[imagesource: Karsten Moran for The New York Times]
I guess the effects of That Sugar Film have worn off and people have forgotten that sugary drinks are the worst.
A global pandemic, followed by a worldwide recession and increased inflation, will do that to you.
Apparently, we’re all so tired and fed-up that more of us are requiring junk to keep us putting along.
I was, until now, convinced that folks were generally leaning away from burnout culture (the great resignation) and reprioritising towards family and nature.
But, alas, the world is big and paths aplenty. There are those that push back by saving and those that spend. There are those that are here for a good time and not a long time, and those who are here to live long and prosper.
CNN reports that “nights are sleepless and days restless, and we need an extra boost to keep us going,” explaining why junk food stocks are surging.
If you’re not convinced, the numbers speak for themselves. The figures below are correct as of August 18.
Hershey’s (HSY) stock is up 19% this year. Coke (KO) is up nearly 10%. Pepsi (PEP) is up 4%. Reminder: the overall market is down 10%.
Inflation has taken a bite out of retail sales, but people are biting back — and sipping, too.
A check this morning shows Hershey’s stock is now up more than 20% this year while Coke and Pepsi remain at the above figures.
Duane Stanford, editor and publisher of Beverage Digest, reckons that the “general sense of those in the industry is that people have come off of a stressful period of uncertainty, and they find comfort in certain beverages and snacks”.
This is pushing smaller players into the consumer goods arena, like Celsius Holdings (CELH), whose energy drinks are everywhere these days:
“The reality of it is that we all need more energy,” said John Fieldly, CEO of Celsius…
Sales of Celsius have surged 137% since last year, and the company reported earnings of 12 cents per share last quarter, up from just one cent last year.
When a business tells you that you are tired, working too hard, and then goes on to offer something to keep you going, they’re trying to sell you something.
Celsius markets itself as the ultimate small luxury and the solution to both burnout and anxiety. It also claims to provide “healthy energy” without the jitters or a comedown typical of other sweet, caffeinated drinks, using ingredients like green tea extract and ginger root instead.
It is also trying to appeal to a broader audience, attracting Gen Z consumers who were turned off by male bravado marketing.
Celsius is currently the fifth most popular energy drink on the market, trailing behind Monster (MNST), Red Bull, Bang Energy Drink, and Rockstar.
[source:cnn]
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