Functional and Natural Ready-to-Drink Beverages in the U.S.
Packaged Facts’ Functional and Natural RTD Beverages in the U.S. offers a comprehensive look at the $21 billion market for single-serve, ready-to-drink (RTD) beverages across three categories and several competing product segments: (1) energy drinks/shots, sports drinks, and nutrient-enhanced waters, in itself a $15 billion category; (2) RTD tea and coffee, and (3) refrigerated yogurt drinks and juice/fruit smoothies. A 7% aggregate compound annual growth rate for these products over the most recent five-year period is a testament to the strength of the market before 2007 and since 2010. In the recessionary years of 2008 and 2009, most of these product segments flat-lined in sales growth, in keeping with the overall sales slump in foods and beverages as well as in the U.S. consumer economy overall. By 2010, nonetheless, energy/sports drinks and RTD tea/coffee showed renewed dynamism, signaling the onset of a new cycle of sales growth for these convenience, refreshment and re-charge beverages. However controversial some energy drinks may be, this lively product segment continues to call the shots in the market, accounting for 44% of the total product introductions in 2010. Many new product introductions in rival “pick up, pick me up” beverage segments are clearly marching to the beat of energy drinks or energy shots, and the newest product segment in this market, nutrient-enhanced waters, competes as a lighter re-mix of energy/sports drinks.
Functional and Natural RTD Beverages in the U.S. examines sales and trends across the retail spectrum, using proprietary primary data from Packaged Facts' March 2011 food shoppers Insights survey as well as retail sales-tracking data from Information Resources, Inc. InfoScan Review for mass channels and SPINSscan Review for the natural channel. This report tabulates market composition by product category and retail channel, as well as marketer/brand shares within and across product segments. The analysis pays special attention to cross-category trends in new product development, drawing on comprehensive new product data from Datamonitor’s Product Launch Analytics database, and analyzes consumer usage (including demographic and psychographic context) based on current and five-year-trended Experian Simmons national consumer survey data.
Functional and Natural RTD Beverages in the U.S. examines sales and trends across the retail spectrum, using proprietary primary data from Packaged Facts' March 2011 food shoppers Insights survey as well as retail sales-tracking data from Information Resources, Inc. InfoScan Review for mass channels and SPINSscan Review for the natural channel. This report tabulates market composition by product category and retail channel, as well as marketer/brand shares within and across product segments. The analysis pays special attention to cross-category trends in new product development, drawing on comprehensive new product data from Datamonitor’s Product Launch Analytics database, and analyzes consumer usage (including demographic and psychographic context) based on current and five-year-trended Experian Simmons national consumer survey data.
CHAPTER 1: EXECUTIVE SUMMARY
Scope of Report
Three Categories, Seven Segments
Report Methodology
Market Overview
Retail Sales at $23.4 Billion in 2010
Figure 1-1: U.S. Retail Sales of RTD Functional and Natural Beverages, 2006-2010 (in millions of dollars)
Sales Edge Out of Recessionary Slump
Table 1-1: U.S. Retail Sales of RTD Functional and Natural Beverages by Category, 2006-2010 (in millions of dollars)
PepsiCo Leads as Marketer/Distributor
Table 1-2: Leading Marketer/Distributor Shares of SymphonyIRI-Tracked Sales of RTD Functional and Natural Beverages, 2010 (percent)
Demographics Favor Increased Consumption
Table 1-3: Usage Rates for Selected RTD Functional or Natural Beverage Product Segments: RTD Tea, Sports Drinks, and Energy Drinks, 2005-2010 (percent of U.S. adults)
Category Focus: Energy Drinks, Sport Drinks, and Functional Waters
Energy Drinks at 57% Category Share
Figure 1-2: Segment Sales Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006 vs. 2010 (percent)
Convenience Stores Claim Half of Category
Figure 1-3: Retail Channel Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters Category, 2010 (percent)
Energy Drinks and Energy Shots Have Opposing Meta-Trends
Top Four Energy Drink/Shot Marketers Control 82% Share
Usage Rates Edge Up Despite Recession
Table 1-4: Usage Overview for Energy Drinks: Overall and by Leading Brand Lines, 2006-2010 (percent of U.S. adults)
Younger Adults and Hispanics Are Top Consumers
Athletic Performance: The Once and Future Meta-Trend of Sports Drinks
Nearly 40% Use Sports Drinks
Table 1-5: Usage Overview for Sports Drinks: Overall, Gatorade, and Powerade, 2006-2010 (percent of U.S. adults)
Younger Adults and Hispanics Are Again Top Consumers
SKU Introductions Average 100+ Annually Over 2006-2010
Table 1-6: New Product Introductions in U.S. Market for Functional Waters, 2006-2010 (reports and stock-keeping units)
Alternative Retail and Healthy Convenience Draw
Retail Sales to Reach $25 Billion by 2015
Table 1-7: Projected U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010-2015 (in millions of dollars)
Category Focus: Ready-to-Drink Tea and Coffee
RTD Tea Claims 58% of Category Sales
Figure 1-4: Segment Sales Shares for Ready-to-Drink Tea and Coffee, 2006 vs. 2010 (percent)
Supermarkets/Supercenters Claim Two-Thirds of RTD Tea/Coffee Category
Figure 1-5: Retail Channel Shares for Ready-to-Drink Tea and Coffee Category, 2010 (percent)
Wide Spectrum of Teas Is Segment Meta-Trend
RTD Teas Benefit from Broad Demographic Draw
Figure 1-7: Use of Ready-to-Drink Tea by Age Bracket, 2010 (percent and index)
“Coffeehouse in a Bottle” Is Segment Meta-Trend
RTD Coffee Usage Rates Edge Back Up
Table 1-8: Usage Overview for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2006-2010 (percent of U.S. adults)
Dairy Synergy
RTD Tea/Coffee Retail Sales to Reach $7.4 Billion by 2015
Table 1-9: Projected U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2010-2015 (in millions of dollars)
Category Focus: Yogurt Drinks and Fruit/Vegetable Smoothies
Supermarkets/Food Stores Claim 61% of Category
Figure 1-8: Retail Channel Shares for Refrigerated Yogurt Drinks and Smoothies Category, 2010 (percent)
Probiotics Are Yogurt Drink Meta-Trend
Marquez Brothers Heads Up Latin-Style Competitors
General Mills Angling for Control of Yoplait
Yogurt Drink Consumers Are Dieting and Fast Food Prone
Hispanics Are Prime Consumers
“Better Living Through Fresh Juice” Is Smoothie Meta-Trend
California Culture Roots Reflected in Current Marketing
5% of Adults Use Smoothies
Retail Sales to Reach $1.1 Billion by 2015
Table 1-10: Projected U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2010-2015 (in millions of dollars)
Looking Ahead
A Consumer Needs Perspective
Table 1-11: Percent of Consumers Who Purchase Selected Beverage Types When Grocery Shopping, 2011 (percent of U.S. adults)
Growing Consumer Base and Pacesetting New Products
Science No Longer Versus Nature
