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  • Power surge for UK energy and sports drinks
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8th February 2001

Power surge for UK energy and sports drinks

UK energy and sports drinks sales rocketed to £700 million in 2000, making Red Bull Britain's third biggest soft drinks brand by value, according to new research by specialist consultants Zenith International.

Using combined ACNielsen figures for retail and on premise outlets, the Zenith report shows functional energy drinks almost doubling in 2000 after trebling in 1999, with sports drinks also up 50% since 1998.

"This is not a passing fad," comments Zenith Chairman Richard Hall. "These drinks are the thin end of a new wedge that is reshaping consumer behaviour. People want products that not only look good and taste good, but also do good. Energy and sports drinks sell because they work as well as play." The report contains details of a new study by Loughborough University, which advises that lives could be saved on Britain's roads by drivers drinking functional energy drinks to stay alert.

Over 20 new brands were launched last year, including entries by four of the top five UK soft drinks companies. £20 million was spent on advertising energy and sports drinks in 2000, 18% of the total for all soft drinks.

Advice to retailers

Intended as a briefing for retailers to take full advantage of the energy and sports drinks phenomenon, the Zenith report provides a series of retail action points and argues strongly for more shelf space, as 17% of retail outlets still do not stock any energy or sports drinks and 59% of pubs and clubs do not yet list Red Bull. "There is now no excuse for any grocer or newsagent, pub or other venue not to stock them. Indeed, all the evidence points to more space, more choice and more prominence for higher sales, higher margins and higher profits," Richard Hall adds.

Entitled "Space … the final frontier", the report asserts that "In 2001 energy and sports drinks should no longer be a space oddity." If retailers act on the recommendations in the briefing, Zenith believes the market should rise to £1000 million by 2002. "In the 21st century odyssey for soft drinks, energy and sports drinks are among the most profitable stars in the fixture firmament," it concludes.

E-publishing coup

Taking a highly innovative approach to promoting its research, the new Zenith report has been published with an e-difference. "Both the web and printed versions are identical and computer screen sized," explains Richard Hall. "We believe this is the first time it has ever been done, certainly in our sector. Moreover, we are offering the entire report free on the internet for those not requiring a printed copy at £50."

Providing full year results for 2000, the report covers: volumes, values, segments and brands; individual retail sectors such as multiples and co-ops, CTNs, off licences and forecourts; on premise sectors by outlet type and region; plus consumers and usage, functionality explanations, over 100 product launches since 1985, advertising spends and cash rates of sale.

Printed copies cost £50 and may be obtained from Zenith International Tel +44 (0)1225 327900 Fax +44 (0)1225 327901.


Notes for Editors

1. Photography and printed copies of the report are available on request.

3. For further information, please contact:

Richard Hall or Emma Chambers
Zenith International Ltd
7 Kingsmead Square, Bath BA1 2AB, United Kingdom
Tel +44 (0)1225 327900 Fax +44 (0)1225 327901
E-mail info@zenithinternational.com
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