Competition in Energy Drinks

Summary of “Competition in Energy Drinks, Sport Drinks, and Vitamin-Enhanced Beverages” * Beverages were popular in the mid-2000s. However, nowadays consumers are reducing their consumption of carbonated soft drinks. * To handle this issue, beverage companies such as Coca-Cola and PepsiCo introduced alternative beverage such as energy drinks, sport drinks, and vitamin drinks, and also new relaxation drinks. * While trying to expand their market, beverage industry also got the criticism about the effect of excessive consumption of high-caffeine-content, alcohol drinks, and relaxation drinks. * As beverage producers entered into new geographic markets, developed alternative beverages, and continued to create demand for popular drinks, the dollar value and volume sales of the global beverage industry for year 2005-2009 are increasing. It also forecasted to be increased until 2014. * The distribution of alternative beverages is really good. Consumers can find it in almost places such as convenience store, wholesale clubs, natural foods, supermarkets, and several events. The facts showed that convenience stores accounted for about 75 percent of energy sales in 2010. * The suppliers included the markers of such nutritive and non-nutritive ingredients, but also included the manufacturers of aluminum cans, plastic bottles and caps, label printers, and secondary packaging. All but the largest sellers of alternative beverages contracted procurement and production activities to contract bottlers. * Alternative beverages competed on the differentiation from traditional drinks such as carbonated soft drinks or fruit juices. * Recent trends in alternative beverage market are good prospect for the producers, high profit margin, and great innovation in brands, flavors, and formulations. Besides that, there are also some controversy about alternative beverage such as the relaxation drinks that were produced by humans, plants, and animals