Category Snapshot: Energy Drinks

July 2008
Category Snapshot: Energy Drinks – Launch Activity

Energy drinks traditionally served a single function as ‘pick-me-up’ beverage, often consumed mid-afternoon.
Although the number of new energy drinks launched in this category is lower than in most other beverage
categories, the diversification of products is vast and dynamic. Energy drinks are no longer just a high caffeine
carbonated beverage – they can be milk or juice based, offer health/functional benefits, and cater to very specific
consumer demographics. At their birth, energy drinks were primarily concerned with physical energy. Now many
also offer mental stamina enhancement and vitality boosting properties as consumers equate the need for energy
as more than just body fatigue .

Fun with Branding

The simplest form of product differentiation is in the
marketing. In short, branding works in energy drinks – and
more so than in many FMCG categories. Considering teens
and young males are generally high consumers of these
beverages, marketing is often targeted to suit this age group.
Some of the newer brands are sure to raise some eyebrows.
Urban, edgy and sometimes risque, new product names like
“Cocaine”, “Sexxx”, and “Pimpjuice”, designed to attract
young consumers looking for ‘coolness’ in their beverage.

Branding is also reaching out to new groups. Female-specific

energy drinks like “Angel” and “Superfruits” in slender cans in
Graph 1
light, pastel colours. Organic and cause-marketed variants Global Launch Activity, Energy Drinks
(Jan 2003 – Dec 2007)
also emerge for the green crowd, and some coffee and
smoothie based drinks offer extra energy boosting properties
compared to traditional varieties.

But marketing techniques don’t end there. They extend well

beyond into more niche consumer groups. “418 Energy Drink”
was formulated just for golfers. “Mana Energy Potion” is a
shot drink for gamers, designed to last at least 5 hours. And
for fans of the Simpsons, a “Flaming Moe” drink. All in all,
energy drinks have a wide berth for fun and originality in
marketing.

Graph 2
Claims Category, Energy Drinks
Last 12 Months (Jul 2007 –Jun 2008)
Category Snapshot: Energy Drinks – Launch Activity
The Supermarket as a Point of Purchase
Energy drinks are often perceived as an impulse buy, but supermarket sales in the US have increased, and
are now the largest retail channel for these beverages (59% of US Energy Drink sales - Mintel Oxygen report
“Energy Drinks – US – March 2007). More private label brands are launching their own energy drinks –
Carrefour, Sainsbury’s, Aldi and Coles Australia have launched varieties over the last 12 months. Perhaps
this is an indication that for some, energy drinks are no longer an occasional purchase, but the equivalent of a
morning coffee, consumed daily. Even Starbucks has recognised the threat of coffee’s “cold cousin’, releasing
their own energy drink.

The Health Offering

Energy drinks are also developing a more serious side, in the area of health. A wider range of nutritional
benefits are now available, through the addition of green tea, vitamin C and B, antioxidants and yerba mate.
Reduced sugar is high on the list of recent claims, responding to consumer concern over their high calorific
levels.

To attract new consumers to this category, juice and milk based varieties
enter the market. Juice in particular is a great base for energy drinks. The
naturally occuring vitamins and minerals in fruit and vegetables provides
extra energy and vitality boosting properties, and may also attract new
consumers looking for more natural alternatives. A common reason for not
drinking energy drinks is “they have too much caffeine” (50% of
respondants surveyed, 1,372 adults aged over 18 in the US). This is not
surprising as a can of Red Bull has almost 3 times the milligrams of
caffeine as a can of Coke (Mintel Oxygen report “Energy Drinks – US –
March 2007). Hence, the use of vitamins, minerals and herbs for energy,
rather than caffeine, could assist with widening the market.

Catering to the continually increasing demand for health and wellness in

food and beverages is a natural evolution for energy drinks. In order for
Graph 3
the category to grow, it must find areas to expand and change negative Top 5 Claims, Energy Drinks
Last 12 Months (Jul 2007 –Jun 2008)
perceptions. Natural, healthy ingredients is a great way to extend the
positioning of energy drinks and attract new consumers.
Category Snapshot: Energy Drinks - Product Examples

Vitamin and Mineral Enhanced

Nutrition Bomb (Japan) Vitamin Energy (USA) Buzz Green Tea (Canada) Vemma Verve! (USA)
Formulated with niacin, Carbonated version of Made with green tea and Developed by a physician, it is
vitamins B & C and royal jelly Glaceau’s vitamin waters and ginseng root extract, and said to contain ‘your daily
contains 5 vitamins contains B and C vitamins dose of vitamins and minerals’

