Magazine: Energy drinks are going in a more natural direction
In 2018 energy drinks produced one of the biggest sales growths in the soft drink category: sales grew by two-digit numbers in both value and volume; only ice teas performed better than this.
Dóra Pessenlehner, shopper marketing manager of Coca-Cola HBC Magyarország (they distribute the Monster and Burn brands) told: their energy drinks acquired new market share, thanks to the company’s innovation work and the appearance of new consumption occasions.
Tamás Jenei, director of commerce at HELL ENERGY Magyarország Kft. reported that their sales have also increased by more than 10 percent. HELL has remained the most dynamically growing energy drink brand.
We learned from Bálint Jencs, business development director of Aquarius-Aqua Kft. that the proportion of consumers who say no to energy drinks is still almost 40 percent, and another 25 percent only drink them once a month – these numbers show that the penetration level of the category is still very low.
RISE Energy Magyarország Kft.’s sales manager Regina Kiss also spoke about a stable, slightly growing energy drink market. RISE energy drink sales improved above the market average. She called attention to the fact that more and more new players are appearing in the market, which has a negative effect on established companies.
Dóra Deák, Red Bull Hungária Kft.’s trade marketing manager told our magazine that energy drink sales had grown by 13 percent from 2017 to 2018. She revealed that Red Bull’s sales grew above the market average in every channel – in volume altogether by 27 percent.
Levente Balogh, managing director of Skybaby SD Kft. opines that shoppers are looking for added value in energy drinks too, which the company’s products do offer!
Ms Deák reckons that shoppers are becoming more willing to buy premium products, therefore Red Bull Hungária Kft. expects sales growth in 2019. Ms Kiss added: it was a big change for RISE energy drinks that they appeared on the shelves of hypermarkets too. Mr Jenei reported that in 2018 energy drinks in 250ml aluminium can were the most popular in Hungary. HELL’s view is that those energy drinks can be called ‘premium’ which have the highest certification in terms of production technology, product ingredients and quality assurance, plus the manufacturer also pays special attention to marketing activities. HELL is a good example of this with the commercial starring Bruce Willis and added value products HELL ENERGY Active and Focus.
Ms Pessenlehner believes it is important to mention that health consciousness also matters to energy drink buyers. Zero- and low-calorie product sales developed way above the market average. One third of sales were realised by small shops, and National Tobacco Shops had a big part in this. Mr Jencs spoke about how consumers want energy drinks to deliver the so-called ‘kick effect’, to help them overcome periods of tiredness either physically or mentally. In his view it is an important task for manufacturers to widen the category. The company’s innovation work takes more directions and new products are about to be launched soon. He thinks that large volumes can only be sold from products that cost less than HUF 200.
Coca-Cola HBC Magyarország’s Monster brand put a new product on the Hungarian market in April: Monster Mango Loco. The Burn portfolio strengthened very much last year with the Mango product’s launch; this year they will introduce the brand’s Burn Sour-Twist energy drink. The company’s premium Coca-Cola Energy drink is produced and first marketed in Hungary and Spain: it offers the usual great taste and the well-known and popular feeling. Coca-Cola Energy contains caffeine from natural sources, guarana extract and vitamin B – and there is no taurine in this energy drink. It will be available in sugar-free and zero-calorie variants too, packaged in 250ml aluminium cans.
Red Bull Hungária Kft.’s Red Bull Zero energy drink targets health-conscious consumers. What is more, motivated by the success of last summer’s limited edition product, this summer they will come out with a seasonal flavour again. RISE Energy Magyarország Kft. will put two new RISE flavours on the market this year. The company is using natural and special product ingredients such as dragonfruit and black grape to make their energy drinks more efficient and exciting. Skybaby SD Kft.’s Zero product returned to shops with a completely new design and a more intense taste. Their classic energy drink will also be more intense, while the Cool and Bitter products will receive a new design, too.
Sales data from WATT indicate that exotic and special flavours are increasingly popular. Last year they launched MegaWATT, which contains more caffeine, in banana-kiwi flavour combination. It was so successful that this summer it is going to be the company’s limited edition product: WATT Maracuya-Papaya with 40mg/100ml caffeine content will be available from April to October. In 2019 WATT won PRODUCT OF THE YEAR in the energy drink category, thanks to the natural ingredients that can be found in all WATT products. HELL ENERGY Active is now made with BCAA and L-carnitine, and it contains 60 percent less sugar than standard HELL energy drinks. In May summer flavours will return in new packaging, plus new flavours will also be launched. //
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