The retailers are slowly doing away with the 2nd and 3rd tier brands and replacing them with their own private label brands. 5 Hour Energy is obviously still the staple of the category, and deservedly so as the innovator. 6 Hour Power survives on the “Stacker” 2 Platform, so they get in based on the combo of over the counter pills and powders they supply retailers.

After that, unlike energy drinks where even the middle tier brands are well funded, , there is not a whole lot of marketing dollars or stickiness to any brand (unless it is based on affiliation to a specific demographic).

That leaves the retailer with some options. Being that energy shots are taking up prime time real estate on the counter tops by the cash registers, store owners are slowly moving to reclaim their turf by putting in their own labels and knocking out the unnecessary ones.

The cost and availability of private label energy shots in the past year will push more and more retailers in the private label direction. Good News for consumers as prices will fall and deals will be had!

-Michael

Market Beverage Group Inc.
www.marketbev.com