U.S. consumption of chocolate milk is growing as an alternative to sports and energy drinks. Using household-level demographic characteristics and purchase data for chocolate milk, energy drinks, and sports drinks, we estimate three beverage demand models. Own-price elasticities of demand for all beverages are inelastic. Household size, age, education, race, region, the presence of children, and gender are determinants of demand for chocolate milk. Chocolate milk is a substitute for energy drinks and a complement for sports drinks. These results are supportive of repositioning of chocolate milk in the sports/energy drinks market.
