Enhancements, supplements, additives. Call them what you want to, but like a team adding plays to its arsenal, sports drink companies are packing their offerings with extras to get the edge on the competition.
“Some of the biggest trends we’re seeing is various sports drinks with enhancements, whether it’s the amino acids or just different supplemental-type stuff,” says Mike Jones, category manager for S&S Petroleum, Mukilteo, Washington.
Jones is seeing enhancements particularly with some of the newer brands, but big names such as Gatorade also are following trends. And, while he says the variety of flavors are growing, the more impactful changes are with enhancements.
“They go with something a little smoother, which in this case is the sports drink.”
In addition, the category manager thinks what’s especially driving sports drinks today is social media and the influencers behind it, “like what you see with Prime Hydration” and its influencer founders, pro boxer KSI and pro wrestler Logan Paul.
“Now they may have some ingredients designed for more athletic purposes, but I think the majority of folks buying it are not athletes,” Jones says. “They’re everybody from high school kids to just folks like me who think this must be better for you.”
Always in Flux
The sports drinks category is constantly evolving, due in part to consumer needs and habits. In the last several years, consumers’ desire for more functionality is the top trend, says Sabrina Niland, vice president of innovation at Coca-Cola-owned BodyArmor Sports Nutrition, Whitestone, New York.
“Right now we’re seeing two major segments driving the lion share of growth for the category: rapid rehydration and zero sugar,” she says, adding that consumers today are paying more attention to ingredients.
BodyArmor research shows that while consumers care about functionality, they also seek flavor and great-tasting products, Niland says. This wasn’t an option in rapid-rehydration offerings, Niland says, so BodyArmor earlier in 2023 launched Flash I.V. Ready to Drink. “It has more electrolytes than competitors, plus the added benefits of zinc, vitamins C and B12.”
BodyArmor followed up in September with the powder sticks Flash I.V. Hydration Boosters.
Also helping sports drinks grow, though in a roundabout way, is the steady decline of carbonated soft drinks (CSDs), Jones says. CSD consumers are gravitating primarily toward energy, but for those who don’t want energy drinks’ taste profile, caffeine and/or high sugar content, “they go with something a little smoother, which in this case is the sports drink,” which Jones says also is known as an “isotonic.”
While CSDs have had little in the way of “pure innovation,” Jones says, when it comes to hydration—and energy—drinks, “the flavor profiles are off the charts, wild and crazy, fitting right into that ‘GenZennial’ wheelhouse.”
These generations aren’t loyal to brands like older generations, Jones adds. “They’re all about trying the new thing, the new flavor. Gatorade’s owned the space forever, but you’re seeing other brands, whether it be the Coke family with Reign or (Congo Brands’) Prime, making inroads because of those little unique enhancers or tweaks that they’re trying to differentiate themselves from Gatorade.”
Another way to attract customers is partnering with rising sports, says Joe Sepka, co-founder of 3Tier Beverages, a Chicago-based data management consultancy.
“Professional sports is a huge source of advertising despite the fact most people drinking sports drinks don’t play pro sports,” he says. “As that landscape continues to evolve and some sports rise in popularity and others fall, it’s important for these sports drinks companies to position themselves in new and innovative ways with what is up and coming—because if you don’t get there and get ahead of the game, you can fall behind.”
‘Nothing Has Changed’
At Nouria Energy, Worcester, Massachusetts, Kevin Platt has a different take on the array of offerings. He says manufacturers are “throwing stuff at the wall trying to get it to stick,” but it still comes down to the top-selling items being the basic flavors such as lemon lime and orange.
“Cool Blue is Gatorade’s No. 1 flavor,” he says. “It’s always been their No. 1 flavor. It usually runs lemon lime or Cool Blue. And fruit punch is third. And that has been the case for the last 20 years, so nothing has changed.”
Gatorade’s electrolyte sports drink G Fit, which came out in 2022, hasn’t done well, he says, nor has the rapid-rehydration Gatorlyte nor Powerade Water. “We have the ready-to drink Pedialyte (for adults), which has done very well for us for four years now,” Platt says.
Sales, he adds, are down everywhere due to c-stores absorbing cost increases while manufacturers are still giving “deep discounts” to supermarkets.
“You’re not gaining any new customers. You’re just having them drink a different flavor.”
“They use the supermarkets for volume, and they use the c-store channel for profit,” Platt says. “That’s always been the case.”
In addition to the core flavors, sugar-free options are doing really well, he says, adding that it’s difficult making sales comparisons this year because some brands, like BodyArmor, bounced back well in 2022 after COVID subsided—and that such a big rise won’t realistically continue.
“You’re comparing COVID years to the non-COVID, to mid, partial COVID,” he says. “So it’s been a tough three years trying to compare apples to apples.”
Regardless, Platt foresees these beverages continuing to struggle unless there’s a “real evolution” in sports drinks. “They throw so many enhancements in it and say it’s a new type of sports drink, but it’s really not.”
“You’re not gaining any new customers,” he adds. “You’re just having them drink a different flavor.”
Thoughts About Sports Drinks at the NACS Show
Emily Boido, senior director marketing and fitness at PepsiCo, Purchase, New York
“What we’re seeing is, overall, athletes are unique in their needs, so our goal is to really deliver a portfolio that, whether it’s in that heat of performance moment or it’s supporting the athlete in their all-day wellness journey, they trust the Gatorade brand.”
Clint Harshman, director of sales, all channel, Liquid I.V. (powder packets), El Segundo, California
“In hydration overall, we’ve seen a lot of growth. The consumer has gotten a lot smarter. There’s more of a 360 degree approach to hydration. We can be in more places because we’re not in the bottle and don’t require a cooler.”
Nick Killeen, brand director, Pwr Lift, New York (home-grown brand of Vita Coca)
“We’re finding that athletes are really conscious of what they’re fueling their bodies with these days. Anything they’re consuming, be it food or beverage, they want ingredients that will provide benefits in terms of performance; protein gives you recovery muscle building, electrolytes for hydration. People want something that tastes good and also helps them get stronger, recover faster, wake up. I think since COVID, everybody’s more focused on their health.”
Patricio Garcia-Cano, director of brand management, P10, owned by PSR Brands, Houston
“Consumers are looking for a solution targeted to their needs or goals. Maybe they want to build some muscle or have better elasticity or more endurance.”