CHAPTER 2: OVERALL MARKET
Scope of Report
Three Categories, Seven Segments
Report Methodology
“Functional” and “Natural” Are Not Mutually Exclusive
Hybrid Spirit Runs Deep in RTD
Market Size and Composition
Retail Sales at $23.4 Billion in 2010
Figure 2-1: U.S. Retail Sales of RTD Functional and Natural Beverages, 2006-2010 (in millions of dollars)
Sales Edge Out of Recessionary Slump
Table 2-1: U.S. Retail Sales of RTD Functional and Natural Beverage by Category, 2006-2010 (in millions of dollars)
Energy Drinks/Shots Approach $10 Billion in Sales
Table 2-2: U.S. Retail Sales of RTD Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
RTD Tea Reaches $4 Billion in Sales
Table 2-3: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
Refrigerated Smoothie Sales Surge
Table 2-4: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $6.0 Billion in 2010
Table 2-5: SymphonyIRI-Tracked Sales by RTD Functional and Natural Beverage Category and Segment, 2010 (in millions of dollars)
Overall Market Outlook
PepsiCo Leads as Marketer/Distributor
Table 2-5: Leading Marketer/Distributor Shares of SymphonyIRI-Tracked Sales of RTD Functional and Natural Beverages, 2010 (percent)
Gatorade Returns to Growth with Back-to-Basics Positioning
Downturns and Upticks in Product Introductions
Table 2-6a: New Product Introductions in U.S. Market for RTD Functional and Natural Beverages: By Product Segment, 2006-2010 (reports and stock-keeping units)
Table 2-6b: New Product Introductions in U.S. Market for RTD Functional and Natural Beverages: By Product Segment, 2006-2010 (reports and stock-keeping units)
Demographics Favor Increased Consumption
Table 2-7: Usage Rates for Selected RTD Functional or Natural Beverage Product Segments: RTD Tea, Sports Drinks, and Energy Drinks, 2005-2010 (percent of U.S. adults)
Figure 2-2: Use of Red Bull Energy Drinks/Shots and Living Essentials 5-Hour Energy Shots by Adult Generational Cohort, 2010 (percent)
Caffeine-Positive Culture
A Boost from Antioxidants
Figure 2-3: Top Grocery Product Nutritional Claims, 2011 (percent)
High Interest in “Superfruit” Juices Benefits Market
Table 2-8: Purchasing of Selected “Superfruit” Beverage Types Within The Past 12 Months, 2009 (percent of U.S. adults)
Superfruits Are Everywhere in Functional and Natural Beverages Market
Superhyping of Superfruits
Probiotics Beyond Yogurt
Have Marketers Found the Sugar-Free Pot of Gold?
Stevia Jumps to Head of Line with Natural Appeal
Neotame’s Artificiality a Marketing Downside
Low/No-Cal Sweeteners Still a Work in Progress
Glomming on to Gluten-Free
Internet Help Creates and Level Playing Field for Hip Marketers
Illustration 2-1: Screen Shots from Web Feed for Adina for Life’s “Drink No Evil!”
Cautionary Tales from Bolthouse and Rockstar
Illustration 2-2: Poster for Bolthouse Protest Demonstration
Eco-Consciousness: If You Talk the Talk, Walk the Walk
Honest Tea Adopts Lighter-Weight PET
Naked Juice Packaging Is Not Just Recyclable But Recycled
Odwalla Ups the Eco-Ante With Plant-Based Plastic
Natural, Organic and Fair Trade Add Value
Popularity of Supplements Bodes Well for Market
Figure 2-5: U.S. Retail Sales of Nutritional Supplements (in millions of dollars)
CHAPTER 3: ENERGY DRINKS, SPORTS DRINKS, AND FUNCTIONAL WATERS
Introduction
Energy Drinks vs. Sports Drinks vs. Functional Waters
Category Sales at $17.4 Billion
Figure 3-1: U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
Table 3-1: U.S. Retail Sales of RTD Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $3.7 Billion in 2010
Table 3-2: SymphonyIRI-Tracked Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010 (in millions of dollars)
Energy Drinks at 57% Category Share
Figure 3-2: Segment Sales Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006 vs. 2010 (percent)
SPINSscan Tracking Shows Surge for Isotonic Beverages
Table 3-3: SPINSscan-Tracked Sales of Sports, Energy, and Other Functional Beverages: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
Convenience Stores Claim Half of Category
Figure 3-3: Retail Channel Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters Category, 2010 (percent)
Segment Focus: Energy Drinks
Energy Drinks and Energy Shots Have Opposing Meta-Trends
What’s Energetic in Energy Drinks and Shots?
Sugar
B Vitamins
Amino Acids
Milk Thistle and Everything Else
Triggering the Placebo Effect?
Antecedents of Energy Drinks
The Modern Energy Drink in the U.S
Ties to the Rave and Nightclub Scene
Extreme Sports as Individual Expression
Music and Red Bull Marketing
The Marketing Roadmap for Energy Drinks
5-Hour Energy Shots Blast Off
Top Four Energy Drink/Shot Marketers Control 82% Share
Table 3-4: SymphonyIRI-Tracked Sales of Energy Drinks and Shots: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
100 Product Introduction Reports in 2010
Table 3-5
New Product Introductions in U.S. Market for Energy Drinks, 2006-2010 (reports and stock-keeping units)
Usage Rates Edge Up Despite Recession
Table 3-6: Usage Overview for Energy Drinks: Overall and by Leading Brand Lines, 2006-2010 (percent of U.S. adults)
Table 3-7: Grocery Shopping Patterns for Energy Drinks: Overall and for Red Bull and 5-Hour Energy Brands, 2010 (percent of customers and index)
Table 3-8: Health and Nutrition Psychographics for Energy Drink Consumers: Overall and for Red Bull and 5-Hour Energy Brand Lines, 2010 (percent and index)
Younger Adults and Hispanics Are Top Consumers
Table 3-9: Consumer Demographics: Energy Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Sports Drinks
Athletic Performance: The Once and Future Meta-Trend
The Origin of the Sports Drink
Sports Drinks and the Prevention of Heat Related Illness
Categories of Sports Drinks
The Dairy Belt’s New Sports Drink: Chocolate Milk
Gatorade at 76% of Segment
Table 3-10: SymphonyIRI-Tracked Sales of Sports Drinks: By Top Marketers and Brand Lines, 2010 (in millions of dollars)
New Product Introductions Rates Remain High
Table 3-11: New Product Introductions in U.S. Market for Sports Drinks, 2006-2010 (reports and stock-keeping units)
Added Ingredients Trend Triggers Relaunches
Don’t Settle For “An Incomplete Sports Drink”
Indra Nooyi Takes Charge
The G Series Explained
Gatorade and the NFL Launch Beat the Heat PSA Campaign
GSSI for the (Youthful) Masses: The Gatorade Performance Center
Celebrity Marketing
Illustration 5-1: 2010 Powerade Team Website Banner
Powerade Creates FIFA Tie-in to Pursue Hispanic Market
Nearly 40% Use Sports Drinks
Table 3-12: Usage Overview for Sports Drinks: Overall, Gatorade, and Powerade, 2006-2010 (percent of U.S. adults)
Table 3-13: Grocery Shopping Patterns for Sports Drinks, 2010 (percent of customers and index)
Table 3-14: Health and Nutrition Psychographics for Sports Drink Consumers, 2010 (percent and index)
Younger Adults and Hispanics Are Top Consumers
Table 3-15: Consumer Demographics: Sports Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Functional Waters
Functional Water: Like Water, Only Better
Putting the Function in Functional Water
Vitamins and Minerals
Fluoride
Electrolytes
Protein Exits Center Stage
Other Nutraceutical Ingredients
Functional Flavoring?
