vitaminwater Refreshes Canadian Product Portfolio

The @vitaminwater_caa twitter headshot, current as of July 2014. Courtesy of twitter.com
vitaminwater Canada product line-up from their twitter page head shot as of July 2014.  Courtesy of @vitaminwater_ca (twitter.com)

It seems vitaminwater has recognized the limit on how many drink flavors can be sustained in the Canadian marketplace.  That number stands at twelve.  The hydration brand has quietly launched two new flavors under their Zero sub-brand, introducing Rise (orange) and Squeezed (lemonade) to build their calorie-free portfolio.  Very subtly, two of the previous zero-calorie flavors – Resilient-C (grape raspberry) and Recoup (peach mandarin) – are being phased out to make space for the two new offerings.  Beyond the zero-calorie product transition, Spark (grape blueberry) also is being phased out.  Notice the different flavors in the image above and below (Recoup has never been pictured).  It’s certainly interesting to see that the marketplace – and retailers – can sustain twelve flavor extensions.  Definitely not an easy feat to create shelf or cooler space for twelve items.

What is more interesting though, is vitaminwater’s approach to continuously refresh their product line-up.  While there has always been steady sales coming from popular flavors such as XXX, Essential, and Multi-V, there are “test” flavors launched into Canada.  From the hydration brand’s introduction, Rescue (green tea) was the first to be discontinued.  Through the years, other flavors have made brief appearances and slowly gone away, including Formula 50 (grape) and Sync (Berry Cherry).  And beyond these flavors that were expected to mainstays were limited-time offerings, such as the recent Glory (peach mango) flavor for the 2014 Olympics.  Regardless of all these other changes, the magic number – or limit – appears to be twelve flavors.

Despite a mixed response leading to varied success and failure, their constant innovation is admirable.  The company keeps on bringing flavors into the market to see what sticks with consumers.  It would be safe to say that vitaminwater has introduced up to twenty flavors at one point or another to the Canadian market.  Beyond the original eight flavors that accompanied the Rescue offering at launch, the most successful introduction has been Energy (tropical citrus).  Most of the grape flavors – Spark, Formula 50, Resilient-C – have only made brief and unsuccessful appearances.

vitwaminwater Canadian product line-up as of July 2012.  Courtesy of @vitaminwater_bc (twitter.com)
vitwaminwater Canada product line-up as of July 2012. Courtesy of @vitaminwater_bc (twitter.com)

Regardless of success or failure, it is a welcome sign to see a company continuously improve their product line-up.  Before an item can be launched, a company invests significantly behind research and development to determine its viability, demand, and sales potential.  And to consistently bring new products to the market, this is a sign that vitaminwater believes in the product’s longevity.  Even with product proliferation being a key concern that prevents retailers from stocking all the flavors, substituting new products in place of slower selling products helps both parties.

After all the product substitution, let’s just hope that vitaminwater eventually finds a grape flavor product combination that will stick in the Canadian marketplace.

Rockstar Quietly Introduced Energy Waters

The three flavors of Rockstar Energy's new Energy Waters: Citrus, Orange Tangerine, Blueberry Pomegranate Acai.
The three flavors of Rockstar Energy’s new Energy Waters: Citrus, Orange Tangerine, Blueberry Pomegranate Acai.

Rockstar Energy showcased their Rockstar Energy Water over 18 months ago at the 2012 NACS Show, but never divulged the launch date.  The energy drink manufacturer’s enhanced water offerings were quietly introduced in September 2013, and has recently launched into Canada.  Via Rockstar Energy Canada’s Facebook page – the three flavors of Citrus, Orange Tangerine, and Blueberry Pomegranate Acai – launched February 24.

Beyond their energy drink’s portfolio breadth, Rockstar has been traditionally known for their innovative and attention-grabbing packaging.  Their energy drinks come in aluminum cans that have matte finishes (Rockstar Recovery series) and slim cans with straws (Rockstar Pink).  However, their foray into enhanced waters have stayed with safer packaging resembling other products that define the segment landscape.  Even as packaging can help demonstrate a product’s unique features, Rockstar has chosen to play it safe since they do not have a strong brand name.  Their packaging resembles that the glaceau’s vitaminwater packaging, the clear market leader.  Perhaps Rockstar is looking to enter this segment as a follower and build up credibility as a key competitor in this segment before experimenting with its packaging.

