Energy Drinks Complete Powerpoint Final

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Energy Drinks Complete Powerpoint Final

  1. 2. FORMULA FOR GETTING KIDS HOOKED <ul><li> START WITH </li></ul><ul><li>SUGARY SOFT DRINKS </li></ul><ul><li> ↓ </li></ul><ul><li> ADD CAFFIENE </li></ul><ul><li>ENERGY DRINKS </li></ul><ul><li> ↓ </li></ul><ul><li> ADD ALCOHOL </li></ul><ul><li>ALCOHOLIC ENERGY DRINKS </li></ul>
  2. 3. Three-point-plan for targeting youth <ul><li>1) create brand confusion with nonalcoholic versions </li></ul><ul><li>2) provide a cheap alternative to mixing energy drinks with alcohol </li></ul><ul><li>3) deploy youth-friendly grassroots </li></ul><ul><li>and viral marketing </li></ul>
  3. 4. Exploding Popularity of Energy Drinks <ul><li>500 new energy drink products introduced worldwide in 2006 </li></ul><ul><li>Energy drink sales = $3.2 billion </li></ul><ul><li>31 percent of 12- to 17-year-olds are regular consumers v. 22 percent of 25- to 34-year-olds </li></ul>-- Mintel Group
  4. 5. The Energy Drink Market: Youth Driven <ul><li>One in three teens are likely to use energy drinks compared to one in ten adults. </li></ul><ul><li>Youth consumption is rapidly increasing. </li></ul><ul><li>Energy drinks help teens augment their rebellious image—legally. </li></ul>
  5. 6. Youth/Adult Energy Drink Consumers
  6. 8. Brand Confusion Which Contain Alcohol?
  7. 9. Brand Confusion Which Contain Alcohol?
  8. 10. Rockstar Brand Confusion “ This new line of alcoholic beverage product is extremely similar in look and feel to the popular energy drinks that contain no alcohol. Our youth are at risk when clerks and retailers cannot differentiate between nonalcoholic and alcoholic beverages being sold.” -- Chris Lilly, Kentucky Alcoholic Beverage Control (May 2007)
  9. 11. Only non-alcoholic brands have nutrition facts and ingredients listed
  10. 12. Who Owns These Brands? Miller Brewing Company Anheuser-Busch
  11. 13. Who makes this drink? Who distributes this drink? Anheuser-Busch
  12. 14. Why does it matter? “ Growth in the popularity of energy drinks can be attributed to bars and clubs, where energy drinks have been used as mixers. Now consumers can find pre-mixed alcoholic energy drinks at a nearby convenience store or grocery store.” -- Mintel Group
  13. 15. Public Health Implications <ul><li>Marketing and product design promotes youth consumption </li></ul><ul><li>Alcohol + Caffeine = “Wide awake drunk” </li></ul><ul><li>Caffeine masks alcohol’s intoxicating effects, promotes risk taking </li></ul><ul><li>Youth most likely to take risks </li></ul>
  14. 16. Alcohol Brands Cost Less
  15. 17. Make Premixed Products Cheaper <ul><li>“ But at $1.50 per 16-ounce can, about 60 cents cheaper than an 8.3-ounce can of Red Bull, it packs the triple-buzz punch of alcohol, taurine, and caffeine for a much lower price than a Red Bull and vodka ­– which can cost anywhere between four and eight bucks, depending on the bar.” </li></ul><ul><li>-- Boston Phoenix on Sparks </li></ul>
  16. 18. Rolling Stone Promotion
  17. 19. Viral Marketing <ul><li>“ We spent a significant amount of budget on Internet-related activities. We invited consumers to comment on the Web site and post comments without editing them, creating a community of Sparks users who shared ideas and experiences.” </li></ul><ul><li>Minott Wessinger, inventor of Sparks </li></ul>
  18. 20. Viral Marketing – Sparks Website
  19. 21. Sparks on MySpace Sparks Pals Chat Group <ul><li>“ we all know that sparks is the ..1 alcohol + energy hybrid drink of all time, now we have a group to share this knowledge. about time!” </li></ul>
  20. 22. Sparks on Facebook Chat Groups <ul><li>Drink Sparks Die Young </li></ul><ul><li>Sparks Addicts Anonymous </li></ul><ul><li>Sparks baby! </li></ul><ul><li>I drink Sparks every day of my life </li></ul><ul><li>Sparks energizes Bermuda </li></ul>
  21. 23. Viral Marketing – Facebook Postings by High Schoolers “ im only 18 and i had a six pack of sparks in my room and my mom found it, but she had no idea and thought they were jus energy drinks.” “ Sparks plus any night.. or day.... classic is what i first tried on like prom night or something like it and i was hooked then plus came around and it was love at first sip.” “ i dont remember what life was life before sparks but now i really cant remember with it.”
  22. 24. Alcoholic Energy Drink Marketing Strategies Themes popular with youth: <ul><li>Risk taking and rebellion </li></ul><ul><li>More energy, more partying </li></ul><ul><li>Sexual success </li></ul><ul><li>Extreme sports </li></ul>
  23. 25. Sex Always Sells Liquid Charge Girls www.liquidcharge.com
  24. 27. Party All Night Sex – AGWA www.agwabuzz.com
  25. 28. Anheuser-Busch Flouting the Law? IF FEDERAL LAW DOES NOT ALLOW… “ advertising statements that imply … a stimulating or energizing effect” – Tax and Trade Bureau
  26. 29. WHY DOES ANHEUSER-BUSCH PROMOTE BUD EXTRA WITH….
  27. 30. Letter to Anheuser Busch from 29 State Attorneys General <ul><li>“ Given the documented health and safety risks of consuming alcohol in combination with caffeine or other stimulants, Anheuser-Busch’s decision to introduce and promote [Spykes] is extremely troubling.” </li></ul>
  28. 31. Letter to Anheuser Busch from 29 State Attorneys General <ul><li>“ Promoting alcoholic beverages through the use of ingredients, packaging features, logos and marketing messages that mimic those of nonalcoholic refreshments overtly capitalizes on the youth marketing that already exists for drinks that may be legally purchased by underage consumers.” </li></ul><ul><li>Anheuser Busch pulled Spykes from the market shortly after receiving this letter. </li></ul>
  29. 32. Recommendations Communities need to aggressively seek both voluntary action by the alcohol industry and government action at all levels to protect our young people from harm.
  30. 33. <ul><li>Tell the producers of nonalcoholic energy drinks to halt promotions that encourage mixing their products with alcohol. </li></ul><ul><li>Tell alcoholic beverage producers to discontinue production of alcoholic energy drinks. </li></ul><ul><li>Demand full disclosure of ingredients in all alcoholic energy drinks, the amounts of additives contained in the drinks, and the percentage of alcohol from distilled spirits. </li></ul>To the Alcohol Industry…
  31. 34. To the Government… <ul><li>Ask the Federal Trade Commission and your State Attorney General to investigate whether marketing practices associated with alcoholic energy drinks constitute unfair business practices or deceptive advertising claims. </li></ul><ul><li>Write your state and local representatives and encourage them to ban or strictly limit the availability of alcoholic energy drinks. </li></ul><ul><li>Encourage local government officials to ban the mixing of alcohol with energy drinks in bars. </li></ul>
  32. 35. Download full report: www.marininstitute.org <ul><li>Order print copies or questions: </li></ul><ul><li>Michele Simon, JD, MPH </li></ul><ul><li>Research and Policy Director </li></ul><ul><li>[email_address] </li></ul><ul><li>(415) 257-2485 </li></ul>

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