Water, of Course
The “Healthy” Debate
Top Two Marketers Corner 97% of Sales
Table 3-16: SymphonyIRI-Tracked Sales of Functional Waters: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Vitaminwater Fights Back
SoBe Lifewater Goes “Zero”
Illustration 3-2: Screenshot from SoBe “Inner Lizard” Ad
Propel Beefs Up its Line-Up
The “Skinny” on Skinny Water
Illustration 3-3: Skinny Nutrition’s New Skinny Water Lineup
Arizona Rescue Water: The Power of Tea
SKU Introductions Average 100+ Annually Over 2006-2010
Table 3-17: New Product Introductions in U.S. Market for Functional Waters, 2006-2010 (reports and stock-keeping units)
Alternative Retail and Healthy Convenience Draw
Table 3-18: Usage Overview for Functional Waters, 2009-2010 (percent of U.S. adults)
Table 3-19: Grocery Shopping Patterns for Functional Waters, 2010 (percent of customers and index)
Table 3-20: Health and Nutrition Psychographics for Functional Water Consumers, 2010 (percent and index)
Younger, African-American Skews to Consumer Base
Table 3-21: Consumer Demographics: Functional Waters, 2010 (percent, number of adults, and index)
Category Growth Projections
Retail Sales to Reach $25 Billion by 2015
Table 3-22: Projected U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010-2015 (in millions of dollars)
CHAPTER 4: READY-TO-DRINK TEA AND COFFEE
Introduction
What Is RTD Tea?
What Is RTD Coffee?
RTD Tea vs. Coffee Marketing Trajectories
Category Sales at $5.1 Billion
Figure 4-1: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
Table 4-1: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $1.9 Billion in 2010
Table 4-2: SymphonyIRI-Tracked Sales of Ready-to-Drink Tea and Coffee, 2010 (in millions of dollars)
RTD Tea Claims 58% of Category Sales
Figure 4-2: Segment Sales Shares for Ready-to-Drink Tea and Coffee, 2006 vs. 2010 (percent)
SPINSscan-Tracked Sales of RTD Tea/Coffee at $23 Million in 2010
Table 4-3: SPINSscan-Tracked Sales of Ready-to-Drink Tea and Coffee: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
Supermarkets/Supercenters Claim Two-Thirds of Category
Figure 4-3: Retail Channel Shares for Ready-to-Drink Tea and Coffee Category, 2010 (percent)
Segment Focus: Ready-to-Drink Tea
Wide Spectrum of Teas Is the Meta-Trend
Varieties of Tea
Top Four Players Account for 72% of SymphonyIRI-Tracked Sales
Table 4-4: SymphonyIRI-Tracked Sales of Shelf-Stable or Refrigerated Ready-to-Drink Tea: By Top Marketers and Brand Lines, 2010 (in millions of dollars)
Table 4-5: SymphonyIRI-Tracked Sales of Shelf-Stable Ready-to-Drink Tea: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Table 4-6: SymphonyIRI-Tracked Sales of Refrigerated Ready-to-Drink Tea: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Power Structure Can Propel Successful Entrepreneurs
New Product Introduction Rates Remain High
Table 4-7: New Product Introductions in U.S. Market for Ready-to-Drink Tea, 2006-2010 (reports and stock-keeping units)
Figure 4-4: New Product Introductions by Flavor in U.S. Market for Ready-to-Drink Tea, 52 Weeks Ending March 31, 2011 (number of reports)
Figure 4-5: New Product Introductions by Package Claim/Tag in U.S. Market for Ready-to-Drink Tea, 52 Weeks Ending March 31, 2011 (number of reports)
RTD Tea Usage Rates Edge Up
Table 4-8: Usage Overview for Ready-to-Drink Tea, 2006-2010 (percent of U.S. adults)
7-Eleven, BJ’s Wholesale Customers Are Prime RTD Tea Drinkers
Table 4-9: Grocery Shopping Patterns for Ready-to-Drink Tea, 2010 (percent of customers and index)
RTD Tea Consumers Are Health and New Product Prone
Table 4-10: Health and Nutrition Psychographics for Ready-to-Drink Tea Consumers, 2010 (percent and index)
Diet Versions, Arizona Brand on Usage Upswing
Table 4-11: Usage Overview by Type and Brand: Ready-to-Drink Tea, 2006-2010 (percent of U.S. adults)
RTD Teas Benefit from Broad Demographic Draw
Figure 4-6: Use of Ready-to-Drink Tea by Age Bracket, 2010 (percent and index)
Table 4-12: Consumer Demographics: Ready-to-Drink Tea, 2010 (percent, number of adults, and index)
Segment Focus: Ready-to-Drink Coffee
“Coffeehouse in a Bottle” Is the Meta-Trend
Arabica vs. Robusta Coffee Beans
RTD Coffee Beginning to Tout 100% Arabica Beans
Caffeine, De-Caffeinated, and Hyper-Caffeinated RTD Coffee
Blended Coffees
Varietal and Estate Coffees
Organic Coffee and Sustainably Grown Coffee
Fair Trade Coffee
Shade Grown Coffee
The Roasting Process
Roast Categories
Espresso: A Brewing Process as Well as a Roast
Flavoring Coffee
Chocolate Tie-Ins
Coffeehouse Terms Used in RTD Beverages
Italianesque Coffeehouse Terms
Research Supports Coffee’s Health Halo
Starbucks at 90% of SymphonyIRI-Tracked RTD/Rfg Coffee Sales
Table 4-13: SymphonyIRI-Tracked Sales of Ready-to-Drink and Refrigerated Coffee: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
New Product Introductions Approach Pre-Recession Levels
Table 4-14: New Product Introductions in U.S. Market for Ready-to-Drink Coffee, 2006-2010 (reports and stockkeeping units)
Consumer Usage Rates Also Edge Back Up
Table 4-15: Usage Overview for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2006-2010 (percent of U.S. adults)
Diverse Retail Patterns for RTD Coffee Drinkers
Table 4-16: Grocery Shopping Patterns for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2010 (percent of customers and index)
Dairy Synergy: Coffee and Yogurt Drink Psychographics
Table 4-17: Health and Nutrition Psychographics for Ready-to-Drink Coffee Consumers: Overall and for Starbucks Brands, 2010 (percent and index)
Asian-Americans Head List of Top Consumers
Table 4-18: Consumer Demographics: Ready-to-Drink Coffee, 2010 (percent, number of adults, and index)
Category Growth Projections
Retail Sales to Reach $7.4 Billion by 2015
Table 4-19: Projected U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2010-2015 (in millions of dollars)
CHAPTER 5: YOGURT DRINKS AND SMOOTHIES
Introduction
