Add Some Vigor

According to Mintel, a global market research firm, sales of nutritional and performance drinks increased 42 percent from 2009 to 2014. In its January “Nutritional and Performance Drinks” report, Mintel projects sales will increase another 26 percent to more than $14 billion through 2019.

However, for store brand sports, nutritional and energy drinks to get a piece of the predicted growth within this category, retailers are going to have to have to offer consumers more options.

“Private label represents a small (and dwindling) percentage of category sales,” Mintel says. “This is more likely due to a lack of availability than a lack of consumer interest, as category participants indicate acceptance of store brands.”

The push for protein

Beverage producers are seeing a push for functional drinks with protein across the board, says Laura Klibanow, marketing director for Imbibe, Niles, Ill.

“There’s tons of new products launching that are stating the protein on the front label,” Klibanow explains. “That claim is really selling right now.”

One possible reason for the strong interest is that consumers are often looking for convenient drinks that can act as a healthful meal replacement.

Americans typically have a 24/7/365 lifestyle, which means they are often grabbing food and then running out the door, says Karen Finocchio, vice president of marketing for NVE Pharmaceuticals in Andover, N.J. Functional drinks that are high in protein help keep these consumers fuller for longer.

Mike Bush, senior vice president, Ganeden Biotech, Mayfield Heights, Ohio, says plant proteins, in particular, are growing in popularity because they’re viewed as more healthful.

“If I were developing a store brand in the protein space, I would be looking at plant proteins with smoothie mixes,” Bush says. “People appear to be attracted to smoothie mixes, pre-made and singleserve, [and] even stick packs where you can just pour it in a bottle of water and have a protein shake.”

While protein shakes have long been seen as thick and chalky without great flavor, Steve Fay, executive vice president at Berner Food & Beverage, Roscoe, Ill., says any new brand that is looking for a broad consumer appeal will have to deliver on flavor.

“Rather than have a real chalky shake or smoothie type of viscosity, we see more of what we call slammable or drinkable,” Fay says.

High-protein drinks aren’t the only beverages consumers want. They’re also interested in energy drinks.

Vigor in a bottle

Thanks to that same 24/7/365 lifestyle, many consumers also are looking for an afternoon pick-me-up. Sales of energy drinks and shots reached almost $2.7 billion in the 52 weeks ending April 19, according to Chicago-based Information Resources Inc. (IRI), a market research firm.

While store brands could tap into that growing market, they will first have to counter consumers’ concern that some energy drinks are not healthful.

“Nearly two in five respondents are drinking less energy drinks because they say they are not good for their health,” Mintel states in its August 2014 “Energy Drinks” report. “Concerns about sugar content and perceptions of negative information about energy drink health effects follow close behind.”

The health issue is especially pressing with energy shots, which have seen sales decline in recent years. Mintels “Energy Drinks” report suggests the trend will continue.

Another issue retailers will encounter is brand loyalty Fay says. National brands such as Monster in the energy drink category sell an image as much as a product, and it may not be seen as popular to drink a store brand product.

However, store brands could find an opportunity in price. Mintel says 31 percent of energy drink users surveyed for its report said they cut back on consumption because the products are too expensive.

Hildur Solvadottir, COO of Tuscaloosa, Ala-based CO: Beverage, and Jema Russo, the company’s business director, also see store brand opportunities in ready-to-drink coffee and teas.

“Consumers are looking for a product that fits that ‘better-for-you’ category,” Solvadottir says. “And when you compare coffee and tea drinks to the carbonated soda beverages, there aren’t added colors and other things.”

An added plus: Starbucks and Monster are almost the only brands on the shelves in the coffee and tea energy drink space, Russo says.

“It’s an uncrowded category and it offers really high margins,” Russo says. “When you only have Starbucks and Monster on the shelves, you have an opportunity to put your own product on the shelf at a lower price point.”

Functional, recyclable, informative

Consumers also want a few things out of drink packages these days. For example, they want to be able to see the liquid inside the packaging.

“Consumers overall are significantly interested in see-through beverage packaging, which allows them to see what they are buying, suggesting a possible red flag for aluminum cans and bottles, aseptic options, and even the majority of flexible packaging choices,” Mintel says it its February beverage packaging report titled “Beverage Packaging Trends: Spotlight on Beverage Labeling.”

But consumers also want the bottle to be easy to carry and easy to dispose of in an environmentally friendly way. In fact, PET plastics and aluminum cans have been setting the pace in sales. Both packaging types accounted for about 18 percent of drink packages sold in 2014, Mintel states in its beverage packaging report.

PET bottles and aluminum cans are also easier for manufacturers and retailers. Fay says they are lighter options that help keep freight costs down and decrease breakage during shipping.