According to Mintel Global News Products Database, total food and drink product launches for the first half of this year, at 7,176 are down 42 percent from the 12,507 new items that were launched in the first six months of 2008.
In direct contrast to this trend is the energy shot market, which at this point in time appears to have no end in sight. The sector has shattered most analysts’ expectations for the year, generating in excess of $500,000,000 in revenue, up from $350,000,000 in 2008. The energy shot market appears to be defying gravity.
Since January of 2009, more than three dozen energy shots have come to market, each seeking to establish themselves as the next 5-Hour Energy, the product that started it all back in 2004. Large players such as Coca Cola and Pepsi have even thrown their hats into this ever widening ring.
This past May Red Bull introduced a two-ounce shot, and Dr Pepper Snapple initiated test-marketing of a three-ounce version of its Venom energy drink, called Venom Bite. Coca Cola, Monster and numerous other large beverage players also have their own energy shots in wide distribution.
Value Beats Volume
One of the reasons so many companies are jumping into the energy shot game is that the small, start-up company has as much of a chance at success as the larger, more established beverage behemoths.
According to New Nutrition Business, value is more important than volume, meaning that people are willing to pay a higher price for an energy shot that truly works. Slick branding is simply not enough. NNB goes on to state that being first to market is not as important as being first in the mind of the consumer, hence the energy shot market as a whole is susceptible to innovative disruption.
It’s anyone’s guess as to what the next “it” product will be.
The Perfect Venue for the Innovator
One such Company launching a strategic attack on the energy shot market is Generator Labs, LLC. Based in West Palm Beach, Florida, the Company has recently launched Generator, a broad-spectrum liquid energy supplement. While most energy shots are designed by beverage companies, Generator was formulated by a certified fitness trainer. The company is convinced it has the ability to recruit consumers away from competitors as well as attract new energy seekers who are trying energy shots for the first time.
The Company’s slogan “Hitting the Office, Hitting the Gym, Hitting the Town, Hit It!” says it all. In addition, the bottle features “Rhino Mike,” Generator’s unique and highly visible spokes character.
Necessity – Still the Mother of Invention
The formula for Generator Energy Shot was designed by a certified fitness trainer who was determined to assist other personal instructors so that they could complete seven or eight training sessions in a day without losing momentum or concentration. Before going to market, the formula was painstakingly tested on numerous fitness experts, attorneys, business professionals and people from virtually all walks of life. The result was a reliable and potent broad-spectrum energizer that delivers what many others promise, without all the hype.
Generator serves as a prime example of innovative disruption in its purest form.
So Where Does the Market Go From Here?
Projections vary, but some analysts speculate that the energy shot market could come to rival the energy beverage market that currently generates in excess of $3.5 billion in annual sales. Only time will tell but the market has officially jumped the Atlantic and energy shots are now springing up all across Europe as well.
Peter A. Pietrini, NSCA-CPT is one of the top technical fitness trainers in the country. Mr. Pietrini is certified by the NSCA, the National Strength and Conditioning Association and is a widely respected health and fitness advocate. Information about Peter Pietrini can be found at www.Live-Better-