Yogurt Drinks vs. Smoothies
Category Sales at $894 Million
Figure 5-1: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
Table 5-1: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $523 Million in 2010
Table 5-2: SymphonyIRI-Tracked Sales of Refrigerated Yogurt Drinks and Smoothies, 2010 (in millions of dollars)
Figure 5-2: Segment Sales Shares for Refrigerated Yogurt Drinks and Smoothies, 2006 vs. 2010 (percent)
SPINSscan-Tracked Sales of Yogurt and Kefir Drinks at $16 Million in 2010
Table 5-3: SPINSscan-Tracked Sales of Yogurt & Kefir Drinks: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
SPINSscan Tracking of Rfg Fruit/Vegetable Blends at $4.5 Million
Supermarkets/Food Stores Claim 61% of Category
Figure 5-3: Retail Channel Shares for Refrigerated Yogurt Drinks and Smoothies Category, 2010 (percent)
Segment Focus: Yogurt Drinks
Probiotics Are Segment’s Meta-Trend
Lactose Bulgaricus and the Emergence of Probiotics
Yakult and the Arrival of Probiotic Yogurt Drinks
Dannon at 56% of SymphonyIRI-Tracked Sales
Table 5-4: SymphonyIRI-Tracked Sales of Refrigerated Yogurt Drinks: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Marquez Brothers Heads Up Latin-Style Competitors
General Mills Angling for Control of Yoplait
The Regulatory Challenge of Marketing Probiotics
Illustration 5-1: Screen Shot from Yakult’s “Love Your Insides” TV Spot
Illustration 5-2: Screen Shot from Yakult’s “Love Your Insides” TV Spot
Prove It!
DanActive Claims Lead to Lawsuits
Illustration 5-3: Screen Shots from DanActive “Body Defenses” TV Spot
Dannon Probiotics Websites Offline
Illustration 5-4: Screen Shot of Dannon Probiotics Center
Stonyfield’s Organic Greener, Gentler Probiotic Positioning
Success of Danimals and Lactobacillus Rhamnosus GG
Illustration 5-5: Screen Shot of Epoca Cool Spanish Language Video Spot
More for the Kids
The Frusion Breakfast Smoothie
New Product Introductions Pick Up in 2010
Table 5-5: New Product Introductions in U.S. Market for Refrigerated Yogurt Drinks, 2006-2010 (reports and stockkeeping units)
Usage Rates for Yogurt Drinks on the Rebound
Figure 5-4: Usage Overview for Yogurt Drinks, 2008-2010 (percent of U.S. adults)
Natural Supermarket Shoppers and Yogurt Drinks
Table 5-6: Grocery Shopping Patterns for Yogurt Drink Consumers, 2010 (percent of customers and index)
Yogurt Drink Consumers Are Also Dieting and Fast Food Prone
Table 5-7: Health and Nutrition Psychographics for Yogurt Drink Consumers, 2010 (percent and index)
Hispanics Are Prime Consumers
Table 5-8: Consumer Demographics: Yogurt Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Smoothie Drinks
“Better Living Through Fresh Juice” Is Segment’s Meta-Trend
A Primer on Smoothies
Made-to-Order Foodservice vs. Packaged Retail
Green Smoothies
Why Smoothies?
Roots in Health and Fitness Culture
Bernarr MacFadden: Diet and Fitness Pioneer
Paul Bragg and California “Juice Therapy”
The Countercultural Birth of the Smoothie
Top Three Marketers Control 94% of SymphonyIRI-Tracked Sales
Table 5-9: SymphonyIRI-Tracked Sales of Refrigerated Juice/Drink Smoothies: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
California Juice Culture in Odwalla’s Current Marketing
Sustainable Sourcing for Naked Juice and Odwalla
Illustration 5-6: Print Ad for Odwalla’s Haiti Hope Project
Eco-Packaging for Naked Juice and Odwalla
Odwalla’s Plant a Tree Program
Illustration 5-7: Map of Odwalla’s Plant a Tree Program
Bolthouse’s Trade Promotion Optimization Planner
New Product Introduction Trends
Table 5-10: New Product Introductions in U.S. Market for Smoothies: Refrigerated vs. Shelf-Stable/Frozen, 2006- 2010 (number)
Approximately 5% of Adults Use Smoothies
Table 5-11: Usage Overview: Odwalla, Naked Juice, and Bolthouse Farms Fruit Juices/Drinks, 2009-2010 (percent of U.S. adults)
Grocery Shopper Patterns by Smoothie Brand
Table 5-12: Grocery Shopping Overview: Odwalla, Naked Juice, and Bolthouse Farms Consumers, 2010 (percent of customers and index)
Nutrition Psychographics for Smoothie Consumers
Table 5-13: Consumer Psychographics: Odwalla, Naked Juice, and Bolthouse Farms, 2010 (percent and index)
Gen Y, Blacks, and Pacific Region Consumers Are Prime Demographics
Figure 5-5: Usage Rates for Smoothies by Generational Age Bracket, 2010 (percent)
Table 5-14: Consumer Demographics: Odwalla, Naked Juice, and Bolthouse Farms, 2010 (percent and index)
Category Growth Projections
Retail Sales To Reach $1.1 Billion by 2015
Table 5-15: Projected U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2010-2015 (in millions of dollars)
CHAPTER 6: LOOKING AHEAD
A Consumer Perspective
Table 6-1: Percent of Consumers Who Purchase Selected Beverage Types When Grocery Shopping, 2011 (percent of U.S. adults)
Living Essentials
Table 6-2: Percent of U.S. Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Their Nutritional Benefits in Relation to Specific Health Conditions or Concerns, 2009
An Energetically Growing Consumer Base
Table 6-3: Percent of Consumers Who Use Selected Beverage Types, 2004 vs. 2010 (percent of U.S. adults)
Pacesetting New Products
Table 6-4: SymphonyIRI 2010 New Product Pacesetters: Top 10 Food and Beverage Brands (in millions of dollars)
Science No Longer Versus Nature
Table 6-5: Percent of New Product Introductions Making Selected Packaging Claims: Energy/Sports Drinks, Readyto-Drink Tea/Coffee, and Refrigerated Yogurt/ Smoothies, Two-Year Period Ending March 21, 2011 (percent)
APPENDIX: ADDRESSES OF SELECTED MARKETERS
Scope of Report
Three Categories, Seven Segments
Report Methodology
Market Overview
Retail Sales at $23.4 Billion in 2010
Figure 1-1: U.S. Retail Sales of RTD Functional and Natural Beverages, 2006-2010 (in millions of dollars)
Sales Edge Out of Recessionary Slump
Table 1-1: U.S. Retail Sales of RTD Functional and Natural Beverages by Category, 2006-2010 (in millions of dollars)
PepsiCo Leads as Marketer/Distributor