The launch of Rockstar Energy Water is also an indication of the energy drink manufacturer’s goals to diversify beyond energy drinks.  Similar to Starbucks’ aim to expand outside coffee and Monster Energy’s expansion into teas, Rockstar is leveraging their expertise in energy drinks to introduce other caffeinated beverage products.  These new products are targeted toward a different consumer, and will be placed in other beverage sections within convenience and grocery stores.  With more touch points in the grocery aisles, Rockstar now has more opportunities to connect with the shopper: both the energy drink shopper and the enhanced water shopper.

As Rockstar targets a new consumer demographic, their marketing message and vehicles should also change.  Energy drink companies have forged strong ties with extreme sports athletes since their products fit that particular demographic and lifestyle.  Their new beverages may need to start communicating on other media channels (ie TV, print, digital) and communicating differently to identify more closely with this demographic’s behaviors and needs.  While some analysts expect Rockstar Energy Waters to go after the same “energy” consumer, there are bound to be new interest.  At the same time, communicating similar messages within identical media platforms dilutes the overall product awareness.

Rockstar Energy Water Shelf

Even as Rockstar Energy Drink continues to increase its availability, two key challenges they must address are awareness and consideration. Their February launch showed that they have only communicated to the public through sporting events and social media.  How will they improve their awareness?  And with their competition firmly entrenched in shopper’s minds when they are looking to buy enhanced waters, what will Rockstar Energy Water do to have the shopper consider trying Rockstar Energy Water?

Seeing that expansion is a key growth opportunity, Rockstar’s broader portfolio is a good first start.  If they continue supporting these new drinks and work to build both awareness and consideration, Rockstar can become a strong player across both the energy drink and enhanced waters segments.

Pepsi Brings Propel Back to Gatorade

Propel - from the makers of Gatorade
Propel – from the makers of Gatorade

After a couple years differentiating itself focusing on the lifestyle space, Pepsi is re-launching Propel water under the Gatorade hydration portfolio.  From AdAge, Natalie Zmuda shares that the enhanced water brand will update its product packaging, remove the “zero” from its product name, and position itself as a hydration beverage for regular exercisers (article link here).  Unlike Gatorade, which is targeting the serious athletes and is a sports drink, Propel helps fulfill an athlete’s need with water – not an isotonic.  Still, the question remains how effective can Propel compete within the crowded enhanced waters space?  And given all the changes to the Propel franchise, how will consumers perceive Propel after another restage?

With popular brands like glaceau vitaminwater, glaceau smartwater, and SoBe Lifewater in leading market positions, Propel still manages to control a 13% market share.  It has remained competitive as a result of the brand’s equity and the consumer’s affinity with the hydration beverage.  The franchise will look to strengthen its market position by catering toward “routine exercisers” and piggy-backing on the Gatorade name.  Their updated packaging will feature the line “from the makers of Gatorade” to drive awareness and availability.  This point is critical to Propel’s growth, as owning a part of the consumer’s mind becomes increasingly important with the enhanced waters market expanding to include with more brands in recent years.  Even Pepsi themselves has plans on introducing a premium water brand – Qua – within the year. (article link here).  The competition within this segment is fierce, and owning a particular segment – the casual athletic segment – helps Propel stake its claim in enhanced waters.  With Gatorade also catering to the athletic segment, it would not be surprising to see more promotional efforts where Propel and Gatorade products complement one another.

Propel Water. In 2009 (L) and in 2014 (R).
Propel Water. In 2009 (L) and in 2014 (R).

The issue surrounding product perception could have been a tougher obstacle to overcome.  Propel was originally introduced under the Gatorade before moving away from the athletic consumer in 2011.  As consumers and their drinking habits evolved, the Propel brand followed the moving target to become more of a lifestyle water brand.  Instead of continuing to target males/females 25 and above, their core target demographic moved up to Boomers and Generation X.  Measured media spend to celebrate the new positioning was over $10 million.  Three years following this direction, Propel is changing their focus and advertising message.  Again.  If not for leveraging the Gatorade brand name, Propel may have a tougher time connecting to younger consumer segments after structuring the communication toward a difference audience.  With the sports drink’s backing, Propel has a stronger platform to broadcast their marketing message toward athletes and exercisers.

