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View Full Version : Bag In A Box Marketing-Energy Drinks



JSCNitro2Go
06-02-2006, 07:52 AM
Great Market plans for the Bag In A Box Energy Drinks, and this will do very well in all markets, and NO fighting between everyone for shelf space,etc. No Cooler Space needed.

With the cost factor of .05 cents (1 Nickel) per ounce to the bars, clubs and establishments that sell mixed drinks, this is saving them 70% over conventional energy drink cans. RB

I think without any doubt that if you have established these outlets you could average a $100-$150 net profit per location. You can do the math, and see that this could be highly $$ profitable quickly.

FACTS: 5 Gal. BIB == 30 gallons of Mixed Drinks

It takes (20) 24ct cases of 8.3 ounce
energy drinks to be the same quantity.

BIB Cost: $199.00

8.3 oz Cost: (20) 24ct cases @ $32 = $640.00


I would like to see input on how the BAG IN A BOX-Energy Drinks concept will be a threat to Energy Drinks being served on premise. ??

the saint
06-02-2006, 09:31 AM
This concept is nothing new.The threat would come from either Coke or Pepsi booting your BIB because in more cases than not THEY own the gun and equipment not the bar. THEY will not allow a foreign product to be placed in THEIR equipment. Therefore your profit numbers are false readings as YOU would have to buy the equipment to give/lease to whatever bar you could get to carry your BIB.

[ 06-02-2006, 09:32 AM: Message edited by: the saint ]

JSCNitro2Go
06-02-2006, 10:46 AM
I disagree!! If locations want the product and do not have a GUN available, they buy a GUN themselves and start serving the product. All of my BIB are being dispensed either through existing GUNS or the location has bought a new GUN just for this product. We do not publish FALSE readings, but your are certainly entitled to you opinion. YES, the product is going through Pepsi and Coke Guns, with no problem. Especially since the Red and Blue Army do not offer this type of beverage YET. JSC

greg
06-02-2006, 11:03 AM
I agree with SAINT. Unless someone has actually kicked out both Coke and Pepsi from their establishment they will have "One of the Red and Blue Army" purchase the gun for them.
Furthermore, It is just not as easy as buying a gun dispenser. You need to buy the C02 tanks and mixing machine, buy the license to have C02 tanks in storage, run the lines, and maintenance. Why would someone do all that when Coke or pepsi will give it to them.

I think you need to take a few moments away from the Nitro2Go handbook and take a realistic look as well as approach to marketing your energy drink.

NRgizR
06-02-2006, 12:17 PM
The only way Coke and Pepsi would allow BIB to run through their equipment is if they didn't know it. Also to imply just because coke and Pepsi don't have a BIB product it's ok...That's ridiculous. All the more reason to keep foreign product off their gun/fountain heads. The fact is they do have a competitive product and at this stage would love to have a bigger share of the on premise business.
The only product that has ever been successful sponging off of Coke and Pepsi's equipment is DP.

CStoreCatMan
06-02-2006, 01:11 PM
I agree with the last several posts. There's no way Coke or Pepsi would allow a foreign product to be dispensed through their machine. Greg was correct in saying the bar owner would have to purchase all of his own equip to dispense this one new drink. Greg already mentioned the maintenance and repair concerns as well.

Secondly, what would energy drinks in BIB do to the pricing in the standard retail market? I would think if consumers can start getting 32 oz'ers full of an energy drink for $1 - $2 that's going to erode the pricing of cans in the long run. I know we're talking about an on-premise example here...but the idea of fountain energy WOULD spread to c-stores eventually...

JSCNitro2Go
06-02-2006, 02:18 PM
Fountain Energy is already in stores in Texas, Oklahoma & Missouri, Go to a QuikTrip store and you will see it. All of this talk about Co2,etc, is just simply nonsense, as these bars hate messing with cans to mix drinks, and this is the wave of the future. Get on board, or get left behind. JSC

CStoreCatMan
06-02-2006, 03:07 PM
Well I don't think anyone here is arguing the relevance of energy in BIB...they're just saying that Red and Blue won't support Nitro BIB (or any other non Coke/Pepsi product) in their fountains!! Energy in fountain is a good idea...just don't expect it to be as easy as selling a store manager on it and him telling Coke/Pepsi to add it to the lineup! It will never happen that way...unless the store/bar already owns their own fountain equip.

