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  1. #1
    Join Date
    May 2007
    Posts
    15

    Default Monster-Free or $14 a case

    Is any one else seeing this?

    In some markets in Florida Monster is blitzing the on premise bars with free cases of prodcut usually being 5 case drops depending on the volume of that particular bar. This is done from what i'm seeing and hearing on a weekly basis. After a few weeks of dropping free prodcut in the bars A-B is now selling the cases for about $14 a case. I have seen the invoices. That's A-B for ya- Have deep pockets-Kill the competition.

  2. #2
    Join Date
    May 2007
    Location
    Kemah, Texas
    Posts
    538

    Default Thats is their next big push

    That is what I been waiting for. RB owns that market. I never see anything but RB at bars. If Monster can get a grip there then maybe they can pass RB. Depends on if the customers want it though. Sure the staff probably drink the free ones but do they make drinks with them? Will customers start asking for Monster and vodka or some monster bombs?
    banned

  3. #3
    Join Date
    Jun 2003
    Posts
    221

    Default

    That is the million dollar question... This isn't the first time brands have blitzed the on-premise with free/cheap goods. In fact, AB had the exact same strategy with 180 when they first launched, and it didn't do anything. You can't buy the business away from Red Bull. You have to change the consumer's minds with your marketing, not cheaper product. Until companies figure out how to do that, Red Bull will continue to dominate the on-premise.

    CR

  4. #4
    Join Date
    Mar 2002
    Location
    Westerville Ohio, Las Vegas, Florida !!!
    Posts
    649

    Default

    Lol... Monster is doing everything right and has the money and the market share to now make a move into on premise. Its just a matter of time... they did it off premise and I am sure will make waves on premise.

    For too long bars have only served Red Bull... its old and tired and discounted millions who wanted a energy drink in their drink but not Red Bull.

    Go get em Monster !!!

  5. #5
    Join Date
    Dec 2005
    Location
    Montreal, Canada
    Posts
    241

    Default

    Good for Monster. Red Bull has dominated the on-premise segment by bribing bars with exclusivity kickback checks. If Red Bull can give away money for exclusivity, I don't see why Monster can't give away free cases/discounts. Besides, Vodka-Monster tastes better than Vodka-Red Bull.

  6. #6
    Join Date
    May 2007
    Posts
    15

    Default Missing the big picture

    I dont know about other states but there are some small energy drink companies slowly making headway in parts of FL. in the on premise side of things. I agree with everyone about Red Bull. From what i'm seeing and hearing just a few bars are taking advantage of this Monster deal for the time being. What about rooting for the small guys who are making headway? It's like the craft beer industry-small breweries make better beer who have niches in the market but are constantly challenged by the big boys with dumping tactics and disposable dollars$$. There are just a couple of bag in the box brands that are not bad tasting and a company that i see in a lot of places that is on draft and much better then most energy drinks i've tasted. These are the companies that we all should be rooting for!

  7. #7
    Join Date
    Jun 2003
    Posts
    221

    Default

    I'm all for rooting for the little guy. However, the bag in the box companies I despise because they compromise the entire category with their tactics. They are not interested in creating brands and contributing to the category. Rather, they are more interested in taking advantage of the hard work and money that established brands like Red Bull, Monster, etc have put in. They purposefully confuse the consumer into thinking they are purchasing a brand name when in fact they are purchasing a generic.

    I'm all for competition as long as the consumer knows what they are purchasing. Let all the brands compete in on-premise head to head and give the people what they want.

    CR

  8. #8
    Join Date
    May 2007
    Posts
    15

    Default Good feed back

    Coco-great feedback thanks for chat!

    I agree with you regarding the bag in the box thing. With the energy drink thats sold in kegs my distributor friend said the company will be launching cans for off premise only and leaving the kegs in place for on premise since its doing so well. From what she has told me its doing really well in the market in regards to sales and the number of accounts using it. She said she will keep me informed when cans come out and i will pass it on.

  9. #9
    Join Date
    Jun 2003
    Posts
    221

    Default

    Since, I like playing devil's advocate... how exactly do you benefit by selling a BIB in on-premise and then a can off-premise? How does the consumer know they are drinking your drink instead of Red Bull? On-premise is all about building your image in the consumer's mind, this is the single reason why Red Bull refuses to come out with a product on the gun. They want their can visible behind the bar so the consumer knows what to purchase at the c-store.

    In the bars that your friend's product is being sold, are the bar customers asking for it by name or are they asking for Red Bull and getting served your drink instead?

    CR

  10. #10
    Join Date
    May 2007
    Posts
    15

    Default

    No good questions:

    My friend who works for the distributor sells kegs of this energy drink size 5.2 gallon or 3.5 cases of 8.3 oz and 13.2 gallon or 8.5 cases equiv - to 8.3 ounce cans. Boils down to like $0.7-0.8 an ounce. They are not on a draft line but on there own seperate gun-not a multi soda gun either. Very unique system. The POS used in the bars that i know are banners, t-shirts, sampeling girls, table tents and an awesome 48 ounce plastic bomb pitchers. Like a vodka grape bomb pitcher sells for $15-$20 and you get 6 shots from it. Heck of a deal for the consumer with a nice check ring for the bar. I do now if the bars here try to sell something different then what the customer wants then there in trouble if caught. I think RB scared enough bar owners these days to not do it anymore.

    I agree on the branding thing so thats why they load up on the POS. oh yeah i saw a spinning wheel one time being used in a promotion with bomb specials on it. She told me that they have almost 200 bars using the keg thing. Thats why they want to come out with cans since the kegs are doing well.

    When i find more out i'll let you know!

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