And if they don’t, energy drink marketers are moving full steam ahead to change that. Watch any major sporting event, especially those involving risk and action, and you’re likely to see an energy drink company as a key sponsor. Red Bull, for example, is heavily involved in motorsports from Formula 1 to NASCAR and started its own Air Race World Series. Monster Energy sponsors athletes in sports from motocross to snowmobiling to surfing. AMP is a primary sponsor of NASCAR driver Dale Earnhardt Jr. this season and is heavily invested in the National Hockey League.
“The energy market had a lot of help by exploding in the bar, club, and lounge markets,” says Jeff Maitland, director of national sales foodservice & hospitality for Arizona Beverage Co., which offers Caution Energy Drink, Green Tea Energy Drinks, and All City NRG.
“They gained a trial [audience] and awareness in the early years among young people and that helped drive their popularity,” Beverage Digest’s Sicher says.
Consumer awareness built further with appearances in casual bar and grill restaurants. Red Bull, for instance, is available in such high-profile national chains as T.G.I. Fridays, Chili’s, Outback Steakhouse, and Applebee’s. The idea that quick-service restaurants could be a logical next step isn’t a far leap.
“The American consumer is in an experimenting mood when it comes to beverages,” Sicher says.
“The majority of consumers are a younger group, and they are the more frequent patron of the quick- and casual-theme restaurants,” Maitland says. “It is a great opportunity to get an edge on the market and set the trend. Consumers are willing and accustomed to spending more for these beverages so the margin of profit for the restaurant will be greater.”
Red Bull’s Radden agrees. “Red Bull targets all kinds of consumers, from college students to truck drivers to business people to athletes—all of whom also frequent quick-service restaurants.”
With a growing market and consumer base comes the potential for quick-serves to boost profits.
“Energy drinks are a slower turning, but a very profitable [item] compared to soft drinks,” says Lori Theisen, director of brand activation marketing for PepsiCo Foodservice, which offers AMP Energy, SoBe Adrenaline Rush, and No Fear.
Some quick-service restaurants are already beginning to test the energy-enhanced waters.
One of the first appearances of energy drinks in a quick-service system was a summer limited-time offer of Coca-Cola’s Full Throttle at White Castle in 2005. Last spring Sonic introduced the Full Throttle Fury Slush, a version of its classic slush blended with Coca-Cola’s orange flavor Full Throttle Fury.
One of the largest quick-serve introductions of energy drinks took place over this past summer when Saladworks added Arizona Caution Energy Drinks to its existing Arizona Iced Tea lineup.
“When we were going through their drinks,” says Patrick Pantano, public relations supervisor for Saladworks, “we knew the energy drink market was a [multi] billion-dollar market.”
Saladworks is increasingly promoting its Arizona Iced Tea offerings as part of its healthy eating strategy. Choosing Arizona Energy Drink was an outgrowth of that relationship.
“We’re putting it out there and we really feel it will be another option [for consumers],” Pantano says.
Industry buzz claimed that McDonald’s tested several bottled and canned drinks this summer, Red Bull being one of them. The company would neither confirm nor deny the 150-store test. A spokesman for Red Bull, however, mentioned sales in McDonald’s stores.
Rather than offer energy drinks as standalone products, some chains are combining them with their existing beverage offerings. For example, Starbucks recently introduced its Doubleshot on Ice + Energy, a blend of B vitamins, guarana, and ginseng, shaken with its espresso iced drink. Energy Slurpees were introduced by 7-Eleven this past spring and are now offered in AMP Energy Freeze, Full Throttle Frozen Blast, Radiation Rush, and Monster Black Ice.
One issue quick-service operators might face when considering offering energy drinks is packaging. Most energy drinks are still only available in a can though delivery methods are expanding. Sonic and 7-Eleven are obviously banking on a frozen drink format, and Pepsi’s Theisen says its frozen-format energy offerings have done very well for its foodservice partners this year. To improve delivery, Coca-Cola recently announced that it has adapted Full Throttle to crew-serve bar gun or fountain applications.
With energy-drink brands and varieties expanding, a market and consumer base growing, and major players adding energy drinks to the beverage mix, a call to your beverage rep to explore the possibilities is a good idea.
“Consumers are looking for energy in all venues and are consuming energy across all dayparts,” Theisen says. “We see the quick-service as a natural line extension of that availability.”