DOES SWEETENER CHOICE ADD ENERGY TO SALES?

GATORADE VS. POWERADE:

IN THE QUEST TO MEET CONSUMER DEMAND, MANY MANUFACTURERS HAVE PUT SPECIFIC SWEETENERS UNDER SCRUTINY.

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%

SO WE PUT THIS THEORY TO THE TEST AND LOOKED AT TOP SPORTS DRINK BRANDS GATORADE AND POWERADE.

UNTIL 2010, BOTH BRANDS FORMULATED WITH HIGH FRUCTOSE CORN SYRUP (HFCS). THEN GATORADE MADE THE SWITCH TO SUGAR.

SEE HOW SWITCHING PLAYED OUT FOR OTHER BRANDS

WOULD GATORADE’S SWEETENER-SWITCHING STRATEGY PAY OFF?

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.

WHY WASN’T THE SWITCHING STRATEGY SUCCESSFUL?

TO GET THE FULL STORY, DOWNLOAD THE CASE STUDY HERE >