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July 24, 2001 Issue

Snapple to Launch Caffeinated Beverage
in Fast-Growing, Energy-Drinks Market

Snapple, a company that claims its drinks are made from "the best stuff on Earth", soon will add a little man-made matter to its repertoire. Carbonation and a heaping amount of caffeine are the major elements in a beverage that Snapple, a unit of Cadbury Schweppes PLC, London, is set to launch this month. Citrus-and juniper-berry flavored, Venom will be the latest entry into the super-charged and feverishly popular energy-drinks market. With Venom, Snapple joins the likes of titans Coca-Cola Co., PepsiCo Inc., and even Anheuser-Busch Cos -- all of which make and market their own branded energy drink and all of which charge against market leader Red Bull, made by Red Bull GmbH, Fuschl, Austria.

Venom -- said to pack a punch equivalent to a cup of coffee in a mere 8.4 ounces -- might be considered a bit unusual for Snapple, known for its natural teas, juices and wholesome pitchwoman, Wendy the Snapple Lady. but it is expected to draw a highly sought after consumer, one who is typically hip, on-the-go, interested in activities like extreme sports and, most importantly, willing to spend more than $2 a can.

By all accounts, energy drinks make up a young but growing market, and initial trends seem to indicate that it's here to stay. Red Bull has led the charge. With its unique slim can, Red Bull entered the U.S. around 1997, creating a buzz among partygoers and the clubbing crowd for mixing deliciously well with vodka. Perhaps designated drivers broadened its field, as they found swigging a Red Bull gave them a caffeine boost to last into the wee hours of the night with their drinking buddies.

From there, energy drinks took on what David Morrison, president of the TWENTYSOMETHING Inc. consulting company, calls "the Mountain Dew mythology" among college and high-school students. The stuff gave them a much-needed caffeine kick, like the potent yellow soft drink has been doing for years, so they wouldn't fall asleep while studying.

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