Energy Drink Industry

posted Jun 8, 2012, 10:37 PM by Energy Drinker
The energy drink industry, though in some respects like other beverage industries, actually has some important differences. The primary distinction of the energy drink industry is the lack of one or two dominating companies. Although RedBull currently has the corner on the market because of its long-standing renown and popularity, there are many more competitors, such as Energy Fizz or Sobe Energy, that are fighting for a top place that will distinguish them from the myriad of others. Most of the small companies that are involved in the energy drink industry do not yet have a nationwide distribution, so their advertising techniques and strategies are more specific and selective. Many energy drink companies are directing their products at very specific groups of consumers, such as extreme sports enthusiasts, video game players, or the hip-hop crowd. In fact, many of the names of the beverages clearly relate to one of these areas. Little, if any, advertising for most of these energy drinks is done with television ads. A good number of the companies sponsor extreme events and publicity stunts to promote awareness of their product to the desired consumer group. In addition to sponsoring public events, such as extreme sporting contests or video game championships, other energy drink companies rely on celebrity endorsements to promote their beverages. An example of this strategy is Lil John and his energy drink Crunk. Although the energy drink is unlike many of the other successful beverage industries, its innovation and timely product development continue to develop it into a profitable industry with great potential.