Energy-Drink: Feel the Energy
In 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."
In 1985, Jolt 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."
In 1995, PepsiCo launched Josta, the first energy drink introduced by a major US beverage company.
In Europe, energy drinks were pioneered by the S. Spitz Company and a product named Power Horse, before the business savvy of Dietrich 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 was introduced to the US in 1997 and is the dominant brand there, with a market share of approximately 47%.
By the year 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. Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce sized energy drinks. The energy drink market became a $5.4 billion dollar market in 2007, and both Goldman Sachs and Mintel predict that it will hit $10 billion by 2010. 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 65% percent of its drinkers are between the ages of 13 and 35 years old, with males being approximately 65% of the market. A 2008 statewide Patient Poll conducted by the Pennsylvania Medical Society’s Institute for Good Medicine found that: 20 percent of respondents ages 21-30 had used energy drinks in high school or college to stay awake longer to study or write a paper; 70 percent 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.
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