Tennessee-based natural energy powder maker Glitch Energy, which debuted its limited edition Error 404 line last week, is looking to shake up the energy drink space by offering gaming content creators a product that prolongs the effects of caffeine and scaling a digital community.
Glitch was conceived as a healthier, more premium alternative to competitors strictly formulating around a higher dose of caffeine, according to president, co-founder and self-proclaimed “supplement nerd” Jacob Johnson. Available in an array of tech-inspired flavors – including Electric Lemonade, Spaceberry and Cyber Sunrise – the formula has 150mg of caffeine per serving and features Dynamine, a patented ingredient from Compound Solutions that allegedly extends the duration of caffeine’s effects.
Founded by Johnson, Zac VanDeWater and professional gaming YouTuber Tyler Wine aka Wildcat, the ecommerce brand soft launched in 2019 before launching full scale last year with revamped branding and formulation. By bringing on Wildcat, who boasts nearly eight million followers on YouTube, Glitch was able to quickly grow its consumer base through the influencer’s audience. Though targeted toward gamers, the brand seeks to appeal to a broader audience both within and outside of the space.
“When we started the brand, we wanted to create a brand and product that was very flexible and more of a lifestyle energy product versus, ‘drink this to get better at gaming,’” said Johnson. “A lot of Tyler’s audience don’t have competitive eSports aspirations. They don’t want to try to be a competitive gamer longterm. And so when you think about your target community, we launched in the gaming community because the community itself is, in my opinion, the most solid digital community in the world.”
With Wildcat on board, Glitch experienced rapid growth within its first year, selling through 40% of its inventory by mid-February, according to 8fig. The brand’s affiliation with influencers has helped build a “competitive moat” around it, according to Johnson.
After turning down a 7-figure offer from a VC firm, the Glitch team chose a growth plan through 8fig to address rising supply chain costs and heightened demand for its product.
“I think when you’re scaling a brand and have a good product that people want, and have a really good avenue to promote and sell the product, then your biggest bottleneck is always [the] supply chain,” said Johnson. “So if you can find ways to get more efficient there by negotiating with your suppliers, potentially getting terms on the reverse side of things, you can negotiate potentially higher prices for better terms or more flexibility.”
He added, “We knew that we could always figure out a way to achieve economies of scale longer term as we grew and for us, we wanted to create a premium product [versus] the cheapest product on the market.”
According to data released by Grand View Research, the global energy drinks market was valued at $86.35 billion in 2021 and is projected to grow at a CAGR of 8.3% from 2022 to 2030. Many major players in the U.S. market have recently shifted their consumer focus from athletes to young people owing to the growing demand for mental alertness and cognitive performance.
Competing against large gamer-centric brands such as GHOST, G Fuel, Sneak and MTN DEW Game Fuel, Johnson said Glitch engages consumers by enlisting creators to take part in limited edition flavor drops, rather than relying heavily on paid media such as Facebook, TikTok and Instagram ads. By building a growing roster of influential personalities in gaming – such as BigJigglyPanda, Nogla and, of course, Wildcat – the brand centers its presence around the creators leading the online community. In partnership with these creators, Glitch launched three limited edition flavors within the past year: Panda Punch (BigJigglyPanda), Nogla’s Green Supreme (Nogla) and Wild Cherry Squeeze (Wildcat).
Most recently, the brand unveiled its limited edition Error 404 line, comprised of three products: Error 404 Energy Tub, Error 404 Hydration Tub and Error 404 Blender Bottle. The new line gives consumers access to Glitch’s private discord server with Q & As, contests and other events with the Glitch team and content creators with each purchase.
“One of the biggest revenue drivers for us is limited product drops. We want to get to a point where we’re doing those as frequently as possible and partnering with as many big creators as possible,” said Johnson. “We have a really cool opportunity in the gaming community to really expand that reach.”
Staying true to its name, all of Glitch’s products feature tech-forward, futuristic packaging the brand hopes will further drive the growth of its digital community.
“We want our branding to feel futuristic because sci-fi, tech and futuristic type branding definitely is synergistic with the gaming space. But I think it’s also synergistic of where the market might be going and I think that can play to a broader audience,” said Johnson.
“We always want to have the packaging be unique, especially with the creator flavors. We want them to be differentiated from each other and relate easily to the creator but also be uniform in some way,” added Glitch graphic designer Jack Pickering.
Though the brand’s products are currently only available direct-to-consumer through its website, Johnson said the team is “evaluating” making the jump into cans and subsequently into retail.
“It’s always a dream when you think about starting an energy brand. It would be super cool to see [cans] in gas stations and retail shelves on display for everyone to see. But it’s a lot harder to launch into cans, especially early on because cans are heavy to ship and you basically have no margins when you’re getting started.”
In the meantime, Glitch is looking to scale its ecommerce presence and considering a potential partnership with Amazon. The team is also seeking to further explore the unlimited potential of the digital space by potentially growing its Discord server, employing tools such as 3D animations and tying augmented reality filters to community access or contest entry.
“We constantly want to push the boundaries of what we think is the status quo of branding in the space,” said Johnson. “We have some really cool stuff on the horizon for brand avatars, really fostering that community through that ad using 3D.”