Too Extreme?

Spiking the Headlines

Keane’s right: Most energy drink consumers are aware that caffeine (andfi analogous products like guarana and yerba mate) is their “energy source.”fi It’s also quite likely that a group of Doherty High School students in Coloradofi Springs, Colo. were aware of the high levels of caffeinefi in Spike Shooter when they started buying it at a nearbyfi 7-Eleven, particularly since there’s a pretty big warning labelfi across the top along with (just like Redline) a recommendationfi that first-time consumers try a half-can to start.

Nevertheless, after drinking Spike Shooter, a pair of thefi students were taken to the hospital – one, infamously, leftfi school in a wheelchair. Many more complained of alarmingfi reactions like vomiting and heart palpitations. The falloutfi for the company was immediate, as the media, includingfi CNN, descended on the school and began looking at energyfi drinks with a more jaundiced eye.

Surprisingly, since the story broke, rather than scaringfi consumers off, Spike Shooter’s sales seem to have increased.

“We’ve had some pretty unbelievable experiences alreadyfi with the media, and we know any little thing can become afi major ordeal,” said Greg Guss, Spike Shooter’s Vice Presidentfi of Marketing. “We’re doing whatever we can to avoidfi that. When we do sampling, we card anyone who isn’t 18.fi Beyond that, we can’t prevent people from abusing thefi product.”

Spike Shooter is manufactured by Biotest, a nutritionalfi supplement manufacturer whose products typically sellfi in GNC or Vitamin Shoppe. The RTD product was introducedfi in those channels, but last year began a periodfi of rapid growth through convenience stores. Recently,fi Spike Shooter was approved by Haralambos Beverage Co.,fi a major Southern California distributor, and, despite thefi incident in Colorado Springs, it is apparently on trackfi to wrangle more shelf space in 7-Eleven, as well. Not thatfi there aren’t concerns.

“We’re going very, very slowly,” said Raj Singh, the beverage buyer forfi 7-Eleven’s 840-store Central Region. “In Colorado, there are some storesfi selling $40 or $50 worth of products a day. We’re not going to be very aggressive,fi but we don’t want to miss that opportunity.”

Singh confirmed that the product is spreading in hisfi Colorado stores, and that, starting in Las Vegas, 7-Eleven isfi looking into the possibility of carrying Spike Shooter on anfi even wider basis. But he is still leery.

“We have a little bit of concern,” he said. “There are thefi stories that all of the caffeine seems to make the kids hyper.”

Hyper is one thing. But emergency room visits are a biggerfi problem, according to Foster. He believes that mostfi consumers – and media – won’t make the distinction betweenfi hardcore products and regular energy drinks if anotherfi incident takes place.

“If they’re marketed the same way, they’ll all be tarredfi with the same brush,” Parker said. “It’ll affect the whole category,fi surely. You don’t want hysterical media coming out.”

Playing to Hysterics

Hysteria was certainly on software developer Jamey Kirby’sfi mind when he decided to make an extreme energy drink of his own.fi His tech background made him want to name his product “Downloadfi Energy,” but when that was already registered elsewhere, he decided tofi go for broke.

He called it “Cocaine.”

“The more you think about it, it’s the ultimate name for an energyfi drink,” Kirby said. “Because it’s rebellious and irreverent,fi the core market for energy drinks would go crazy about it.fi We figured it would be a great name, and a lot of peoplefi would buy the drink. It was a limited demographic, but wefi figured the market would make up its mind.”

Kirby said the market response was huge – he estimatesfi he shipped 200,000 cases and had 50,000 more ordered infi the first weeks that the product received publicity. But thefi tide of public opinion quickly turned.

“We were prepared to get beat up,” he said. “And we gotfi free publicity – I don’t think we spent more than $15,000fi on advertising. But we never, ever expected the backlash.”

Politicians and parents demanded Cocaine be removedfi from shelves, and the company recalled its remaining cans, twice re-labeling them. Now, Kirby is selling “No Name Energy” (write infi your own name!) domestically while he markets Cocaine in Europe.