In this article we are going to list the 15 fastest growing beverage brands in 2020. Click to skip ahead and jump to the 5 fastest growing beverage brands in 2020.
The beverage industry comprises of more than just the soft drinks and juices that instantly come to our mind when we think about beverage brands. It can be divided into two subcategories, the alcoholic segment and the nonalcoholic segment. There has been a constant increase in categories that fall under beverages as more and more beverage commodities are now being sold with a branding.
As mentioned above there are various beverage brands which sell several different products such as milk, coffee, beers, energy drinks, soft drinks, coffee, tea and much more. While some of the companies have a more focused approach with a core product category, others, mostly larger and more established brands, have many kinds of beverages in their product portfolio. Most of the brands that have made it on our list are operating all over the world and enjoy a high unaided awareness in the minds of a consumers and a somewhat stable demand. Even in the pandemic era the sales of most beverage brands did not decline as they are consumer staple products and occupy an independent share of wallet.
The beverage industry is now a mature sector with fewer opportunities for new entrants because of an already saturated market. The industry is dominated by a few players who are ginormous in size and the competition amongst them is quite intense. The companies have employed various marketing, sales, supply chain and logistics tactics that give them an edge in some countries while a competitor takes a larger share of the pie in another country.
The beverage industry is extremely competitive with more supply than demand because of similar products being offered by multiple small and large brands. Thus, most players are unable to target a huge customer base and even if they do customers are not very loyal except for a few exceptional brands who do have customers who are loyalists in fact, advocates of the brand such as Coca Cola and Pepsi. Thus, a lot of recall through constant marketing and promotions is needed to keep the sales figure stable.
Most beverage brands, especially the bigger players are more than just multinational profitable companies, they are well known attractive brands which have an equity based on not just the generic component of their product but the meanings that they have attached to their brands. These beverage brands have now understood that a consumer who probably will not be able to differentiate between their product and a competitor’s, in a blind taste test, could still be motivated to choose their brand if it stands for a larger purpose; something more about the society and less about profits. This differentiation is what has helped these companies grow at a very fast pace and have a continued high growth pace even after being in the maturity phase of their product life cycle. Companies like Coca Cola, Red Bull, Nescafe etc. have constantly, without fail, come up with brilliant campaigns that have an emotional appeal that increases the overall resonance to the brand and communicate their positioning in the minds of the consumers in a very clear manner.
At the end of the day, companies who have kept evolving with the changing industry dynamics are the ones who are still some of the fastest growing brands. These companies have, over the years, made such a permanent place in the lives of their consumers that they are going to stay relevant for at least the foreseeable future and there could be no other testament of this than them having a stable sales volume even in the Covid19 period which has affected the sales of almost every consumer good negatively. The rankings and listings for the fastest growing beverage brands in 2020 have been compiled from Beverage daily, Food Engineering Mag, and The Fortune. So without further ado, let's take at the drinks everyone loves to have, starting with number 15:
15. Tito’s Handmade Vodka
Tito’s Vodka was founded in 1997 by Tito Beveridge. The company is based in Austin, Texas and specializes in making vodka from yellow corn. The overall vodka consumption in the US has increased in this last decade however, in 2020 owing to the pandemic and economic conditions the sales of most alcohol companies saw a decline. However, this was not the case for Tito’s Vodka as its sales growth still increased with a record sale of around $8.81 million.
14. Core Hydration
Core was founded in 2015 by Lance Collins who is an entrepreneur known for coming up with beverage brands. The brand has grown immensely in these last five years but especially in 2020 when it was endorsed by numerous Hollywood stars and other famous personalities such as Katy Perry. The brand claims to offer organic drinks that help balance the body’s PH and also boost immunity. In lieu of COVID-19 many stars endorsed Core’s products as they are immunity boosters and hence it resulted in positive word of mouth and a high growth rate for Core.
13. PepsiCo (NASDAQ: PEP)
PepsiCo is another American multinational, food and beverage company which was founded in 1965. The company already is in a mature stable phase where usually slows down and it has a decent share of the pie and a good market share in beverages worldwide but still manages to have a higher growth rate than many medium sized companies in their growth phase. Although, PepsiCo experienced an organic growth of about 7% but the growth of the beverages specifically was around 2.3%.
12. Bodyarmor SuperDrink
Bodyarmor is an American company which was also founded in 2011 by Lance Collins. The company is based in New York and is partially owned by The Coca Cola Company which has minor stake in the corporation and has positioned Bodyarmor as a more premium brand then its own brand Powerade. Bodyarmor faces tough competition from Gatorade which is the leader in the sports drink category. However, Bodyarmor is the fastest growing brand in the category of sports drinks and its founder has claimed to soon take Gatorade’s number one position. Looking at Bodyarmour’s rapid growth there’s speculation that it might be Coca Cola’s next billion-dollar brand.
11. Dr Pepper Snapple Group (NASDAQ: KDP)
Dr Pepper Snapple is an American beverage company that specializes in the production of soft drinks. The company had a merger with the Keurig Green Mountain group and the resulting organization is now known as Keurig Dr Pepper. The brand saw an increase in sales in the year 2020 with a net sales growth rate of 3.2%. Many of Dr Pepper brands have been acquired and licensed by Pepsi Co. and The Coca Cola Company.
Nescafe is another famous beverage brand which has a global presence and a high consumer awareness. The coffee brand was introduced by its parent company Nestle in 1938. Nescafe’s organic growth rate in the fiscal year 2020 was about 3.5%. The brand was a major contributor in Nestle achieving an overall growth of about 4% in 2020.
9. Corona-ABInBev Constellation
Corona is a very famous beer brand that is originally a product of a Mexican company called Group Modelo. However, ABInBev (NYSE:BUD), since its acquisition of Group Modelo, holds the right to manufacture and distribute Corona in many parts of the world including The United States and most recently China. The brand experienced an annual revenue growth rate of 4.3% in 2020 despite being an already mature brand in most parts of the world. The brand has acquired a repositioning and premiumization strategy that has helped it grow.
8. Red Bull Gmbh
Red Bull Gmbh is a company based in Austria which was founded in 1987. Red Bull is a very famous energy drink, and it is the highest sold energy drink all over the world with about 7.5 Billion sales volume. The Brand has year after year invested in geographic expansion and continuous marketing with a market development growth strategy which has helped it maintain a constantly high growth rate. In 2020 Red Bull had a growth rate of 5.2% in terms of sales volume.
7. Heineken N.V
Heineken Lager Beer is another beverage brand that managed to have a high growth rate in the year 2020. Heineken N.V is a Dutch brewing company which produces and distributes beer in many parts of the world. The brand had an organic growth of 5.6% and showed better performance than most of its competitors. The company has employed several promotional strategies that has helped the brand to gain popularity amongst the beer consumers such as sponsoring champions leagues and Rugby World cups which have helped in targeting the right set of customers.
6.The Coca Cola Company (NYSE: KO)
It would not come as a surprise that the Coca Cola Company makes it on our list. The company, despite of its existing huge market share always has a very high growth rate. It was one of the fastest growing brands in 2020 and experienced a 7% growth rate for the last quarter and a 6% average growth rate in the whole year. The company manages to still bring in such high growth numbers by constant acquisitions of new brands and efforts in increasing and improving its distribution and supply chain across all countries.
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Disclosure: No position. 15 fastest growing beverage brands in 2020 is originally published at Insider Monkey.