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The Beverage Market - Market Potential
- Non carbonated alternative beverage market growing rapidly
- Diet drinks rank among the top growth beverage categories
- 350,000 potential retail outlets in US
- Competition in the non carbonated segment consolidating and merging
- US trend towards sugar-free, low calorie/carb diets
- Baby Boomers health-conscious with disposable income
- Company forecasts revenues of $150 million by 2011
The Markets:
- US non carbonated beverages $125 billion
- US Dietary supplements $30 billion
- US Sports Nutrition and Weight Loss $25 billion
- US Obesity and Diabetes $122 billion
Simply Fit U.S. retail potential (outlets):
- Convenience Stores 150,000
- Drug and Pharmacy 50,000
- Gyms and Health Clubs 20,000
- Grocery Stores 20,000
- Specialty Retail 70,000
- Educational 30,000
- Military 10,000
- TOTAL 350,000
Key Growth Factors
Consumers spent more than $25 billion on ‘wellness drinks’ in 2005, making up 12% of all soft drink spending across the US and Europe. The market represents a major opportunity for drinks like Simply Fit as consumers choose non carbonated beverages with greater regularity.
The non carbonated beverage market is consolidating and alternative drink brands are becoming a sought after commodity for the majors. Recently, for example, Coca Cola (Dasani, Fuze) announced plans to acquire Glacéau waters from Tata Teas in a deal estimated at $4 billion.
With leading players such as Kraft, Nestlé, Coca-Cola, PepsiCo and Cadbury Schweppes all focusing on groundbreaking innovation to meet consumer demands for hydration, health, convenience and great taste, the multinationals are in competition with each other to maintain sales in the hugely competitive functional beverages sector.
Alternative beverages and premium functional beverages are shaping the course of the beverage industry as a whole by taking business from sodas and other traditional diet drinks.
‘Wellness drinks’ Category Competitors
- Fuze®: purchased by Coca Cola (KO: NYSE) in 2007 for $250 million
- Snapple®: owned by Cadbury-Schweppes
- Enviga®: owned by Nestlé S.A.
- Slim Fast®: owned by Unilever N.V.
- Celsius®: voted best new beverage in 2006 (CSUH:OB)
- Crystal Light®: owned by Kraft Foods (KFT: NYSE)
- Flavored Waters and Teas
No sugar. No caffeine. No carbohydrates. No taurine. No bull. Simply Perfect.
