gatorade vs. powerade: does sweetener choice add energy to sales?

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DOES SWEETENER CHOICE ADD ENERGY TO SALES? GATORADE VS. POWERADE:

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Does the type of sweetener in sports drinks drive sales? Get an in-depth analysis on how Pepsi switched its sports-drink brands Gatorade and G2 from high fructose corn syrup (HFCS) to sugar, and what effect, if any, the switch had on sales. You'll learn: - What factors happening concurrently with the switch affected Gatorade and G2 sales, and how - How consumers’ concern for added sugar in general, and not the type of sweetener, affected sales - How Gatorade’s main competitor, Powerade, stuck to HFCS as its primary sweetener, and how it paid off, despite perceived consumer concerns - Explore the difference between functional benefits to consumers and customers’ perceptions of healthfulness, and which really affects sales of sports drinks. Learn more: http://bit.ly/1iwQChc.

TRANSCRIPT

Page 1: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

Does sweetener ChoiCe ADD energy to sAles?

gAtorADe vs. PowerADe:

Page 2: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

in the quest to meet Consumer DemAnD, mAny mAnufACturers hAve Put sPeCifiC sweeteners unDer sCrutiny.

Page 3: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

however, reCent reseArCh shows Consumers Don’t CAre.

67% of consumers agree that moderation is more important than sweetener ingredients.

Source: Mintel Consulting (2013)

67%

Page 4: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

so we Put this theory to the test AnD lookeD At toP sPorts Drink brAnDs gAtorADe AnD PowerADe.

Page 5: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

until 2010, both brAnDs formulAteD with high fruCtose Corn syruP (hfCs). then gAtorADe mADe the switCh to sugAr.

Page 6: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

woulD gAtorADe’s sweetener-switChing strAtegy PAy off?

Page 7: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

yeAr enDing jAnuAry 2010-2011 2011-2012 2012-2013 CAgr

gatorade 5.9% 2.7% 1.1% 3.2%

powerade 20.3% 9.5% 10.4% 13.3%

total 9.5% 4.8% 1.3% 5.1%

sports-drink sales growth by brand, 2010-13

no ... sAles growth DeClineD.

Page 8: Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

why wAsn’t the switChing strAtegy suCCessful?

To geT The full sTory, download the case study here >