Something I thought of about this conversation:
History has showed us that established brands such as Coke and Pepsi have not faired well in the ED category when they offer a new "branded" drink to the market. FT did well but after millions and millions of marketing dollars thrown at it.
RB, and Monster were predominanlty "independent" brands that the categories demos preferred due to the culture of such demos, thereby creating their success.
Now the "gotchas" thrown out there by some in this thread are relative to the "big boys" shot offerings.
Amp is dead, Rockstar is dying and it looks like Monster is dying.
The market leaders(top3) as shown by Neilsen ratings(52 weeks through4/18/09) have all been what is considered independents. 5hr/Living Essentials, Stacker 2, And REDLINE.
Rockstar is #4 followed by another independent Spike, Xtreme Energy, NOS,BDI Marketing, and at #9 Full Throttle.
Considering that RS, Monster, FT, Amp, et al have the Marketing Depratments and their Dollars behind them you would expect the top 3 to be very different.
So my point is that when it comes to "functional" drinks the consumer believes that independent, more focused, cutting edge companies do a better job at providig them with what they want and that is the reason the big boys should focus on what got them BIG. Consequently the consumer has also recognized that the big boys are now offering the "knock offs" as johnny come latelies and thereby sales are not as expected.

Greg, I agree with your post to an extent but the data you reference is, like you said, based on the 52 previous weeks - most of which Monster & RB weren't yet on the market, with Monster Hitman being launched in Q4 '08 and RB shot being launched Q2 '09 - so let's see what this looks like next year at this time. Also, while the 3 big boys in the energy drink category have all the marketing dollars, you need to think about what was launched first and what the consumer things of when they see the Monster/Red Bull/RockStar ads/promos/sponsorships.....All there are typically marketing their brand as a whole, not just a single line (typically) - so people are going to connect any of their marketing to the products they first launched (ie, energy drinks). On the other hand aside from their Chaser product (a pill), Liviing Essentials only has 5hr Energy, so their isn't a tug-of-war between their marketing of their brand and a broad line of products.

QUOTE=jetset;369988]Greg, I agree with your post to an extent but the data you reference is, like you said, based on the 52 previous weeks - most of which Monster & RB weren't yet on the market, with Monster Hitman being launched in Q4 '08 and RB shot being launched Q2 '09 - so let's see what this looks like next year at this time. Also, while the 3 big boys in the energy drink category have all the marketing dollars, you need to think about what was launched first and what the consumer things of when they see the Monster/Red Bull/RockStar ads/promos/sponsorships.....All there are typically marketing their brand as a whole, not just a single line (typically) - so people are going to connect any of their marketing to the products they first launched (ie, energy drinks). On the other hand aside from their Chaser product (a pill), Liviing Essentials only has 5hr Energy, so their isn't a tug-of-war between their marketing of their brand and a broad line of products.[/QUOTE]


Very valid points you make about the RB and Monster timing in the market, However, considering Monsters name recognition, overall ED market share, Marketing dollars, and their distribution network they should have at least cracked the top 15 (in dollar sales), even if just for the 1st quarter sales. It shows the turns weren't there for the product. Anecdotally the sales being reported here and other places by people on the street of the RB shot along with the reports of Monster not doing well at all helps support my overall theory.

i'd like to think that people buy energy drinks repeatedly for taste. if a no-name makes a crap drink, nobody who tries it will buy it again, thereby reducing its word of mouth, so to speak. i've never seen a commercial for monster, but it sells well because it tastes good (to many) and they give away tons of the stuff at places where young people converge, like concerts and skate shops. people see their friends drinking it, and buy it themselves, continuing the circle.
personally, i don't give a crap whether a drink works or not, i go for taste. i collect these things, so the more companies that tank- the better.

Originally Posted by MobiusOne

i'd like to think that people buy energy drinks repeatedly for taste. if a no-name makes a crap drink, nobody who tries it will buy it again, thereby reducing its word of mouth, so to speak. i've never seen a commercial for monster, but it sells well because it tastes good (to many) and they give away tons of the stuff at places where young people converge, like concerts and skate shops. people see their friends drinking it, and buy it themselves, continuing the circle.
personally, i don't give a crap whether a drink works or not, i go for taste. i collect these things, so the more companies that tank- the better.

Taste is important to many, but take a look at 5hr, that stuff is horrible and sells like crazy. I recently read an article interviewing their CEO and he talked about how they now their product doesn't taste great but they aren't selling taste, they are selling function. I found it interesting hearing that they are aware of the taste and the reaction people have to it but aren't sacrificing their product. Sometimes when things taste 'too good' people don't believe it is good for you or is truly functional.

Right on, jetset. I was in a c-store a few months ago, and the guy in front of me asked the cashier for a 5 Hour Energy (they were behind the counter). He told her it didn't matter which one, they all tasted like crap.

One of the larger dollar store chains and the buyers are being OVERWHELMED with Energy Shots. The buyer I talked to said he gets around 25 calls weekly and the prices keep dropping. He told me he just bought a truckload of shots for just 10 cents a shot. He would not tell me the brand but I am sure I will find out soon enough.

These shots are just a very bad idea for Rock Star, Monster , and Red Bull. It does not create new users it eats current sales.

Red Bull for the 50th time if you want to sell more product or make more money do yourself a favor and just come out with a Red Bull Orange. Geez.

Originally Posted by SumPoosieCat

One of the larger dollar store chains and the buyers are being OVERWHELMED with Energy Shots. The buyer I talked to said he gets around 25 calls weekly and the prices keep dropping. He told me he just bought a truckload of shots for just 10 cents a shot. He would not tell me the brand but I am sure I will find out soon enough.

These shots are just a very bad idea for Rock Star, Monster , and Red Bull. It does not create new users it eats current sales.

Red Bull for the 50th time if you want to sell more product or make more money do yourself a favor and just come out with a Red Bull Orange. Geez.

To your last point - I am very surprised that RB hasn't branched out more with some flavor extension, they have Regular and Diet, OHHHH so exciting, then they wonder why they are losing market share. Sure they came out with their cola, but that only has their name on it and isn't a true cola energy.

I'm guessing full throttle shots? I know they are at dollar tree and they had a bunch. As for Red Bull shots they are everywhere now and usually the boxes are half empty sitting next to full boxes of other brands. It's not that they are the best shot but I think you under estimate brand loyalty.

Originally Posted by SumPoosieCat

One of the larger dollar store chains and the buyers are being OVERWHELMED with Energy Shots. The buyer I talked to said he gets around 25 calls weekly and the prices keep dropping. He told me he just bought a truckload of shots for just 10 cents a shot. He would not tell me the brand but I am sure I will find out soon enough.

These shots are just a very bad idea for Rock Star, Monster , and Red Bull. It does not create new users it eats current sales.

Red Bull for the 50th time if you want to sell more product or make more money do yourself a favor and just come out with a Red Bull Orange. Geez.

The energy shot market is like anything else in business where some people have made a ton of money.....once people see that there is money being made in any segment of the beverage industry, you get a bunch of followers and me-toos that head into the category with anything hoping to make a quick buck. You saw this when Snapple & Arizona hit, again when Vitamin Water hit and more recently when Energy Drinks hit - everybody jumped in to make money off of the popularity but in the end only the strong survived. I have no doubt the energy shot category is here to stay but I there is only room for so many that the weak will move to the dollar store and the strong will still be around in 2010....