still going strong

energy drinks
6/8/06
3:05 PM
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By B
here are several factors to consider
while contemplating adding energy
drinks to your regular inventory. How
do you approach selecting one or two
from the countless brands on the market? How
can you minimize the waste and storage space of
aluminum cans? What’s new in the world of
energy drinks? And, last but not least, is the fad
just a fad - or are they here to stay?
T
HEALTH CONSCIOUS COCKTAILS
Although Red Bull remains the leader in the
category, there are a myriad of other energy
drinks available on the market today. And in
the increasingly health-conscious society that
we live in, a sure bet to stock at your bar is a
brand without a ton of sugar, carbs and calories.
Hi*ball, a clear, clean-tasting, carbonated
energy drink with an essence of flavor,
launched in late 2004 and has experienced a
welcome reception from consumers. Hi*ball
contains no artificial flavors, sugar, or sweeteners, and only a mere 10 calories per 10
ounce bottle (SRP $1.99). The Hi*ball line
includes a variety of flavors – tonic water,
club soda, orange soda, lemon lime soda, wild
berry soda – and contains high levels of taurine,
guaraná, ginseng, caffeine and B-vitamins.
On July 1st, Hi*ball will introduce new custom,
four-pack carriers (SRP $7.29).
“Hi*ball is perfect for health-conscious consumers who want the energy but don’t want to
sacrifice health or taste,” says Todd Berardi,
founder and president of Hi*ball, Inc. “Our
product mixes well with a variety of spirits.”
A new and exciting collaboration has
recently come to fruition between Ketel One
vodka and Hi*ball with the creation of the
Hi*way One cocktail, officially launched at
the 2006 Original Bar Show. Josh Sampson,
director of sales, east coast, Hi*ball, says, “We
are really excited about this collaboration and
are proud to introduce such a clean, refreshing
and all-natural cocktail in the energy drink
category.” The Hi*way One is a made from
Ketel One, Hi*ball orange soda, fresh lime
juice and honey.
Another energy drink not loaded down
with sugar and corn syrup is Socko Energy; a
sugar free version is also available. Socko is
full of vitamins and minerals and pairs well
with the host of spirits on your shelves.
Jordan Harwood, president of Bliss
Beverage, explains, “Socko does particularly
well in bars and nightclubs because consumers like the bright green color of the
drink, especially when the black lights hit
it.” He adds that Socko tastes great when
mixed with flavored vodkas, Jagermeister, tequila and champagne.
“Socko is a compliment to many alcohols
because it not only tastes great, but
Socko’s unique flavor overpowers the
taste of the alcohol.”
A NEW GENERATION
OF ALUMINUM CANS
The aluminum cans that house most
energy drinks has taken the market by
storm. What does this mean for you?
Canned energy drinks stack and store easily
in refrigerators and coolers, as well as chill
quickly. This new generation of cans comes
in many shapes, sizes and styles and is proving
to be a valuable sales catalyst in a crowded
market – and on a crowded shelf.
Says Robert Budway, president of the Can
Manufacturers Institute, “The 12-ounce traditional beverage can has historically been a
smart choice for bartenders as it provides
superior space-efficiency. In addition, its
proven chillability and 100 percent ‘closed
loop’ recyclability make it appealing. The
new can innovations and specialty sizes coming
to market continue to deliver on these core
benefits, and now have an added element of
style associated with the package.”
A CATEGORY ALL ITS OWN
p.i.n.k., an 80 proof, super-premium
vodka infused with natural caffeine
and guaraná (the guaraná plant, native
to Brazil and Venezuela, contains
caffeine and is sometimes called
guaranine), provides the intensity –
without the flavor – of energy drinks
and retails for $40 per 750 ml bottle.
“We wanted to give people another
option so we put the boost you get
from energy drinks into a super-premum
vodka,” explains David Mandell, pres-
energy drinks
6/8/06
3:05 PM
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ident & CEO of p.i.n.k vodka. “We are a new
and very unique category and the reception
has been phenomenal.”
Christy Farias, VP of sales & marketing
for p.i.n.k., says that with p.i.n.k. you aren’t
pigeonholed into making a particular drink.
“You can use our product if you want some
caffeine in your drink without having to
affect the flavor of your cocktail.” Some
cocktails that can be made with p.i.n.k. are
the p.i.n.k. Cosmo; the p.i.n.k. & tonic; and
the Dirty p.i.n.k., among others.
Crazy Legs Conti, purchasing director at
Penthouse Executive Club in Manhattan, calls
p.i.n.k. a “one stop shopping cocktail.” At his
establishment, they seek to keep a high-caliber
energy list and, he adds, “p.i.n.k. is a new and
original product that will do great here.”
Mandell notes that you can even mix
p.i.n.k. with an energy drink of your choice
“for an extra added boost.” p.i.n.k. and
Hi*ball, anyone? Now that’s what I call an
energy drink!
NO LONGER A FAD
While energy drinks are experiencing big
growth, there is still a lot of competition
within the category. Which ones will be
Energy Drink Sales
52-week period ending April 22, 2006
$ Sales Volume Unit Volume
(in millions)
(in millions)
Convenience Stores $2,263.0
1,143.3
Food/Drug/Mass
$738.1
406.5
$3,001.1
1,549.8
(excluding Wal-Mart)
Total:
(excluding Wal-Mart)
*source – ACNeilsen
around for the long haul? Berardi believes
that only quality brands will survive and
knockoffs will eventually fold. To stay ahead
of the game, he says, you have to have a
brand following. “We’re in a great position;
Hi*ball is a very health-conscious drink and
a premium product. Lasting power comes
from consumers loving your brand.”
Mike Jannicelli, VP, Bliss Beverage, asserts
that energy drinks are here to stay and increasing annual sales figures are proof of that. “Each
year the energy drink market has increased
substantially and with good reasons,” he says.
“Socko Energy is full of vitamins, minerals and offers a healthy alternative to
soda. The key to growing the category is to
keep producing products that consumers
enjoy, and do so by offering different flavors
and sizes.”
Conti, someone who knows from being
in the field every day, says that energy drinks
have entered the pop culture lexicon and are
now a part of the cocktail of the future. “The
public has embraced them and as an establishment you have to adapt to the times and
give the customers what they want.”