ENERGY DRINKS

Report
Energy Drinks
Morgan Plumlee and Elizabeth Monnig
 Supplier
in control
◦ Red Bull leading brand
◦ Private label not common in most retailers
 Retailer
in control
◦ Target has an Archer Farms energy drink
◦ Only retailer with a private label
Overview
Fayetteville
Walgreens Joyce
Walgreens School
Walgreens 6th Street
Walmart 6th Street
IGA
Target
Harps Garland
Audits
Springdale
Kmart
Rogers
Neighborhood Market
Target
70 SKUs found in our audit
 Walgreens has the most
 Walmart had fewest

Depth

Income
◦ Between $30,000-$50,000

Age FH
◦ 35-44

Household Size
◦ 3-4 members

Education FH
◦ Some college
Demographics
Item
Penetration
% item $
on deal
$ share
# of raw
buyers
Item
buyers
Item $
Monster
2.9
10.2
2.0
1281
3416.8
94,656.
8
Red Bull
2.8
8.5
3.7
1,227.0
3,236.4
170,066
.6
Rockstar
1.4
21.4
0.6
578
1,597.6
26,430.
7
Amp
1.8
14.3
0.5
726
2,081.6
20,945.
8
Demographics
Display Space

Red Bull
◦ Premium Price
◦ Not found at every store
◦ 50% display space at Walmart and 44% display
space at Target

Monster
◦ Majority of display space in most retailers
◦ Around 34%
◦ Most SKUs found
Display Space

Every Store
◦ Monster
◦ Amp
◦ Rockstar

Market Stocking Rate
◦
◦
◦
◦
Red Bull 56.7%
Amp 50%
Monster 42.8%
Rockstar 38%
SKUs
Gross Margins by Supplier

Red Bull
◦ Lowest gross margins because it is the leading
brand

Amp
◦ Highest gross margins

Private Label
◦ Target’s private label has 66% gross margins

Walmart
◦ Lowest gross margins out of all the retailers
Gross Margins by Supplier
Gross Margins by Facings
Energy drinks is not a popular category
for Private Labels
 Target is the only retailer with a Private
Label energy drink
 Gross Margin is around 66%

Private Labels
We do not expect private labels to
increase in this category.
 Target is the only retailer we feel will be
successful with a private label because of
their previous success with the Archer
Farms brand
 In fall 2008, there were only 47 SKUs and
no private label

Private Label

Walmart
◦ Increase emphasis on national brands
◦ Do not have very many SKUs available in
grocery section
◦ Not a leading retailer in this category
Private Label

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