Are Energy Drinks Dead?

Are Energy Drinks still at the front of the New Age Beverage Business?

Energy Drinks are still growing and double figure digits. The problem is when you look close the only companies actually growing are Monster Energy Drink, Rockstart Energy Drink, Red Bull, Coca Cola products like Tab and Burn or Full Throttle, Pepsi Cola with Sobe and other large companies.

None of the small companies are growing or succeeding. Furthermore, when I speak with distributors, retailers and wholesalers they tell me they get at least one call every single day from someone selling them an energy drink. They tell me they don’t what to see an energy drink ever again. So what’s going on? Are new energy drinks dead or if there still an opportunity or an opening for new energy drinks to flourish?

Well, in my opinion there is still a large opportunity, but not through traditional channels. You can’t get a new energy drink into 7-Eleven, or Circle K, or any of the important retail accounts. Well, you actually, can, if you can pay $100 per store times 4,000 stores for slotting, but that’s $400,000 just to get into the store and in many cases that is not even enough anymore. How will you sell the product, advertise, etc. No, that’s not the answer.

The answer is alternative channels. Many beverage companies don’t realize that consumer goods can be sold in many different places, not just supermarkets and convenience stores. Energy Drinks as well as other type of beverages can be sold in office buildings, in hardware stores, doctor’s clinics, and the list goes on and on. For example, the largest growing energy drink sales are using MLM – Multi Level Marketing and are being sold from home.

Using direct marketing, untraditional methods of distribution and clever sales strategies you can still sell your energy drink or other beverages and capture a niche and your share of the market.

So are Energy Drinks Dead? No, they are not, but the traditional way of launching an energy drink is saturated. So don’t waste your time (and money) trying to prove me wrong. I have spoken with 3 companies just last month that when through up to $6 million dollars and could not compete in the space.

Think out of the box, think alternative, think direct sales.
Thanks,
Jorge Olson
PS: Remember Liquid Brands Management is accepting aplications for its Beverage Incubator. Call my partner Carlos for more information at (619) 921 3124

 

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