NEW YORK -- PepsiCo and Red Bull made great strides in terms of product innovation in the first quarter of 2015, according to a survey of convenience-store retailers, even as Monster Energy, while still a leader in innovation, saw its output falter.
"The new Red Bull 12-oz. 'Edition' items are doing very well," one retailer said when asked: What innovations have been the most successful? "The Yellow Edition 12-oz. is a top-20 item for us in non-alcoholic beverages. This is amazing considering the item was launched in our stores in mid-February."
Other convenience retailers responding to Wells Fargo Securities' first-quarter Beverage Buzz survey cited PepsiCo's Mtn Dew Kickstart line extensions and Monster Rehab among the most-successful recent innovations.
“Kickstart has been extremely successful. Monster Rehab continues to drive new sales in this category," a retailer said. "Red Bull has definitely positioned itself to go after the consumers who don't like the traditional Red Bull flavor profile, and so far it seems like it is working.”
Retailers also cited Coca-Cola Co.'s Share a Coke promotion as driving sales. And several retailers noted success with Dr Pepper Snapple Group's alliance brand Bai5, one of them noting the "infused" bottled-water drink "has potential over next five years.”
Here's a look at how convenience retailers feel about major beverage-makers' innovation efforts:
Which company has done the best in terms of new innovation?
Meanwhile, most convenience retailers have not had success with Coca-Cola's smaller package sizes, many of them seeing them as "a trade down," and at least one reporting them as "poor movers."
How have smaller package sizes performed compared to traditional packages?
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