Transcript XS Energy Drink

Energy Drink Overview
History of the Industry
• Fastest growing segment of the beverage industry in
the USA, over US$1 billion (IRI data) of the US$60
billion soft drink industry
• The category has emerged since 1997 – grew from
US$100 million four years ago to over $250 million
two years later.
• Market growing at 30% per year right now.
• Future of the market is seen as replacing other
caffeine delivery categories (coffee declining).
History of XS
• Developed by a nutrition company with a focus on low glycemic
products – forefront of Atkins-type diets
• Launched in traditional distribution with mixed success:
– Huge success when sampled at grocery/Costcos
– Need guerilla marketing and sales (lacking $70 million
required to hit beverage market).
• Looking for niche channel that would allow for successful
distribution without street war.
Success via Quixtar-Amway to Date
• Launched September 13, 2002 by IBOs to IBOs (could not even find XS on Quixtar
site for first two weeks of launch)
• Six months of back orders and catch up -- first major success in a beverage category,
lessons for Australia
• Biggest selling product on Quixtar
• Called “the future of Quixtar” by Steve Van Andel at his IBOA address and at Quixtar
Live (National Convention) in the spring of 2003.
• Listed among four products Doug DeVos quoted as being responsible for North
American growth in 2002.
• Largest energy drink manufactured in North American in a 250ml can – BevNet.com
industry review.
XS Energy Drink
Grape-Berry Blast
Citrus Blast
What’s in the Drinks
• Flavors and masking taste of herbs and vitamins – why we chose
cranberry and citrus
• Artificial Sweetners (0 sugar, 0 carbs, 8 calories from amino acids
– proteins)
– Acesulfame Potassium (Ace-K): an inert salt, it passes
through the body without change or effect, is 150-200 times
sweeter than sugar, has had over 90 clinical trials, launched
to the world market in 1988, approved for use in drinks in
1997.
– Sucralose: unique for launch as both sugar derivative and
most broadly approved. 600 times sweeter than sugar, yet
inert. Tested for over 20 years and sold in over 100
countries.
What’s in the Drinks
• Caffeine: 60 mg of synthetic caffeine (not like caffeine bound to organics in coffee
and tea), helps deliver vitamins faster. Caffeine Advantage.
• Herbs: Adaptogenic Blend:
– Soviet formula used to sweep Lillihammer
– Tom Jones runs 120 maratons in 120 days
– Stress recovery
• Vitamins
– Not a replacement for Nutriway B Complex, more like a Boracca tablet
– Metabolism benefits and diabetic testimony
– Recommended serves per day vs. US blend
Objectives
• Implement an exciting, Full PV/BV,
exclusive Energy Drink
• Leverage the excitement and momentum
created from the United States success with
XS Energy Drink
• Capitalize on the exceptional growth of the
energy drink market.
Target Audience
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Males and females age 18-30, or people who think they are 18-30
Mothers (someone who buys a diet coke and a red bull in the same shopping cart).
Active IBO’s and consumers
Retail customers
People currently drinking stimulant drinks to obtain some type of boost.
People who are concerned with the amount of sugar, caffeine, and calories
contained in a majority of popular drinks.
Marketing
• XS as a sponsoring tool
– Lead with a product
– Younger market
– Door opening
• Sampling events
– Sports events
– Health clubs
– Energy breaks( see rules of conduct for
specific information)
Profitability
• High consumability makes it one of
the most profitable products.
• Full PV/BV
• XS Consumer requirements and
profitability based upon being an XS
Consumer.
Future of XS
• Forecast of energy drink and beverage
market
• Come back next year as a New Diamond
• IBO potential to be number one drink in
Australia.