Energy drink

Energy drinks are soft drinks advertised as providing more energy than a typical drink. The amount of quantitative 'energy' (as measured in calories) in these drinks is often lower than that in regular soft drinks.^[1] According to the Marin Institute, there is no scientific basis for concluding that the non-caffeine elements in these drinks contribute to either mental alertness or physical performance.^[2]

Purpose

Companies market energy drinks, stating that the beverages increase energy and physical performance. One study says that they do deliver as promised.^[3] There is much controversy regarding their actual effects.

Ingredients

Generally energy drinks include methylxanthines (including caffeine), B vitamins, and herbs. Other common ingredients are guarana, which, unbeknownst to most people, has a high caffeine content, taurine, plus various forms of ginseng, maltodextrin (a sweetening),Carbonated water, inositol, carnitine, creatine, glucuronolactone and ginkgo biloba. Some contain high levels of sugar, while most brands also offer an artificially sweetened version. The central ingredient in most energy drinks is caffeine, the same stimulant found in coffee or tea, often in the form of guarana (as in Josta) or yerba mate. The average 237 milliliter (8 fluid ounce) energy drink has about 80 mg of caffeine, with 480 ml (16 fl. oz.) drinks containing around 150 mg, although more recently, drinks containing as much as 400 mg of caffeine (such as Burn) have been marketed.

Side effects

Energy drinks may cause seizures in those who suffer from certain forms of epilepsy due to the "crash" following the energy high that occurs after consumption.^[4] France banned the popular energy drink Red Bull after the death of eighteen-year-old athlete Ross Cooney, who died after he played a basketball game after consuming four cans of the drink.^[5] The French Scientific Committee (J.D. Birkel) concluded that Red Bull has excessive amounts of caffeine.^[5] Denmark also banned Red Bull. Britain investigated the drink, but only issued a warning against its use by pregnant women.^[5]

Health concerns

Energy drinks raise many health concerns, and several deaths have been linked to heavy energy drink consumption. ^[6]

Consumption of large amounts of caffeine can be hazardous. Energy drinks contain caffeine ranging from 80 to 360 mg per drink. According to a recent study, an adult can consume up to 400 mg per day without adverse health effects, while children and women of reproductive age should limit their consumption of caffeine to 300 mg per day. ^[7] This threshold can easily be reached by consuming multiple drinks within a day. Unhealthy doses of caffeine can lead to nervousness, irritability, anxiety, tremulousness, muscle twitching (hyperreflexia), insomnia, headaches and respiratory alkalosis. ^[8]

Contra Costa Times reported construction workers being susceptible to overdosing on energy drinks due to their vulnerability to fatigue and stress. It is commonly assumed that energy drinks provide the consumer with bolts of energy, and relieve stress. This assumption has been proved false by United Laboratories Los Alamos Scientific Observatory on many occasions. Countries such as Sweden, Finland, Norway and Uruguay have banned such drinks due to these assumed effects causing life altering side effects, and in many cases, addiction. The addiction rate of these energy drinks is comparable to low doses of cocaine.

It should be noted that the brain quickly develops a tolerance to the stimulant effects of caffeine. Regular consumption of energy drinks, or coffee alike, leads to a need for increasing amounts of the beverage to be consumed to achieve desired results after just one or two weeks. Eventually heavy consumption of energy drinks will result in chronic fatigue as the user tries unsuccessfully to surmount the developed tolerance. Extremely unpleasant withdrawal symptoms become present when less than the built-up-to amount is consumed, including intense headache, fatigue coupled with an inability to sleep, and depression.

