Healthier, Natural Energy Drinks Expand the Demographics Beyond the 18- 30 Consumers and Lead the Sector's Growth Moving Forward
How Savvy Beverage Stocks (OTCBB: HRDN), (SBUX), (NYSE:SXT) are Capitalizing on this Trend
Category: Investment, Beverage
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Visit this company: Sensient Technologies Corporation
New York, NY - August 16, 2012 (Investorideas.com newswire, www.beveragestocks.com) Investorideas.com, an investor research portal specializing in sector research including beverage stocks issues an industry trend update on how the functional beverage market is changing to meet consumer preference for healthier, more natural energy drinks. This trend has increased sales in the energy drink sector and analysts and industry leaders predict it is a trend that will continue and shape the future of the beverage market.
As healthier lines come to market it expands the opportunity for the sector, reaching a new group of older consumers beyond the current 18- 30 demographics. What is more noteworthy is that this sector of the beverage industry started a break- out trend following 2008-2009 recession, showing growth and a new trend developing by 2010.
According to Packaged Facts research "by 2010 energy drinks/shots, sports drinks, RTD teas, and fruit/vegetable smoothies all showed renewed dynamism, signaling the onset of a new cycle of sales growth for the market. All had gains of at least 5%, with energy drinks/shots experiencing the highest gain at 10%. Sports drinks and RTD teas finished with gains of 8% and 7%, respectively."
Sensient Technologies Corporation (NYSE:SXT) food and beverage division is participating in the trend with its natural colors and flavors products.
In an interview earlier this year with FoodBev.com, Kenneth Manning, Chairman, President and CEO of Sensient noted "I see more vitamin-enriched beverages and more nutraceutical drinks in general. In particular I see growth in those targeting older consumers, plus beauty and health drinks targeting all ages.
I believe we will see an increase in the range of still drinks more than carbonated soft drinks.
The market has already seen many products which incorporate energy inducing characteristics as well as vitamin enrichment and other additives to promote various enhancements. Sensient sees this trend continuing and developing further into an array of ‘lifestyle' beverages attracting the consumer with additional functional characteristics that promote health or cosmetic benefits."
Starbucks (NASDAQ:SBUX) has joined the energy drink market with a line called " Refreshers" with Cool Lime and Very Berry Hibiscus using green coffee extract as one of the ingredients .
Like any industry, within the beverage industry sometimes it's the small niche players that are ahead of the curve. DC Brands International (OTC: HRDN) specializes in the manufacturing of its functional beverages and health products. Established in 1998, DC Brands began producing a number of lines of energy drinks in 2005. DC Brands then purchased the assets of H.A.R.D. Nutrition and began its quest to produce a new health line of products. DC Brands has recently announced the release of its new H.A.R.D. Nutrition Functional Water Systems, which it expects will revolutionize the functional beverage category.
In a recent interview, Stephen F. Horgan, CEO noted "The total non alcohol beverage market is over $110 Billion dollars in the US. Functional Beverages are approaching $15 Billion of that total. Our history is in nutritional supplements, which is where everything with our products emanates from. With the development of our proprietary flip-top cap delivery system, we were able to cross over into certain beverage occasions of nutrition conscious consumers. Our supplements provide a variety of solutions for these consumers looking for optimal nutrition delivery versus the minimal daily requirements. This is the case both with our dry line as well as our beverage line.
In June Mr. Stephen Horgan, Brand Aspirations Founder and Former Coca-Cola (NYSE:KO) and Coors Veteran purchased controlling interest of DC Brands International, Inc. (OTC: HRDN) /dba/H.A.R.D. Nutrition and is now acting President and CEO of the Company.
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