Quote:
Originally Posted by NRGSLLR@
Greg, It's been a while since we have corresponded, I am sorry to hear you have ended your relationship with Redline. In response to this post, do you agree that the growth in the energy drink category will be in innovation, not only in new drinks but from the market leaders(case in point Monster Java) I don't think brand Monster, is growing at 35% but I could be wrong.
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It has been a while. I hope all is well.
I believe that although the ED category as a whole is still young it is maturig at a rapid pace. The frontrunner, RB was the king for quite a while( Keep in mind it was only introduced in the States in 1997), however, now there is Monster and Rockstar nipping at their heels. The success of Monster and Rockstar, IMO, came markedly on the "pepsi" platform, that is doube the volume for the same price. The difference was not marketed as a better drink or better ingredients but rather just plain old MORE product for the same price. Don't get me wrong, I understand the marketing, grass roots efforts, and market approach may have been somewhat different, however, the "product" resembled the market leader.
Many products have tried and failed at this approach. As someone said earlier, it comes down to how much money you have and how long can you afford to play the game in a crowded market.
Now, as I see it, Innovation will be the next marker for a money maker in the ED business. Notice I didn't say Sales leader. Just as Coke and Pepsi have endured all these years they were at the forefront of CSD's and were able to outlive their competitors due to brand recognition , awareness, and loyalty.
Same with RB and Monster for sure.
Innovation hits at the niche market and creates a sub-category if you will. Those included in my opinion are drinks such as Redline, Engage, Spike, 5 Hr Energy, and others like them. These companies have taken an idea and created something better and more aligned with certain demographics withing the ED category.
Redline hits athletes(read crossover) that want more than a lift and a lot of sugar. They created the SUPER Energy drink with Zero sugar.
Engage- Builds on the REDLINE idea but adds the element of Mood enhancers to create a better overall feeling of well being while providing great energy without the Jitters.
5HR uses the concept of a neat and tidy package that can be handled effeciently( read: put in purse or pocket) that attracts truckers for its B vitamin energy and low "pee" factor. Less liquid, less frequent urination. It also does a remarkable job of marketing to the average adult user that may need something to combat the cubicle crash.
Albeit, none of them are bringing in the volume like Monster and RB they are all doing well respectively and have loyal followings. They have created something different and are providing the market with choices other than the status quo. Companies that provide innovation will be rewarded by brand loyalty.
At this point, although the category is young, I do not see anyone coming close to knocking down #1 or #2 for years to come, if they do it will be a Pepsi or Coke product with more than just a marketing approach of "just getting in the category". It will take an honest approach through innovation to bring a superior product to market in a cost effecient manner that can be embraced by a great range of demographics. Not another "me too" product.
Side note-This reply written while drinking an 8.4 oz Spike Shooter-'Quila Lime flavor. D-LICIOUS