Sports Drinks in Norway

PROSPECTS

Sports drinks could benefit from further expansion with higher number of brands and innovation

While sports drinks maintained a stable performance in Norway in 2019, it has traditionally offered only limited competition and therefore innovation, being dominated by established global brands such as Powerade and Yt Sportsdrikk. However, the entrance of Coca-Cola’s brand Monster, could cause disruption, as it is a well-known name in energy drinks and therefore is likely to benefit from cross-category awareness, as energy drinks is more established and popular with Norwegians.

Competition from other soft drinks could restrain stronger potential

Despite a more positive outlook for sports drinks, the category will remain a niche in overall soft drinks as it faces competition from bottled water, particularly the functional format, and reduced sugar energy drinks. Although sports drinks will continue to be purchased by serious athletes who understand the specific benefits of these products in terms of replacing electrolytes lost through strenuous and prolonged exercise, many regular consumers are looking for refreshment when working out at the gym and often choose carbonated, flavoured or functional water, as they perceive these to be healthy alternatives.

More positive outlook for sports drinks due to increasing awareness of specific benefits

While the health trend will push greater demand for reduced sugar alternatives to sports drinks, sugar content is not of particular concern for those serious athletes who are likely to continue to purchase sports drinks to replace lost salts, sugar and electrolytes and believe that sugar (in the form of glucose or sucrose) is an important component when taking part in strenuous exercise such as running. Active lifestyles amongst Norwegians however, will support the predicted stronger performance for the category, with further expansion in terms of players and brands benefiting its expansion and consequently raising greater awareness of the specific benefits of sports drinks over energy drinks for instance.

COMPETITIVE LANDSCAPE

Coca-Cola’s new launch allows it to strengthen its leadership

Coca-Cola European Partners Norge AS strengthened its dominant leadership of sports drinks in 2019, offering leading brand Powerade, and new launch Monster. Ironically, while this new brand gained some share from second-ranked Yt Sportsdrikk, it also cannibalised sales from Powerade.

Tine may need to invest more strongly in marketing Yt Sportsdrikk in face of increasing competition

After gaining share from smaller players in 2018, second-ranked player Tine SA with its Yt Sportsdrikk brand suffered due to the entrance of Coca-Cola’s Monster. Although Tine offers a wider portfolio within soft drinks, which it supports with marketing, it does not concentrate all its efforts on a small category such as sports drinks.

Discounters gains share offering attractive discounts

Modern grocery retailers remained the most important distribution channel for sports drinks in 2019 in Norway, offering wide availability. Discounters gained strong off-trade volume share in 2019, due to typically carrying significantly lower unit prices compared to convenience stores and forecourt retailers, despite the latter channels offering greater convenience to Norwegians who may purchase a sports drink on their way to exercise, which in most cases means that they are less price sensitive.

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