The sales of energy drinks are taking off in Romania. In February, March, April and May this year, the stores sold more than 267,000 cans of Red Bull, Power Horse, Burn, XL, Shark and other brands, worth 375,000 euros, more than three times the levels posted in the year-ago period.
These data are included in a survey drafted by market research company AC Nielsen, which monitors the retail store sales to end consumers and does not include sales in restaurants, bars, wholesale or cash&carry stores.
Should the monthly growth pace maintain, the “canned energy” that consumers take home will become a business worth more than one million euros this year. According to the AC Nielsen survey, the store sales of energy drinks amounted to some 500,000 euros between April 2002 – March 2003.
Total sales could be worth several million dollars, if restaurants and bars are considered, but the sales in these areas cannot be measured yet. Red Bull alone posted some $4.4m in sales last year
It is true, nonetheless, that the market of energy drinks is still very small as compared to the total value of the $500m carbonated soft drinks market.
“This is a niche market, after all, both in terms of price and distribution. This is rather a trend product,” said Anca Ioan, senior partner with Roland Berger Strategy Consultants.
Energy drinks sell very well in gyms, discos and bars, because this kind of drink offers, or at least promises, an energy boost. “They are positioned as being more energising than others,” Anca Ioan feels.
Hence, their edge over other soft drinks, which see their sales soaring especially in the summertime.
The energy drinks include caffeine, taurine, vitamins and other energy boosters among their components. A can of energy drink generally includes just as much caffeine as a cup of tea.
The main players on the Romanian market are Red Bull (made by the Austrian company bearing the same name and distributed by BDG Imprest SRL), Power Horse, made by another Austrian company, Burn – a product distributed by Coca-Cola, XL – distributed by Star Foods, and Shark – sold by Shark Rom Import Export SRL and made by Austrian company Shark AG. These brands account for 80% of the total market volume, according to AC Nielsen. None of these products is made in Romania.
Star Foods, which is also one of the key players on the Romanian market of potato chips, has been distributing XL since last May. The product is made by the Polish company Drinks Unlimited and has benefited from the aggressive advertising campaign for Red Bull.
“After we analysed sales posted in the first half of 2002 and 2003, we concluded that sales climbed 10% in terms of volume and value. In fact, the market grew because Red Bull was advertised on TV and in magazines,” said Mariana Craciun, a representative of Star Foods. claudia.covaci@zf.ro