Current Events: New Categories in the Beverage Industry?

Benjamin S. Marks

       No matter what the marketplace everyone is looking for the next big category. Bevindustry.com came out with an interesting article based on possible new categories in the beverage industry focusing on Healthy and Exotic, Fizzy alternatives, and Recovery Drinks. This article focuses on these new possible categories, all which seem viable possibilities due to how the market is broken down.

       Beginning with the Healthy and Exotic products, this section is seeing to be very trendy in the U.S. market. Major players in the market have taken up stock in this growing section, as Coca-Cola co owns minority stake in Zico, PepsiCo purchased a majority stake in O.N.E. Coconut Water, and Dr. Pepper Snapple Group is distributing Vita Coco. Seeing that the major players are trying to get a major foothold in this growing section, it seems imperative that these healthy and exotic products are becoming its own category in the beverage industry.

       For Fizzy alternatives as a new category, companies are looking for a medium between fountain drinks (soda) and alcohol. This gap is very large as a growing trend is adults cutting back on sugar as they age. While this seems to be more of a niche market, this interest in these different carbonated drinks has picked up in Europe and may make its way to the United States. Some of these types of drinks include Utmost brands Inc’s Dry Root Beer flavor GUS (Grown Up Sodas). Other companies such as Oogave are trying to target this section of the market by introducing organic sodas. As more and more companies may jump on this growing idea, it has the possibility to be a fad rather than a trendy section, but nonetheless Fizzy alternatives can carve out a space between beer and soda to make its own category.

       Lastly focusing in on recovery drinks, several companies have attempted to target a different group of people. Sarah Theodore, a global drink analyst, stated “The sports drink category has seen an increase in post-workout recovery beverages. Looking at recovery beverages from a nightlife perspective, hangover shots might fit into that trend.” Several companies have been releasing these hangover shots that is formulated to, “hydrate the human body with the nutrients it loses while drinking alcohol, thus preventing a hangover.” This is what led to the launch of Noho, a 2-ounce “hangover” shot, last year. This is the newest of all the categories talked about above, but this product possesses the traits to create a whole new category in the food and beverage market. Only time will tell if this becomes a true category in the beverage industry.



Works cited:

http://www.bevindustry.com/articles/85332-new-categories-on-the-horizon