Mr Zabe
06-02-2006, 03:10 PM
I disagree, some and maybe a good number of club/bar customers get rather gleeful to see a can of Red Bull poured or served via the can. Call it snob appeal,call it part of club/bar foreplay or call it status. It's not the drink; it's the whole perception of being a part of the super elite "in" crowed that Red Bull marketing
has created.

Pouring a Red Bull from a fountain gun IMO would drastically reduce R.B. sales.

[ 06-02-2006, 03:11 PM: Message edited by: Mr Zabe ]

greg
06-02-2006, 03:22 PM
QuikTrip has been selling energy drinks in their fountain for years. Not very strong but tasty. Even so, they went out and had their own brand made. Donkey Kick and Rooster Booster.
I personally don't feel that Energy drinks in a BIB are going to take off. The main reason is that marketers understand that consumers are sometimes going to buy the Largest size possible. Due to this reason alone the liability would be so great to the manufacturer/marketer that the potency level will be substantially reduced. There is only so much responsibility you can expect from consumers, and especially lawyers!

the saint
06-02-2006, 04:40 PM
What is next? Are you going to start preaching that all of these stops are saying "I am a bartender, not a can opener".
If you have your product in ANY coke or Pepsi owned equipment, believe me when I say this, it will be unhooked and set aside the first time. If they have done this the sales person/ rep WILL make it a point to come back into that account within a few days to check that this is still unhooked. The bar owner/ tender will be busy enough when the rep comes in that he cannot run to the back and unhook yours and hook up another in time for the rep to not see. The owner / tender will get a second and final warning (not to mention more than likely a hole in the connection of your BIB so it will not work, you would have to bring another). The third time more than likely the equipment will be pulled on the spot. If it is not pulled it will be made unusable until someone can come and get said equipment. Fountain equipment is expensive to buy and the return is next to if not nothing. Pepsi and Coke do not take kindly to someone sponging off of their equipment.

CStoreCatMan
06-02-2006, 05:32 PM
Good points by Zabe, Greg and the saint. That's why the only e-drinks we've seen in fountains are the generic, no-name brands that probably don't sell enough to justify their existence. We just heard about Donkey Kick and Rooster Booster...WHO/WHAT? And I've seen others like Wild Stallion and some other junk out there.

Also, if I am a bar owner, why wouldn't I want to carry cans? Its not like I don't carry bottles and cans of beer already! Plus, if I can buy a case of RB for $32 which is $1.33 per can...I can resell them for $3-$5 and up all day long. Not to mention in a $7 mixed drink...half of it is this energy drink! More profits!! Now that I think about it, BIB may not be all that great for on premise as they can make a load of money on the existing packages...

[ 06-02-2006, 05:40 PM: Message edited by: CStoreCatMan ]

reset man
06-02-2006, 09:02 PM
A beer distributor told me they're happy with their energy drink BIB so far. It's not Nitro2Go but another brand. They didn't mention any issues about not being able to get it on a gun. I tried Nitro2Go recently for the first time and was impressed with their product. Who knows, it might work.

KCBevGuy
06-02-2006, 11:28 PM
Good evening all. There is a BIB in the Kansas City market called Roaring Lion. The company has just started some grass roots marketing in this area with coasters mainly. There market saturation is poor however the accounts that they do have are solid A on premise accounts. It will be interesting to see where the concept goes.

KCBevGuy
06-02-2006, 11:30 PM
By the way, this product is being served on Pepsi and Coke guns here and the Blue and Red are doing nothing to stop it.

the saint
06-02-2006, 11:31 PM
Give it time.

greg
06-05-2006, 12:18 PM
Originally posted by Joe Louis Punch:
A beer distributor told me they're happy with their energy drink BIB so far. It's not Nitro2Go but another brand. They didn't mention any issues about not being able to get it on a gun. I tried Nitro2Go recently for the first time and was impressed with their product. Who knows, it might work. Considering the a Beer wholesaler usually treats the Retailer pretty well I would suspect that they would have an easier time getting it in the bar. The Beer guys usually provide taps, signage, table tents, Clean lines, mugs, etc. Of course a beer guy can get a BIB in there.
But how is a guy who just has an energy drink(unless it's RB) going to have the power or capitol to do all of that?

DrPepperYummy
06-05-2006, 01:12 PM
Well before everyone assumes pepsi/coke or anyone with fountain equipment can force any establishment to serve 100% of their product only... keep in mind some states have laws prohibiting this... they must keep at least 1 selection open to another vendor and/or the establishment itself...

