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Into the Digital Aisle: What Does the Competitive Landscape Look Like for the ‘Energy Drinks’ eCommerce Category?

The current speed of evolution in the ‘Beverages’ category is unprecedented. This pace of change is also seen broadly across all of e-commerce, as national brands are frequently out-maneuvered by digitally-native (and often unknown) brands. Micro-trends are now the new norm. Data is essential for brands to understand how to survive and thrive in the new normal of digital retail. One perspective that is often overlooked (primarily because of the difficulty in obtaining the data) is that of the cross-category competitive landscape. Historically limited to category specialists of apex brands, the data is now accessible to emerging and start-up brands—which are increasingly competent in growing share without the brand and capital strength of the category incumbents. This article is intended to help those brands which have historically focused on brick & mortar retail to better understand the competitive landscape of e-commerce within the ‘Grocery & Gourmet Food’ sector.

Category leadership can be obtained in both offline and online retail arenas. However, it requires an intense focus on tactical actions based on frequent access to performance data and trends. Without further ado, we present to you the current trends in the competitive landscape of the ‘Energy Drinks’ category. To best understand this, we’ll start by flying high at the 10,000 foot level at the top-most, ‘Grocery & Gourmet Food’ parent category, then we’ll zoom in through one of its primary sub-categories, ‘Beverages’ to then land in Energy Drinks.’

Category Hierarchy

This is the most recent share of category unit sales for the ‘Grocery & Gourmet Food’ category, one of the primary e-commerce categories.

 

Source: Reviate.com – unit sales share of ‘Grocery & Gourmet Food,’ top-performing ASINs within the last 30 days.

 

As we can see, there is concentration in this category, with the top 5 subcategories (Beverages, Pantry Staples, Snack Foods, Candy & Chocolate, Breakfast Foods) driving 70.1% of the category sales. If we then zoom into ‘Beverages,’ we see the following:

 

Source: Reviate.com – unit sales share of ‘Beverages,’ top-performing ASINs within the last 30 days.

 

In conclusion, brands that are successful on Amazon are increasingly those that employ a multi-brand, multi-category portfolio strategy. Doing this requires a data-driven perspective with frequent refreshes. Several brands are doing this well within the ‘Energy Drinks’ category, and as a consequence are driving significant results over under-performing brands, such as: 49x the revenue, 82x the revenue per ASIN, 20x the BSR rank, 24x the average review count, and 1x the average rating. Will your brand be one of those that performs?

More pricing insights are available at www.reviate.com, as well as a more detailed, free report on Energy Drinks (and over 47,000+ other product categories).

 

All data is compiled and reported by Reviate.
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