Powerade is adding two new product lines as consumers' exercise habits change and rival Gatorade makes a comeback.
The Coca-Cola brand announced the addition of Powerade Power Water and Powerade Ultra to its portfolio on Wednesday. The last time it introduced a new sports drink line was 2007, when it released Powerade Zero.
The new products come as Gatorade has seen a revival in its sales after a turnaround effort. PepsiCo, through its ownership of Gatorade and Muscle Milk, holds 69% of the sports-drink market share by volume, according to fiscal 2018 data from Beverage Marketing. Coke has a 25% market share, meaning that the two beverage giants dominate the $10.6 billion category.
Even so, Shane Grant, Coke's president of its North American still beverages business, said traditional sports drinks have lagged as consumers exercise differently.
"Traditional sports drinks are not making up even a third of these sweat moments," he said.
The category's sales volume growth has slowed in the last two years, according to Beverage Marketing. Health-conscious consumers are instead picking up options like kombucha and coconut water. Coke is trying to adapt to changing consumer tastes across its portfolio through new products like its caffeinated AHA sparkling water and Smartwater alkaline water.
Powerade Ultra and Power Water are meant to address the shift in exercise habits. The water-based Power Water targets consumers who walk or jog and might wear athleisure clothing, while Ultra is for exercisers who are more focused on endurance. Ultra contains 50% more electrolytes than classic Powerade and creatine, a compound found in supplements to boost energy during intense workouts.
Ultra will be available nationwide starting Jan. 20, and Power Water will be hit store shelves Feb. 10. The two product lines each have three flavors and no sugar or calories.
Coke's stock, which has a market value of $243 billion, has risen 19% in the last year. Shares of Pepsi, valued at $194 billion, have gained nearly 28% in the same time.