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UK Retail Market Entry Strategy for a D2C Energy Drinks Brand

Sector:

Situation

Our client is a D2C-focused energy brand selling energy powders primarily in tubs and sachets. Part of the business’ growth plans involve entering physical UK retail with an RTD offering and were looking for support from FSA to advise them on how to do that (specifically, which retailers to target, when, margin/RoS expectations, pack size / format, pricing etc.)

What we did

FSA conducted focused analysis of the UK energy drinks market, combining extensive desk research, web scraping, scan data analysis, usage and attitude surveys, store audits as well as 14 expert interviews to deliver:

  • A comprehensive factbase of the UK energy drinks market including category overview and growth drivers (key brands, formats, market segmentations, competitive landscape, pricing and distribution analysis etc.), retailer expectations and case studies highlighting key success factors from other young, fast-growing brands
  • Up to date view on margin and RoS expectation by channel (grocery retail, forecourts, symbols & independents) by sourcing and conducting 14 expert interviews with category buyers (across channels) and senior commercial executives with experience launching energy drink brands in the UK to better understand margin and rate of sales (RoS) expectations
  • Detailed P&L models for alternate GTM strategies, showing the potential size of the business based on the timing of entry into different channels, # listings, projected RoS, margins, investment costs (marketing spend, payroll)
  • FSA also commissioned a U&A study to understand the consumer value proposition, awareness, and pricing and form a view on consumer barriers and motivations

Results delivered

The business has taken FSA’s GTM recommendations and decided to focus on the powders format in the short-term with a view to eventually entering the retail market with an RTD offering