A Bottom-heavy Bottled Beverages Water & Drink Mixes Category on Amazon
John Rode
on May 30 2019

The Bottled Beverages, Water & Drink Mixes category on Amazon is highly competitive. No brand holds more than 4.4% share of voice and only 15 brands hold more than 1% share of voice, the lowest we have seen in any category. As is typical of most categories, there is a broad range of revenue leakage metrics.

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This BrandIQ Quadrant benchmarks brand performance by the critical disciplines of supply chain operations and marketing. Who is best able to both drive and fulfill demand on Amazon in this category? The metric that underpins marketing is Share of Voice (how often your brand appears in organic or paid search results), and for operations it's revenue leakage (how well are you able to avoid losing sales because shoppers are unable to buy your product because it's unavailable, lost buy box to 3Ps, etc.). Given Amazon's ever-increasing complexity and speed, mastering both is not simple.      

 
High IQ Brands

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V8 (Campbell's Soup), Tropicana (Pepsico) and Izze (Pepsico) have separated from the pack, but not by much. Nipping at their heels are Ocean Spray, San Pellegrino (Nestle), Bai and Perrier (Nestle). Get the full BrandIQ report to see how all the brands rank.

What makes these three brands great is their ability to generate demand through organic and paid share of voice and execute on that demand with low revenue leakage. V8, Tropicana and Izze have 3.4%, 3.3%, and 2.9% share of voice, respectively. Tropicana is the category leader on paid share of voice with 7%, though Izze is not far behind at 6% at the #2 advertiser's slot.

Izze leads the quadrant in execution, losing only 1.9% of revenue to leakage. Most of that loss is due to availability issues, but it's really a minimal loss for the brand. Tropicana has a similar issue, losing 3% to availability. V8 is losing equal revenue to availability issues and 3Ps. There are no red flags for these brands at this time. These are solid metrics all around. Drink up!

Niche Performers

 

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All the brands in this quadrant, except for Fiji Water, are holding up their share of voice via paid ads. Fiji only has 0.1% paid share of voice, while San Pellegrino has 3.8%, followed closely by Bai at 3.7% and Perrier at 3.3%. Fiji and San Pellegrino are tied at the top of the quadrant for organic share of voice with 1.4%

Get the full BrandIQ report to see the breakdown data for every brand in this category.

Bai is the quadrant leader in containing revenue leakage - losing only 1.2% of revenue, mostly due to availability issues. Fiji is also a top performer at 2.8%, mostly due to availability issues as well. The rest of the brands are doing well but are clearly a bit behind. San Pellegrino could have been grouped in the Laggards quadrant due to its 10.5% revenue leakage, but we gave them the benefit of the doubt. By the same notion, they are a viable contender to take the place of Izze in the High IQ quadrant. Gatorade, Perrier and Vita Coco have leakage numbers of 4.5%, 6.2% and 6.8% with all three brands suffering from some availability issues.  

Large leakers

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Ocean Spray is the lonely resident in the Large Leakers quadrant. But they are about as healthy as you can be in this quadrant. With a category leading 4.4% share of voice based largely on organic search, they really are the top marketer.

Their 11.5% revenue leakage is what pushes them over the line and out of the High IQ quadrant. Their leakage is due to a combination of 6.8% revenue loss due to availability issues, and 4.7% loss due to 3Ps.

Laggards

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Ah the Laggards. With low share of voice ranging from 0.8% to 1.4% and high revenue leakage from 10.7% to 82%, we have quite a performance range. Crystal Light (Kraft-Heinz) is the top performer in the group and is on the verge of migrating over to the niche performers quadrant. Honest Kids (Coca-Cola) and Evian (Danon) are the other two brands that have a fighting chance given their relatively low revenue leakage of 18.8% and 14.7%, respectively. Get that down to 10% and they'll become niche performers. 

Get the full BrandIQ report to get the charts and graphs for each brand, or to request a report on another Amazon L3 category.

 
Look-alike Categories 

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The Snack Food Bars category on Amazon is quite similar in structure to the Bottled Beverages, Water & Drink Mixes category. It's High IQ Brand quadrant is empty, and the brands are fairly evenly distributed without a particular concentration in any single quadrant. One significant difference is the sheer number of brands. This is do to the fact that Snack Food Bars is more heavily concentrated with top brands winning a much larger share of voice.

 

 

 

 
Methodology

amazon_keywords_beveragesOur data was drawn from an automated, daily analysis of top keywords in the Amazon L3 Bottled Beverages, Water & Drink Mixes category over a one-year period. Our method focused on 1P brands and their associated SKUs. Marketing performance was determined by analyzing Share of Voice which essentially divides how many times a brand appears in search results, by the total available slots in the search results. Our system looked at both organic and paid ads for the top keywords discovered for the Bottled Beverages, Water & Drink Mixes category on Amazon. Our system focused on page 1 search results and the product page for each SKU. Each appearance of the brand in organic search and paid ad slots was given equal weighting. Revenue Leakage was determined by an algorithm that analyzes inventory availability of the SKUs on the product page and translates that into estimated revenue missed for each brand due to things like a SKU being Currently Unavailable, Inventory Encumbrance, Item Under Review, a 3P seller taking the buy box, etc. 

 

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