Table 1-2: Leading Marketer/Distributor Shares of SymphonyIRI-Tracked Sales of RTD Functional and Natural Beverages, 2010 (percent)
Demographics Favor Increased Consumption
Table 1-3: Usage Rates for Selected RTD Functional or Natural Beverage Product Segments: RTD Tea, Sports Drinks, and Energy Drinks, 2005-2010 (percent of U.S. adults)
Category Focus: Energy Drinks, Sport Drinks, and Functional Waters
Energy Drinks at 57% Category Share
Figure 1-2: Segment Sales Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006 vs. 2010 (percent)
Convenience Stores Claim Half of Category
Figure 1-3: Retail Channel Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters Category, 2010 (percent)
Energy Drinks and Energy Shots Have Opposing Meta-Trends
Top Four Energy Drink/Shot Marketers Control 82% Share
Usage Rates Edge Up Despite Recession
Table 1-4: Usage Overview for Energy Drinks: Overall and by Leading Brand Lines, 2006-2010 (percent of U.S. adults)
Younger Adults and Hispanics Are Top Consumers
Athletic Performance: The Once and Future Meta-Trend of Sports Drinks
Nearly 40% Use Sports Drinks
Table 1-5: Usage Overview for Sports Drinks: Overall, Gatorade, and Powerade, 2006-2010 (percent of U.S. adults)
Younger Adults and Hispanics Are Again Top Consumers
SKU Introductions Average 100+ Annually Over 2006-2010
Table 1-6: New Product Introductions in U.S. Market for Functional Waters, 2006-2010 (reports and stock-keeping units)
Alternative Retail and Healthy Convenience Draw
Retail Sales to Reach $25 Billion by 2015
Table 1-7: Projected U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010-2015 (in millions of dollars)
Category Focus: Ready-to-Drink Tea and Coffee
RTD Tea Claims 58% of Category Sales
Figure 1-4: Segment Sales Shares for Ready-to-Drink Tea and Coffee, 2006 vs. 2010 (percent)
Supermarkets/Supercenters Claim Two-Thirds of RTD Tea/Coffee Category
Figure 1-5: Retail Channel Shares for Ready-to-Drink Tea and Coffee Category, 2010 (percent)
Wide Spectrum of Teas Is Segment Meta-Trend
RTD Teas Benefit from Broad Demographic Draw
Figure 1-7: Use of Ready-to-Drink Tea by Age Bracket, 2010 (percent and index)
“Coffeehouse in a Bottle” Is Segment Meta-Trend
RTD Coffee Usage Rates Edge Back Up
Table 1-8: Usage Overview for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2006-2010 (percent of U.S. adults)
Dairy Synergy
RTD Tea/Coffee Retail Sales to Reach $7.4 Billion by 2015
Table 1-9: Projected U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2010-2015 (in millions of dollars)
Category Focus: Yogurt Drinks and Fruit/Vegetable Smoothies
Supermarkets/Food Stores Claim 61% of Category
Figure 1-8: Retail Channel Shares for Refrigerated Yogurt Drinks and Smoothies Category, 2010 (percent)
Probiotics Are Yogurt Drink Meta-Trend
Marquez Brothers Heads Up Latin-Style Competitors
General Mills Angling for Control of Yoplait
Yogurt Drink Consumers Are Dieting and Fast Food Prone
Hispanics Are Prime Consumers
“Better Living Through Fresh Juice” Is Smoothie Meta-Trend
California Culture Roots Reflected in Current Marketing
5% of Adults Use Smoothies
Retail Sales to Reach $1.1 Billion by 2015
Table 1-10: Projected U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2010-2015 (in millions of dollars)
Looking Ahead
A Consumer Needs Perspective
Table 1-11: Percent of Consumers Who Purchase Selected Beverage Types When Grocery Shopping, 2011 (percent of U.S. adults)
Growing Consumer Base and Pacesetting New Products
Science No Longer Versus Nature
CHAPTER 2: OVERALL MARKET
Scope of Report
Three Categories, Seven Segments
Report Methodology
“Functional” and “Natural” Are Not Mutually Exclusive
Hybrid Spirit Runs Deep in RTD
Market Size and Composition
Retail Sales at $23.4 Billion in 2010
Figure 2-1: U.S. Retail Sales of RTD Functional and Natural Beverages, 2006-2010 (in millions of dollars)
Sales Edge Out of Recessionary Slump
Table 2-1: U.S. Retail Sales of RTD Functional and Natural Beverage by Category, 2006-2010 (in millions of dollars)
Energy Drinks/Shots Approach $10 Billion in Sales
Table 2-2: U.S. Retail Sales of RTD Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
RTD Tea Reaches $4 Billion in Sales
Table 2-3: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
Refrigerated Smoothie Sales Surge
Table 2-4: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $6.0 Billion in 2010
Table 2-5: SymphonyIRI-Tracked Sales by RTD Functional and Natural Beverage Category and Segment, 2010 (in millions of dollars)
Overall Market Outlook
PepsiCo Leads as Marketer/Distributor
Table 2-5: Leading Marketer/Distributor Shares of SymphonyIRI-Tracked Sales of RTD Functional and Natural Beverages, 2010 (percent)
Gatorade Returns to Growth with Back-to-Basics Positioning
Downturns and Upticks in Product Introductions
Table 2-6a: New Product Introductions in U.S. Market for RTD Functional and Natural Beverages: By Product Segment, 2006-2010 (reports and stock-keeping units)
Table 2-6b: New Product Introductions in U.S. Market for RTD Functional and Natural Beverages: By Product Segment, 2006-2010 (reports and stock-keeping units)
Demographics Favor Increased Consumption
Table 2-7: Usage Rates for Selected RTD Functional or Natural Beverage Product Segments: RTD Tea, Sports Drinks, and Energy Drinks, 2005-2010 (percent of U.S. adults)
Figure 2-2: Use of Red Bull Energy Drinks/Shots and Living Essentials 5-Hour Energy Shots by Adult Generational Cohort, 2010 (percent)
Caffeine-Positive Culture
A Boost from Antioxidants
Figure 2-3: Top Grocery Product Nutritional Claims, 2011 (percent)
High Interest in “Superfruit” Juices Benefits Market
Table 2-8: Purchasing of Selected “Superfruit” Beverage Types Within The Past 12 Months, 2009 (percent of U.S. adults)
Superfruits Are Everywhere in Functional and Natural Beverages Market
Superhyping of Superfruits
Probiotics Beyond Yogurt
Have Marketers Found the Sugar-Free Pot of Gold?
