Beverage industry innovation is led by hot rather than soft drinks, with the latter significantly more profitable and associated with an increased interest in new product forms, according to Euromonitor.
The firm behind Bazi – an antioxidant-rich energy shot claimed to trump rivals in the nutrition stakes – reckons it could be a $100m brand in four to five years as consumers look for something that will give them more than a caffeine blast.
While it might not be able to sustain its early “meteoric” growth rates, the energy shots market still has significant growth potential and can potentially target a far wider audience than energy drinks, market researchers have predicted.
A David vs Goliath battle is set to be waged in the US energy shots sector as two ex-Marines seek to carve out a niche in a market so competitive that even Red Bull has thrown in the towel and made a sharp exit.
The US energy drinks sector is continuing to generate ”quite remarkable” growth despite the depressing economic climate and high gas prices, according to the owner of Monster Energy drinks and Worx Energy shots.
Makers of relaxation beverages could face problems in light of the FDA’s draft guidance on the distinction between dietary supplements and beverages, says New York-based food and drug attorney Marc Ullman.
US researchers have singled out children and teenagers with heart abnormalities, attention-deficit hyperactivity disorder (ADHD) or other health or emotional problems as being susceptible to adverse events when consuming energy drinks.