Discount Sales a Bad Sign For Energy Drinks
“There’s more energy out there than anyone can handle,” Jon Auspitz, president of Wham Food and Beverage Company, said. “I don’t have to tell you how many brands there are. It’s crazy.”
For business reasons, Auspitz declined to name any of the beverage companies that he works with, but said some of the big energy drinks brands “just have way too much [product.]”
“We’re talking hundreds of thousands of cases,” he said.
While the energy drink market continues to grow – up 13.5 percent September 2008 according to Information Resources Inc. – that growth has slowed significantly. IRI reported that the category expanded at more than double that rate – 34.4 percent – in the 12 months ending on July 15, 2007.
While those numbers and Auspitz’s experience suggest that energy drink firms haven’t calibrated their production to match moderating demand, he offered advice to companies that suddenly find themselves with more product than they know what to do with.
“Really, what you should do is go exhaust any avenues you have, and if you can’t move it, give us a call back,” he said. “You have to do the best you can for yourself. With us, you will lose.”
Complete Article at BevNet.com