Energy drinks are now worth more than £922m in convenience and continue to go from strength-to-strength. Here, Pippa Foster, associate director of commercial development at Coca-Cola Europacific Partners (CCEP), explains what trends are driving the category’s growth and how independent retailers tap into this opportunity.
Energy drinks sales have been on an upward trajectory for some time and show no sign of slowing down. Over the past year energy has become the number one deliverer of value growth in the whole of soft drinks (Nielsen), worth more than £922m to convenience retailers (Nielsen), and continuing to grow in volume and value(Nielsen).
This growth is largely down to ongoing innovation and diversification bringing more consumers to the energy sector and on more occasions. It’s a category that’s now recognisably offering consumers the same great choice of flavours and juice blends as the wider soft drinks category, with added functional benefits. So, it’s vital retailers stay up-to-date with innovation to meet shoppers’ growing needs.
One brand that’s been key to this diversification within energy drinks is Monster and it continues to deliver exciting new options to attract new consumers. It has added more than £88m worth of sales in the last year (Nielsen) – that’s 40% of energy category growth, and more than any other brand has contributed (Nielsen). As a result, the Monster brand is now worth more than £550m (Nielsen) in retail.”
Capitalising on the innovation and zero sugar energy drinks opportunity
Innovation is essential to engaging loyal fans and attracting new shoppers and 61% of all energy innovation sales this year are from Monster (Nielsen). Recent examples from Coca-Cola Europacific Partners’ portfolio include Monster Ultra Rosa and Monster Aussie Style Lemonade, which have generated £9.5m of sales since launching in February (Nielsen), and more recently Relentless Zero Sugar Watermelon.
Low and no sugar energy is also hugely important to the category’s growth, particularly when it comes to driving incremental sales and appealing to new customers. The low and no sugar energy subsector is in 14.7% volume growth and 6.8% value growth (Nielsen), led by Monster Ultra – the No.1 zero sugar energy range in GB (Nielsen).
And performance energy drinks, with added benefits to fuel people during sports and workouts, are growing in popularity – over the past year the value of this subsector has increased by 22.9% (Nielsen). Reign Total Body Fuel has led the way in the functional energy drinks space, accounting for more than half of value sales, firmly cementing its no.1 performance energy drink status in GB (Nielsen).
However, it’s important to note that traditional energy remains the largest segment within energy drinks (Nielsen), making a strong core range critical for retailers alongside the latest and most innovative new launches. Monster Original, our flagship offering which continues to increase in value (Nielsen), is one such brand that can fulfil this need alongside other products in the core range.
Boost your sales with convenience retailer support initiative ‘Sales Supercharged’
To support retailers in boosting their energy drink sales – and via the Monster range in particular – CCEP and the Monster Energy Co. launched the third phase of their Sales Supercharged convenience retailer support initiative earlier this year. The initiative provides retailers with the low-down on the latest trends and details on key segments within energy drinks, alongside tips and advice around ranging and execution in-store.
This year the initiative is fronted by three highly successful retailers: Amrit Singh from H & Jodie’s in Walsall, alongside new faces Jack Matthews from Bradley’s Supermarket in Leicestershire, and Natalie Lightfoot owner of a Londis Solo in Baillieston, Glasgow. They share eight top tips on how they’ve supercharged their energy drinks sales.
Top tips to supercharge your energy drinks sales
1. Kick out slow-selling lines and replace them with double facings of best sellers in the big four energy segments – traditional, Zero Sugar, Flavoured, Performance – and get your core range right. For example, double face Monster Original to ensure you won’t run out at busy times.
2. Group brands and segments together and use signage to help customers find what they want.
3. To drive incremental sales, keep the category fresh with innovative new products and exciting flavours.
4. One in three on-the-go soft drinks sold are energy drinks (Nielsen), so make plenty of space in your chilled soft drinks line-up.
5. Ensure good use of POS in-store to catch customers’ eye.
6. Flavoured energy is key to sales, exciting developments like Monster’s Juiced Range are perfect for driving trial and repeat business.
7. Zero-sugar energy drinks bring in a different type of shopper that is looking for products that are high on taste but low in sugar – they’re a great way to drive extra sales.
8. Activate your meal deal offers with top sellers, such as Monster Ultra White and Monster Ultra Rosa.
For more advice on how you can boost your energy drink sales visit https://www.salessupercharged.co.uk/.