Retailers expand functional beverage merchandising

Grocery retailers are making more room on their shelves for functional and New Age beverages, expanding their sets to meet the needs of consumers seeking healthful solutions in the wake of the pandemic.

At West Valley City, Utah-based Harmons, for example, the 19-store chain has added new display cases that feature functional and healthy beverages, while Phoenix-based Sprouts Farmers Market is rolling out new waters and functional beverages through its new L.A. Libations incubator program.

The moves come as sales of functional and better-for-you beverages have remained robust, despite pressures on ready-to-drink single-serve options because of changes in shopping patterns during the pandemic that led to more stock-up buying of multipacks and reduced grab-and-go sales.

The Hartman Group’s Functional Food & Beverage and Supplements report found that more than half of consumers (56%) seek out functional beverages to treat or prevent specific conditions. According to the report, consumers are increasingly taking a proactive approach to their well-being by using beverages to deliver functional benefits around hydration (cited by 34% of consumers), energy (18%), general prevention (15%), immunity (13%), digestion/microbiome (13%), fitness/performance (12%) and weight management (12%).

Global research firm Mintel, meanwhile, predicts strong ongoing growth in functional beverages as consumers seek out products to enhance their mental and emotional well-being.

“Consumers will be looking for more functional food and drinks that claim to help people focus, relax and relieve — or ideally prevent — emotional health concerns,” the company wrote in its 2021 Global Food and Drink Trends report.