Added: 05/20/2006 |
Power drinks are a rapidly expanding niche marketPower Drinks S. L. is a manufacturer of energy drinks and power juices, located in Barcelona, Spain. The company also personalizes drinks for own branding to bars, discos, sport teams and clubs, and own branding for promotions and advertising of events and products. Established in 1995, Power Drinks S. L. has developed more than 8,000 private brands to date.
Thanks to the fact that the company follows its business scheme, combined with the top quality formulas and the original flavors that truly differentiate it within the industry, Power Drinks S. L. has recently entered the global markets.
The exclusive licensee for U.S., Latin American, Canadian and Asian markets is Power Drinks, founded in Miami in September 2004. In 1999 Enerdrinks launched Xtrem Energy Drinks in Spain. The consumers preferred taste profile with no-bad-after-taste flavor, which made Xtrem to be a popular brand in Spain. In 2001, Enerdrinks established good licensing contracts in many other European countries such as France, UK, Italy, Germany, Finland, Switzerland and Greece. Xtrem is now in the top five selling energy drink brands in Europe. It began to expand in the U.S. in 2005 and is already signing several distribution agreements. Moreover, Xtrem drinks can already be found in Southeast U.S. bars, restaurants, convenience stores, and retail vendors.
The power drinks niche market is rapidly expanding. Those young American adults searching for functional drinks spend now millions of dollars to increase stamina and alertness. The market is now estimated to be worth $10 million. And it is predicted to grow to $300 million or even as much as $2 billion in the next few years.
Anheuser-Busch, the world's largest brewer, has announced it is starting to produce a carbonated, orange-flavored drink. The drink will contain guarana, vitamins C, B-6 and B-12 and will not contain alcohol. The new drink may be called 180 Degrees (as in an about-face).
Thus Anheuser-Busch hopes to compete with the market dominated by Austria's Red Bull, Rush, Shark and Go-Go Express and others. Most power drinks contain caffeine, amino acids, vitamin C, the B-vitamins, ginkgo biloba or ginseng. The target consumers are 18- to 30-year-old adults who want a lift for extreme sports or who want to stay up late at night to a party.
Energy drinks, such as Hansen's Energy, Gatorade's Torq, Arizona Ice Tea's Rx Energy or Odwalla's Serious Energy are also marketed to people in retailers' shops and in mainstream grocery stores. As distinct from this market Anheuser-Busch plans to distribute its product through its current wholesaler distribution system.
The other market entrants are now being starting to offer their products directly to the clubs and parties. Hansen's, for example, introduce Hard-E, an energy malt drink that contains 5 percent alcohol, and The Joseph Group starts selling a vitamin-fortified 4.2-percent-alcohol beer that the company claims will not dehydrate the drinker. Whether these two products will find a place on natural product retailers' shelves or not remains to be seen.
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