Energy drink sales could use some oomph. Though the category remains one of the most dynamic in the beverage industry, months of regulatory scrutiny are beginning to take the fizz out of sales, according to a bevnet.com story.
Last week, Morgan Stanley released a report on convenience store sales trends indicating that sales were up 5.9 percent for the four-week period ending March 16 – the preceding four weeks had shown growth of 5.2 percent, with the 12-week period up 8.1 percent overall. This might seem OK – until you compare it to the two year average for the same time periods. Average growth for similar periods, reports bevnet.com, have been 13.1 percent, 11.9 percent and 14.1 percent, respectively.
The beverage industry news source reports that anecdotal info from distributors is similar. They say products continue to grow, but that growth is trending down. Energy drinks are still a force in the industry, analyst Bonnie Herzog of Wells Fargo Bank tells bevnet.com. “Despite the slower growth trends, we remain optimistic about the category’s ability to drive overall beverage category growth,” she said.
Contents of those boldly labeled cans may be under more and more pressure as Congressional focus on existing drinks and scrutiny of new products continues.