Global Market for Plant-Based Energy Drinks Expected to Reach $16 Billion by 2032

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., May 31, 2023 /PRNewswire/ -- The Energy drink market has been popular for the past several years but there is a new player on the block. Plant Based energy drinks. The demand for plant-based energy drinks is expected to be driven by a rise in people's understanding of fitness and an increasing number of health-conscious consumers. Consumers are started following different diets, such as vegan, and physical training, such as gyms, to improve their health. This change is mostly due to an increase in sedentary occupations and busy lifestyles. Also, the consumption of plant-based energy drinks improves the nutritional balance of the body. Plant-based energy drinks can help the immune system and combat diseases like obesity, diabetes, heart failure and cardiovascular disease. Consumers are increasingly concerned about their wellbeing and nutritional standards, so they are opting for energy drinks that are high in nutrients, vitamins, and low in sugar and fat, which is expected to grow the demand for plant-based energy drinks. A report from Future market Insights said that in 2022, the market for plant-based energy drinks was approximately worth $9 billion and that the Global market for plant-based energy drinks is expected to increase at a CAGR of 6.11% through 2032, reaching around US$ 16,285.7 Million by that year, driven by the expanding veganism trend. Active Companies from around the markets with current developments this week include: Yerbaé Brands Corp. (OTCPK: YERBF) (TSXV: YERB.U), Celsius Holdings, Inc. (NASDAQ: CELH), The Coca-Cola Company (NYSE: KO), PepsiCo, Inc. (NASDAQ: PEP), Monster Beverage Corporation (NASDAQ: MNST).

The report added: "Plant-based ingredients are the most natural source of nutrients and have many health benefits as opposed to synthetic or chemical-based ingredients. Thus, these factors will help in driving the sale of plant-based energy drink. Also, plants have become a more common source of protein, manufacturers have been urged to create protein-rich, healthier plant-based energy drinks, which is expected to propel the plant-based energy drink market forward. The use of plant-based and herbal ingredients in energy drinks is fueling the market's growth. The consumption of energy drinks has increased dramatically among the young generation, but the energy drinks currently available on the market contain caffeine, which has its own set of side effects, leading to an ongoing quest for caffeine substitutes and effective compounds to use in energy drinks."

Yerbaé Brands Corp. (OTCPK: YERBF) (TSXV: YERB.U) BREAKING NEWS: Yerbaé Reports Record First Quarter 2023 Financial Results - Record Q1 2023 net revenue of $3.5 million, up 130% from $1.5 million in Q1 2022 - Yerbaé Brands Corp., a plant-based energy beverage company, reported record revenue of $3.5MM in net sales (USD) in Q1 2023, representing year-over-year growth of 130% for the quarter.

• Volume growth of 130% due to higher velocities in retail, and increased points of distribution.
• Expansion into 131 outlets of the largest club store chain in the United States across 18 States
• The most recent reported Nielsen data as of 5.13.23, shows Yerbaé sales in the FMCG Retailer universe up +356% YoY for L13-wks, and +277% for the first quarter for 2023. This compares to the energy category which grew +13% YoY for L13-wks, and +15% in the first quarter over the same time period
• Yerbae launched innovation of two new on trend flavors: Lemonade and Yuzu Lime

Subsequent events

• April unaudited record revenue month of $1.6 million, up +171% from $0.6 million in April 2022
• On April a18th the company announced Food service expansion with Compass Group North America to roughly 10,000 locations across 24 states
• The Company announced on May 16th that it has secured a new accounts receivable and inventory line of credit of US$2,500,000 (the "Debt Facility") from Oxford Commercial Finance, a Michigan banking corporation ("Oxford Bank"), through its Delaware subsidiary Yerbaé LLC.
• On April 25th the company announced Expansion into 185 Hannaford supermarkets throughout the northeastern United States

"In addition to higher velocities & increased points of distribution, this impressive growth can also be attributed to the increasing consumer demand for plant-based alternatives, coupled with the outstanding quality and unique value proposition of Yerbaè's energy drinks," said Karrie Gibson, Co-Founder and Member of the Board of Directors of Yerbaé. "We are incredibly proud to be at the forefront of this movement, providing consumers with healthier alternatives that not only fuel their bodies but also align with their values of sustainability and well-being."

