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The rumor on energy drinks June 5, 2007

Posted by grhomeboy in Drinks & Beverages.
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With energy drink sales soaring 52.1 percent higher than last year, according to market researcher Information Resources Inc. (IRI), niche-marketed energy brands targeting specific consumer interests or demographics continue to expand.

Energy drinks stormed the U.S. beverage market last year, outperforming all other categories. With energy drink sales soaring 52.1 percent higher than last year, according to market researcher Information Resources Inc. (IRI), niche-marketed energy brands targeting specific consumer interests or demographics continue to expand.

Since their emergence in the United States 10 years ago, the energy drinks category has enjoyed tremendous success, displaying a staggering 516 percent sales growth between 2001–2006, according to market research firm Mintel. In fact, energy drinks, led by the Red Bull and Monster brands, grew by more than 49 percent in 2006. With growing consumer demand and increased profit margins, it’s projected to exceed $10 billion by 2010.

“Energy drinks are an interesting category because there are a ton of new product launches,” explained Tom Vierhile, director of Productscan Online. “The category has a very low barrier to entry so we’re seeing a lot of product innovation, a lot of smaller companies have chosen to attack the energy drink market as opposed to coming out with a soft drink to compete against PepsiCo and Coca-Cola. It’s a category with a melting pot of different influences.”

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