High energy: cocktails calling for energy drinks go from the club scene to mainstream, giving profits a jolt

Cheers, April, 2007 by James Scarpa

It's unusual for the mixer in a drink to have a profile as high as or even higher than the spirits involved, but that happens sometimes in the expanding world of energy drink cocktails. In just a few years, these caffeinated adult beverages have zoomed from the nightclub subculture to near-mainstream status. Today, cocktails involving energy drinks are offered at a number of independent restaurants and lounges, and are popping up on the drink menus of major multi-unit restaurant chains.

Drink recipes involving energy beverages are evolving as well, going beyond the simple, built-for-speed combinations such as Red Bull & Vodka and the Jager Bomb, generally a shot of Jagermeister Liqueur dropped into a quantity of Red Bull. Joining those faves from the raves are more complex cocktails featuring multiple mixers and spirits--often premium brands--and fancy garnishes.

Take the Lemon Drop with Wings, a specialty of Minx Restaurant & Lounge in Glendale, Calif. Food and beverage director Rob Rice mixes it from muddled lemon, Ketel One Citroen Vodka, triple sec, sweetened lemon juice, Red Bull and Sprite. Or the Red Bull Madras, a featured drink of Pittsburgh's Tonic Bar & Grill. Bar manager Roy Bernhard combines Svedka Clementine Vodka, Red Bull and cranberry juice. At Moxie in Chicago, bartender John Kinder makes his Doo Da Highball from muddled Granny Smith apples mixed with Mount Gay Vanilla Rum, fresh sour and Red Bull.

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The popularity of such drinks has not been lost on casual dining restaurant chains. A few prominent players are jumping on the trend with their own energy drink cocktails.

Two years ago, Boston's The Gourmet Pizza, a Dallas, Texas-based chain of 50 casual gourmet pizza and pasta restaurants, introduced the Starburst ($7.50), made with Barcardi O Rum, Tuaca Liqueur and Red Bull.

"It sold about 25 to 30 [drinks per store] per week," says vice president of marketing Howard Terry. "That's a pretty good seller, but way down the list compared to Margaritas and beer." However, the positive vibes Boston's got from 22- to 30-year-old patrons suggested that it was on to something. "Our thinking was that energy drinks were a trend, not a fad. So we took a crack at a whole line of Red Bull drinks and it has worked well."

IN THE SPOTLIGHT

Last year, Boston's splashed big, colorful images of the Starburst, two new energy drink cocktails and the slim blue-and-sliver Red Bull can on a page of its beverage menu. The new additions are the Blistering Bull ($7.50), with Stolichnaya Vodka, DeKuyper Sour Apple Pucker Schnapps and grenadine, and a Jager & Red Bull combo ($8.50).

Today, Boston's stores sell 120 to 125 of the drinks combined per week on average, with Jager & Red Bull the best seller. The trio contributes five percent of the chain's total liquor mix. "That's up from nothing a few years ago," says Terry. "And it appears to be building."

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The typical energy drink consists of water, flavor, sugar, nutritional ingredients like B-complex vitamins and taurine, an amino-acid derivative, and caffeine. The latter is the ingredient on which such drinks rely for their renowned stimulating effect. Red Bull, for instance, has 80 mg of caffeine, about as much as a cup of coffee. Such products burst on the scene in the 1980s among attendees of all-night dance parties known as "raves." In time, they migrated into nightclubs to keep the party going. The array of energy drinks found today in supermarkets, c-stores and mass retail outlets points to a widening consumer base seeking a jump-start in various scenarios such as work, sports and study, as well as bars and restaurants.

Between 2000 and 2005, the U.S. energy drink market skyrocketed from $142 million to $1.6 billion wholesale, according to New York City-based Beverage Marketing Corporation figures. The leading brand and bellwether of the segment is Red Bull, with a market share of 43 percent. Trailing the leader by significant margins are brands like Monster, Rockstar, Full Throttle and SoBe No Fear.

Edgy positioning is the calling card of energy drinks. Crunk Energy Drink, for example, is fronted by hip-hop music artist Lil' Jon. Popular bar applications include Crunk Juice, made with three parts Crunk to one part Cognac, and Raw Dog, with two parts grapefruit juice, one part Crunk and one part premium vodka.

New "energy with alcohol" drinks are emerging, like Catalyst, a malt-based beverage with caffeine and nutritional add-ons as well as alcohol, marketed by Catalyst Beverage Company of Parlier, Calif. The fact that beverage giants like Coca-Cola (Full Throttle), Pepsi-Cola (SoBe) and Anheuser-Busch (180 Energy Drink) all have energy drinks in their product portfolios attests to the growth potential of the segment.

In February, the Hooters restaurant chain announced it will launch a new citrus-flavored Hooters Energy Drink in its restaurants as well as in grocery and convenience stores this spring. "We are very excited to launch this new product into the dynamic energy drink market," said Mike McNeil, vice president of marketing for Atlanta, Ga.-based Hooters of America. The beverage will be sold in 16-ounce cans in both regular and sugar-free versions at a recommended retail price of $1.99.