Regardless of the marketing message and target demographic, the product fits into the changing needs of consumers.  Propel is well-received as evidenced by their market position.  With the support of Gatorade, Propel’s path on the road to success becomes much less challenging.

Propel The Workout Water
Propel The Workout Water

Coca-Cola Expands “Official” Olympic Drink Portfolio

Courtesy of eprize.com

It’s another year for the Olympic games, this time in Sochi.  For Coca-Cola, every Olympic year is a boon based on the event partnership agreement where they hold the distinction of official Olympic non-alcoholic beverage partner.  As one of the Olympics’ global partners, the beverage giant pays about $100M to monopolize non-alcoholic beverage serving rights in all Olympic venues (other global partners hold exclusivity in their respective industries).  In recent years, the definition of “non-alcoholic beverage” has expanded to include more than just carbonated soft drinks.  Coca-Cola has gained exclusivity to serve sports drinks (Powerade), juices (Minute Maid), and waters (Dasani, vitaminwater) over the past few Olympics games.  The “Olympic Wolrdwide Partner” logo has also started appearing on Coca-Cola’s ZICO coconut water brand lately.  So given the substantial cost, how beneficial is it for Coca-Cola to be a worldwide Olympic partner?  And with the expanded definition of “non-alcoholic beverage”, which product categories are next to gain Official Olympic product status?

Despite a cost of $100M each active Olympic year, Coca-Cola has renewed their Olympic partnership until 2020.  It would appear that this agreement delivers substantive returns.  For one, Coca-Cola has blocked out their global competitor in all product categories that the conglomerate participates in.  No Pepsi-branded soft drinks, Aquafina, Gatorade, or Tropicana can be served within all Olympic-event venues.  Brand visibility is another partnership benefit.  Every game or after-party event that becomes broadcasted will feature a Coca-Cola logo or Coca-Cola beverage product.  Live viewers and spectators may only celebrate with Coca-Cola branded products and nothing else.  Positive associations is another partnership benefit.  Spectators seeing their athletes win also see them hydrating themselves with Coca-Cola products.  These same spectators will associate hard work, performance, and winning all being supported by Coca-Cola.  From a qualitative perspective, these are invaluable benefits that Coca-Cola has been able to enjoy – reduced competition, brand visibility, and positive associations.

Courtesy of designyoutrust.com

With changing taste preferences among spectators and athletes alike, incorporating other product categories as “Official Drinks” certainly makes sense.  Some people will choose carbonated soft drinks, some will want flavored water, and still some people prefer juices.  With coconut water emerging as a beverage category, expansion to include this as an Olympic-approved beverage makes sense.  However, increased exposure of Olympic branding potentially cheapens the Olympic brand with broader availability on all products – not just beverages.  Furthermore, not all products will be suitable to display the Olympic logo on its packaging.  For example, energy drinks may be one category that could be denied Official Olympic product status given possible negative associations despite the category growth.  Within Coca-Cola beverage portfolio, it’s likely that liquid enhancers (Dasani Drops, Powerade Drops) and teas (Honest Tea, Fuze) could gain approval should they apply for it.  Both these categories are enjoying growth and have fewer negative associations portrayed by the media.

Coca-Cola has been one of many key sponsors that has supported the Olympic games through the years, and it appears that both parties are satisfied with the results.  2020 is still three more Olympic games away, but given the goodwill both parties have been generated, it’s very possible that this relationship goes well beyond 2020.

Lost in Translation: vitaminwater Canadian Promotion Goes Awry

vitaminwater's promotion blunder. Image courtesy of Metro through adweek.com
vitaminwater’s promotion blunder. Image courtesy of Metro through adweek.com

Over the last few weeks, glaceau vitaminwater have come under scrutiny for its under-the-cap promotion that spelled out the words “YOU RETARD” (story link here).  As a bilingual Canada nation that calls English and French as its national languages, certain words may not translate so well.  vitaminwater’s promotional intent was to put one English and one French word under the cap, with the consumer collecting the caps to make funny sentences.  Apparently the problem was that the English list of words and the French list of words were separately approved and no one thought of what the consequences should both words were combined.  These consequences were amplified given that the family finding these words were a special needs family.  Doug Loates (the dad) sent Coca-Cola a letter immediately letting them know of his displeasure toward their campaign and how hurtful it was to his family.  As you see from the letter (below), he has signed it as “an ex-Coke drinker” which likely means that they have lost a customer for life.

