As sportscasters might say, Gatorade had a 2009 that it "would like to have back."
Gatorade, which was created 45 years ago and still controls about three-quarters of the sports drink market, saw its retail sales drop by nearly 13 percent in the U.S. last year, according to trade journal Beverage Digest. Its market share dropped by more than two points. Sales of Coca-Cola's Powerade fell less than 2 percent, and the brand grabbed most of Gatorade's lost market share.
PepsiCo's third-largest beverage brand behind Pepsi and Mountain Dew, Gatorade is now in the midst of a major product-development and advertising push that will help determine whether PepsiCo's North American business can hit its growth goals.
Gatorade is introducing a "natural" Gatorade line with stevia sweetening in Whole Foods stores, according to Beverage Digest. A "recover" line extension is aimed at grabbing some of the market share of muscle-rebuilding drinks such as Muscle Milk.
Another brand extension, G Series Pro, will now be sold in 5,500 GNC stores in the U.S. after initially being available only in locker rooms and specialized training facilities. PepsiCo says the "pro" drink, with enhanced electrolytes, is the pinnacle of the Gatorade family so far.
"This line alone, reaching a new target audience, is going to be a killer," said Joe Fortunato, chief executive officer of GNC. "We have consumers who are extremely passionate about what they take."
PepsiCo said one problem for the Gatorade franchise is that Gatorade allowed its reputation among teen-age athletes to become stale.
Gatorade "is a business that, trust me, has gotten a disproportionate amount of my time," said Massimo d'Amore, CEO of PepsiCo Beverages America, at a conference Tuesday at Yankee Stadium.
Gatorade is now rolling out new varieties aimed at a wide range of athletes, from teens up to professionals. The goal is to reach athletes in a wide range of sports and experience levels while positioning itself as the one-stop source for hydration, muscle replenishment and other needs before, during and after workouts.
"Even with the challenges they faced last year, Gatorade is probably one of the five or six most powerful brands in the U.S. beverage business," said John Sicher, editor of Beverage Digest.
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