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

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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.

Text of Gatorade vs. Powerade: Does Sweetener Choice Add Energy to Sales?

  • Does Sweetener ChoiceAdd Energyto Sales? Gatoradevs.Powerade:
  • In the quest to meet consumer demand, many manufacturers have put specific sweeteners under scrutiny.
  • However, recent research shows consumers dont 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.
  • Would Gatorades 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 WASNT THE SWITCHING STRATEGY SUCCESSFUL? To get the full story, download the case study here >