During Roy Warren’s meeting with Jon Alm, CEO of Coca Cola Enterprises (CCE) in the spring of 2005, Mr. Alm stated that CCE was experiencing a decline in unit sales of “Real Coke” that amounted to three percent per year. Jon further said his competitor Pepsi was also seeing declines of five percent per year of their sugared cola drinks.
Coke fought the trend by increasing unit prices but the overall domestic-volume decline persisted. In fact, sales for the number one sugared-drink brands of all three large soda companies, (Coke, Pepsi and Dr. Pepper/Snapple) continued to drop year over year.
By the next decade, new drink categories including “New Age” and “Functional” spurred the growth of such new household-name brands as Monster Energy, Muscle Milk, So-Be, Vitamin Water, 5 Hour Energy and Honest Tea.
Today, these new functional and refreshment drinks are successful because they meet consumers increasing demand for lower sugar and lower carbohydrates while simultaneously delivering such benefits as more protein, more vitamins and increased energy.
Trends in these overall health needs, desires and demands by consumers across the entire demographic spectrum in America are the primary reason why the “Big Three” beverage companies (known as the Red, White and Blue systems) continue to grow today.
However, the reality of the situation is that cancer rates, obesity, diabetes and heart disease also continue to grow in spite of increasing awareness and billions invested in clinical research of our health challenges.
Consumers are certainly focused more than ever on calories, carbohydrates, sugar and overall health. Yet, while the “Big Three” acknowledge this with new offerings, they are only doing what they do best: marketing to desires but not actually helping in any way, shape or form.
Our market cuts a broad swath. We believe that from “Millennials” to “Baby Boomers”, consumer health awareness has never been greater. The Millennial demographic reads more nutritional labels, is more critical of corporate marketing and more “Selfie” aware. They are “woke.” And, while “boomers” might not categorize themselves as “woke,” they are the creators and innovators of the most important medical advances in this century yet, paradoxically, realize that they may also be the unhealthiest generation ever.
Gratitude Health focuses on providing products to both these markets that are healthy, great tasting and unique in their presentation to the point where these consumers will easily accept and adopt Gratitude into their lives.
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