As the glaceau business unit goes into public relations defense, what can be learnt in this situation?  The obvious lesson is to develop stronger approval systems when running a bilingual campaign in Canada (as in any other nation with more than one national language). Ensuring that the correct message is not lost in translation is critical and avoids the company any negative PR and embarrassment.  If there was a business team that handles the French marketing and another team that handles English marketing, then these two teams must collaborate more closely to ensure each party is dialed in to what the other team is doing.  Ultimately the national campaign is approved by someone that manages both teams, so that executive should also be aware of the consequences.

Aside from focusing on the directly results of this campaign, one has to wonder why vitaminwater ran this type of a campaign in the first place.  If the intent was to stimulate sales by having beverage enthusiasts collect the caps to create words, is there a prize for the funniest word?  Or was it simply a game for instant gratification by combining words together?  I have not noticed any type of media promotion to build awareness or excitement for this campaign in either case.  vitaminwater may have fared better had they simply piggybacked off of Coca-Cola’s iCoke.ca loyalty program.  After all, with an existing infrastructure where consumers are already knowledgeable of the reward system, this would make it easier to achieve the campaign’s objectives.

The next time vitaminwater runs a marketing campaign that spans the nation, we’ll see whether they have truly learned their lesson.  Will it be regional promotions with stricter guidelines for English- and French-speaking provinces?  Or will it be the same problem?

Coke Letter by Doug Loates
Doug Loates’ letter to Coca-Cola on finding the vitaminwater bottle cap

what happened to vitaminwater?

vw+vw0 canada line-up courtesy of @vitaminwater_bc

Since the explosion of vitaminwater on to the beverage scene years ago, momentum appears to have subsided for the brand and enhanced waters.  It seems that a variety of market conditions has reduced excitement for vitaminwater to just another product on the shelf.  There are certainly more reasons behind the brand’s continued decline, but BevWire will detail three major contributing market conditions.  

Market Condition #1 – vitaminwater has benefited and been obstructed by being a part of Coca-Cola’s beverage family.  As highlighted briefly in an earlier post about Zevia, vitaminwater saw immense benefits from the Coca-Cola acquisition.  The enhanced water brand entered a broader distribution network that vastly improved the brand’s availability.  At the same time, their initial marketing strategy was to be driven by “consumer demand”, relying on key influencers to spread word for the product.  This type of demand ensured that consumers and retailers were willing to pay a premium, and made discounting less unnecessary.  However, as Pepsi’s Aquafina Plus (in Canada) and SoBe Lifewater (in the U.S.) kept on promoting at enormous discounts, vitaminwater was compelled to react.  Without their premium positioning, vitaminwater became just another brand in Coca-Cola’s portfolio that had to fight for promotional dollars.  And with Coca-Cola focused on growing its sparkling business of Red (Coca-Cola),  Silver (Diet Coke), and Black (Coke Zero), a host of beverage brands lost promotional funding.  After initial success in the Canadian market from 2007 to roughly 2010, the vitaminwater has slowly lost market visibility as advertising support shifted more to other Coca-Cola properties.

Evolution Fresh - courtesy of drinks-business-review.comMarket Condition #2 – shifting consumer trends and preferences, highlighted by more juice, tea and energy drink entrants.  Since 2010, we have seen more product releases coming out from the juice, energy drink and ready-to-drink tea segments.  Starbucks was a strong force that expedited this trend.  Their acquisitions of Evolution Fresh and Teavana, along with their Starbucks Refreshers product launch gave them greater market coverage and allowed them to capitalize on the consumer trends.  In energy, the big three of Red Bull, Rockstar, and Monster all had product innovations enter the marketplace.  And also some negative media attention that led to consumers increasingly purchase these products to find out what whether all the extra attention was merited.  With consumers increasingly empahsizing health benefits – and vitaminwater also paying attention to this with their vitaminwater zero production introduction – the natural benefits of juice and tea became top of mind.  Because vitaminwater was relatively less healthy than these other products in the emerging segments, consumers shifted their purchase dollars from enhanced waters to juices, teas, and energy drinks.

 

via forum.smartcanucks.ca – just one of many Aquafina Plus coupons. This one is a fairly reasonable 33% discount.

