Jump-Start Beverage Sales with Energy Drinks

The $6.6 billion energy-drink market is the place to be, especially for operators targeting the Gen-Y audience.
By Allison Perlik, Senior Editor -- Restaurants and Institutions, 5/19/2008 3:43:00 PM


If energy drinks aren’t yet on your menu or even your radar, consider this eye-popping news: The market for energy-boosting beverages has ballooned by more than 400% over the past five years. Sales have grown from $1.2 billion in 2002 to an estimated $6.6 billion in 2007, according to market-research firm Packaged Facts, which projects that the market will reach $9.3 billion by 2011.

“People are busy. They have a lot going on, they’re tired and that quick little pick-me-up has become very popular,” says Beverage Manager Jason Passmore at Houston-based casual-dining chain Joe’s Crab Shack, which introduced three energy-drink cocktails last May and recently added an alcohol-free version flavored with passion-fruit syrup.

At Joe’s, caffeine-fueled drinks such as the Starburst (an energy drink mixed with orange rum and citrus-vanilla Italian liqueur) appeal most to the 25-and-under crowd who may be kicking off a night out with dinner, Passmore says, noting that the mixed drinks outsell the energy drinks served on their own.
Findings from market researcher Mintel International show that younger diners are indeed driving sales in the segment: More than 30% of teen-agers and consumers age 25 or younger say they drink energy drinks, compared to 14% of adults.

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