Stevia Jumps to Head of Line with Natural Appeal
Neotame’s Artificiality a Marketing Downside
Low/No-Cal Sweeteners Still a Work in Progress
Glomming on to Gluten-Free
Internet Help Creates and Level Playing Field for Hip Marketers
Illustration 2-1: Screen Shots from Web Feed for Adina for Life’s “Drink No Evil!”
Cautionary Tales from Bolthouse and Rockstar
Illustration 2-2: Poster for Bolthouse Protest Demonstration
Eco-Consciousness: If You Talk the Talk, Walk the Walk
Honest Tea Adopts Lighter-Weight PET
Naked Juice Packaging Is Not Just Recyclable But Recycled
Odwalla Ups the Eco-Ante With Plant-Based Plastic
Natural, Organic and Fair Trade Add Value
Popularity of Supplements Bodes Well for Market
Figure 2-5: U.S. Retail Sales of Nutritional Supplements (in millions of dollars)
CHAPTER 3: ENERGY DRINKS, SPORTS DRINKS, AND FUNCTIONAL WATERS
Introduction
Energy Drinks vs. Sports Drinks vs. Functional Waters
Category Sales at $17.4 Billion
Figure 3-1: U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
Table 3-1: U.S. Retail Sales of RTD Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $3.7 Billion in 2010
Table 3-2: SymphonyIRI-Tracked Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010 (in millions of dollars)
Energy Drinks at 57% Category Share
Figure 3-2: Segment Sales Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2006 vs. 2010 (percent)
SPINSscan Tracking Shows Surge for Isotonic Beverages
Table 3-3: SPINSscan-Tracked Sales of Sports, Energy, and Other Functional Beverages: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
Convenience Stores Claim Half of Category
Figure 3-3: Retail Channel Shares for Energy Drinks/Shots, Sports Drinks, and Functional Waters Category, 2010 (percent)
Segment Focus: Energy Drinks
Energy Drinks and Energy Shots Have Opposing Meta-Trends
What’s Energetic in Energy Drinks and Shots?
Sugar
B Vitamins
Amino Acids
Milk Thistle and Everything Else
Triggering the Placebo Effect?
Antecedents of Energy Drinks
The Modern Energy Drink in the U.S
Ties to the Rave and Nightclub Scene
Extreme Sports as Individual Expression
Music and Red Bull Marketing
The Marketing Roadmap for Energy Drinks
5-Hour Energy Shots Blast Off
Top Four Energy Drink/Shot Marketers Control 82% Share
Table 3-4: SymphonyIRI-Tracked Sales of Energy Drinks and Shots: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
100 Product Introduction Reports in 2010
Table 3-5
New Product Introductions in U.S. Market for Energy Drinks, 2006-2010 (reports and stock-keeping units)
Usage Rates Edge Up Despite Recession
Table 3-6: Usage Overview for Energy Drinks: Overall and by Leading Brand Lines, 2006-2010 (percent of U.S. adults)
Table 3-7: Grocery Shopping Patterns for Energy Drinks: Overall and for Red Bull and 5-Hour Energy Brands, 2010 (percent of customers and index)
Table 3-8: Health and Nutrition Psychographics for Energy Drink Consumers: Overall and for Red Bull and 5-Hour Energy Brand Lines, 2010 (percent and index)
Younger Adults and Hispanics Are Top Consumers
Table 3-9: Consumer Demographics: Energy Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Sports Drinks
Athletic Performance: The Once and Future Meta-Trend
The Origin of the Sports Drink
Sports Drinks and the Prevention of Heat Related Illness
Categories of Sports Drinks
The Dairy Belt’s New Sports Drink: Chocolate Milk
Gatorade at 76% of Segment
Table 3-10: SymphonyIRI-Tracked Sales of Sports Drinks: By Top Marketers and Brand Lines, 2010 (in millions of dollars)
New Product Introductions Rates Remain High
Table 3-11: New Product Introductions in U.S. Market for Sports Drinks, 2006-2010 (reports and stock-keeping units)
Added Ingredients Trend Triggers Relaunches
Don’t Settle For “An Incomplete Sports Drink”
Indra Nooyi Takes Charge
The G Series Explained
Gatorade and the NFL Launch Beat the Heat PSA Campaign
GSSI for the (Youthful) Masses: The Gatorade Performance Center
Celebrity Marketing
Illustration 5-1: 2010 Powerade Team Website Banner
Powerade Creates FIFA Tie-in to Pursue Hispanic Market
Nearly 40% Use Sports Drinks
Table 3-12: Usage Overview for Sports Drinks: Overall, Gatorade, and Powerade, 2006-2010 (percent of U.S. adults)
Table 3-13: Grocery Shopping Patterns for Sports Drinks, 2010 (percent of customers and index)
Table 3-14: Health and Nutrition Psychographics for Sports Drink Consumers, 2010 (percent and index)
Younger Adults and Hispanics Are Top Consumers
Table 3-15: Consumer Demographics: Sports Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Functional Waters
Functional Water: Like Water, Only Better
Putting the Function in Functional Water
Vitamins and Minerals
Fluoride
Electrolytes
Protein Exits Center Stage
Other Nutraceutical Ingredients
Functional Flavoring?
