Keeping tabs on your competition is one thing.
Decorating an entire wall of your office with their products is quite another.
For Tyler Benedict, it's a way to remember how hard he's worked and how quickly it could all slip away.
His display of more than 200 energy drinks represents the success he's earned in an industry that's more likely to send intrepid entrepreneurs into bankruptcy than into Donald Trump's tax bracket.
"About 80 percent of these are gone," he says proudly. "Most energy drinks fail in six months."
Benedict is the founder, owner and CEO of Greensboro-based Source Beverages, a thriving energy drink company with expected revenues of $2 million this year and distribution in more than 20 states.
At 31, Benedict works at home in jeans and button-down shirts, selling the most caffeinated energy drink on the market.
Burn, a tangy citrus-flavored beverage created in 2002, packs a walloping 118 milligrams of caffeine in each 8.3-ounce blazing yellow can 48 percent more than industry leader Red Bull.
But the creator of this human rocket fuel isn't what you expect. Benedict exudes an aura of calm and tranquility more typical of a yoga guru than the extreme athletes who down his product.
The University of Florida journalism graduate doesn't fit the mold of success in the billion-dollar energy drink busi-ness an industry where nearly 1,000 new drinks have been released in the past four years.
"We've been very careful not to grow too fast," Benedict says. "Lots of companies try to saturate the national market right away, and they go bust."
Red Bull, introduced in the United States in 1996, jump-started the energy drink business. The Austrian company has dominated the market ever since, and in 2004, its sales topped $1.2 billion. His other competitors include multibillion dollar companies Coca-Cola and Pepsico.
Benedict isn't fazed by the competition. He has a zen-like confidence that if he works hard enough, he will succeed.
"I can't even explain it, but Tyler never even seems to think of quitting," says wife Kristi Benedict. "It was something his parents taught him ... to have so much confidence."
An avid mountain biker, Benedict moved to North Carolina after college, not for a job (he didn't have one), but for the terrain. He met Kristi, an N.C. State graduate, while living in Charlotte.
He proposed three and a half months after they met.
The small drink that promises big energy and alertness without have jitters plays a role in most teenage and adult lives. This 5- Hour Energy’s audience is multitasking, working professionals. The market demand has increased a tremendous amount since the product had hit the store shelves in the year 2004.
Abelli, H. (2007). Mountain Man Brewing Company: Bringing the brand to light. (2069) Boston, MA: Harvard Business School Publishing.
As stated in the case, “the market for energy drinks was growing; between 2010 and 2012, the market for energy drinks had grown by 40%. It was estimated to be $8.5 billion in the United States in 2013 [and] forecasts projected that figure to reach $13.5 billion by 2018” (pg 5). However, much of this market’s revenue -- 85% in fact -- is dominated by five major brands, while the remaining 15% is split between approximately 30 regional and national companies. (pg. 5). With this saturated market, it might not be best for Crescent Pure to enter as a completely new product to the industry, as there is the possibility that it will be squeezed out of the profit shares by more established brands -- especially if it is not properly secure in its identity. In addition, while the market for energy drinks appeared to be growing at an exponential rate compared to the market for sports drinks -- which increased only 9% in five years and would be at approximately 60% of the rate for energy drinks in 2017 (pg 6) -- the consumers appeared to be wary of partaking in the market for several reasons, which would potentially harm the reach of Crescent Pure. These concerns included rising news reports discussing the safety of energy drinks (pg. 5). Taking into consideration the data provided in the case that concerns reasonings of why consumers choose specific drinks over others, there
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The energy bar market grew from a grass roots effort focused on the consumer base of performance athletes. These athletes usually obtained products at competitive events that were geared towards the everyday consumer. The build up of this market is attributed to PowerBar, but there was significant contribution from others.
An interview held on April 10, 2013 with a customer who is not a fan of energy drinks described the logo as being clever in design and the overall appearance as colourful. Interviewee also stated that the oval appearance of the can design with graphics is very creative, appealing to the m...
Based on a survey a conducted at work with 20 people between the ages from 18 to 42 on July 22, 2016, 17 of them buy at least one can or shoot of energy drink per day.
Red Bull is an energy drink manufactured, distributed, and marketed by Red Bull GmbH, which is a company in Austria. The company was established in 1987 in Austria and hit the global markets in 1996. Red Bull is the most popular energy drink across the world selling an estimated 5.2billion cans in 2012 as reported by Symphony IRI. The company commands a 50% and 46% market share of energy drink industry in Canada and United States respectively. The brand is also marketed in Europe, Asia and has recently ventured the African market with the establishment of a distribution depot in South Africa. Further, the company generated approximately $400 million in sales in America and Canada alone in 2012.
Red Bull is a sweet, caffeinated drink aimed to give consumers the high energy kick. Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only two ‘flavours’ (original or sugar-free). It contains caffeine, taurine, glucuronolactone, and B vitamins. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull has become the worlds leading energy drink, a staple in many young, and active people’s lives.
Background - RedBull was launched in 1987 by GmbH and was derived from a Thai drink KratingDaeng. Austria was the first place where Red Bull started its business in 1987.It started its business in Hungary in 1992 and the United states in 1997. These were the first foreign market for a Red Bull energy drink. Itsslogan “RedBull Gives You Wings” started in German...
Stroll into any high school or college and one will definitely find energy drinks. Energy drinks are served in tall cans with garish designs and slogans designed to catch the attention of children and teenagers. But what are they? Commercials will tell people that just by drinking them, they can stay up all night, ace a test, score with a girl, and be happy. Some have even said to give you superpowers. According to the advertising campaigns, energy drinks are equivalent to omnipotence in a can. But are energy drinks all they claim to be? The simple answer is no. Often energy drinks turn out to be more than just sugar and caffeine which makes energy drinks dangerous. Energy drinks cause negative side effects, such as heart problems and obesity in young americans, and therefore should have a legal drinking age of 18.
The brand has identified themselves as a beverage that contains the “best stuff on earth,” which means any properties that would taste pleasant to the consumer. Members of the focus group stated Snapple was more believable as a brand if they endure their slogan, rather than trying to adapt to the environment around them such as the fitness market. Redefining themselves as a healthier beverage would make them lose creditability since they are known for their sugary juices and teas. On the other hand, the statement regarding energy did appeal to the group significantly. If Snapple decided to create an energy beverage, actions will stated to be taken. Nevertheless, the creditably factor was issue because a member stated to choose a energy drink that’s already in the market over a Snapple because she knows coffee will give her the energy she needs, but doesn’t know the outcomes of Snapple. Clearly, Snapple must classify their brand as a refreshment beverage, along with their slogan, because that is how consumers know the brand and will continue to distinguish it for other beverages on the
“The term energy drink refers to a beverage that contains caffeine in a combination with other ingredients such as taurine, guarana, and B vitamins, and that
energy drinks when it comes to rehydration, firms were still able to use advertising to change