Energy Drink and Alternative Beverages
Competition in Energy Drinks, Sports Drinks, and Vitamin-Enhanced Beverages
Written Report
June 17, 2013
Three Musketeers: Anatalio, John Patrick Cadao, Ana Graciela Sanchez, Maria Leona
1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
SEGMENTATION: The global market for alternative beverages was divided by product type (sports drinks, energy drinks, and vitamin-enhanced beverages) with different demands for each group. Sports drinks accounted for nearly 60% of alternative beverage sales in 2009, while vitamin-enhanced drinks and energy drinks got about 23% and 18% of 2009 alternative beverage sales, respectively, in the US.
RIVALRY: The worldwide competition between three major producers (PepsiCo, Coca-Cola and Red Bull) made the industry rivalry become global. In U.S., Pepsico has engulfed almost half or 47.8% of the market shares last 2009. The only region where Coca-Cola beats Pepsico is in Asia-Pacific. Coca-cola has 13.7% of the market shares while Pepsico has 12.4%. Worldwide, Pepsico is still leading among the three with 26.5% of market shares while Coca-Cola and Red Bull had 11.5% and 7%, respectively.
MARKET SIZE: The global beverage industry’s dollar value for beverages in 2009 was $1,581.7 billion (458.4 billion liters); with 48.2% of industry sales was from carbonated soft drinks, 29.2% from bottle water, 4.0% from sports drinks, 1.6% flavored or enhanced water, and 1.2% from energy drinks. The dollar value of global market for alternative beverages in the same year was $40.2 billion (12.7 billion liters), while the dollar value of the U.S. market for alternative beverages stood at $17 billion (4.2 billion liters). Meanwhile, in Asia-Pacific region, the dollar value for
Written Report
June 17, 2013
Three Musketeers: Anatalio, John Patrick Cadao, Ana Graciela Sanchez, Maria Leona
1. What are the strategically relevant components of the global and U.S. beverage industry macro-environment? How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain.
SEGMENTATION: The global market for alternative beverages was divided by product type (sports drinks, energy drinks, and vitamin-enhanced beverages) with different demands for each group. Sports drinks accounted for nearly 60% of alternative beverage sales in 2009, while vitamin-enhanced drinks and energy drinks got about 23% and 18% of 2009 alternative beverage sales, respectively, in the US.
RIVALRY: The worldwide competition between three major producers (PepsiCo, Coca-Cola and Red Bull) made the industry rivalry become global. In U.S., Pepsico has engulfed almost half or 47.8% of the market shares last 2009. The only region where Coca-Cola beats Pepsico is in Asia-Pacific. Coca-cola has 13.7% of the market shares while Pepsico has 12.4%. Worldwide, Pepsico is still leading among the three with 26.5% of market shares while Coca-Cola and Red Bull had 11.5% and 7%, respectively.
MARKET SIZE: The global beverage industry’s dollar value for beverages in 2009 was $1,581.7 billion (458.4 billion liters); with 48.2% of industry sales was from carbonated soft drinks, 29.2% from bottle water, 4.0% from sports drinks, 1.6% flavored or enhanced water, and 1.2% from energy drinks. The dollar value of global market for alternative beverages in the same year was $40.2 billion (12.7 billion liters), while the dollar value of the U.S. market for alternative beverages stood at $17 billion (4.2 billion liters). Meanwhile, in Asia-Pacific region, the dollar value for