Energy drinks are often used as a mixer with alcohol, a popular combination being Red Bull with vodka. Combining energy drinks and alcohol can lead to several problems. Both alcohol and energy drinks dehydrate the body. Since dehydration is a contributor to hangovers, mixing these substances increases the likelihood of hangovers.^[9] Second, consumption of energy drinks obscures ones perception of fatigue from drinking, one indicator of excess alcohol consumption. Consequently, the mixing of substances can increase the amount of alcohol consumed.^[10]

History

Energy drinks may have come from Scotland in the form of Irn-Bru, first produced in the form of "Iron Brew" in 1901. In Japan, the energy drink dates at least as far back as the early 1960s, with the release of the Lipovitan. Most such products in Japan bear little resemblance to soft drinks, and are sold instead in small brown glass medicine bottles or cans styled to resemble such containers. These "genki drinks", which are also produced in South Korea, are marketed primarily to the salaryman set.

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 1994, The first European energy drink, Power Horse, was launched by Austrian company S. Spitz. it is still sold in many countries, even though it is perhaps overshadowed in most by its more famous Austrian rival, Red Bull.

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%.^[11]

By the year 2001, the US energy drink market had grown to nearly 8 million per year in retail sales. Over the last 5 years, it grew an average of over 50% per year, totaling over $3 billion in 2005.^[12] Diet energy drinks are growing at nearly twice that rate within the category, as are 16-ounce sized energy drinks. It is estimated to hit nearly 4 billion in 2006, and both Goldman Sachs and Mintel predict that the energy drink market 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.

These drinks are typically attractive to young people. Approximately 65% percent of its drinkers are younger than 35 years old, with males being approximately 65% of the market.^[12]

Marketing Concepts

The industry’s popularity has created a high demand for the different types of energy drinks. The various companies have gotten creative in expanding their marketing concepts in order to appeal to a wider range of people more than their competitors. Energy drink companies have discovered which type of drink appeals to who and why.

Energy drinks are the “new generation” of cola beverages, and are marketed towards the soda consumer. The newer additions to the industry, such as Tab Energy and Sparks, are owned by large corporations. Tab Energy is owned by Coca-Cola and Sparks is owned by the partnership of Nascent and Miller Brewing Company. The energy drink trend has motivated larger corporations to expand their products and incorporate an energy drink within their company. The more popular and established energy drinks, such as Red Bull are individually established and owned. The more established energy drinks have more freedom with their abilities to market to a certain target group. Although the energy drink industry is predominantly individually owned, with the growing trend, larger corporations will eventually buy out and expand their own production within the industry. In the future, the energy drinks will not have as much freedom and the diversity of each product will minimize and be controlled by a few, larger corporations.

Diversity of Appeal

People of many ages, ethnicities, and socio-economic statuses enjoy energy drinks, so the companies need to be able to market to all different types of the population. For instance, Red Bull implements two different marketing strategies to ensure maximum exposure. Red Bull’s Flugtag is a competition that draws in a more “blue-collar” crowd with its unique and competitive nature. Red Bull also appeals to the higher, more successful individual by creating a poised and sophisticated image with its sleek-looking can and artistic commercials. By Red Bull (along with many other energy drink companies) implementing two different marketing strategies, they are appealing to a higher, and more popular culture at the same time. There are other companies, such as Monster Energy, that appeal to the “blue-collar” population within the industry with a very rugged approach to making money off their product.

Appeal of Combination Drinks

Another marketing strategy is adding another benefit to the energy drink. Such as a an alcoholic energy drink (Sparks drink) or an energy drink with increased mental stamina for studying. Tab Energy is an energy drink that is focused toward the working woman [1]. Tab Energy is a more sophisticated, classy drink appealing to a successful, mid 20’s to 30’s woman. This marketing concept is very successful in that it appeals to a higher class consumer within the industry.

Derivatives

Packaging

In 2002 CCL Container and Mistic Brands, Inc., part of the Snapple Beverage Group, teamed up for the national launch of Mistic RĒ. The result was a recyclable aluminum bottle. Since that introduction, many energy drinks are now packaged in the aluminum bottlecans produced by CCL.

Coca-Cola marketed two Powerade brand energy drinks in bullet-shaped, screw-top aluminum bottle cans. Capri Sun targeted 16-25 year-olds with its Island Refreshers line, graduating from a foil pouch design to a bottlecan.

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