Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional
“bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage.
Small portable bottles
Fast and strong effect
Wide application
Daily consumption
Energy Drinks:
Coffee: diluted - high volume of liquids
(usually) high in sugar big bottle - less convenient perceived as a drink for teenagers time consuming lower effect
(usually) not portable unhealthy
The first energy shot was launched in 2004
Supported by an educational campaign from the leading brand, the market size reached $340m in three years and an estimated $1.2b in
2010
According to New Nutrition Business*, the market will continue to expand at 40-50% in the short term and will reach as much as $2.5b in 2012
With the price/litre around 5x higher than for the conventional energy drink (see next slide), and the price per portion 50% higher, the energy shot segment offers uniquely profitable growth opportunity
* - New Nutrition Business, http://www.new-nutrition.com/
* Source: NNB Surveys in Wal-Mart, Albertsons
Sales rose from 150$ million to 350$ million from 2009 to 2010 and still growing. Projected market size in 2012 is 1$ billion
Similar to the US market, price per portion is 40-50% higher for the energy shots vs energy drinks
UK market is more advanced compared to the mainland Europe and has the market structure similar to the US
Other EU markets are fragmented and lack a clear market leader
Per capital consumption in Europe is almost three times lower than in US
* - New Nutrition Business, http://www.new-nutrition.com/
The dynamics of US and EU market size for energy shots
* - http://www.bevnet.com
We have selected the most promising markets by analyzing a number of metrics: total population target market size (24-35 years old) working hours per week original NapNock rating*
Conclusion: top countries for energy shots are Germany, UK, France, and Italy
*
Attached in the appendix
Countries
Germany
U.K.
France
Poland
Italy
Population
82m
62m
65m
38m
60m
Target market size
9m
7.6m
7.8m
6.6m
7.2m
Working hours
52
55
52
56
55
Original NN rating*
3
1
4
11
2
*
NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road network, students, price level in each EU country.
EU energy DRINKS market size amounts to €6 billion* and is still growing 6-8% annually
Western Europe usually lags 2-3 years from the US
EU energy SHOT market is growing 50%-60% annually
There is still no clear market leader in the mainland
Europe
No clear and distinctive marketing strategy - 0.25l can is not the same as 60ml bottle
They continue to target 14-23 year olds, whereas, in our opinion, the biggest potential is in a more mature 25+ segment
RedBull exited the US energy shot market in 2011 because of low sales (only 10-15% market share 2010)*
*
- http://www.bevnet.com/news/2011/red-bull-discontinues-production-of-cola-and-energy-shot
60 ml energy shot
Ginseng and ginkgo biloba combo reduces negative impact on the heart
No sugar – no crash
Long lasting effect (4-5 hours)
Innovative taste with green tea and lemon
Natural ingredients: ginkgo biloba and ginseng
Longer lasting effect because of ginkgo biloba and higher dose of caffeine
Healthier: lower impact on the heart
Target market 24-35 (careerists)
Independent energy shot brand
Guerilla marketing campaign
Age: 24-35 years
Workaholic careerist
Self confident
Prefers quality goods
Social life: loves to travel, party, socializing
Moto: “Work hard, party harder”
Features: bold, vibrant, imaginative
Competence: reliable, efficient
The NapNock TRIP to ASIA
NapNock 48 hours trip (without any sleep)
NapNock flashmob
Guerilla marketing video
POS material (aggressive posters, fake money, t-shirts etc.)
WEB (beverage industry webpages, travelling webpages)
Product
Energy Shot
Strenghts
• Convenient and portable packaging
• Quick and easy to consume
• Price-premium value for money
• Long lasting effect
• The need to place it near the cash desk
Weaknesses
• High price (education of consumers)
Energy Drink • Refreshment and stimulation drink
• Low cost
Coffee • Low cost
• Lifestyle
• Wide market
• Older consumers
• High amount
• Can not close the can
• Target market - younger people (16-21)
• Not portable
• Time consuming
• Lower effect
• No additional ingredients
• Not portable
• Bad for teeth
Brand
Quick energy
5 hour energy shot
Target market
30-45
30-45
Burn energy shot 18-24
Ubershot
On Go shot -
18-25
Slogan
Small But
Powerful
Drink it in seconds. Feel it in minutes. Lasts for hours.
