The United States increasingly consumes energy drinks despite high prices. Large companies see this as a “gold mine”.
More and more people are exhausted because of stress, because work is too tiring. The situation of working hard during the day but not being able to sleep at night makes many people sluggish and tired.
They need something to keep their heads clear. It is energy drinks and soft drinks.
Investors see this potential “gold mine”, they pour capital into brands producing confectionery, beverage and fast food.
It is true that shares of the major players in the industry have increased significantly in the first half of this year.
Major corporations in the US are competing for market share in the energy drink sector. Photo: Reize.
Hershey – the second largest chocolate company in the world recorded an increase of 19%, the two giants in the beverage industry, Coca Cola and Pepsi, 10% and 4% respectively.
This is a good sign for the beverage and beverage industry, followed by the rise of both small and less well-known names. Celsius – an energy drink brand that has just entered the market but has also been quickly received and received many positive feedbacks.
“Everyone wants to stay awake at work, if you want to, drink our energy drinks,” said John Fieldly, CEO of Celsius.
Vibrant energy drink market
Celsius recorded a 137% increase in sales year-over-year, and the company’s stock jumped more than 10 times. The company also announced that it has received an investment of $ 550 million from PepsiCo Corporation to produce and exclusively distribute a new line of energy drinks.
“Many people like to drink energy drinks, it makes them more spiritual when working. They are almost addicted to that feeling, so they keep buying even though the price of energy drinks is getting higher and higher.” Duane Stanford, editor of Beverage Digest, said.
“The big players in the industry and investors are actively hitting this market, it brings huge profits.”
Increased demand means that competition among brands must also increase.
In the past, to dispel drowsiness and sluggishness at work, people would drink coffee. The default energy drink is for people who exercise vigorously such as playing sports, athletes, hard workers, etc.
Therefore, small names like Celsius must expand the market further if they want to survive. They are planning to reach more customers, especially young people.
Energy drink company Celsius. Photo: Candorium.
Recently, Celsius brand has launched a new type of energy drink with natural origin such as green tea, ginger, … to help drinkers not feel nausea, discomfort or itchy limbs. The aim is to target young people who are very sensitive to “chemical” foods.
In addition to Celsius, Pepsi also wants to expand its market share, they cooperate with other manufacturers such as Rockstar or Mountain Dew. Monster Energy, one of the partners of Coke – the parent company of the new Coca-Cola is a tycoon in the field of soft drinks and energy drinks.
Despite the price hike
Inflation in the US is causing prices to skyrocket, and energy drinks are no exception.
Celsius is currently in the top 5 of energy drink vendors in the market, behind Monster, Red Bull, Bang Energy Drink and Rockstar.
Pepsi’s plunge into the game in the context of the current economic situation is considered a bold move.
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