Magazine: Energy drinks are flying high again

Energy drink is a functional product that fits very well into the consumer lifestyle of today’s rat race world. A growing number of people drink them instead of coffee. Sales plunged for a few years after the introduction of the public health product tax (NETA) in 2011, but they returned to a growth path from 2014.

Market leader HELL manufactures 1 million cans of energy drink a day in its Szikszó factory. Tamás Jenei, HELL’s director of commerce told our magazine that they export to more than 40 countries. Coca-Cola Hungary distributes Burn and Monster energy drinks. In 2015 both brands managed to sell more in terms of quantity than ever before. BUSZESZ Zrt. manufactures WATT energy drinks. Marketing manager Adrienn Horváth informed us that they produced more than 100 million cans of energy drink last year, having doubled their export in the last few years – WATT is sold in almost 40 countries. Attila Debreczeni, commercial manager of RISE Beverage & Food Kft. told Trade magazin that it is very difficult for new products to find their way to store shelves.

According to Katalin Bányi, trade marketing director of Coca-Cola Hungary, the mandatory Sunday closing of most shops in 2015 strengthened the position of small shops – which can be open on Sundays – even more in energy drink sales. National tobacco shops also continued their conquest in selling energy drinks in 2015. Ms Horváth added that in their distribution work they had started to focus more on small independent shops and tobacco shops. Consumers still like the 0.25-litre can format the best, but certain PET bottle products sell well, too. Mr Debreczeni reckons that sales data don’t justify the diversity of product formats available. Those who buy this product category like to try new flavours and limited edition products. Zoltán Jakab, off premise manager of Red Bull Hungary revealed to us that despite many popular new flavours being available, tutti-frutti is still the most popular product version.

In January 2015 HELL introduced a brand new concept: energy drinks with multivitamin content; what is more, in the Ice Cool series they came out with products enhanced with vitamins C and D. These new energy drinks were able to reach consumers who hadn’t bought the category before. Mr Debreczeni talked to our magazine about Hungarian consumers drinking energy drinks as they were some kind of refreshment – in neighbouring countries the caffeine content of products is more important for consumers. The majority of energy drink buyers represent the young generation, therefore manufacturers need to make sure that they target them with positive messages.

BUSZESZ Zrt. believes that cheap products don’t have to be of low quality, therefore they put WATT Natura on the market already in 2008, which contains many natural components. Both of Coca-Cola’s energy drinks, Burn and Monster, are lifestyle brands. Ms Bányi is of the opinion that the best tool for brand building is social media, but sponsoring various events and athletes who can represent the brand credibly works well, too. They cooperate with retail chains to implement personalised and exclusive activities for their energy drink brands. HELL thinks in terms of a 360-degree communication strategy, using new marketing opportunities more and more to reach consumers with greater efficiency. The company’s goal is to make the name HELL a synonym for reliability and quality. HELL has been a winner of the Superbrands and MagyarBrands recognitions for years.

Research conducted by BUSZESZ found that the most important trends that influence shoppers are health, organic and weight control. In line with this, this year the company plans to put new flavours on the market in its sugar-free range. In the regular category they will come out with a special flavour combination: the WATT watermelon-gooseberry energy drink in a can with a new design. WATT products target the young generation and the brand’s communication channels are chosen in accordance with this. In 2015 WATT apple-pear became Product of the Year. Red Bull will appear on store shelves with a seasonal product this summer. The company uses events, opinion leaders and innovative projects to convey its brand messages, emphasising credibility, creativity and performance.

RISE NRG products’ fundamental characteristic is that they come in flavours not available from other energy drink manufacturers. These products also sport a premium look. Mr Debreczeni told that the elder version of their energy drink is a regular winner at independent tests. RISE NRG products first appeared in shops in 2011 and in 2014 they returned with a new design. The brand was one of the main sponsors of TV2’s 2015 television programme, singing talent contest Rising Star. RISE energy drink offers consumers the energy of music – told Mr Debreczeni.