NEW ENERGY DRINK

Introduction to Accounting and Finance Assignment

NEW ENERGY DRINK



Introduction

Energy drinks are non-alcoholic beverages which are intended to provide a fast blew of high power to the consumer. These may be prepared with a composition of methylxanthines, caffeine, natural tastes, some herbal constituents or specific vitamins encompassing Vitamins B. They may furthermore comprise taurine, guarana, maltodextrin, ginseng, carnitine, inositol, glucuronolactone, creatine and ginkgobiloba. Most goods include artificial sugar. The prime hardworking component is usually caffeine.

Japan and Thailand have longer annals of power drinks and the use of caffeine has been a key ingredient in those countries. Energy drinks acting as an alternate to coffee were first introduced in Europe. The market received a significant increase when Red Bull entered the US market in 1997. After this thriving market introduction, various beverage businesses encompassing Coca-Cola and Pepsi went into the market. Austria-based Red Bull remains the market foremost though with an approximate market share of 65%. According to Beverage trading, the development rate of this industry had been increasing two-fold every since the late 90s. The current U.S. domestic market may be roughly $4 billion, anticipated to grow to an approximated US $10 billion by 2010.

Recent years have seen the emergence of some new energy drinks. They encompass KMX of Coca-Cola, 180 of Anheuser-Busch, Hansen's Energy, and Adrenaline hurry of PepsiCo's SoBe. Pepsi had previous introduced AMP under the hill Dew brand and furthermore farthest Energy by Arizona Beverage business was launched. Growth of the present worldwide market for power drinks is approximated at 17.8%. Major manufacturers are focusing heavily on trading, aiming at the promotion of energizing conception, result-oriented trading and product positioning and a larger impel into evolving markets.

Market Structure

The prime consumers of this industry are under 35 years of age and are predominantly male. Teenager and school students are centre goal market segments for the manufacturers and comprise of the core age group of 12 to 30. Recent review estimates that round 35% per hundred of power drink buyers are overhead 35 years old. Furthermore power drinks with high sugar grades are more popular among young kids and women, while power drinks with strong taste and flavor are more favored by male consumers. Recent investigations also demonstrated that 65% of the power drinks market comprises of male consumers.

There are some kinds of energy beverages products. Different varieties of tea and coffee along with green tea form one group. Second are traditional power beverages such as Red Bull and others. In appearing market, however, several producers have presented new products. Combining energy beverages with alcoholic beverage has produced in new products encompassing “Hair of the Dog”. Mixing energy beverages with smart beverages has furthermore conceived new emblem titles such as NOS.

Industry Definitions

Added sugars - sugars and syrups to be supplemented to nourishment in the method of preparation. The composition of this added sugar is artificial, not naturally made.

Antioxidants - chemical composites which defend the body from cell decrease by keeping oxidation

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