How To Start An Energy Drink Company

How To Start An Energy Drink Company – It’s been 25 years since Red Bull entered the market and introduced caffeine-based energy drinks to the United States. Although the company claims its drink will “give you wings,” it doesn’t say it’s good for humans.

But as the soft drink market continues to grow rapidly, companies new and old are trying to attract health-conscious customers with a wave of unsweetened, low-fat drinks that claim to boost energy and replenish electrolytes and more. Ingredients.

How To Start An Energy Drink Company

How To Start An Energy Drink Company

The offering includes drinks from the popular Celsius brand, which has investment from PepsiCo and uses the “Celsius Live Fit” marketing line. It is said to be made with “healthy ingredients” such as ginger, green tea and vitamins. Even energy-assisted Prime Energy still contains sugar and contains electrolytes, which are essential in most sports drinks.

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“It’s all zero sugar or zero calories,” said Jim Watson, a beverage analyst at Rabobank, a Netherlands-based bank that focuses on food and agriculture. He said consumption of energy drinks has increased slightly due to the shift away from soda over the years. “They go for a healthy image.”

Even Gatorade, which has long marketed the drink to athletes hoping to replace lost fluids or electrolytes after intense exercise, is jumping into the caffeine-fueled race. This year, Gatorade released Fast Twitch, a sugar-free drink in flavors like Strawberry Watermelon and Cool Blue — with caffeine levels equivalent to more than two cups of coffee.

The new goal has helped the growth of the alcoholic beverage market, with sales in the United States rising to $19 billion from $12 billion over the past five years, according to Circana, a market research firm.

Last year, PepsiCo paid $550 million for an 8.5 percent stake in Celsius. In May, Celsius reported revenue of $260 million in the first quarter of this year, double the previous year. At this impressive pace, revenue could exceed $1 billion this year, up from $314 million two years ago. Celsius shares rose to $144 a share from $69 a year ago. Shares of beverage company Monster Energy are also up 31 percent over the past year.

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But there are concerns that drinks that are considered healthy are turning children and teenagers into unhealthy drinkers.

In March, neon Prime Energy cans started popping out of a cafeteria full of fourth- and fifth-graders in Wilmington, Massachusetts. The popular drink was launched in January by social media stars Logan Paul and Olajide Olayinka Williams Olatunji, popularly known as KSI.

For some young students, Prime Energy drinks, in flavors like Strawberry Watermelon and Orange Mango, are delicious liquid gold.

How To Start An Energy Drink Company

“We have 4th and 5th grade vendors who bring them to school and sell them to other kids at lunch,” said Rebecca Brown, the district’s health coordinator.

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But the impressive cans pack a big punch. 12 servings of Prime Energy contains 200 milligrams of caffeine. This is equivalent to two Red Bulls, two cups of coffee or six cans of Coca-Cola.

Some schools in the UK and Australia have banned the drink. In the United States, state law states that schools cannot sell or serve caffeinated beverages to elementary or middle school students, although most schools do not restrict what they can bring.

“Not long after they took them, the students appeared at the health office saying that they were not feeling well and their hearts were racing,” said Ms. Brown, who sent out a letter in the school’s email each week to alert parents about energy drinks. they should not be brought to school.

A 12-ounce can of Red Bull contains about 114 milligrams of caffeine — three times as much as a 12-ounce can of Coca-Cola. Prime Energy has a lot: 200 milligrams in each 12-ounce can. A 16-ounce can of Bang Energy Drink, the size sold in grocery stores, contains 300 milligrams of caffeine.

Starting An Energy Drink Company

In an email response to questions, representatives of Mr. Paul, a social media personality, and Prime Energy said that the company’s cans labeled the drinks “not suitable for children under 18 years of age.” But parents and school officials sometimes confuse the drink with Prime Hydration, a caffeinated sports drink used by professional athletes that is sold in bottles. The drink is also very popular, with sales of over £250 million in the first year and customers queuing for hours to buy it in some UK stores.

