Despite this sizeable consumer base, their geographical location has seen them historically overlooked by the international soft drinks trade. Consequently, both have embraced this isolation and built up a strong, self-contained soft drinks industry with its own unique features in respect of product, brand and packaging preferences.
Although the majority of soft drinks are produced locally, some are still imported, and they are predominantly energy drinks. Foreign supplies of these stimulating beverages now total around 100 million litres a year, though that includes intra-trade between the two countries.
The leading energy drink in both markets is V from Frucor Beverages, which is owned by Suntory Holdings and is manufactured in New Zealand.
Canadean research reveals that this brand is responsible for more than a third of total energy drink volumes in Australia and New Zealand, despite the best efforts of international competitors such as Red Bull.
Another one of the top-selling energy drinks in the Antipodean market is Mother, which, while owned by Coca-Cola, originated in Australia. Despite their success at home, neither V nor Mother is well known elsewhere in the world.
Mother was instrumental in the leap in popularity of the 50cl energy drink can. This container had been around earlier but it really took off following the relaunch of Mother in this size in mid-2008. The 50cl can is now responsible for two-fifths of category volume across Australia and New Zealand, slightly in excess of the contribution made by the more internationally recognised 25cl size. Yet, on a global basis, the 50cl can is still in its infancy, being responsible for less than 5% of energy drinks volumes.
Another popular pack for energy drinks ‘down under’ has been the single-serve non-refillable glass bottle. It may have lost out in recent years to larger packs, but is still responsible for a 15% localised market share. This is higher than the international norm and partially reflects a seasonal shift in favour of bottles over the summer months, when Australasian consumers are outdoors more and prefer the convenience of resealability.
Screwcap glass bottles are most favoured by female drinkers. Indeed, the launch of sugar-free versions of both V and Red Bull in 2003 was believed to have encouraged the use of glass bottles among diet-conscious females.
Canadean has revealed that sugar-free energy drinks hold around a 7% category share across Australia and New Zealand. This is slightly above the global average, but only in line with what it was in 2003. It seems that most target consumers in the 18-35 age range are more interested in the energy boost provided by these beverages than they are concerned with calorie control.
Energy drinks volumes have more than quadrupled across these two markets in the past 10 years and continue to expand, albeit at a decelerating rate.
Sustained consumer interest and new consumption occasions, coupled with a broadening of product variations, and supported by image-focused marketing, are continuing to drive the category. As a result, Antipodean demand is forecast by Canadean to exceed 220 million litres by 2018.
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