Boston, MA -- (SBWIRE) -- 06/20/2014 -- Sports and energy drinks witnessed modest growth in 2013 in terms of off-trade value sales and even registered a decline in volume sales. The economic recession put pressure on both sports and energy drinks and for sports drinks in particular led to a negative impact on volume sales. Consumers began to avoid buying sports drinks partly because it is a relatively expensive product and this meant that many looked for more affordable alternatives.
Red Bull further expanded its leadership in 2013, gaining two percentage points in terms of retail value share. The company owes its strong position to the presence of its Red Bull brand, although it also owns the Bullit energy drink, which has a significant category share as well. In 2013 Red Bull tried to address consumer concerns about the high sugar content of Red Bull by launching Red Bull Zero, a low calorie energy drink. The launch of Red Bull Zero was reasonably successful and it helped the company to increase its sales value in total sports and energy drinks while some competitors suffered a decline in their off-trade value sales.
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Sports and energy drinks is expected to post further growth over the forecast period in both off-trade volume and value terms at constant 2013 prices, although growth rates will be much lower than those registered over the review period. One factor which may limit growth of energy drinks over the forecast period could be that energy drinks is increasingly facing an image problem. Energy drinks is viewed by a growing group of consumers as unhealthy and this limits the development of the category. Its core consumers of adolescents and young adults do not care so much about the perceived unhealthy nature of energy drinks, yet older consumers tend to be more concerned and also think that these drinks are unsuitable for younger consumers.
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