Danone to axe energy drink after flagging performance

Wed, 7 May 2008

Danone Waters is thought to be scrapping its V energy drink after failing to make a dent in the share of market leader Red Bull.

The decision comes less than a year after it was relaunched.

The latest revamp was backed by a £3.3m support campaign, which was created by RKCR/Y&R. It was based around the idea that V invigorates the mind and was called “It all starts with V”.

This was the second re≠launch of the brand in four years. In April 2003, Danone signed up the brand as a sponsor of ITV1 reality show I’m a Celebrity…Get Me Out of Here! as part of a campaign to drive sales.

The latest Britvic Soft Drinks Report 2008, carried out by Nielsen, revealed that the energy drinks sector continued to lose ground last year, reporting a 4% decline in total on-premise sales to £118m. Market leader Red Bull was the only brand to remain stable, growing sales by 1% to increase its market share to 89%.

The review decision also follows the launch of an £8m integrated campaign to support GlaxoSmithKline’s Lucozade Energy last month, which will include a £3m above-the-line campaign during the summer.

It also comes just months after Danone Waters decided to scrap the Citrus Kick ≠variant of its Volvic Revive functional water brand, less than a year after it was launched.

Matt Walker, marketing manager for V, says: “V remains a strategically important variant for us in the fast growing sports and energy drinks sector and we are currently developing brand plans for 2009.”