So it doesn't mean pepsi/coke would leave an empty one and not put something they have there, but it means the bar/restaurant or what have you may legally put one selection of some other vendors product in the fountain equipment.

On the flip side, they could still say we simply don't want to lease you the equipment anymore... but they can't forcefully tell them to carry only their products... they'd simply have to make the choice to remove their fountain completely and lose business or allow that one selection...

Now there are all kinds of questions and results that could come from knowing this... some places simply won't want the headache of another vendor, and in some places pepsi/coke have drpepper slotted in and claim that its another vendors product since its not a corporate SKU.

DMC
06-05-2006, 01:25 PM
down here at the lake, we have an account with a big nightclub/bar called Shooters 21, and we had to put in new guns for them for their new energy drink bag in the box. it's called "Go Fast", and from my understanding they are 2.5 gallon bibs and are running at about $50. i could be wrong on the pricing, but that's what one of the managers there said. i guess this "Go Fast" energy drink is trying to put themselves all over in the bars down here becasue they are offering bibs.

reset man
06-05-2006, 06:25 PM
Considering the a Beer wholesaler usually treats the Retailer pretty well I would suspect that they would have an easier time getting it in the bar. The Beer guys usually provide taps, signage, table tents, Clean lines, mugs, etc. Of course a beer guy can get a BIB in there.
Good point, perhaps Nitro2Go should try to land beer distributors for their BIB energy drink line.

the saint
06-05-2006, 09:50 PM
Originally posted by DrPepperYummy:
Well before everyone assumes pepsi/coke or anyone with fountain equipment can force any establishment to serve 100% of their product only... keep in mind some states have laws prohibiting this... they must keep at least 1 selection open to another vendor and/or the establishment itself...

So it doesn't mean pepsi/coke would leave an empty one and not put something they have there, but it means the bar/restaurant or what have you may legally put one selection of some other vendors product in the fountain equipment.

On the flip side, they could still say we simply don't want to lease you the equipment anymore... but they can't forcefully tell them to carry only their products... they'd simply have to make the choice to remove their fountain completely and lose business or allow that one selection...

Now there are all kinds of questions and results that could come from knowing this... some places simply won't want the headache of another vendor, and in some places pepsi/coke have drpepper slotted in and claim that its another vendors product since its not a corporate SKU. So if this were true then all Pepsi would have to do is start to deliver pepsi to MCdonalds/ burger king etc. and hook it up since the law says that Coke cannot put only their product on their equipment. If this were the case, Why would coke and pepsi pay out millions and millions of dollars a year for pouring rights to ball parks, amusement parks, arenas...? I for one do not think that coke or Pepsi would even own fountain equipment if they were forced to let a competitor use it. Coke and Pepsi would let the establishments buy and service all the equipment while they delivered the BIBs to whichever food distributor provided BIB to the esablishments.

JSCNitro2Go
06-13-2006, 06:46 AM
Have a great summer! Enjoyed each posting, and we will see you this fall. Enjoy your busy season. JSC

greg
06-13-2006, 10:25 AM
He baled!

greg
06-13-2006, 03:36 PM
You know the funny part is the fact that Energy Drinks are not a seasonal beverage based on the heat. Sure Energy drinks may see a bump in sales in the Summer time, but not like the colas or regular sodas will.
I think he just got tired of defending his outrageous claims.

BigEnergy
06-13-2006, 10:03 PM
I could tell you from personnel experience, I distribute Nitro2Go and as you have posted, in every bar I have went into has told me I would have to provide my own gun before they would even consider taking the bag n box. I did have one bar that took the bag and I recieved a call two days later and the owner told me Pepsi made him not only take it off the gun but remove it from the whole system. What sounds great in theory always isn't great in reality. As far as the guns are concerned, Wunder Bar sells an energy drink single serve gun for $110.00

JSCNitro2Go
06-22-2006, 04:57 PM
I dont have to defend anything. Money in the bank talks and BS Walks. JSC

the saint
06-22-2006, 05:48 PM
Is that why you are leaving and walking away?

JSCNitro2Go
06-22-2006, 07:57 PM
I see you are from my School home town. Good City, and great memories. Good luck to you.

Very busy here these days. JSC

SumPoosieCat
06-23-2006, 07:52 AM
BIB Energy is a quality issue as well as a perceived value issue from the customer. YOU BETTER not add 4 bucks to my drink price because you splashed in a off brand energy drink into my pure clean Grey Goose !!!