Water, of Course
The “Healthy” Debate
Top Two Marketers Corner 97% of Sales
Table 3-16: SymphonyIRI-Tracked Sales of Functional Waters: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Vitaminwater Fights Back
SoBe Lifewater Goes “Zero”
Illustration 3-2: Screenshot from SoBe “Inner Lizard” Ad
Propel Beefs Up its Line-Up
The “Skinny” on Skinny Water
Illustration 3-3: Skinny Nutrition’s New Skinny Water Lineup
Arizona Rescue Water: The Power of Tea
SKU Introductions Average 100+ Annually Over 2006-2010
Table 3-17: New Product Introductions in U.S. Market for Functional Waters, 2006-2010 (reports and stock-keeping units)
Alternative Retail and Healthy Convenience Draw
Table 3-18: Usage Overview for Functional Waters, 2009-2010 (percent of U.S. adults)
Table 3-19: Grocery Shopping Patterns for Functional Waters, 2010 (percent of customers and index)
Table 3-20: Health and Nutrition Psychographics for Functional Water Consumers, 2010 (percent and index)
Younger, African-American Skews to Consumer Base
Table 3-21: Consumer Demographics: Functional Waters, 2010 (percent, number of adults, and index)
Category Growth Projections
Retail Sales to Reach $25 Billion by 2015
Table 3-22: Projected U.S. Retail Sales of Energy Drinks/Shots, Sports Drinks, and Functional Waters, 2010-2015 (in millions of dollars)
CHAPTER 4: READY-TO-DRINK TEA AND COFFEE
Introduction
What Is RTD Tea?
What Is RTD Coffee?
RTD Tea vs. Coffee Marketing Trajectories
Category Sales at $5.1 Billion
Figure 4-1: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
Table 4-1: U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $1.9 Billion in 2010
Table 4-2: SymphonyIRI-Tracked Sales of Ready-to-Drink Tea and Coffee, 2010 (in millions of dollars)
RTD Tea Claims 58% of Category Sales
Figure 4-2: Segment Sales Shares for Ready-to-Drink Tea and Coffee, 2006 vs. 2010 (percent)
SPINSscan-Tracked Sales of RTD Tea/Coffee at $23 Million in 2010
Table 4-3: SPINSscan-Tracked Sales of Ready-to-Drink Tea and Coffee: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
Supermarkets/Supercenters Claim Two-Thirds of Category
Figure 4-3: Retail Channel Shares for Ready-to-Drink Tea and Coffee Category, 2010 (percent)
Segment Focus: Ready-to-Drink Tea
Wide Spectrum of Teas Is the Meta-Trend
Varieties of Tea
Top Four Players Account for 72% of SymphonyIRI-Tracked Sales
Table 4-4: SymphonyIRI-Tracked Sales of Shelf-Stable or Refrigerated Ready-to-Drink Tea: By Top Marketers and Brand Lines, 2010 (in millions of dollars)
Table 4-5: SymphonyIRI-Tracked Sales of Shelf-Stable Ready-to-Drink Tea: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Table 4-6: SymphonyIRI-Tracked Sales of Refrigerated Ready-to-Drink Tea: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Power Structure Can Propel Successful Entrepreneurs
New Product Introduction Rates Remain High
Table 4-7: New Product Introductions in U.S. Market for Ready-to-Drink Tea, 2006-2010 (reports and stock-keeping units)
Figure 4-4: New Product Introductions by Flavor in U.S. Market for Ready-to-Drink Tea, 52 Weeks Ending March 31, 2011 (number of reports)
Figure 4-5: New Product Introductions by Package Claim/Tag in U.S. Market for Ready-to-Drink Tea, 52 Weeks Ending March 31, 2011 (number of reports)
RTD Tea Usage Rates Edge Up
Table 4-8: Usage Overview for Ready-to-Drink Tea, 2006-2010 (percent of U.S. adults)
7-Eleven, BJ’s Wholesale Customers Are Prime RTD Tea Drinkers
Table 4-9: Grocery Shopping Patterns for Ready-to-Drink Tea, 2010 (percent of customers and index)
RTD Tea Consumers Are Health and New Product Prone
Table 4-10: Health and Nutrition Psychographics for Ready-to-Drink Tea Consumers, 2010 (percent and index)
Diet Versions, Arizona Brand on Usage Upswing
Table 4-11: Usage Overview by Type and Brand: Ready-to-Drink Tea, 2006-2010 (percent of U.S. adults)
RTD Teas Benefit from Broad Demographic Draw
Figure 4-6: Use of Ready-to-Drink Tea by Age Bracket, 2010 (percent and index)
Table 4-12: Consumer Demographics: Ready-to-Drink Tea, 2010 (percent, number of adults, and index)
Segment Focus: Ready-to-Drink Coffee
“Coffeehouse in a Bottle” Is the Meta-Trend
Arabica vs. Robusta Coffee Beans
RTD Coffee Beginning to Tout 100% Arabica Beans
Caffeine, De-Caffeinated, and Hyper-Caffeinated RTD Coffee
Blended Coffees
Varietal and Estate Coffees
Organic Coffee and Sustainably Grown Coffee
Fair Trade Coffee
Shade Grown Coffee
The Roasting Process
Roast Categories
Espresso: A Brewing Process as Well as a Roast
Flavoring Coffee
Chocolate Tie-Ins
Coffeehouse Terms Used in RTD Beverages
Italianesque Coffeehouse Terms
Research Supports Coffee’s Health Halo
Starbucks at 90% of SymphonyIRI-Tracked RTD/Rfg Coffee Sales
Table 4-13: SymphonyIRI-Tracked Sales of Ready-to-Drink and Refrigerated Coffee: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
New Product Introductions Approach Pre-Recession Levels
Table 4-14: New Product Introductions in U.S. Market for Ready-to-Drink Coffee, 2006-2010 (reports and stockkeeping units)
Consumer Usage Rates Also Edge Back Up
Table 4-15: Usage Overview for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2006-2010 (percent of U.S. adults)
Diverse Retail Patterns for RTD Coffee Drinkers
Table 4-16: Grocery Shopping Patterns for Ready-to-Drink Coffee: Overall and for Starbucks Brands, 2010 (percent of customers and index)
Dairy Synergy: Coffee and Yogurt Drink Psychographics
Table 4-17: Health and Nutrition Psychographics for Ready-to-Drink Coffee Consumers: Overall and for Starbucks Brands, 2010 (percent and index)
Asian-Americans Head List of Top Consumers
Table 4-18: Consumer Demographics: Ready-to-Drink Coffee, 2010 (percent, number of adults, and index)
Category Growth Projections
Retail Sales to Reach $7.4 Billion by 2015
Table 4-19: Projected U.S. Retail Sales of Ready-to-Drink Tea and Coffee, 2010-2015 (in millions of dollars)
CHAPTER 5: YOGURT DRINKS AND SMOOTHIES
Introduction
Yogurt Drinks vs. Smoothies
Category Sales at $894 Million
Figure 5-1: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
Table 5-1: U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2006-2010 (in millions of dollars)
SymphonyIRI-Tracked Retail Sales at $523 Million in 2010
Table 5-2: SymphonyIRI-Tracked Sales of Refrigerated Yogurt Drinks and Smoothies, 2010 (in millions of dollars)
Figure 5-2: Segment Sales Shares for Refrigerated Yogurt Drinks and Smoothies, 2006 vs. 2010 (percent)
SPINSscan-Tracked Sales of Yogurt and Kefir Drinks at $16 Million in 2010
Table 5-3: SPINSscan-Tracked Sales of Yogurt & Kefir Drinks: 52 Weeks Ending February 19, 2011 and Prior-Year 2010 and 2009 Periods (in millions of dollars)
SPINSscan Tracking of Rfg Fruit/Vegetable Blends at $4.5 Million
Supermarkets/Food Stores Claim 61% of Category
Figure 5-3: Retail Channel Shares for Refrigerated Yogurt Drinks and Smoothies Category, 2010 (percent)
Segment Focus: Yogurt Drinks
Probiotics Are Segment’s Meta-Trend
Lactose Bulgaricus and the Emergence of Probiotics
Yakult and the Arrival of Probiotic Yogurt Drinks
Dannon at 56% of SymphonyIRI-Tracked Sales
Table 5-4: SymphonyIRI-Tracked Sales of Refrigerated Yogurt Drinks: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
Marquez Brothers Heads Up Latin-Style Competitors
General Mills Angling for Control of Yoplait
The Regulatory Challenge of Marketing Probiotics
Illustration 5-1: Screen Shot from Yakult’s “Love Your Insides” TV Spot
Illustration 5-2: Screen Shot from Yakult’s “Love Your Insides” TV Spot
Prove It!
