Sports and Energy Drinks - UK - July 2009

Table of Contents

• Issues in the Market
• Key themes
• Definition
• Market in Brief
• Market proves recession-proof
• Energy drinks account for majority of sales
• Need to increase penetration
• A continually innovating market
• Dominated by the few
• The future is bright
• Internal Market Environment
• Key points
• Consumer confusion reigns
• A competitive price point
  • Figure 1: Average retailer price of drink categories in the off-trade, June 2009
• Proving functionality
• Targeting beyond active young males
  • Figure 2: Proportion of people meeting physical activity recommendations in England, by gender and age, 2006
• Helping the middle-aged to be more active
  • Figure 3: Trends for those who claim to do some form of sport or exercise at least once a week, by age, 2004-08
• Targeting hard-working Brits
  • Figure 4: Share of employees working over 48 hours a week and claiming their jobs have a high pace of work -- Europe, by country, 2005
• Countering the energy ' dip'
• On-trade in flux creates opportunities for others
  • Figure 5: Number of nightclub admissions and pub outlets in UK, 2005-08
• Broader Market Environment
• Key points
• European legislation could transform the market
• Caught in the crossfire of the health police
• The problems of an ageing population to a youth-oriented market
  • Figure 6: Structure of the UK population, by age, 2004-14
• Consumers with less to spend
  • Figure 7: Trends in PDI and consumer expenditure in the UK, 2004-14
• Green shoots of recovery?
  • Figure 8: Trends in consumer confidence, 1988-2009
  • Figure 9: Trends in the impact of the economic downturn on consumers, January and June 2009
• What will the summer bring?
  • Figure 10: Trends in average summer sunshine hours in UK* compared to sales of energy/sports drinks, 2002-08
• Competitive Context
• Key points
• The recession has changed the rules of the game
  • Figure 11: Trends in value sales for non-alcoholic drinks, 2004-08
  • Figure 12: Trends in consumption of non-alcoholic drinks, by type, 2004-08
• Opportunity to increase ' share of throat'
• Stealing share from water and soft drinks
• Stealing share from tea and coffee
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Market to hit billion mark in 2009
• Recession has minimal impact on the market
  • Figure 16: UK volume and value sales of energy and sports drinks, 2004-14
• Sports drinks growing share of total market
  • Figure 17: Share of volume sales of energy and sports drinks in total market, 2004-14
• Factors used in the forecast
• Segment Performance
• Key points
• Total energy drinks market continues to flourish
  • Figure 18: UK volume and value sales of the energy drinks market, 2004-14
• Both stimulant and energy drinks growing strongly
  • Figure 19: UK volume and value sales of energy drinks, by type, 2007-09
• Sports market also showing impressive growth
  • Figure 20: UK volume and value sales of the sports drinks market, 2004-14
• Isotonic sports drinks dominating sector
  • Figure 21: UK volume and value sales of sports drinks, by type, 2007-09
• Market Share
• Key points
• Increased competition from new entrants and own-label
  • Figure 22: Brand shares in UK value sales of energy drinks, 2007-09
• Lucozade losing share but still dominating sports drinks
  • Figure 23: Brand shares in UK value sales of sports drinks, 2007-09
• Companies and Products
• Key points
• Britvic/PepsiCo
• Coca-Cola Enterprises (CCE)
• GlaxoSmithKline (GSK)
• My Goodness Ltd
• Red Bull Company (RBC)
• Other companies
• Pussy
• Focus 5-hour energy
• Brand Communication and Promotion
• Key points
• Adspend set to slow
  • Figure 33: Main monitored media above-the-line advertising spend on sports and energy drinks and adspend: sales ratio, 2004-09
• Above-the-line advertising by media channel
  • Figure 34: Main monitored media above-the-line advertising spend on sports/energy drinks, by media type, 2007-09
• Activity by advertiser: 2006-08
  • Figure 35: Leading advertisers for sports/energy drinks, 2006-08
  • Figure 36: Top ten most advertised brands of sports/energy drinks, 2006-08
• Channels to Market
• Key points
• A decline in convenience shopping
  • Figure 37: UK value sales of sports drinks, by outlet type, 2007-09
  • Figure 38: UK value sales of energy drinks, by outlet type, 2007-09
• Growing influence of the major supermarkets
  • Figure 39: Share of multiple retailer in food sales, 2007/08 and 2008/09
• The Consumer -- Usage of Energy/Sports Drinks
• Key points
• A need to expand the user base
  • Figure 40: Trends in penetration and volume sales of energy/sports drinks, 2004-08
• Increasing frequency amongst existing consumers
  • Figure 41: Frequent consumption (at least twice a week) of sports/energy drinks, 2004-08
• Targeting youth at the expense of others
  • Figure 42: Trends in highest volume consumption of energy/sports drinks (VII), by gender and age, 2004-08
  • Figure 43: Agreement with health statements, by gender, February 2009
• Huge crossover of energy and sports drinkers
• Simplify, don' t alienate
  • Figure 44: Crossover in consumption between energy and sports drinks, April 2009
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Appendix -- Internal Market Environment
  • Figure 54: Agreement of sports/energy drink consumers with lifestyle statements, 2008