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Bag In A Box Marketing-Energy Drinks

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  • Bag In A Box Marketing-Energy Drinks

    Great Market plans for the Bag In A Box Energy Drinks, and this will do very well in all markets, and NO fighting between everyone for shelf space,etc. No Cooler Space needed.

    With the cost factor of .05 cents (1 Nickel) per ounce to the bars, clubs and establishments that sell mixed drinks, this is saving them 70% over conventional energy drink cans. RB

    I think without any doubt that if you have established these outlets you could average a $100-$150 net profit per location. You can do the math, and see that this could be highly $$ profitable quickly.

    FACTS: 5 Gal. BIB == 30 gallons of Mixed Drinks

    It takes (20) 24ct cases of 8.3 ounce
    energy drinks to be the same quantity.

    BIB Cost: $199.00

    8.3 oz Cost: (20) 24ct cases @ $32 = $640.00

    I would like to see input on how the BAG IN A BOX-Energy Drinks concept will be a threat to Energy Drinks being served on premise. ??
    J. S. Clayborn 1-800-469-3010

  • #2
    This concept is nothing new.The threat would come from either Coke or Pepsi booting your BIB because in more cases than not THEY own the gun and equipment not the bar. THEY will not allow a foreign product to be placed in THEIR equipment. Therefore your profit numbers are false readings as YOU would have to buy the equipment to give/lease to whatever bar you could get to carry your BIB.

    [ 06-02-2006, 09:32 AM: Message edited by: the saint ]
    If what you did yesterday still looks big, you haven't done much today.


    • #3
      I disagree!! If locations want the product and do not have a GUN available, they buy a GUN themselves and start serving the product. All of my BIB are being dispensed either through existing GUNS or the location has bought a new GUN just for this product. We do not publish FALSE readings, but your are certainly entitled to you opinion. YES, the product is going through Pepsi and Coke Guns, with no problem. Especially since the Red and Blue Army do not offer this type of beverage YET. JSC
      J. S. Clayborn 1-800-469-3010


      • #4
        I agree with SAINT. Unless someone has actually kicked out both Coke and Pepsi from their establishment they will have "One of the Red and Blue Army" purchase the gun for them.
        Furthermore, It is just not as easy as buying a gun dispenser. You need to buy the C02 tanks and mixing machine, buy the license to have C02 tanks in storage, run the lines, and maintenance. Why would someone do all that when Coke or pepsi will give it to them.

        I think you need to take a few moments away from the Nitro2Go handbook and take a realistic look as well as approach to marketing your energy drink.
        Whether you think can or think you can\'t, you\'re probably right!


        • #5
          The only way Coke and Pepsi would allow BIB to run through their equipment is if they didn't know it. Also to imply just because coke and Pepsi don't have a BIB product it's ok...That's ridiculous. All the more reason to keep foreign product off their gun/fountain heads. The fact is they do have a competitive product and at this stage would love to have a bigger share of the on premise business.
          The only product that has ever been successful sponging off of Coke and Pepsi's equipment is DP.


          • #6
            I agree with the last several posts. There's no way Coke or Pepsi would allow a foreign product to be dispensed through their machine. Greg was correct in saying the bar owner would have to purchase all of his own equip to dispense this one new drink. Greg already mentioned the maintenance and repair concerns as well.

            Secondly, what would energy drinks in BIB do to the pricing in the standard retail market? I would think if consumers can start getting 32 oz'ers full of an energy drink for $1 - $2 that's going to erode the pricing of cans in the long run. I know we're talking about an on-premise example here...but the idea of fountain energy WOULD spread to c-stores eventually...