"Our first quarter results exemplify the strength of our brand and the tremendous potential of the plant-based energy drink market," said Todd Gibson, CEO and co-founder of Yerbaé. "As the market has been notified already, in 2023 we anticipate 12.5 million in net sales which is 74% above PY. With us growing at +130% in Q1 and +171% in April, landing at approximately $5.1 million, the company believes the current trajectory puts the brand in a position where we can exceed the projected sales. Our team remains committed to meeting and exceeding the expectations of our customers and delivering consistent growth for our shareholders." Read this and more news for Yerbaé Brands at: https://investors.yerbae.com/news/ 

In other industry developments and happenings in the market this week: 

Celsius Holdings, Inc., (NASDAQ: CELH), maker of the leading global fitness drink, CELSIUS®, recently reported preliminary financial results for the first quarter ended March 31, 2023. A PDF containing our first quarter 2023 results and full financial tables is available at:
https://www.celsiusholdingsinc.com/Q1_2023

Celsius Holdings, Inc. is a global consumer packaged goods company with a proprietary, clinically proven formula for its master brand CELSIUS®. A lifestyle energy drink born in fitness and a pioneer in the rapidly growing energy category. CELSIUS® offers proprietary, functional, essential energy formulas clinically-proven to offer significant health benefits to its users. CELSIUS® is backed by six university studies that were published in peer-reviewed journals validating the unique benefits CELSIUS® provides. 

The Coca-Cola Company (NYSE: KO) recently reported first quarter 2023 results, demonstrating resilience in the marketplace despite an operating environment that remains dynamic. "We are encouraged by our first quarter 2023 results," said James Quincey, Chairman and CEO of The Coca-Cola Company. "Our system alignment is stronger than ever, and our networked organization is allowing us to adapt as needed. We continue to invest for the long term, strengthening our capabilities to drive sustainable value for our stakeholders. We have the right portfolio, the right strategy and the right execution to deliver in the marketplace. We are confident in our ability to deliver on our 2023 objectives."

Revenues: Net revenues grew 5% to $11.0 billion, and organic revenues (non-GAAP) grew 12%. Revenue performance included 11% growth in price/mix and 1% growth in concentrate sales. Concentrate sales were 2 points behind unit case volume, largely due to the timing of concentrate shipments and the impact of one less day in the quarter. Operating margin: Operating margin was 30.7% versus 32.5% in the prior year, while comparable operating margin (non-GAAP) was 31.8% versus 31.4% in the prior year. Operating margin decline was primarily driven by items impacting comparability and currency headwinds. Comparable operating margin (non-GAAP) expansion was primarily driven by strong topline growth and the impact of refranchising bottling operations, partially offset by an increase in marketing investments and higher operating costs versus the prior year as well as currency headwinds.

The Board of Directors of PepsiCo, Inc. (NASDAQ: PEP) recently declared a quarterly dividend of $1.265 per share of PepsiCo common stock, a 10 percent increase versus the comparable year-earlier period. Today's action is consistent with PepsiCo's previously announced increase in its annualized dividend to $5.06per share from $4.60 per share, which will begin with the June 2023 payment. This dividend is payable on June 30, 2023 to shareholders of record at the close of business on June 2, 2023. PepsiCo has paid consecutive quarterly cash dividends since 1965, and 2023 marks the company's 51st consecutive annual dividend increase.

PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $86 billion in net revenue in 2022, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Monster Beverage Corporation (NASDAQ: MNST) recently reported financial results for the three-months ended March 31, 2023. The Company achieved record first quarter net sales of $1.70 billion in the 2023 first quarter, up 11.9 percent, from net sales of $1.52 billion in the 2022 comparable period. Net changes in foreign currency exchange rates had an unfavorable impact on net sales for the 2023 first quarter of $52.0 million. Net sales on a foreign currency adjusted basis increased 15.3 percent for the 2023 first quarter.

The Company implemented pricing actions in the United States and certain other international markets in 2022 and continued to implement price increases in certain international markets in the first quarter of 2023, all of which positively impacted gross profit margins. Gross profit as a percentage of net sales increased on a sequential quarterly basis to 52.8 percent in the 2023 first quarter, from 51.8 percent in the 2022 fourth quarter and 51.3 percent in the 2022 third quarter. Gross profit as a percentage of net sales, excluding gross profit for the Company's Alcohol Brands segment, increased on a sequential quarterly basis to 53.6 percent in the 2023 first quarter, from 52.5 percent in the 2022 fourth quarter and 51.9 percent in the 2022 third quarter. 

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