Market Condition #3 – retailers react to new reality of people’s purchase habits.  Following the economic recession (that some still think we’re in), many Canadians buying behavior has focused more intensively on price.  That is not to say that they are not willing to pay more, but the value-benefit equation is more influential of their purchase decision.  Retailers have long pressured manufacturers for price concessions and finally Coca-Cola gave in to price promotions on vitaminwater in 2010 – around the time its descent began.  What happened next was more price cutting by its competitors to maintain their own sales – Aquafina Plus discounts became much deeper than before.  Ultimately this leads to the current situation, which is reduced segment value.  Since vitaminwater is no longer the premium brand that it once was, retail support started to transfer to other segments.  Shelf space for vitaminwater was compromised, and sku rationalization also start to slowly creep in.

While these three conditions do not represent the entirety of why vitaminwater is losing steam, it summarizes what is happening.  There are both internal and external contributors.  However, all hope shouldn’t be lost on the segment itself.  More competitors will look to redefine the value equation because the market leader is down.  Bottled water sales itself is on the incline.  And other vitamin beverages like Karma, Activate, and even Rockstar Energy Waters look to carve out their own niche in the marketplace.  Liquid enhancers such as Dasani Drops, Kraft MiO, Crystal Light Liquid are also seeing sales gains too.

Just wait to see how vitaminwater will react to the competitive pressure and what they might do to revive the one-time darling of the beverage industry.

Rockstar Energy To Launch Energy Waters

courtesy of Beverage Digest's Twitter feed - October 9, 2012

At the National Association of Convenience Stores (NACS) show earlier in October, Rockstar Energy revealed that they plan on launching a line of energy water.  While the timeline has not be revealed, the initial assortment listed on the sell sheet image include the following flavors:  Tropical Citrus, Blueberry Pomegranate Acai, Orange Tangerine.  BevNet has some more information and a quick video on Rockstar Energy’s new products from the show (link here).

This launch from Rockstar Energy pits them against Coca-Cola’s glaceau vitaminwater lineup, and PepsiCo’s SoBe Lifewater and Aquafina Plus lineups.  The question becomes how Rockstar Energy can differentiate themselves against these already established brands.  Despite their positioning as “energy water”, it will be difficult for them to be considered a dissimilar product from flavored water.  It is still an enhanced water beverage and may very well be shelved alongside Aquafina Plus or SoBe Lifewater (Rockstar Energy products are distributed by Pepsi).  And since consumers already have certain expectations for the price point, the new energy waters will have to be priced in a similar range.  There really isn’t that much room for differentiation given what we already know.

So with Product, Place, and Price (the 4 P’s of the Marketing Mix) already determined and largely out of their control, Promotion is the remaining lever Rockstar Energy can use to stand out.  Even then it is still a uphill battle.  In Canada, Aquafina Plus has constantly been on price promotions, to the point where there’s also expectations for feature price points.  In the U.S., many retailers had ran similar promotions but also drove unit sales with a “$10 for 10” feature strategy.  How can Rockstar’s Energy Water stand out?  Featuring on price – especially for a new entrant – will only upset the market dynamics and reduce profitability.

Rockstar Energy Water Lineup

One option may be co-promoting with their energy drinks, which has an established presence that is much stronger than that of Amped, Nos or Full Throttle (possibly only Amped and Nos in the future, read about Full Throttle’s de-emphasis here).  Leveraging on their stronger identity in energy drinks, they can offer consumers an alternative or additional Rockstar beverage when they are in-store.  Enhanced waters also do not carry the negative stigma that energy drinks have, so transitioning the “energy” equity from energy drinks to energy water may be a tactic to completely re-position themselves.

Another option would be to fully leverage their entertainment and sponsorship properties to feature this new product – in tandem with their energy drinks.  Offering samples of their energy water at their music and sporting events will increase their exposure to a captive audience.  Especially when their competitive products (vitaminwater, lifewater, aquafina plus) are shut out from these venues.  Especially when they offer a differentiated product than Red Bull and Monster Energy, should it be a multi-sponsor event.

