Energy Drinks are the New Comfort Food for the COVID-19 Era
The pandemic kicked off a host of challenges that have arguably left some people more stressed in their wake. Social isolation and chronic fears about the impact of COVID-19 have spurred what some are calling a national mental health crisis. Emerging from the pandemic, society now faces new challenges. This time it is people’s economic health that seems most at risk, as inflation and recession concerns escalate for some. Understandably, the strain is taking its toll and consumers seem to be turning to junk food as a therapeutic antidote to ever-waning energy.
In what has been an overall down market this year, the stocks of companies peddling caffeine-laden products are outliers. Across the sector, share prices are way up. Coca-Cola (KO) has seen its valuation pop by nearly 10% this year. Hershey (HSY) has experienced nearly double that increase. Year-to-date its share price is up over 19%.
Meanwhile, Celsius Holdings (CELH) has seen the popularity of its “healthy” energy drinks explode. PepsiCo (PEP) apparently expects the growth to continue, as the soda and snack foods giant just made a $550 million investment in the company.
With the rising cost of groceries outpacing the all-products CPI, more Americans are prioritizing their spending on food at home. The importance of energy-boosting products seems to be a sign of the times. In a fast-paced world these quick fixes may be the new comfort food — and drink. That’s arguably especially true amid the proliferation of remote work, which means the office is always open.
As Americans wait for some good news — or at least a bit more certainty — they may ponder possibilities while sipping their energy drink of choice.
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