Energy drinks, the new cola for beverage firms

DE-PREMIUMISATION GATHERS STEAM AS BRANDS CHASE VOLUMES

- VIVEAT SUSAN PINTO

ACTOR RANVEER SINGH is all over social media these days exhorting consumers to be the king of the night. As the endorser of a new variant of energy drink Sting, Gold Night Fuel, Singh's histrionics will come handy for PepsiCo India, the brand's promoter, as it positions the latter as a go-to product for night owls. The price is the same as a regular Sting, at ₹20 for a 250-ml PET bottle, to ensure it has wide reach.

In the eight years since launching Sting in India, PepsiCo has upended the energy drinks market, once a niche category characterised by high prices, premium packaging, metro positioning and limited availability. Red Bull, the leading energy drink worldwide, commanded a lion's share (75-80%) in a small market in India, valued at ₹500 crore, in 2017.

Today, the tables have turned, with PepsiCo's Sting being the leading brand, with a 75-80% share of the domestic energy drinks market, which has expanded to ₹5,000 crore, according to industry executives quoting Euromonitor data. Red Bull is estimated to have a share of 7-8% now. A 250-ml Red Bull can, for instance, is available for ₹125 at supermarkets, out of reach for many consumers of energy drinks.

While rival Coca-Cola India has been quick to follow up with Charged by Thums Up, an energy drink priced at ₹20 for a 250-ml PET bottle, it is price warrior Reliance Consumer which is likely to take the battle to the next level, say experts.