Energy shots: birth of a new premium-priced, high-growth category: Industry Research

Energy shots: birth of a new premium-priced, high-growth category

Published Date: July 2009

Published By: New Nutrition Business

Page Count: 51

Order Code: R559-43

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Such is the value to mainstream consumers of the proposition of a daily dose of energy with no added sugar that in the US alone this new category has soared to over $350 million in retail sales in less than two years - despite recession and despite selling at a massive 400% price premium over established energy drinks such as Red Bull!

This unique report uses our trademark independent and opinionated analytical style to show how this has been achieved in the US and is fast-emerging in the UK, using:

detailed brand sales data
comparisons of product pricing
comparisons of advertising messages and claims
six detailed case studies, including market-leader 5-Hour Energy and Red Bull’s new entry in the category

Our report - based on interviews with executives at the leading companies in this new category and beverage industry experts - sets out brief and practical guidelines for anyone else looking to replicate this success elsewhere. We summarise:

success factors, and common causes of failure
common lessons for pricing, positioning and branding
key lessons in communicating benefits

Outside the US there’s a chance in most countries to create similar new brands in most countries:

There are a wealth of opportunities throughout Europe - where energy drinks are a category that is least likely to be affected by the EU’s restrictive health claims regulation.
There are also opportunities for companies that are fast to market in Australia, parts of South America and the Middle East.

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