“Everyone thought Red Bull was the pinnacle of coffee and energy drinks,” said Dr. Ryan Stanton, an emergency physician in Lexington, Ky., said he has seen patients, especially during the last week of community colleges, who complained of anxiety. and having a racing heart after consuming too much caffeine. “Now, some of these drinks have double or triple the caffeine content of Red Bull.”

Studies have shown that drinking coffee has health benefits, but too much can cause heart and stomach problems. The Food and Drug Administration has investigated several reports in recent years of people dying within five hours of consuming energy drinks or energy shots. But the agency has never established a partnership between the two, a spokesperson for the F.D.A. he said in response to email inquiries.

How To Start An Energy Drink Company

Adults are recommended not to exceed 400 milligrams of caffeine per day. Pediatricians recommend that adolescents between the ages of 12 and 18 should not consume 100 milligrams of caffeine per day and that children under the age of 12 should not consume it at all.

Red Bull 8.4 Oz. Original Flavor Energy Drink

Over the years, there have been efforts to increase state regulations on energy drinks and limit the amount of caffeine allowed in beverages. Lawmakers in several states, including Indiana and Connecticut, are considering banning the sale of energy drinks to children. But the industry has pushed back, in part by arguing that young people get caffeine from many sources, including soda and coffee. A 16-ounce cinnamon-caramel-cream frosted from Starbucks, for example, has 265 milligrams of caffeine (not to mention 260 calories).

About ten years ago, the energy drink industry, through its arm, the American Beverage Association, voluntarily adopted several principles, including labeling the amount of tea or coffee in the food and writing on the package that the drink is not for children. The companies also agreed not to sell or sell their products to schools.

But critics say some energy drinks are clearly marketed to younger customers. Last year, the consumer advocacy group Truth in Advertising reported that companies like C4 Energy, which sells flavored drinks like Starburst and Skittles, and Ghost Energy, which sells Sour Patch Kids and Swedish fish flavored drinks, contain more caffeine than two cups. coffee, tried to attract children.

Dan Lourenco, CEO and co-founder of Ghost, said in an email that the company’s products target millennials in search of a taste of their youth. C4 Energy, which owns Nutrabolt, did not respond to an email seeking comment.

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The United States Department of Agriculture, whose Smart Snacks program sets standards for food and beverages sold in schools, says all products sold in elementary and middle schools must be caffeine-free. But for drinks sold in high schools, there are restrictions on the amount of calories, but not on the level of caffeine.

In addition, the F.D.A. They don’t have any specific laws around “energy drinks”, thinking it’s just marketing time. A spokeswoman for the agency added in an email that companies still have a responsibility to mix coffee and beverages safely.

Chloe Fitzgibbon, a high school senior in Nebraska, asked her school newspaper if cafeterias should sell energy drinks. Credit … Terry Ratzlaff of the New York Times

How To Start An Energy Drink Company

Chloe Fitzgibbon, 17, who graduated in May from Lincoln Southeast High School in Lincoln, Neb., questioned whether school cafeterias should sell energy drinks in an article published last year on the school’s newspaper website. , The Clarion was published. Noticing that the school sold the Mountain Dew brand, Kickstart, Ms. Fitzgibbon said students choose the drink not only for energy, but also for the convenience of purchasing through their student account.

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High school cafeterias sell several caffeinated beverages, including Kickstart, which has 68 milligrams of caffeine in a 12-ounce can, and Bubbl’r, a sparkling wine with 69 milligrams of caffeine in a 12-ounce can. Mindy Burbach, spokeswoman for Lincoln Public Schools, said in an email that students are limited to two coffee drinks per day.

“When I took my morning class, AP Psych, almost everyone brought coffee or bought energy drinks that we sell at school,” said Ms. Fitzgibbon.

Pasco County Schools, a Florida district north of Tampa, also offers Kickstart drinks to high school students in its vending machines. But Stephen Hegarty, a spokesman for the province, said PepsiCo, which owns the brand, markets the drink as a “soft drink,” not an “energy drink.” PepsiCo refused

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