Energy drinks are getting stronger in small shops too

Nielsen’s data indicate that the ‘crisis mood’ does not have an impact on energy drinks yet. The category changed significantly in the past 2-3 years, the dominance of premium brands shifted towards lower segments. Éda Pogány, Coca Cola Magyarország’s communications director told us that last year those brands were able to increase sales that originally offered low prices or were able to decrease prices, like Coca Cola Hungary’s Burn – this way the brand/value ratio made these products a better choice than private labels. The result: private label sales stalled and according to Tamás Modroczky, PlayBev CEE Kft.’s managing director sooner or later extremely low prices will be offered to the detriment of quality. Viktor Szupkay, Red Bull Hungary Kft.’s trade director thinks that energy drinks in the low price category won many new consumers for the segment who will turn to premium products after a while. Zoltán Fodor, BUSZESZ Zrt.’s deputy CEO expects a fiercer competition, with those brands carving out a larger slice from the cake that do aggressive price promotions and have good trade programme. Examining retail channels we can see the dominance of large stores fading and small shops gaining ground. It comes as a bit of a surprise, as energy drinks is an impulse category where POS tools are highly influential. Apparently large stores have become saturated by now and the way forward for producers and distributors is small shops. Zoltán Fodor added that well-organised small shops were able to match their large competitors. 9 MM Energy Kft.’s trade director Mariann Mező is of the opinion that we buy energy drinks when we are tired, no matter where we are at the moment – so it is not surprising that small shops, petrol stations or tobacco shops are expanding their energy drink selection. The company uses special POS material that fits the size of these units. Balázs Katona, the marketing manager of Büki Üdítő Kft. (the distributors of Bomba!) informed us that in the summer of 2009 they organised a touring sales team, targeting small, independent shops and bars or cafés. Taste and packaging units: tutti frutti flavour and small aluminium cans have been holding on to their position for years. János Gréczi, the managing director of Gramex 2000 Kft. also thinks that energy drinks suit aluminium cans the best, despite the efforts of certain producers to introduce family-size energy drinks. The company’s BIOPOWER energy drink is special not only because of its design, but also because of its natural and organic ingredients. It is a premium product with the flavour and power of traditional energy drinks. Red Bull was the founder of the energy drink category and its popularity never declined in the past 23 years. Bernadett Nagy told us that the product’s design had been the same for 20 years and the well-known packaging unit was also introduced by the company’s founder. From March they start selling the 60-ml Red Bull Energy Shot that is not carbonated, therefore it requires no cooling. Its small size makes it perfect for consumption in several different situations. PlayBev CEE Kft., the Hungarian representative of Playboy energy drink will come out with a unique product in the second quarter. Burn was the first energy drink available in mixed fruit flavour, red colour or aluminium bottle. Last June they increased the caffeine content of Burn and they communicated this, and a lower price, with new POS materials. 9MM has a unique design among energy drinks and looking special is a great advantage for the product on the shelves. Bomba! recently appeared in 0.6 l PET bottles, the first branded energy drink to do so. The product looks exactly like the 0,25 l version, but it is of course reclosable. WATT is well-known in five countries and its wide assortment, which includes sports drinks, offers a natural, light character to all types of customers. Zoltán Fodor informed us that they would continue communicating with funny, easily consumable messages. They definitely see a potential in PET bottle packaging.