A Shot of Energy

Did You Know?

Energy shot sales have doubled to $423 million, according to a report released last month by Zenith International. Other key findings from the “2009 Zenith Energy Shot Drinks” report include:
• Energy shot drinks present traditional energy drinks with new distribution channel opportunities, such as the health and nutrition sector.
• Living Essentials, which produces 5-Hour Energy, leads the U.S. market, but other top energy drink brands, such as Monster, Rockstar, Full Throttle, NOS and Red Bull have now entered the segment.
• Zenith anticipates that the combined markets of North America and Europe will reach over 500 million units and a retail value approaching $1.2 billion by 2010. 

The “energy shot” category is officially the fastest growing category in convenience stores, according to a new report from Zenith International. Convenience stores and gas stations are seeing rapid growth of two-ounce energy shots, and as a result, sales of this burgeoning category are expected to climb from the current estimate of $100 million to more than $500 million in 2009.

The rapidly emerging market for energy shot drinks in North America and Europe achieved a turbo-charged 130% boost to 188 million units, and a sales value of $423 million overall in 2008, according to the 2009 Zenith Energy Shot Drinks report.

Energy shots are an extension of the regular energy drinks market. Manufacturers have sought extra points of difference in a crowded and challenging sector. Consumers have refined their needs and energy requirements, which has resulted in increasing pressure for innovation among the many functional drinks now on offer.

“Energy shot drinks are a major new opportunity for the energy drinks category. They can be carbonated or non-carbonated, berry, juice or even dairy-based, and with wide-ranging potential positioning and target markets,” said Jenny Foulds, a Zenith market intelligence consultant and functional drinks editor.

Rick Reddick, national category manager for packaged beverages and beer for Houston-based ConocoPhillips, concurs. “We saw it was going to be a fast growing category,” Reddick said.  “It’s a strong ring—$2.99 is the current price point on most brands—and good profit margin. We wanted to take advantage of the quick popularity in energy shots growth, so we decided to put them on our counter, where they would start as a strong impulse item and become a destination item for most customers.”

Because energy shots are small items that are easy to shoplift, having them on the counter offers another benefit, Reddick said: security. “Keeping them on the counter where they’re in clear sight of the associates on duty makes it easier to keep an eye on them and support the product and program,” he noted.

Some chains, notably Alimentation Couche-Tard’s Circle K stores, have launched a proprietary line of energy shots. Circle K’s GazZu Energy Shooters, produced with BooKoo Energy, are now available in three flavors. To promote sales, the shots are positioned in three areas in Circle K: near the coffee bar, inside the energy cooler door and at front counter displays.

They retail for $2.99 each, versus the $2.49 for the GazZu Energy drinks.


Speak Your Mind