Coca-Cola is jumping into the energy drink market
Fox Business Briefs: Soft drink giant Coca-Cola sees net revenue rise six percent during the second quarter while sales rose three percent. GNC says it will close up to nine-hundred stores by 2020, nearly half of the company’s mall locations in the U.S.
Coca-Cola is jumping into the energy drink market for the first time, lining up a battle with giants such as Red Bull and Monster.
Taste is driving this new venture. A total of four varieties will be offered under the brand Coca-Cola Energy, an original flavor and cherry flavor as well as zero-sugar options for both.
Why put out energy drinks under Coca-Cola's name and not an offshoot brand? Coca-Cola cites market research saying that while the energy drink market is growing, there is still hesitation from many consumers about trying an energy drink.
The idea of bringing a familiar taste in Coca-Cola to a product packed with caffeine, guarana and B-vitamins could bridge the gap for people wanting to try an energy drink but who are afraid to do so due to unfamiliarity.
"Taste is a strong driver when people are deciding what beverages to enjoy, especially in a market where there are so many options," Coca-Cola said in a statement. "We know Coca-Cola fans love the taste of Coke… and, with Coca-Cola Energy, we found there was an opportunity to extend Coca-Cola to a category many people haven't tried."
Red Bull is the run-away leader in the sector, accounting for 37.6% of the market.
By 2024, the energy drink market is expected to reach over $83.4 billion in the United States.
Atlanta-based Coca-Cola currently holds 28.6% of the soft drink market in the United States.
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