Energy Drink Overview
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Transcript of Energy Drink Overview
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Energy Drink Overview
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History of the Industry• Fastest growing segment of the
beverage industry in the USA, over US$1 billion (IRI data) of the US$60 billion soft drink industry
• The category has emerged since 1997 – grew from US$100 million four years ago to over $250 million two years later.
• Market growing at 30% per year right now.
• Future of the market is seen as replacing other caffeine delivery categories (coffee declining).
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History of XS• Developed by a nutrition company with a focus
on low glycemic products – forefront of Atkins-type diets
• Launched in traditional distribution with mixed success:– Huge success when sampled at
grocery/Costcos– Need guerilla marketing and sales (lacking
$70 million required to hit beverage market).• Looking for niche channel that would allow for
successful distribution without street war.
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Success via Quixtar-Amway to Date
• Launched September 13, 2002 by IBOs to IBOs (could not even find XS on Quixtar site for first two weeks of launch)
• Six months of back orders and catch up -- first major success in a beverage category, lessons for Australia
• Biggest selling product on Quixtar• Called “the future of Quixtar” by Steve Van Andel at
his IBOA address and at Quixtar Live (National Convention) in the spring of 2003.
• Listed among four products Doug DeVos quoted as being responsible for North American growth in 2002.
• Largest energy drink manufactured in North American in a 250ml can – BevNet.com industry review.
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XS Energy Drink
Grape-Berry Blast
Citrus Blast
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What’s in the Drinks• Flavors and masking taste of herbs and
vitamins – why we chose cranberry and citrus• Artificial Sweetners (0 sugar, 0 carbs, 8
calories from amino acids – proteins)– Acesulfame Potassium (Ace-K): an inert
salt, it passes through the body without change or effect, is 150-200 times sweeter than sugar, has had over 90 clinical trials, launched to the world market in 1988, approved for use in drinks in 1997.
– Sucralose: unique for launch as both sugar derivative and most broadly approved. 600 times sweeter than sugar, yet inert. Tested for over 20 years and sold in over 100 countries.
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What’s in the Drinks• Caffeine: 60 mg of synthetic caffeine (not like
caffeine bound to organics in coffee and tea), helps deliver vitamins faster. Caffeine Advantage.
• Herbs: Adaptogenic Blend:– Soviet formula used to sweep Lillihammer– Tom Jones runs 120 maratons in 120 days– Stress recovery
• Vitamins– Not a replacement for Nutriway B Complex,
more like a Boracca tablet– Metabolism benefits and diabetic testimony– Recommended serves per day vs. US blend
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Objectives• Implement an exciting, Full
PV/BV, exclusive Energy Drink
• Leverage the excitement and momentum created from the United States success with XS Energy Drink
• Capitalize on the exceptional growth of the energy drink market.
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Target Audience• Males and females age 18-30, or people who think
they are 18-30• Mothers (someone who buys a diet coke and a red
bull in the same shopping cart).• Active IBO’s and consumers• Retail customers • People currently drinking stimulant drinks to
obtain some type of boost.• People who are concerned with the amount of
sugar, caffeine, and calories contained in a majority of popular drinks.
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Marketing• XS as a sponsoring
tool– Lead with a product– Younger market– Door opening
• Sampling events– Sports events– Health clubs– Energy breaks( see
rules of conduct for specific information)
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Profitability• High consumability
makes it one of the most profitable products.
• Full PV/BV
• XS Consumer requirements and profitability based upon being an XS Consumer.
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Future of XS• Forecast of energy drink
and beverage market
• Come back next year as a New Diamond
• IBO potential to be number one drink in Australia.
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