Join the A.C.T Energy drink business opportunity
Although not marketed as such, the Scottish drink Irn-Bru may be considered the first energy drink, produced as “Iron Brew” in 1901. In Japan, the energy drink dates at least as far back as the early 1960s, with the release of the Lipovitan. Most such products in Japan bare little resemblance to soft drinks, and are sold instead in small brown glass medicine bottles or cans styled to resemble such containers. These “genki drinks”, which are also produced in Japan, are marketed primarily to the salaryman set.In UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for “aiding the recovery;” in the early 1980s, it was promoted as an energy drink for “replenishing lost energy.”The first drink marketed as being designed to improve the performance of athletes and sports stars arrived in the sixties. It was invented for the football team at the University of Florida, known as the Gators — hence its name, Gatorade. Designed to aid hydration and lengthen performance levels, it claimed that its ingredients were formulated for just such things. However, Gatorade is safer than many energy drinks and is known more as a sports drink.In 1985, Jolt Cola was introduced in the United States. Its marketing strategy centered on the drink’s caffeine content, billing it as a means to promote wakefulness. The initial slogan was, “All the sugar and twice the caffeine.”In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage company (one that had interests outside just energy drinks), but Pepsi discontinued the product in 1999.In Europe, energy drinks were pioneered by the S. Spitz Company and a product named Power Horse, before the business savvy of Dietrich Mateschitz, an Austrian entrepreneur, ensured his Red Bull product became far better known, and a worldwide best seller. Mateschitz developed Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan. Red Bull is the dominant brand in the US after its introduction in 1997, with a market share of approximately 47%.In New Zealand and Australia the current leading energy drinks product in those markets V was introduced by Frucor Beverages Frucor.By the year 2001, the US energy drink market had grown to nearly 8 million per year in retail sales. Over the next 5 years, it grew an average of over 50% per year, totaling over $3 billion in 2005. Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce sized energy drinks. The energy drink market became a $5.4 billion dollar market in 2007, and both Goldman Sachs and Mintel predict that it will hit $10 billion by 2010. Major companies’ such as Pepsi, Coca-Cola, Molson, and Labatt have tried to match smaller companies’ innovative and different approach, with marginal success.Energy drinks are typically attractive to young people. Approximately 65% percent of its drinkers are between the ages of 13 and 35 years old, with males being approximately 65% of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical Society’s Institute for Good Medicine found that: 20 percent of respondents ages 21–30 had used energy drinks in high school or college to stay awake longer to study or write a paper; 70 percent of respondents knew someone who had used an energy drink to stay awake longer to study or work. Energy drinks are also popular as drink mixers.In 2001 Coca-Cola marketed two Powerade brand energy drinks in bullet-shaped, screw-top aluminum bottle cans produced by Exal Corporation of Youngstown,Ohio. Powerade, the same as Gatorade, is better known as a sports drink and is safer than many energy drinks. In 2002 CCL Container and Mistic Brands, Inc., part of the Snapple Beverage Group, worked together on the national launch of Mistic RĒ, which used a recyclable aluminum bottle. Since its introduction, many energy drinks are now packaged in the aluminum bottles or bottle cans.Capri Sun targeted 16-25 year-olds with its Island Refreshers line, graduating from a foil pouch design to a bottlecan or aluminum bottle. In the UK, Coca-Cola has marketed a direct Red Bull competitor, ‘Sprite 3G’, in a similar 250 mL can and has also launched ‘Relentless’, a juice-based energy drink in 500 mL cans.
Craig Jones is writing on behalf of Energy Shack, a leading online retailer of Energy Drinks
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