DanActive Claims Lead to Lawsuits
Illustration 5-3: Screen Shots from DanActive “Body Defenses” TV Spot
Dannon Probiotics Websites Offline
Illustration 5-4: Screen Shot of Dannon Probiotics Center
Stonyfield’s Organic Greener, Gentler Probiotic Positioning
Success of Danimals and Lactobacillus Rhamnosus GG
Illustration 5-5: Screen Shot of Epoca Cool Spanish Language Video Spot
More for the Kids
The Frusion Breakfast Smoothie
New Product Introductions Pick Up in 2010
Table 5-5: New Product Introductions in U.S. Market for Refrigerated Yogurt Drinks, 2006-2010 (reports and stockkeeping units)
Usage Rates for Yogurt Drinks on the Rebound
Figure 5-4: Usage Overview for Yogurt Drinks, 2008-2010 (percent of U.S. adults)
Natural Supermarket Shoppers and Yogurt Drinks
Table 5-6: Grocery Shopping Patterns for Yogurt Drink Consumers, 2010 (percent of customers and index)
Yogurt Drink Consumers Are Also Dieting and Fast Food Prone
Table 5-7: Health and Nutrition Psychographics for Yogurt Drink Consumers, 2010 (percent and index)
Hispanics Are Prime Consumers
Table 5-8: Consumer Demographics: Yogurt Drinks, 2010 (percent, number of adults, and index)
Segment Focus: Smoothie Drinks
“Better Living Through Fresh Juice” Is Segment’s Meta-Trend
A Primer on Smoothies
Made-to-Order Foodservice vs. Packaged Retail
Green Smoothies
Why Smoothies?
Roots in Health and Fitness Culture
Bernarr MacFadden: Diet and Fitness Pioneer
Paul Bragg and California “Juice Therapy”
The Countercultural Birth of the Smoothie
Top Three Marketers Control 94% of SymphonyIRI-Tracked Sales
Table 5-9: SymphonyIRI-Tracked Sales of Refrigerated Juice/Drink Smoothies: By Leading Marketers and Brand Lines, 2010 (in millions of dollars)
California Juice Culture in Odwalla’s Current Marketing
Sustainable Sourcing for Naked Juice and Odwalla
Illustration 5-6: Print Ad for Odwalla’s Haiti Hope Project
Eco-Packaging for Naked Juice and Odwalla
Odwalla’s Plant a Tree Program
Illustration 5-7: Map of Odwalla’s Plant a Tree Program
Bolthouse’s Trade Promotion Optimization Planner
New Product Introduction Trends
Table 5-10: New Product Introductions in U.S. Market for Smoothies: Refrigerated vs. Shelf-Stable/Frozen, 2006- 2010 (number)
Approximately 5% of Adults Use Smoothies
Table 5-11: Usage Overview: Odwalla, Naked Juice, and Bolthouse Farms Fruit Juices/Drinks, 2009-2010 (percent of U.S. adults)
Grocery Shopper Patterns by Smoothie Brand
Table 5-12: Grocery Shopping Overview: Odwalla, Naked Juice, and Bolthouse Farms Consumers, 2010 (percent of customers and index)
Nutrition Psychographics for Smoothie Consumers
Table 5-13: Consumer Psychographics: Odwalla, Naked Juice, and Bolthouse Farms, 2010 (percent and index)
Gen Y, Blacks, and Pacific Region Consumers Are Prime Demographics
Figure 5-5: Usage Rates for Smoothies by Generational Age Bracket, 2010 (percent)
Table 5-14: Consumer Demographics: Odwalla, Naked Juice, and Bolthouse Farms, 2010 (percent and index)
Category Growth Projections
Retail Sales To Reach $1.1 Billion by 2015
Table 5-15: Projected U.S. Retail Sales of Refrigerated Yogurt Drinks and Smoothies, 2010-2015 (in millions of dollars)
CHAPTER 6: LOOKING AHEAD
A Consumer Perspective
Table 6-1: Percent of Consumers Who Purchase Selected Beverage Types When Grocery Shopping, 2011 (percent of U.S. adults)
Living Essentials
Table 6-2: Percent of U.S. Consumers Who Have Purchased Food or Beverage Products in the Last 12 Months Because of Their Nutritional Benefits in Relation to Specific Health Conditions or Concerns, 2009
An Energetically Growing Consumer Base
Table 6-3: Percent of Consumers Who Use Selected Beverage Types, 2004 vs. 2010 (percent of U.S. adults)
Pacesetting New Products
Table 6-4: SymphonyIRI 2010 New Product Pacesetters: Top 10 Food and Beverage Brands (in millions of dollars)
Science No Longer Versus Nature
Table 6-5: Percent of New Product Introductions Making Selected Packaging Claims: Energy/Sports Drinks, Readyto-Drink Tea/Coffee, and Refrigerated Yogurt/ Smoothies, Two-Year Period Ending March 21, 2011 (percent)
APPENDIX: ADDRESSES OF SELECTED MARKETERS