Sugar-free Mental Stamina and Concentration

Radioactive (USA) No NRG Energy Shot (Canada) Brain ToniQ (USA) Described Serious Focus (USA) Claims
sugar or carbohydrates, Sugar free and said to give 8 as the world’s first non- to be a concentration and
and fortified with vitamins hours of energy for endurance caffeinated, organic, botanical- mental sharpness enhancing
and motor performance based drink for mental clarity drink. Contains 56% juice

High Juice Content Milk and Coffee

Awake - Good Morning Michel Power (Switzerland) Starbuck’s Doubleshot Mars Refuel (India) Made
Energy (USA) 100% juice Contains fig, mango and (Canada) Made with milk with 74% milk and only 2%
energy drink and contains banana, and extract of coffee and added guarana, fat. Comes in Mars bar
caffeine coffeeberry for energy ginseng and vitamins flavour
Category Snapshot: Energy Drinks - Product Examples

Marketing – Occasion Specific

Energy Shot for Golfers (USA) Mana Potion (USA) Boozers Hangover Remedy
Contains natural ingredients with Designed specifically for (USA) Formulated by
anti-inflammatory and cognitive gamers, providing energy for pharmacists, it is herbal and
support 5 – 8 hours vitamin enriched to relieve
hangovers

Marketing – “Sex and Drugs and Rock ‘n’ Roll”

Function: Night Life (USA) Added Cocaine (USA) Relaunched Pimpjuice (USA) Contains a The Jimi Hendrix Liquid
amino acid tyrosine helps support after a controversial campaign. high level of antioxidants Experience (USA) Infused
dopamine levels, the neurotransmitter Comes in ‘Cut Cocaine’ from green tea, acai berry with co-Q10 enzymes, it
associated with pleasure and reward (cinnamon flavour) and pomegranate juice comes in a aluminum bottle

Targeted to Females TV Show Branding

Angel (New Zealand) Said
to be ’made with a heavenly
hit of guarana to put the
sparkle back in your eye’
Go Girl Glo (USA) Contains
only 35 calories and less
caffeine. The natural ingredients
also offer beauty benefits
“Flaming Moe” (Canada)
Inspired by the flaming Moe
drink featured in The
Simpsons. Contains guarana
and ginseng
24 The Series (USA)
Branded under the TV show
24.
Category Snapshot: Energy Drinks - Product Examples
Private Label
Tesco – Kick (UK)
Enriched with vitamins,
and low in sugars and
calories
Portable formats
Bulldozer Powder (Russia)
Said to increase vision
sharpness and recommended
as a cocktail base
Unique Packaging
Blue Shot (Mexico) Comes in
a designer blue bottle, inspired
by beauty products
Coles – ZU (Australia) Carrefour – Energy
Said to provide ‘sublime Drink (Poland)
energy’, it contains Contains 20% juice and
taurine, caffeine and antioxidants
guarana
Go Action Go (Israel) Superfly Tabs (USA) Offer
Cranberry and vodka sustained energy and no
energy drink concentrate sugar - just add to bottled
in a tube water
New Flavours
Heat Battery (Finland)
Bawls EXXtra (USA)
Comes in cranberry & chilli
Bawls comes in colour- flavour, said to provide a
changing bottles and cans
warming after-effect.
Aldi – Flying Power
(Australia) Formulated
with glucose and added
B vitamins
Extreme Energy (Canada)
This cola gel can be
consumed frozen as a ice
block
Bio Energy (Hungary)
This organic energy drink
comes in chokeberry
flavour with acai berry
Category Snapshot: Energy Drinks – Innovation Spotlight

Activate Energy Drink

Rising Beverage Co, USA
Rising Beverage Co. has launched a Functional Drink Range under the
Activate brand. These drinks contains vitamins and herbs stored as a powder
in a moisture-resistant chamber inside the cap. When the cap is twisted, a
small plastic blade cuts the seal and releases the ingredients into the water.
According to the manufacturer, as a result, all active ingredients are stored
separate from the water and kept fresh until they are released for maximum
potency.

The Energy variety contains caffeine, inositol for assisting fat to turn into
energy and creatine for sustained endurance. Activate Energy also contains a
range of B vitamins, to help with the metabolisation of food, improving
circulation, and stamina enhancement.

Energize To Go – Iced Tea Mix

Unilever, USA
Lipton Iced Tea To Go Energize Blueberry Pomegranate
Iced Tea Mix with vitamins, ginseng and guarana is kosher
certified, sugar free and contains zero calories per serving.
The easy-to-prepare product is available in a 10-count pack
of 0.4-oz. sachets. Also available in this range are:
Revitalize; and Defense varieties. Defense variety is
available in a Pink Lemonade flavour with other natural
flavours. The product is formulated with green tea and
vitamins C and E.