PepsiCo: International Energy Drink Risk Audit
PepsiCo tasked us with uncovering sentiment and concerns about energy drinks in 9 different markets around the world. We used social/media monitoring softwares to uncover key stigmas, perceptions, and sentiment towards energy drinks in each region.
This analysis uncovered four key takeaway issues:
Health Concerns Now Tied to Both Physical and Mental Health: Media are regularly capturing new studies which highlight both physical and mental health issues linked to energy drinks and their ingredients. While risks to heart and liver health have been documented for years, new 2024 studies which were particularly well-covered in the UK linked youth energy drink consumption to increased risk of anxiety, insomnia and depression.
Declining Category Sales: The energy drink industry encountered soft sales across brands in 2024. Monster received the most targeted coverage as it experienced its slowest growth in four years along with Celsius who saw a 35% drop in sales.
Shifting Strategies to Counter Consumer Perceptions: In response to health concerns, brands are shifting towards a "healthier" image, targeting wellness-focused Millennials and Gen Z’s with functional ingredients. Despite these efforts, media scrutiny continues, particularly around problematic ingredients and advertising practices.
Legal Challenges Arise in UK, Australia and India: Sting's success in India, capturing 90% market share, contrasts with growing scrutiny over health risks and advertising practices. Legal challenges, particularly in the UK and Australia which are weighing youth sales bans, highlight the complex landscape brands must navigate to maintain their reputation.