Energy Drinks

Saturday, May 12, 2007

Energy Drink Labeling


Energy Drink Labeling


Energy drink manufacturer’s are labeling their products in many different ways. Most have some sort of warning notice on the back. It is all still very unclear as to what we should or should not disclose on a can. Most manufacturers will use their independent judgement or their attorney’s. It seems those days might be over if New Mexico Attorney General Gary King rattles the cage hard enough. And he is not alone on this one, how does 27 state attorney generals sound?

On May 10th he criticized Anheuser-Busch Companies for producing and promoting energy drink products to and wants the AB to provide warning labels for consumers on the health risks posed by their energy drink products. base their decision on their individual.

A word of caution to all energy drink producers out there. Don’t be surprised if stricter warnings are soon required on all energy drinks, alcohol or no alcohol.

I would like to see more information on the benefits of some of these exotic ingredients we are beginning to see. Energy Drink manufacturers are assuming too much; that all energy drink drinkers know and understand the effects of these new age ingredients. They are relying on the marketers of other products to educate their consumer.

Energy drinks are popular for all age groups. The marketing; labeling, promotion, billboards and TV commercials of these products seem to be the key issue. If your products are not really intended for minors, very simple don’t target them.

Are the industry leaders (Red Bull, Monster, Rockstar, SoBe and Full Throttle) crossing the already thin line with their marketing?

Carlos Lopez
Liquid Brands Management, Inc
Carlos@LiquidBM.com

Carlos Lopez is a managing partner of Liquid Brands Management, Inc (www.LiquidBM.com) and one of the founding members of the Mexico Sales Alliance (www.MexicoSalesAlliance.com) Mexico’s first nation wide sales, marketing, promotions and distribution group. He is an expert in the food and beverage industry with experience in the national and international arena.

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Tuesday, May 1, 2007

Are Energy Drinks going healthy?

Healthy Energy Drinks? Is it possible?

Are Energy Drinks going healthy?

Well, in one word, YES.

Now, will they do a big splash or stay as small players? Read on…

The new trend in food and beverages is Healthy Alternatives. We see it in specialty stores like Whole Foods and Organic food and drinks.

Now we see it more and more in beverages, and yes, they made their way up to Energy Drinks.

New companies are developing new organic, sugar free, caffeine free, no taurine, healthier alternatives. Will the market follow? We’ll see!!!

These healthier drinks have an advantage and disadvantage from a purely MARKETING perspective.

Marketing Advantage:
-Capture older, healthier crowd
-Capture woman, who make a minority of Energy Drinkers at about 30%
-Sell more at supermarkets. Traditionally this category sells much better at convenience stores

Marketing Disadvantage:

-The majority of Energy Drinkers don’t care much about healthier alternatives… they are too young!
-Sugar Free and other healthy Energy Drink line extensions account for about 10% of total sales of a leading brand
-Not big enough pool of distributors or retailers willing to give up shelve space to try these new products

In my opinion, there is a future for the healthy energy drink. It will not be main stream now, but when all the “x gamers” and “y generation” energy drinkers grow up they will like to keep energy drinks, maybe in a healthier way. This is when they will make a big splash. The better positioned energy drinks will survive.

Thanks again,


Jorge Olson

www.LiquidBrandsManagement.com

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