Global Beverage Industry

The company seeks to strengthen the brand name, package the beverage in attractive packs that are representative of its consumers with the right colors in play. However, the company would optimize the brand value by implementing the marketing activities programs and emphasizing on brand design. The V Fusion + Energy drink logo will incorporate colors that stimulate emotional excitement among the youth. The logo will feature both green and red colors to reflect on the qualities of the adventurous, natural, and modern youth who is ahead of his millennial counterparts.

One of the advantages of our product is its health benefit to its users. Using publicity as a marketing vehicle will be a great step in conveying information to the public about the advantages of the energy drink by maintaining the company`s image through publicity. Through such a vehicle, the public will understand that the company is committed to the welfare of the community (Olson, 2009).

Dr Pepper Snapple Group, Inc. decided in September of 2007 to explore the profitability of expanding into the energy beverage market. Dr Pepper Snapple Group, Inc. is a major competitor in the flavored carbonated soft drink (CSD) market, and also has a strong presence in the non-CSD market. The energy beverage market had an estimated $6.2 billion in retail dollar sales in 2006. The market grew at an average annual rate of 42.5 percent between 2001 and 2006, however, market industry experts estimated an average annual growth rate of 10.5 percent

Since the year of 2000, approximately 73% of water bottle consumption has come from consumers switching from carbonated soft drinks. I schools were to ban this instrument of good health, students would resort to the most accessible sources of refreshment including Gatorade, Coca-Cola, and Sprite. An additional 280 calories would be gained per person, per week if carbonated drinks became the main source of sustenance.

 The light beer market has been growing at an annual compound growth rate of 4% over the past six years

There are (3) reasons why I have chosen energy drinks as my NAB. First off, there is a growing market for energy drinks. Red Bull and Monster Beverage Corporation, together, form over 80% of domestic energy drinks volumes by estimates. Dollar sales for energy drinks grew almost 6% to $6.67 Billion in measured channels in 2013, which propelled sales growth for convenience stores (Team, 2014). A growing thirst for caffeinated “energy” drinks, which include the likes of Red Bull, Monster, and Rock star, has spurred a heart-thumping surge in sales. Globally, the energy drink industry has gone from a $3.8-billion business in 1999, to a $27.5-billion

If one has to analyze the profitability scheme of Red Bull Energy Drink, perhaps it can be safely said that it is in a very uncompromising situation. First and foremost, the stiff competition have paved the way for the emergence of many small time players (Helm 2005). With every bottled drink that aims to steal the limelight nowadays, Red Bull should capitalize more on its creativity and ingenuity—this is of course, in relation to advertising and marketing. The company should never disregard that Coca Cola and Pepsi are still top competitors (Helm 2005). More so, even if the two share equally different components as with Red Bull, still, it is evident that the two continue to partake into the market share. Meanwhile, the notion that energy drinks offers no variety in taste is an important marketing aspect that the company should take into full consideration (Laing 2005). In 2001, Pepsi had already released AMP Energy Drink (“Amp Energy Drink” n.d). It is the company’s maidens venture into the energy drink arena. Evidently, AMP’s raison d’ etre is to capitalize on Mountain Dew’s established image. The concept would be to introduce something new, yet very familiar (“Amp Energy Drink” n.d).

2005 study found that the total market value of soft drinks was calculated to be $307.2 billion in 2004 was predicted to rise. The forecast showed that the market value will reach $367.1 billion in 2009 (Agriculture and Agri-Food Canada, 2017). The soft drink volume was 325,367.2 million liters in

Consumers around the world bought more snacks and beverages than ever before. They have gained market share in both snacks and beverages in the United States, their biggest market. Internationally snack and beverage units both posted healthy volume growth, even amid economic turbulence.

• Per Capita Consumption of Soft Drink in Brazil is increasing by average rate of

Energy drinks have outperformed the growth in carbonates in the last few years, and present a substantial opportunity for beverage manufacturers to extract further growth from their sales. There are many driving forces of change and critical success factors in the energy drink industry. Companies such as Coke Cola and Pepsi contend with criticism from health officials due to the excessive caffeine in most high-energy drinks. However, before the 2000’s consumers were accustomed to carbonated soft drinks as the traditional beverage. The shift to an energy drink, sports drink, and vitamin enhanced waters increased sales while becoming an alternative beverage choice for a fast-paced mobile society. Therefore, this industry endures many

The change in the consumers' taste is another key trend in the industry. Many substitutes to carbonated soft drinks gained more popularity among consumers. Exhibit 5 shows an increase in the consumption of bottled water from 11.8 in 1998 to 13.2 gallons/capita in 2000, and that of juices from 10 to 10.4 gallons/capita at the expense of

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.

Coca Cola is the largest company of the non-alcoholic beverages industry, controlling about 40% of the industry, followed by Pepsi with 20% control (Maverick 2015). Both companies are fully international, with a presence in over 200 countries, and are composed of numerous brands. Coca Cola, for example, owns about 500 brands, although the largest part of its profits stems from 21 of these brands. Overall, in 2016, the global non-alcoholic beverages industry was valued at $967.3 billion (Grand View Research 2017). Other key players in the industry include Nestle, Kraft Heinz Company, and the Pepper Snapple Group.

|The global beer industry is dominated by large corporations who have merged with rivals to increase their global and domestic market share. |