Sweeter Sales Ahead
Opportunities for store brand drink mixes lie in energy-boosting water enhancers and cocktail-inspired flavors targeting adults.
Although it has experienced "subpar" performance in recent years, the store brand drink mix segment is expected to rebound to "better compete with national brands," says Daniel Granderson, an analyst with the Packaged Facts division of Rockville, Md.-based MarketResearch.com.
"After a period of unusually negative growth between 2009 and 2010 — and another subpar year in 2011 — the private label drink mix segment will rebound as consumers gain an ever-increasing trust in private label products in general, [which] will trickle down to smaller segments — such as the drink mix market," he says.
Trends with traction
According to "Category Insights Beverage Concentrates and Mixes," a June 2012 report from global market research firm Mintel, the recent success of Kraft Foods' line of MiO portable squeeze-bottle liquid water enhancers has helped drive consumer awareness of the water enhancer subcategory in a convenient, portable format. And many brands have been fast followers, rolling out similar products.
On the store brand side, the Mintel report points to three retailers that have done so within the past year: Bentonville, Ark.-based Walmart, with its Great Value line of performance-minded liquid water enhancers; Supervalu, Minneapolis, with its Essential Everyday line of zero-calorie liquid water enhancers; and Pleasanton, Calif.-based Safeway, with its line of Refreshe +Energy calorie-free liquid water enhancers.
Speaking of energy-boosting water enhancers, the Mintel report says a number of companies have introduced such products over the past year. For example, 4C Foods introduced its line of Totally Light Energy Rush drink mixes, which contain taurine and vitamin B. And Kraft Foods introduced its MiO Energy liquid water enhancer, which contains 60 milligrams of caffeine per serving.
More companies are expected to do the same during the next year, adds Virginia Lee, senior research analyst with Euromonitor International, Chicago.
"U.S. consumers are working long hours and look to energy drinks and energy [drink mixes] to keep them energized," she explains.
Trends on the horizon
As for what is to come, North American retailers could learn a thing or two by spying on their neighbors across the pond. According to the Mintel report, the European market provides examples of brands that "target adults on a flavor and format level."
At least one North American company already has innovated a bit with its drink mixes to better target adults, Mintel's report notes. Kraft Foods introduced three cocktail-inspired low-calorie drink mix varieties under the Crystal Light brand: Apple Martini, Mojito and Margarita.
An increasing number of companies also could respond to the coconut water craze during the next year with their drink mixes. The report points to two national brand manufacturers that have done so recently: Vancouver, British Columbia-based Blue Monkey Drinks, with its line of Blue Monkey Instant Coconut Water Mix powder packs; and Maxim-Ajmera, Aliso Viejo, Calif., with its line of REVA Coconut Water Instant Natural Mix powder packs.
As for low- and no-calorie drink mixes, Lee says brands used to using sucralose and stevia to sweeten their mixes could turn to a new option: Nectresse. Available from Fort Washington, Pa.-based McNeil Nutritionals, the no-calorie sweetener is made from monk fruit extract, erythritol, sugar and molasses.
"Nectresse offers zero calories and a better taste than [sucralose]," she explains.