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German retailers need a wake up call

Aimed at briefing retailers how to profit from long term market growth, the report looks at energy and sports drinks in the context of soft drinks as a whole and comments on sales performance in a variety of outlet types.

Some alarming facts emerge and it concludes that many retailers need a wake up call.

This rapidly developing sector accounted for 9% of all retail soft drinks value growth in 2000 and 17% in the first half of 2001.

Petrol stations achieve an extraordinary 43% of retail energy and sports drink value, boosted by impulse purchase from chilled cabinets.

A mere 25% of retail energy and sports drink value is sold through hypermarkets, supermarkets and other smaller shops combined.

Drinks wholesalers have failed to take advantage of energy and sports drinks, gaining fewer than 5% of national sales.

Market analysts Zenith believe there is a real opportunity to double this market by 2005.

‘Energy and sports drinks already have remarkable levels of public awareness in Germany but this is not being fully converted into action by consumers.

‘This is partly because retailers do not yet make the most of the opportunity on shelf,’ says Zenith chairman Richard Hall.

‘Energy and sports drinks offer premium prices, high returns, rapid growth and appeal to younger consumers,’ he continues.

‘Chilled cabinets, extra weekend displays and multipacks are three key ways to boost sales.

‘Energy and sports drinks are all about performance. Most of Germany’s retailers are underperforming.