand of Blue Matrix Labs) have released ‘Pirate Energy’, a line of non-alcoholic, cocktail-inspired energy shots. Geared towards ‘party-goers’ the product features a sleek bottle design with twist-on aluminium cap. 133mg Caffeine per 50ml serving.

Launch date: January 2014 Variants: Hurricane, Margarita, Mojito, Piña Colada, Pirate Punch Pack size & type: 50ml Bottle, sold in cases of 12 Price: US$34.99 for a pack of 12 x 50ml Marketing Profile: “At Pirate Energy we pretty much believe it’s always a good time to drink our energy shots. Packed full of energy-boosting awesomeness, they get the party started and keep you revved up for hours of fun. They can be enjoyed prior to a night of partying or simply to add a boost to your everyday pirate life.”

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Cross-Category Energy Drinks Juice and energy

Tropicana Energy PepsiCo, UK http://www.tropicana.co.uk/ Product information: PepsiCo’s Tropicana brand has launched Tropicana Energy, a collection of energy drinks formed by a blend of fruit juices, fruit purees, and naturally sourced caffeine and guarana extract. The range features 3 fruit flavour variants, containing 50mg of caffeine per 100 ml portion. High in vitamins C, B3, B5 and B6. Calories per variant range from 75 kcal to 91kcal per 150ml serving size.

Launch date: 2014 Variants: 3 Variants: Mango & Guava with Passionfruit, Raspberry & Blackcurrant with Blackberry, Pineapple, Mango & Banana with Lime Ingredients: Fruit juices and purees, guarana extract, naturally sourced caffeine, Vitamins C, B3, B5, B6 Pack size & type: 150ml bottles, 3 x 150ml bottles Price: RRP 3 x 150ml bottles UK£3.49

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