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April 2008 > Cover Story
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Little Competition

By Jeffrey Klineman

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With a NOS launch that will include a major advertising push of its own and 5-Hour going strong, there is the possibility that one or two products may be enough to crowd all other comers out of the category. But with energy the top function in the beverage arena, energy shots are giving off the scent of cash, and there are a lot of beverage and supplement manufacturers who believe there’s a spot in the lineup for them, too.

“We’re on a pace that if we had no growth, we’d have $1.5 million in sales this year – and we’re predicting $2.5 million,” says Jim Folsom, whose company started making Blutonium less than a year ago. “I think Red Bull and Monster built a category across the whole country and contributed to a shift in consumption habits. This is maybe the next generation down from what they’ve done.”

According to marketers, energy drinks and the country’s massive coffee culture have pushed the notion of energy into the mainstream. But energy shots represent a new evolution, they say, one that distills the energy boost of caffeine into one of its most direct forms yet.

“You’re selling energy, but they’re the antithesis of drinks because there’s this notion that [energy drinks] don’t sustain energy, while the shots do,” says Wet Planet Beverages’ C.J. Rapp, whose Jolt Soda makes him as knowledgeable about the energy category as anyone. “They’re low calorie, so it attracts a female audience, and the less liquid the better, for some.”

“At the end of the day, you’re selling energy,” Rapp says. “But you’re selling against energy drinks.”

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