Industry Profile

Energy drinks were an active subset of the early soft drink industry, which was originally
dominated by pharmacists and less scrupulous patent medicine salesmen. Coca-Cola, for
instance, was originally marketed as an energy booster; its name was derived from its two
active ingredients, both known stimulants: Coca leaves and kola nuts (a source ofcaffeine).
Fresh coca leaves were replaced by "spent" ones in 1904 because of concerns over the use
of cocaine in food products, and the federal lawsuit United States v. Forty Barrels and
Twenty Kegs of Coca-Cola forced the company to cut back the amount of caffeine in the
formula by 1916, thus bringing an end to the first wave of energy drinks.
In the UK, Lucozade Energy was originally introduced in 1929 as a hospital drink for "aiding
the recovery;" in the early 1980s, it was promoted as an energy drink for "replenishing lost
energy."
One of the first post-Forty Barrels energy drinks introduced in America was Dr. Enuf. Its
origins date back to 1949, when a Chicago businessman named William Mark Swartz was
urged by coworkers to formulate a soft drink fortified with vitamins as an alternative to sugar
sodas full of empty calories. He developed an "energy booster" drink containing B vitamins,
caffeine and cane sugar. After placing a notice in a trade magazine seeking a bottler, he
formed a partnership with Charles Gordon of Tri-City Beverage to produce and distribute the
soda. Dr. Enuf is still being manufactured in Johnson City, TN and sold sparsely throughout
the nation.
In Japan, the energy drink dates at least as far back as the early 1960s, with the release of
the Lipovitan. However, most such products in Japan bear little resemblance to soft drinks,
and are sold instead in small brown glass medicine bottles or cans styled to resemble such
containers. These "eiy dorinku" (literally, "nutritional drinks") are marketed primarily
to salaryman. Bacchus-F, a South Korean drink closely modeled after Lipovitan, also
appeared in the early 1960s, and targets a similar demographic.
In 1985, Jolt Cola was introduced in the United States. Its marketing strategy centered on the
drink's caffeine content, billing it as a means to promote wakefulness. The initial slogan was,
"All the sugar and twice the caffeine."
Energy drinks are sometimes sold in resealable bottles.
In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage
company (one that had interests outside energy drinks), but Pepsi discontinued the product in
1999. Pepsi would later return to the energy drink market with the AMP brand.
In Europe, energy drinks were pioneered by the Lisa and a product named Power Horse,
before the business savvy ofDietrich Mateschitz, an Austrian entrepreneur, ensured his Red
Bull product became far better known, and a worldwide best seller. Mateschitz developed
Red Bull based on the Thai drink Krating Daeng, itself based on Lipovitan. Red Bull is the
dominant brand in the US after its introduction in 1997, with a market share of approximately
47%.
In New Zealand and Australia, the current leading energy drinks product in those
markets V was introduced by Frucor Beverages It is now serves over 60% of market in New
Zealand and Australia].
By 2001, the US energy drink market had grown to nearly 8 million per year in retail sales.
Over the next 5 years, it grew an average of over 50% per year, totaling over $3 billion in
2005.[5] Diet energy drinks are growing at nearly twice that rate within the category, as are
16-ounce (470 ml) sized energy drinks. The energy drink market became a $5.4 billion
market in 2007, and both Goldman Sachs and Mintel predicted that it would hit $10 billion
by 2010. The market is currently estimated at over $12.5 Billion, having grown 60% between
2008-2012. Major companies such as Pepsi, Coca-Cola,Molson, and Labatt have tried to
match smaller companies' innovative and different approach, with marginal success.
Energy drinks are typically attractive to young people. Approximately 66% percent of its
drinkers are between the ages of 13 and 35 years old, with males being approximately 65% of
the market.[5] A 2008 statewide Patient Poll conducted by the Pennsylvania Medical Society's
Institute for Good Medicine found that: 20% of respondents ages 2130 had used energy
drinks in high school or college to stay awake longer to study or write a paper; 70% of
respondents knew someone who had used an energy drink to stay awake longer to study or
work. Energy drinks are also popular as drink mixers.
UK supermarkets have launched their own brands of energy drinks at lower prices than the
major soft drink manufacturers. These are mostly produced by Canadian beverage
maker Cott. Tesco supermarkets sell 'Kx"'(used to be known as 'Kick') in 250 mL cans and 1
L bottles, Sainsbury's sell 'Blue Bolt' in similar packaging, Asda sell 'Blue Charge' in similar
packaging and Morrison's sell 'Source' in 250 mL cans. Cott sells a variety of other branded
energy drinks to independent retailers in various containers.
Since 2002, there has been a growing trend for packaging energy drink in bigger cans. Since
in many countries, including the US and Canada, there is a limitation on the maximum
caffeine per serving in energy drinks, this allows manufacturers to include a greater amount
of caffeine by including multiple servings per container. Popular brands such as Red
Bull, Hype Energy Drinks and Monster have increased the amount of ounces per can.
For example, when Red Bull first came on the U.S. market, it was primarily in 250 mL (8.4
oz.) cans; it now sells cans as big as 600 mL (20 oz.), and Monster now sells a can as big as
32 oz. (946 mL). Most energy drinks in the United States, with a few exceptions, primarily
sell their drinks in 16 oz. (473 mL) cans, a trend provoked in part by companies such
as Rockstar Energy promoting the 16-ounce cans over Red Bull's smaller ones in the mid-
2000s. Conversely, the emergence of energy shots has gone the opposite way with much
smaller packaging.
In 2007, energy drink powders and effervescent tablets were introduced, in the form of a
tablet or powder that can be added to water to create an energy drink. These can offer a more
portable option to cans and shots.
As of 2009, the industry has moved towards the use of natural stimulants and reduced sugar.
On August 14, 2012, the word "energy drink" was listed for the first time in the
mainstream Merriam-Webster's Collegiate Dictionary.
Ingredients:
Energy drinks generally contain methylxanthines (including caffeine), B vitamins, and herbs.
Other commonly used ingredients are carbonated water, guarana, yerba mate, aa,
and taurine, plus various forms
of ginseng, maltodextrin, inositol, carnitine, creatine, glucuronolactone, and ginkgo biloba.
Some contain high levels of sugar, and many brands offer artificially sweetened 'diet'
versions. A common ingredient in most energy drinks is caffeine (often in the form
of guaranaor yerba mate). Caffeine is the stimulant that is found in coffee and tea. There is
little or no evidence that any of the ingredients found in energy drinks other than caffeine or
sugar have a significant physiological effect.
Energy drinks contain about three times the amount of caffeine as cola.[10] Twelve ounces of
Coca-Cola Classic contains 35 mg of caffeine, whereas a Monster Energy Drink contains
120 mg of caffeine.