While this is a very unique expansion from Rockstar Energy haloing off their “energy” brand association, it will be interesting to see how it can defend against the pressures of larger and more established brands.  This impending product launch has a chance to succeed, but only if they can carve out their own niche against glaceau, SoBe, and Aquafina Plus.

vitaminwater zero Quietly Arrives in Canada

vw+vw0 canada line-up courtesy of @vitaminwater_bc

Has anyone noticed the subtle changes to the low-calorie vitaminwater lineup in Canada?  There used to be three vitaminwater10 variants available: go-go, resilient-c, and recoup.  Now they have quietly replaced the go-go and resilient-c 10 calorie offerings with zero calorie offerings.  The recoup (peach mandarin) doesn’t appear to be on the market anymore, in favor of a zero calorie version of XXX, renamed as XOXOXO (acai-blueberry-pomegranate).  It appears that the United States’ transition in December 2010 has finally made its way north of the border this past April.  As it stands right now, there are 9 regular calorie flavors of vitaminwater, along with the three new low-calorie offerings.

One has to wonder why glaceau did not simply launch the zero-calorie offerings from day one, rather than wait a year to eliminate the 10 calories inside the bottle.  How did the 10 calories get eliminated after a few months’ launch into Canada?  Was it fear that Canadians would not adapt to the zero calories right away and needed to be transitioned away from calorie-filled beverages?  Was there a delay in getting approvals on the ingredients, particularly the sweetener?  In any case, the complete Canadian vitaminwater line-up still stands at 12 flavors.

Having 12 flavors makes it challenging to manage the product portfolio.  The benefit of this vitaminwater zero transition is that it will not impact the overall shelf spacing – only the existing area that vitaminwater product occupies.  However, 12 flavors for any product is quite significant, and getting a retailer to list all 12 at the same time will certainly be difficult.  Take for example Red Bull, which has found success with only three variations (Red Bull, Sugar Free Red Bull, and Red Bull Total Zero).  Or Coca-Cola, which also has three offerings (Coke, Diet Coke, Coke Zero).  Both these brands have fewer flavors and have been very successful.  Monster Energy and Rockstar Energy are also successful as a result of their broad portfolio of products – but not all products get listed in the retailer.  The most successful brands have fewer variations and can command more shelf space.  They also tend to be leaders in their respective categories.  vitaminwater seems to be buck that trend.

Is vitaminwater a leader in the enhanced or flavored waters category?  Sales data would almost guarantee it as such.  Why would they need so many flavors, when traditionally four or five flavors will be enough?  The answer is portfolio shelf space relative to sales.  If the vitaminwater portfolio commands 40% of the category sales, they should be allocated 40% shelf space.  After all, the argument is that the cooler space should reflect market conditions for the consumer.  This is why in the summer there are less shelf space allocated to juices, but more to water and sports drinks.  Having a broader portfolios always gives you more opportunities to create shelf space and in turn sales.  Just look at how Gatorade has been able to gain more shelf space following its prime/perform/recover extensions.  So while the majority of sales may come from the most popular flavors, the less popular flavors also have a significant role to play in creating and extending shelf space for the vitaminwater total portfolio.  Imagine that the sale for one vitaminwater flavor was marginal relative to the total portfolio, but had two shelf facings.  That flavor still remains on shelf to “hold space” for other better performing flavors, and allow the retailer to reduce that flavor to one facing while increasing facings for another better performing flavor.

Optimizing the shelf space ultimately falls onto the beverage category manager’s responsibility.  As long as vitaminwater’s broad portfolio keeps making sales, it makes difficult for other enhanced waters like Aquafina Plus to gain shelf space.  Once you secure the shelf space, it’s up to you to structure and space out your products to protect your shelf space.

 

 

 

vitaminwater spark…Yet Another Flavor

vw spark - courtesy of we-rate-stuff.comRegular readers of the blog will know that though I’m a fan of vitaminater as a brand, my belief is that this many varieties of vitaminwater undoubtedly cause cannibalization.  vitaminwater spark launched in mid-February, bringing the total count to 11 (9 vitaminwater flavors and 2 vitaminwater10) flavors.  spark is a blueberry grape flavor and has all the natural ingredients and healthy benefits that the other alternatives possess – it’s just a different flavor.

Unless spark has a niche following of open wallet consumers, it may follow vitaminwater rescue to be discontinued after some time on the market.  In any case, there is only so much demand for vitaminwater, or enhanced waters as a whole.  A consumer  that chooses any number of flavors will eventually stick to one or two, and keep on going back to these trusted choices.  Some (not all) of the remaining flavors may be popular but not to the same level as the favorites.  These flavors also remain on shelves contributing to incremental sales.  But since a grocery store has limited shelf space and must determine planograms, it is unlikely that all 11 flavors will be on shelf.