Burn. Fire to drink. (same as e.d.)
Energy for life with no lows
Shot it in seconds. Feel it for hours.
A. Ingredients
Caffeine 175mg
Taurine
Caffeine 138mg
Taurine
Glucoronolactone
Citicoline
Tyrosine
Caffeine 80mg
Taurine 200mg
Glucoronolactone
70mg
Caffeine 210mg
Taurine 1050mg
Glucoronolactone
210mg
Caffeine 177mg
Taurine
Glucoronolactone
Ginseng
Pricing
2.25 EUR
2.13 EUR
1.99 EUR
2.15 EUR
2.13 EUR
Ginkgo Biloba – natural ingredient which increases mental activity and metabolism
Ginseng – natural ingredient with a unique ability to increase human endurance and mental strength
Glucoronolactone – provides fast recovery from fatigue cause by exercise
Caffeine – psychoactive stimulant which increases energy
Taurine – helps to rebuild stamina
(32 countries)
Country
United Kingdom
France
Germany
Ireland
Sweden
Norway
Netherlands
Poland
Population 20-35 age Percentage
62,262,000
63,136,180
82,329,758
4,581,269
9,354,462
4,973,200
16,683,400
38,186,860
14,000,000
12,283,012
1,320,551
1,918,156
958,214
3,125,100
22%
19%
0%
29%
21%
19%
19%
0%
Source: http://www.nationmaster.com/country/fr-france/Age-_distribution
Country
Germany
UK
France
Poland
Italy
Spain
Russia
Greece
Netherlands
Belgium
Sweden
Czech
Students
(thousands)
2500
2415
2200
2150
2000
1800
1500
637.6
Ranking
5
6
7
8
1
2
3
4
618
425
422
416
9
10
11
12
Country
Hungary
Portugal
Austria
Finland
Slovakia
Denmark
Swithzerland
Norway
Lithuanian
Ireland
Estonia
Students
(thousands)
397
373
308
296
235
234
Ranking
13
14
15
16
17
18
233
219
210
182.6
68.4
19
20
21
22
23
Country
Portugal
Estonia
Austria
Sweden
Hungary
Ireland
Poland
Italy
UK
Spain
Czech
Finland
Working hours per week
56
56
56
62
60
59
58
55
55
55
53
53
Rating
5
6
7
3
4
1
2
10
11
8
9
12
Country
Netherlands
Norway
Denmark
France
Germany
Swithzerland
Greece
Lithuanian
Belgium
Russia
Slovakia
Working hours per week Rating
52
52
51
51
53
53
52
52
50
50
49
17
18
19
20
13
14
15
16
21
22
23
UK
Italy
Germany
France
Ireland
Hungary
Netherlands
Sweden
Spain
Austria
Poland
Belgium
Swithzerland
Norway
Denmark
Czech
Greece
Portugal
Slovakia
Finland
Estonia
Russia
Lithuania
12
8
1
4
9
2
19
17
3
7
14
5
11
10
6
16
22
23
18
13
15
21
20
8
14
7
4
6
2
21
23
15
3
10
13
5
22
20
11
12
17
1
19
18
16
9
3
15
11
18
4
16
17
13
7
2
19
20
1
14
8
5
23
22
10
21
6
9
12
1
15
6
11
4
20
13
7
5
8
18
10
14
17
2
3
9
16
19
12
21
22
23
21
13
1
2
3
4
7
14
5
15
6
11
16
20
17
12
8
9
18
19
23
10
22
17
16
9
8
6
5
13
4
10
3
7
21
18
14
15
11
19
1
23
12
2
22
20
22
13
1
3
2
5
9
11
6
15
4
10
19
20
18
12
8
14
17
16
23
7
21
14
8
3
1
7
4
10
5
2
13
6
9
20
15
19
11
12
16
23
18
21
22
17
17
5
21
15
12
4
19
22
8
14
9
13
23
16
18
10
2
7
1
20
11
3
6
14
11
12
7
4
20
10
9
13
8
21
6
1
18
3
2
22
15
17
5
16
23
19
TOTAL
OVERALL
RATING
3
4
1
2
5
6
9
10
7
8
11
12
13
14
15
16
17
18
19
20
21
22
23
64
75
92
95
102
103
104
105
108
108
114
118
125
127
129
132
137
140
143
143
160
167
169