National Association of Convenience Stores (NACS) Review

NACS 2021 Review

Energy Brands Find Footing in Multi-Format

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 traffi c and a shift away from immediate consumption occasions, c-stores are eager to get their businesses back on

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 fl avors that we saw elsewhere at NACS (though they did boast a very on-trend Watermelon fl avor, 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 fi nd 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 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.

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. fl avors — 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 specifi c 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 fl avors.

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 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 fi rst arrived on the market as an apple cider vinegarbased shot product, offering the benefi ts 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 fl avors — 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 fl avors (and also in 6-packs of single-use powder sticks).

Candy, Watermelon Flavors Trending in Energy

Whether in the form of licensed partnerships (Ghost) or by creating their own outlandish candy inspired flavors (Bang, Reign), many in the rising sub-set of “performance energy” drink brands have found that their consumers have a serious sweet tooth.

At NACS, one of those players — Nutrabolt’s C4 range — showcased the first products to come out of its licensing partnership with confections giant Mars: a four-SKU line of Starburst flavored drinks, and a single-flavor Skittles beverage. Taking cues from candy isn’t new in itself — C4’s current lineup features flavors like Frozen Bombsicle and Sour Batch Bros — but the licensing deal with Mars gives the brand a high-visibility, nostalgic name that has been having an instant effect on both consumers and retailers, said reps pouring up samples at C4’s NACS booth. The brand has purposefully built out its portfolio to meet varying demands with its core, Smart Energy and 300 mg caffeine lines, but using approachable Starburst flavors provides a fun way for new consumers to find their way into the brand that circumvents a deep knowledge or familiarity with some of the products’ ingredients.

While the relationship with Mars is on course to continue beyond what has come thus far, reps noted that C4 had been on the market for 10 years before the licensing agreement. In other words, the brand continues to develop its own flavors in-house, and is keeping two of the Starburst flavors — Lemon and Orange — as limited time offerings. The line is pushing out to select retail partners like H-E-B and Giant Eagle, while c-store chains like Wawa, Quik Trip and Sheetz are also taking on products.

Bright candy colors and flavors certainly catch the eye, but there’s also something to be said for simplicity as well. Ever since Red Bull helped get the ball rolling with its summer seasonal (now permanent) flavor in 2020, watermelon continues to proliferate within energy drinks, with Monster being the clearest example. Watermelon — which has already been a success as part of the zero-sugar Monster Ultra family — was one of two featured SKUs in its new Monster Reserve line (alongside Pineapple), an offshoot aimed at experienced consumers that plays in between the lines of Monster Juice and the core energy product. The flavor will also be added to Monster’s electrolyte-infused recovery line Rehab next year. Meanwhile, back at C4, the company shared a look at a new Watermelon flavor for its Smart Energy drink.