So how many flavors does a grocery store carry of vitaminwater, and how much shelf space does vitaminwater get?  Without getting into too much detail, vitaminwater’s top 4 flavors make up nearly 60% of their overall sales in the 20oz bottle size.  If the store manager or a category manager must make decisions to cut out flavors or keep only the best selling flavors (to make way for new products), usually 4 flavors of vitaminwater are kept.  So far, spark is not generating as much sales as XXX, focus, multi-V or essential.  Though its still very new to the market, I doubt it will match any of those item’s sales.

Therefore, it is like that there are no volume thresholds that spark must meet in order for glaceau to keep it on shelf, except providing their hydration experts (sales representatives) with incentives to keep pushing this product.

Next time you head into a grocery or convenience store where this product is sold, take a quick count of what flavors of vitaminwater are on shelf, and if spark is among those.  If the two new introductions before spark are not even on shelf, then it’s likely that the particular retailer does not have  an appetite to try any more vitaminwater flavors.

vitaminwater10 arrives in Canada

vitaminwater10 gogo and recoup

BevWire recently recently wrote about new vitaminwater being introduced to the Canadian market (read here) and it turns out it was true but slightly inaccurate.  It turns out that yes, there will be more vitaminwater, but now it’s in the 10-calorie per bottle format.  Same bottle, similar packaging, and promising the same great taste with less calories.  In order to bring the calorie content down to 10, these two new flavors are naturally sweetened with Truvia (a plant based sweetener).

Two flavors are entering the Canadian market – Recoup and Go Go. Recoup will be a peach-mandarin flavor, and Go Go being a mixed berry flavor.  Recoup’s side label copy – (cue: movie trailer voice guy) in a world of neurotic bosses, in-laws, dying cell phones and agonizing relationship talks, one bottle stands alone.  naturally sweetened with only 10 calories per bottle and armed with vitamins b3, b5, b6, & b12 this tasty force of hydration can help you cope with whatever life throws your way, coming to tastebuds near you. And Go Go’s side label copy – how can you possibly be reading this label right now? isn’t there a meeting that you should be in? a gym you’ve been paying for? when everyday is a marathon something’s gotta give.  fortunately, this delicious source of hydration you’re holding has some vitamins and nutrients to help motivate you towards your daily finish line.  and to sweeten – or naturally sweeten – the deal,  we made it with only 10 calories.  now hurry and go – you’re already late! These two new flavors can be found anywhere your regular vitaminwater is sold – grocery stores, supermarkets, convenience stores, and mass merchandisers.

Is this a good time for glaceau to launch vitaminwater10?  While they are the market leader in the enhanced waters category, they are late to join the 10 calorie niche.  Aquafina Plus10 stepped into the Canadian market nearly a year ago and vitaminwater10 is only being made available?  We know that vitaminwater10 will be successful when it enters, but why take so long to come out with the innovations?  And will this mean that there will be less regular vitaminwater flavors now that there’s a 10 calorie version?

It turns out that Aquafina Plus10 has been experiencing a natural transition from the regular Aquafina Plus to the Aquafina Plus10 and also slightly growing market share.  This is likely related to a few factors: healthier perception of a lower calorie alternative, discontinuing slower moving Aquafina Plus options, and no innovations from its competitor.  Sources indicates that Aquafina Plus10 accounts for nearly half of their enhanced water sales since its launch in 2009.

That being said, vitaminwater figures that they were due for some innovation launch and should also release a lower calorie alternative to compete and regain lost market share.  However, the market can only sustain so many flavors and options for beverages – does this spell the end for some other flavor of vitaminwater? Aquafina Plus discontinued a few flavors when they launched the Plus10.  There will be a total of eleven glaceau vitaminwater and vitaminwater10 options if they do not delist something – definitely too much for the marketplace in my opinion.  That said, we have yet to see any vitaminwater10 in stores yet so either glaceau will be taking some flavors off the shelf themselves or grocery stores will do the delisting for them.

So my parting question for this week’s blog psot: if you were to discontinue one or two flavors of vitaminwater, which flavor would you choose?