GSK to expand Lucozade

GSK to expand Lucozade

GlaxoSmithKline plans to launch its Lucozade energy drink in the US as the healthcare giant looks to reduce the brand's reliance on the UK market.

The company's head of consumer healthcare, John Clarke, has said that it is in advanced talks on Lucozade with distributors in the US.

GSK also plans to launch the sports drink in emerging markets such as Brazil, Mexico and India, Clarke said at the Reuters Consumer and Retail Summit yesterday (23 June).

The move will reduce Lucozade's reliance on the UK soft drinks market and will pitch the brand against the likes of PepsiCo's Gatorade and Coca-Cola Co's Powerade in the North America.

Lucozade sales rose by 5% year-on-year in the first quarter of 2010 to GBP82m (US$123m).

Sales for the 12 months of 2009, however, slipped by 3% to GBP376m, as a 5% decline in Europe overshadowed an 11% rise in sales, to GBP53m, in markets outside of Europe, according to GSK's full-year report.

GSK said earlier this year that it plans to up its spend on Lucozade in the UK in 2010, as well as launch a 'lite' version of Lucozade Sport.