Energy Drinks in Venezuela

PROSPECTS

Double-digit fall of volume sales in 2017

Off-trade volume sales of energy drinks show a double-digit decline for the fourth year in a row, leaving a potentially large consumer base unsatisfied. The consumer base has expanded over the review period, with negative publicity not being an issue since the government has not played a major role in the public awareness of the hazardous effects associated with its consumption.

High prices deter demand of energy drinks

The average unit price of energy drinks in 2017 is over four times higher than the corresponding price of sports drinks. All importing is carried out by companies and a handful of independent importers which must increase the final price of the products to keep up with the loss of value of the domestic currency.

Barriers to growth

Over the forecast period, demand will continue to be unsatisfied owing to a reduced supply in volume and variety. A combination of highly priced foreign exchange and falling real incomes will continue hurting the category from both market sides.

COMPETITIVE LANDSCAPE

Increased concentration in energy drinks

Energy drinks became a fragmented category over the review period due to the exit of SoBe AdRush in 2012, being the category leader at that time. Fragmentation resulted from importers and manufacturers rationalising product portfolios to give priority to basic products.

Red Bull maintains its leadership in 2017

Industrias Aven 2012 CA is the importer of the international brand Red Bull, the category leader that maintained its share. Red Bull’s share is likely to increase slowly after the exit of SoBe AdRush which followed an aggressive and effective pricing strategy.

Short-lived presence is expected to continue

Other brands present in the category are Ciclón (Grupo Constania SA), Hell (Dukato CA) and B52 (Borges & Almeida CA), which hold second to fourth places in the ranking, respectively. B52’s irregular presence and very high unit prices have hurt its share over the review period.

Files are delivered directly into your account within a few minutes of purchase.