Coke, Pepsi Bank on Energy Drinks
The beverage giants are leveraging their names to expand in the energy drink sector.
Jul 29, 2019
ALTANTA—With soft drink consumption continuing to drop in the United States, PepsiCo and Coca-Cola are using their name recognition to push farther into the energy drink category, CNBC reports. In the United States, energy drink and shot sales accelerated by 29.8% from 2013 to 2018, topping $13 billion in sales in 2018, according to Mintel. Energy drinks capture 92% of the energy market and are the driving force behind the growth, according to Mintel data.
By year’s end, Coca-Cola will have Coca-Cola Energy in 20 countries. Coca-Cola CEO James Quincey said Coca-Cola Energy has a “softer flavor” than other energy drinks, and early results have been positive. The company has not announced plans to launch the drink in the United States.
Meanwhile, Pepsi has extended its Mountain Dew line into energy drinks with its Mountain Dew Amp Game Fuel. PepsiCo CEO Ramon Laguarta said the energy drink strategy would consist of “small steps” in moving Mountain Dew into the category. Pespi also has Mountain Dew Kickstart, which has less caffeine than the typical energy drink.
More than ever, young Americans are sipping caffeinated energy drinks, a recent study found, though the findings have also suggested that daily energy drink use among teens and middle-age adults may be leveling off. This summer, 7-Eleven entered the energy drink arena with its own private version called Quake.
Merchandising
