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SPORTS DRINKS, A CATEGORY BUILT FOR FITNESS AND PERFORMANCE, GEARED UP TO get back into shape this year. The total category declined nearly 7 percent to $3.5 billion, according to SymphonyIRI Group Inc., Chicago, for the 52 weeks ending May 16 in U.S. supermarkets, drug and convenience stores and mass merchandise outlets, excluding Wal-Mart. Growing competition from enhanced waters and other functional beverages have caused sports drinks to refocus their strategies from casual gym goers to serious athletes.
Sales of bottled sports drinks, the company's mainstay, are down about 7 percent through the measured retail channels during the time period. Powdered sports drink mixes declined about 2 percent during the same period.
Gatorade, which holds the majority of the category with eight of the top 10 bottled sports drinks, relaunched its entire portfolio this year. In April, Gatorade, a division of PepsiCo, debuted the G Series platform to address the body's needs for pre-, during and post-physical performance occasions. The G rebranding in 2009 and G Series launches represent Gatorade's shift from a sports drink manufacturer to a sports performance innovation company, it says.
The G Series includes Prime 01 concentrated pre-performance carbohydrate gels; Perform 02, the rebranded identity of Gatorade Thirst Quencher and low-calorie G2; and Recover 03 protein-enhanced sports beverages. The company also released an elite athlete platform, G Series Pro, which leverages formulas and insight from The Gatorade Sports Science institute to meet the needs of professional and aspiring professional athletes. Arranged in the same pre-, during and post-performance tiers, G Series Pro includes Prime 01 nutrition shakes and carbohydrate energy sports drinks; Prime 02 Endurance Formulas and an electrolyte boosting powder; and Recover 03 protein shakes. The line initially launched at specialty nutrition retailers GNC and Dick's Sporting Goods this spring.
In addition to the G Series lines, Gatorade introduced G Natural and G2 Natural. The products were a result of company research, which indicated a significant group of athletes were looking for the benefits of a sports drink but prefer to consume only natural products, the company says.
Although Gatorade is far and away the market leader, The Coca-Cola Co.'s Powerade brand made a push last year with its reformulated Powerade Ion4. The product contains four electrolytes in the same ratio that is lost in sweat, the company says. Powerade Ion4 and its low calorie counterpart Powerade Zero both posted impressive sales gains through the measured retail channels for the 52 weeks ending May 16, according to SymphonyIRI. Powerade Ion4 soared 798 percent to $531.1 million and Powerade Zero grew 35 percent to $118.7 million.
Coconut water also is emerging as a competitor to sports drinks because it is an all-natural alternative that often provides some of the same rehydration properties and electrolytes as traditional sports drinks. To specifically target the sports drink category, One Natural Experience, Los Angeles, released a line of coconut water-based sports drinks. O.N.E. Active is formulated with coconut water, natural herbs and minerals for active bodies and minds, the company says. The sports drink is available in Grape Berry, Lemon Lime and Cranberry Grapefruit flavors.
Top bottled sports drink brands(Individual brands) DOLLAR SALES % CHANGE MARKET VS. PRIOR SHARE YEARGatorade $1,102,447,000 -16.8 32.6Powerade Ion4 $531,066,900 798.2 15.7G2 $325,098,700 -2.4 9.6Gatorade Perform $282,898,700 -- 8.4Gatorade Frost $197,091,400 -15.6 5.8Gatorade Fierce Bring It $149,782,300 520.7 4.4Gatorade Cool Blue $128,422,000 -- 3.8Powerade Zero $118,741,600 34.8 3.5Gatorade Rain No Excuses $115,444,700 1076.0 3.4 $91,898,140 -- 2.7Category Total * $3,383,373,000 -6.9 100.0(Individual brands) % Change VS.PRIOR YEARGatorade -3.9Powerade Ion4 14.1G2Gatorade Perform 8.4Gatorade FrostGatorade Fierce Bring It 3.8Gatorade Cool Blue 3.8Powerade Zero 1.1Gatorade Rain No Excuses 3.1 2.7Category Total * --Includes brands not listed.Source: SymphonyIRI Group, Chicago. U.S. supermarkets, drug stores,gas/convenience stores and mass merchandise outlets (excludingWal-Mart) for the 52 weeks ending May 16, 2010. DOLLAR % CHANGE VS. MARKET % CHANGE VS. SALES PRIOR YEAR SHARE PRIOR YEARPropel $29,091,430 -3.7 45.8 -1.0Gatorade $22,773,280 -13.3 35.9 -4.9G2 Sticks $5,307,580 234.2 8.4 5.9Gatorade Frost $2,460,867 -8.4 3.9 -0.3Propel Calcium $2,152,071 49.4 3.4 1.2G2 Perform $668,200 -- 1.1 1.1Powerade $371,623 -32.2 0.6 -0.3Private Label $173,840 -44.4 0.3 -0.2Power Bar $160,136 -64.3 0.3 -0.4Tang Sport $136,386 -28.2 0.2 -0.1Category Total * $63,505,480 -1.5 100.0 --U.S. sports drink sales(millions of liters, off-trade volume)2004 2009 2014 *3,532.00 4,618.5 3,875.9
