Saint,

You make valid points and I must concede some of my argument to them,however, innovation is key in the ED business. RB started it by becoming a grass roots marketing machine, Monster upped it with twice as much for the same price, and Rockstar.....well, other than getting in the CCE system( or whichever system it landed in) I have no idea how they got that big.
At anyrate, ED's are the highest margin itiems( for the most part) in the cold vault. I understand the reluctance of retailers to fill their store with ED's and miss out on other sales, but the retailer is there to make money and if he only carries the same old stuff that the guy next door does he will have to compete with him somewhere else, be it the gas pump, cigarettes, beer, snacks, whatever. Choosing a possible next "big thing" will always be on his list of priorities.

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Whether you think can or think you can\'t, you\'re probably right!

I agree. I believe the ED market will continue to grow, as the Consumer demand for products like these is still high. That stated, however, Big Brother is on his way in! Mark my words: regulation is just around the corner for ED's. I'm not sure if regulation will come in the way of age and/or potency restrictions, but something is bound to happen.

I could not disagree with you more Saint. 5 years ago everyone talked about the dominance of Red Bull and how Red Bull was this and Red Bull was that. Along comes Monster and knocks Red Bull all over the place. Consumers want choice and the Energy Drink market is very profitable for C stores. Why would they want to limit selection in such a profitable and growing segment? Energy Drinks continue double digit growth and there seems to be no end in sight. Energy Drinks that have a Niche will continue to do well and those that fail to get a following will fall to the side.

1. The Energy Drink category is not dying. Ofcourse it's not growing like a weed like it was a couple years ago but this is natural in any maturing category. Bottom line, on the net whole, retailers will add more space in their sets for ED's in 2008 than they had in 2007. This is a fact. The reason is because it's one of the only segments in the beverage biz that continues to show double digit growth.

2. I am slightly concerned about looming regulation. When and if it comes all the blame may be lodged on a few stupid companies who decide to push the limits too far in an attempt to get attention/be more extreme than the next guy. Examples of brands almost about to ruin it for the rest of us would be:

-High potency ED's ( I would put Redline in this category, sorry Greg)
-Monster 32oz (just a matter of time before this shi*t hits the fan on this one, MARK MY WORDS)
-Drinks with stupid drug names (Cocaine/Blow etc)

Let me retract one part of my comment. I should not have said the companies were "stupid". Clearly Monster has demonstrated their capabilities and I would say redline has carved out a nice cnche for itself... so let's give credit due...HOWEVER, I would say that certain decisions these companies have made, either about their package size/potentcy/brand name, are putting all ED's companies (including their own) at risk in an attempt to market their brands. No animosity toward any competing brand here, Just calling them like I see em..

I accept that the potency issue is an important one. In my opinion I would not object to showing age identification for a drink that has over 200-250 mg in it.( Total per bottle) If adults want to use a drink that has 200+mg of caffeine in it then they should be able to buy it.


And I don't even need to tell you about my position about ED companies that come out with drug names or common drug alternative/slang names for their drink.

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Whether you think can or think you can\'t, you\'re probably right!

It'll be interesting to see what the Fed's do in the next year or two. With adverse event reporting being mandatory for all supplement manufacturers - not to mention the major increase & focus the media are drawing to these events, it's just a matter of time 'til the Government has enough "facts" to regulate. We saw this happen with ephedra, and it looks like the process to regulate has started with ED's.

So when they fall to the side where exactly is the retailer going to put all of his "buy 5 get 2 free" brands?? If a drink doesn't get a following it is merely taking up space in the cold vault. The retailers are not gonna throw 7 cases in the garbage, it is gonna sit on the shelf for years until one of the big guys offer to buy it all for the space it takes up. The brands that "have a niche" and "continue to do well" will eventually be incorporateds into the cold vault during the contract allocations. I am all for the stores having products that sell, it is the ones that have a rep that comes in sells his 7 cases and is never seen again while the product just sits and collects dust that are the problem. "cocaine" should come to mind for most as while it was "IT" for some time, IT now is dead and sits and sits. This is the reason chain accounts do not authorize every tom dick and harry energy drink that comes along, when it becomes popular then it gets space allocated for it, when it dies they are not sitting on 6 1/2 cases PER store.

While each and every single brand/ flavor has the potential to become "the next greatest thing" reality is that it won't. If there is a new brand that ultimately is going to be the next "hot" item, well then the distributor should offer a buy 5 and get a cheap ice barrel to merchandise it in rather than the buy 5 get 2.

just my .02

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If what you did yesterday still looks big, you haven't done much today.

BIG BOTTOM!?!?!? BIG BOTTOM?!?!?!?

Where are you???????

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Whether you think can or think you can\'t, you\'re probably right!

Greg for a man that has so much to say, it seem you spend very little time in the field selling. Yes, we launched an energy drink, from start to finish, it took 6 months, trademark formula to production of the first 1600 cases, we only spent 25k and it is on an alternative market, online, vending and private label. Only 120 mg of caffeine for a 12 oz package. The fact is this Greg if you are not Red bull, Monster, Coke, Pepsi or Cadbury which are throwing Hugh dollars to conquer and divide the shelf you are just another sucker company paying to play in the up and down the street convenience and grocery trade. Any one can give it away the real deal is getting a store to pay for it!!!! I am not trying to be a domes day speculator, but the facts are obvious, to me that is on the street everyday talking the talk and walking the walk, not glued to the board speculating on the trends. The information I deliver here is direct from the retailers, direct from the distributors I sub with and work with. Yes the margins are great, but the exposure to taking on a pallet of energy that will sit and cost 3000.00 and then going into an account that tells you it does not sell, and if you don't take it back, swap it out or relive them of the lost financial burden will not buy your items that do sell.

Do yourself a favor and get Google news on energy drinks, you will see first hand across the country and across the board there is a rumbling to the negative effects of this categories excessiveness in becoming the next great thing. Time will show you that what I say is factual, and it is not merely my words it is the words and print I have reiterated to this board from the news wires and hundreds of papers that are spewing the negative news.

I think I saw you have something to do with redline, they are scared for their proverbial lives, they are ready and willing to throw minuscule money at a school were three kids took ill if and when one drops dead it's over and it will only be a matter of time, cause speed kills, to much of a good thing is just that too much. 25k is that what a child's life is worth? you tell me Greg is it?