            • #7
              Fountain Energy is already in stores in Texas, Oklahoma & Missouri, Go to a QuikTrip store and you will see it. All of this talk about Co2,etc, is just simply nonsense, as these bars hate messing with cans to mix drinks, and this is the wave of the future. Get on board, or get left behind. JSC
              J. S. Clayborn 1-800-469-3010


              • #8
                Well I don't think anyone here is arguing the relevance of energy in BIB...they're just saying that Red and Blue won't support Nitro BIB (or any other non Coke/Pepsi product) in their fountains!! Energy in fountain is a good idea...just don't expect it to be as easy as selling a store manager on it and him telling Coke/Pepsi to add it to the lineup! It will never happen that way...unless the store/bar already owns their own fountain equip.


                • #9
                  I disagree, some and maybe a good number of club/bar customers get rather gleeful to see a can of Red Bull poured or served via the can. Call it snob appeal,call it part of club/bar foreplay or call it status. It's not the drink; it's the whole perception of being a part of the super elite "in" crowed that Red Bull marketing
                  has created.

                  Pouring a Red Bull from a fountain gun IMO would drastically reduce R.B. sales.

                  [ 06-02-2006, 03:11 PM: Message edited by: Mr Zabe ]
                  Don't worry, be happy. Meher Baba


                  • #10
                    QuikTrip has been selling energy drinks in their fountain for years. Not very strong but tasty. Even so, they went out and had their own brand made. Donkey Kick and Rooster Booster.
                    I personally don't feel that Energy drinks in a BIB are going to take off. The main reason is that marketers understand that consumers are sometimes going to buy the Largest size possible. Due to this reason alone the liability would be so great to the manufacturer/marketer that the potency level will be substantially reduced. There is only so much responsibility you can expect from consumers, and especially lawyers!
                    Whether you think can or think you can\'t, you\'re probably right!


                    • #11
                      What is next? Are you going to start preaching that all of these stops are saying "I am a bartender, not a can opener".
                      If you have your product in ANY coke or Pepsi owned equipment, believe me when I say this, it will be unhooked and set aside the first time. If they have done this the sales person/ rep WILL make it a point to come back into that account within a few days to check that this is still unhooked. The bar owner/ tender will be busy enough when the rep comes in that he cannot run to the back and unhook yours and hook up another in time for the rep to not see. The owner / tender will get a second and final warning (not to mention more than likely a hole in the connection of your BIB so it will not work, you would have to bring another). The third time more than likely the equipment will be pulled on the spot. If it is not pulled it will be made unusable until someone can come and get said equipment. Fountain equipment is expensive to buy and the return is next to if not nothing. Pepsi and Coke do not take kindly to someone sponging off of their equipment.
                      If what you did yesterday still looks big, you haven't done much today.


                      • #12
                        Good points by Zabe, Greg and the saint. That's why the only e-drinks we've seen in fountains are the generic, no-name brands that probably don't sell enough to justify their existence. We just heard about Donkey Kick and Rooster Booster...WHO/WHAT? And I've seen others like Wild Stallion and some other junk out there.

                        Also, if I am a bar owner, why wouldn't I want to carry cans? Its not like I don't carry bottles and cans of beer already! Plus, if I can buy a case of RB for $32 which is $1.33 per can...I can resell them for $3-$5 and up all day long. Not to mention in a $7 mixed drink...half of it is this energy drink! More profits!! Now that I think about it, BIB may not be all that great for on premise as they can make a load of money on the existing packages...

                        [ 06-02-2006, 05:40 PM: Message edited by: CStoreCatMan ]


                        • #13
                          A beer distributor told me they're happy with their energy drink BIB so far. It's not Nitro2Go but another brand. They didn't mention any issues about not being able to get it on a gun. I tried Nitro2Go recently for the first time and was impressed with their product. Who knows, it might work.


                          • #14
                            Good evening all. There is a BIB in the Kansas City market called Roaring Lion. The company has just started some grass roots marketing in this area with coasters mainly. There market saturation is poor however the accounts that they do have are solid A on premise accounts. It will be interesting to see where the concept goes.


                            • #15
                              By the way, this product is being served on Pepsi and Coke guns here and the Blue and Red are doing nothing to stop it.