SHOW REVIEW BY BEVNET MAGAZINE STAFF
NACS 2021 Review No channel was spared from the disruptive effects of the COVID-19 pandemic, but it’s safe to say that convenience retail was one of the hardest hit. After struggling through a year of depressed foot traffic and a shift away from immediate consumption occasions, c-stores are eager to get their businesses back on
track. This year’s National Association of Convenience Stores (NACS) trade show, held in Chicago in October, offered a glimpse into how brands, retailers and entrepreneurs are approaching the future of beverage at convenience, including innovations from Coke, Pepsi and the major energy drink players.
Energy Brands Find Footing in Multi-Format Is bigger always better? Based on what we saw at NACS, it really depends on who you ask. From the perspective of 5-Hour Energy, the answer is a clear yes. As reported on BevNET in September, the company is seeking to leverage its category-leading position in energy shots into the broader energy drink space with the launch of 5-Hour Energy in 16 oz. cans. From the package design to the formulation itself, the new format keeps the same look and taste as the original product’s Extra Strength variety with 230 mg of caffeine; don’t expect “lifestyle” vibes or yoga poses in any marketing materials, nor any of the candy-inspired flavors that we saw elsewhere at NACS (though they did boast a very on-trend Watermelon flavor, along with Berry and Grape). With the rest of the business chugging along — $841 million in dollar sales year-over-year through August 8, per IRI stats — 5-Hour is seeding the 16 oz. cans in c-stores through DSD partners this fall. The line will retail for $3.99 per unit. In entering the big-can energy market,
5-Hour will find itself competing alongside ZOA, the Dwayne Johnson-founded, Molson Coors-distributed, L.A. Libationsbacked natural energy drink line launched less than a year ago. At its NACS booth, brand reps met rumors about its current
run rate with a knowing smile; without getting into the numbers, indications are that things are looking good. After debuting with a splashy ad during the Summer Olympics, the brand’s marketing and awareness push is set to continue this fall, but new innovations won’t arrive until January when the brand is set to launch two new 16 oz. flavors — Tropical Punch and White Peach — in both sugar-added (100 calories) and zero-sugar (15 calories, with Sucralose) varieties. But in an indication of the impact ZOA has already had, reps said that a new 12 oz. can will be in the mix next year, in singles and 4-packs, at the specific request of retailers like Target, which have not taken on the larger format. That size will carry a lower natural caffeine payload than its big brother (160 mg per can), and will be available in all flavors. With ZOA and 5-Hour Energy both mixing things up, energy brands are showing a greater willingness to break out of the package formats with which they built their businesses. Monster Energy announced the launch of a 12 oz. can for c-stores back in January, a package size that Red Bull also shifted into several years ago and that has been a welcome spot for female-leaning brands like Alani Nu and Celsius to grow. But, at least as an entry to the category, 16 oz. remains the format of choice, with
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names like GHOST, C4 and Rowdy Energy staking their respective claims. Even as some of the more established brands play around with their assortments, there’s still innovation to be found in shots. Colorado-based brand Ethan’s first arrived on the market as an apple cider vinegarbased shot product, offering the benefits of ACV with the addition of fruit juice. However, at NACS, founder Ethan Hirschberg said that product’s momentum has slowed (it’s still available at longtime partner Whole Foods), causing it to pivot towards organic energy shots. Natural alternatives to synthetic products like 5-Hour have struggled to migrate into the mainstream (including 5-Hour’s own attempts), but the brand is hoping its equity in the shot space — along with secured placement at CVS, where it will be merchandised alongside 5-Hour in the Health & Wellness section — will help reach its target audience. The line is available in three flavors — Pomegranate Blueberry, Tart Cherry Ginger and Pineapple — in 2-packs of 2 oz. bottles to encourage trial. Alongside its clean energy shots, the brand shared a look at its newest release: an on-trend Immune Boost shot packaged with Vitamin C, zinc, Vitamin D and reishi mushroom extract, available in Elderberry or Orange Pineapple flavors (and also in 6-packs of single-use powder sticks).
