Powerade, Gatorade go after youth market

Coca-Cola says its Powerade Play, filling shelves now, is the first sports drink geared towards young athletes, with less sugar and more vitamins than a typical Powerade. Gatorade, meanwhile, has a new "Pro" line aimed at serious athletes, teen-aged and otherwise. That brand extension will be sold at GNC and marketed to sports teams.

The pre-adult years are "the cutting edge of where those brands are competing," said John Sicher, editor of Beverage Digest.

It's "the age at which brand preferences really get settled in," said Gerry Khermouch, editor of Beverage Business Insights, explaining the tough competition in the sports drink category. "Coke and Pepsi have a way turning every sector they get into into the Cola Wars."

But when it comes to drinks meant for consumption by kids, Coca-Cola has to walk a thin line between creating attractive drinks and directly marketing them to youngsters.

Worries about obesity and skepticism about about the nutritional value -- or lack thereof -- of sodas, sports drinks and other beverages containing sugar has created some resistance to sugary drinks in the U.S. Their sales have been restricted in schools, thanks to local ordinances and an industry-wide selling policy. Soda sales in North America have slid for several years in a row.

Coca-Cola is betting that Powerade Play can sidestep any controversy. The new brand's packaging has images of basketball player Chris Paul, baseball slugger Ryan Howard and tennis star Venus William. The company insists that Powerade Play is actually marketed to moms, not to kids. It is enlisting the help of "mommy bloggers" and slapping messages on grocery carts.

The goal is to offer the junior athlete what they think is cool, as well as to fulfill the traditional role of a sports drink: replace fluids and electrolytes that are lost in sweat, and to give athletes carbohydrates for energy, said Frank Bracken, Powerade's brand director.

But there is an overarching need to address moms' desire for healthy diets and less sugar, he said.

"All of that communication bundle is aimed at Mom," said Bracken. "It's Mom that is ultimately going to make the decision. She acts as the gatekeeper; you've got to connect with her in order to close the deal. But at the same time, there's that skirt-tugging effect."

Powerade Play has 60 calories and 15 grams of sugar per 12-ounce bottle. By comparison, the new "G Natural" brand from Gatorade would have 75 calories in an equivalent serving. "G2 Natural" has 30 calories in a 12-ounce serving.

Gatorade is introducing varieties of Gatorade for before, during and after workouts. It's one of the brand's largest re-calibrations since it emerged at the University of Florida in the 1960s. The new products are meant to make Gatorade more relevant for serious athletes, after it spent years becoming a ubiquitous brand with a shrinking connection to athletic performance.

"Gatorade is in many ways going back to its roots of exercise and athletes," said Sicher. "Gatorade's growth in the future is going to come from engaging each generation of new, young, exercise-oriented consumers."

Sarah Robb O'Hagan, Gatorade's chief marketing officer, said during a recent meeting in New York that the company has made a "tremendous investment" in research and development for Gatorade.

"We had to regain our category high ground," she said. "That was about re-engaging teen athletes. They said, ‘Eh, it's a little dated. My parents drink it.'"

Powerade runs a distant second to Gatorade, but it has gained market share with  new product claims -- more electrolytes with "ION4″ and a new zero-calorie Powerade Zero aimed at people watching their weight,

"Coke's done a good job with Powerade," said Sicher. "It's not easy to compete with a brand that has close to 80 share. But Coke has hung in there."