Good Afternoon, I am hearing a lot of mixed reviews on 24oz Energy Drinks, lately, you people are the experts (at least the eyes and ears of the industry) on the subject, I would appreciate your feedback on
1. Unit volume vs. 16oz of same brand
2. Dollar Volume vs. 16oz of same brand

I would appreciate info on Monster and Rockstar since they are the ones moving East with 24oz.

Thanks

I dopn't have any info on what you are looking for per se, but I do have an opinion about 24oz E-Drinks.

I think 24oz is a terrible idea. Way too much sugar, not enough real Energy ingredients, they are just a profit killer for the retailer, and they take up too much room on the shelf.

Most retailers reserve the top shelf for 24 oz cans because they have no head room to stop them from putting them up there. In my view most people can not reach up there(I'm 6'1 and I have to lay in the cooler door to get one out) and most people overlook them.

a 24 ounce can is not a good idea.

There are a few ways to look at this.

1. I agree with Greg that a 24oz can of energy has way too much "stuff" in it...sugar, caffeine, etc.

2. The flip side of the coin is that 24oz cans are yet another way to keep the energy category growing. I know at 7-Eleven, as soon as Monster 24oz cans were available, they started selling 6-7 cans per day - right away. Its probably higher than that now.

Honestly, I don't know what the difference in profit margin is on a typical 16oz versus a 24oz...that would tell more of the story IMO.

Originally posted by TallThinBlonde:
a 24 ounce can is not a good idea.

Yeah, for SP maybe...nobody wants that much of your grandma's cat!

[ 07-11-2006, 03:24 PM: Message edited by: CStoreCatMan ]

Originally posted by CStoreCatMan:
</font><blockquote>quote:</font><hr />Originally posted by TallThinBlonde:
a 24 ounce can is not a good idea.

Yeah, for SP maybe...nobody wants that much of your grandma's cat! </font>[/QUOTE]LOL!!!!

Originally posted by CStoreCatMan:
There are a few ways to look at this.

2. The flip side of the coin is that 24oz cans are yet another way to keep the energy category growing. I know at 7-Eleven, as soon as Monster 24oz cans were available, they started selling 6-7 cans per day - right away. Its probably higher than that now.

I think that just increasing your packaging is not going to necessarily grow the category.
If someone takes a 24 oz drink then chances are he will not be back in later to buy another can. He will probably either a) save what he has left because 24 oz is too much of anything[except beer of course] or b)never buy another one because he felt he wasted his money because he got sick of drinkin over 100g of sugar.

Penny profits seem to be higher on a much smaller unit volume. But it seems like the majors, excluding Red Bull are moving into the package. If you consider that the typical fountain beverage is now a 32oz or larger, and Coke and Pepsi and every Water company sell one liter packages, then perhaps the consumer will pick up the larger pacakge. If you apply the sugar discussion to Regular Coke or Pepsi, I think you are consuming around 34g of sugar and 40mg of caffiene per 8oz, so... a 32oz fountain soda has nearly the same sugar and and roughly 1/2 the caffeine.

C-store Cat Man if you are a category manager do you see a benefit to higher gross margin, less shelf space and additional packages?

Just my very uneducated comment.
Perhaps the 24oz can will create a market for small group "Candles and Romance" consumption. Energy drink freaks sharing a tall glass of their favorite drink for social gatherings or the like.
Just a thought. [img]smile.gif[/img]

Originally posted by NRGSLLR:
C-store Cat Man if you are a category manager do you see a benefit to higher gross margin, less shelf space and additional packages?

Well higher margins are always a plus. For the manufacturer and retailer alike. Shelf space is ALWAYS an issue no matter what category you're talking about. The process of adding new items or deleting the dogs is fundamental...its just business as usual for me!

Additionally, many consumers are "switching" their beverages of choice. The energy craze has impacted the soda, juice, tea, alternative bevs in a big way and has reduced the space of such categories to allow for more energy brands and packages. Keep in mind...the additional energy SKU's that are coming in have much greater profit potential (and movement potential) than the items they are replacing from categories mentioned above.