View Full Version : Energy drink cost question
05-09-2010, 02:49 PM
I am a student working on a comprehensive promotional plan for AMP energy drink. We have to create a soup-to-nuts plan that will promote the drink in several cities from cost to artwork etc. Our plan is to have several large trucks parked in major cities with people outside them distributing cans of AMP for free but cannot find the cost of how much it would cost AMP itself per can.
Does anyone have any idea as to their markup/pricing model that would make finding this information possible?
Thats going to be pretty tough info to find. ACTUAL cost of goods is kept highly confidential.
Your best bet would be to state the wholesale cost of goods to determine the cost of the promotion.
Last time I checked a case of 24 8oz cans were between $24-$32. I believe the 16oz case is around $48.
Perhaps our resident Pepsi boys can help you out.
05-10-2010, 03:05 PM
I bet if you contacted the company they could probably give you an exact answer. Most times when it comes to promotional things like that you would be amazed at how generous companies will be.
05-10-2010, 10:11 PM
There's not really a simple answer to that question.
First off, Greg is correct. That's confidential information. I highly doubt Pepsi would be forthcoming with that information.
Secondly, Pepsi and their bottling arm, Pepsi Beverages Company, contract out most of the canning of Amp to 3rd party companies, or other Pepsi bottlers. So you've got the actual cost to produce the product, and then the profit that the canner makes.
Probably the closest you could come to approximate cost would be the wholesale cost that stores pay the distributor.
I think Greg's figures are a little high, though, and are probably more representative of Red Bull pricing, rather than Amp/Monster/Rockstar/etc pricing. I do know I can walk into the local BJ's Wholesale Club and buy a case of Monster for $29.99, which is about $1.25 a can.
05-11-2010, 10:48 PM
I have worked for Pepsico/PBG/PBC for well over 15 years. I have been around since the beginning of Amp. I can tell you that the approximate case cost is going to be between $14-$20 per 12 can case depending on where you are at in the country and whether or not there is a promotion etc. I can NOT even begin to tell you the actual COG on Amp as I have absolutely no idea. Furthermore I really do think that Pepsico would allow you to proceed with your promotional idea, I could be wrong though.
05-12-2010, 11:17 AM
A safe estimate for the actual COG for a single-serve energy drink (8oz or 16oz can) would be in the $7.50 to $9.50 (per case of 24) range. That would include ingredients, package and production. It would not include any freight.
05-12-2010, 04:43 PM
amp goes out to independant c stores at roughly 28.00 per case 2/12pks. I see amps price dropping down to roughly $25 per case in the near future to generate 2/$3 sales as their numbers are down DRAMATICALLY from last year. So COG is probably right around 20-22.
05-14-2010, 12:06 AM
Saint hits it dead on with the case cost/definition.
Jenks..don't confuse anybody because a CASE of amp is 12 cans. Not 2(12 pack) cases. Also I dont have national figures but my area in particular performs well in the energy category(Amp has a higher market share over here then in a lot of areas) however we are still doing well with it and doing the same sales as last year but the per average cost on cans is way up...its 2.50 on the regular at places like Farm Fresh..thats outrageous.