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The Fastest Growing Energy Drink You Never Heard Of
10-May-2007
Written by: Sari N. Kenr
Move over Red Bull, XS Energy Drinks are taking over!
You’ve heard of Red Bull and the SoBe line of energy drinks, but have you heard of XS Energy Drinks?
Maybe not, but they are the fastest growing energy drink brand, with sales of over five million cases in 2006, putting the company among the top energy drinks.
“The growth is great,” said XS principal, David Vanderveen. “But I think it’s kind of ironic that we’re as large as we are and still pretty unknown.”
The company’s focal point is to bring flavors to consumers that they love, but without the carbs and sugar. “We’ve always focused on having the best tasting energy drinks in the category, but without the sugar and carbs – we were the first to make an energy drink in a flavor and the first to use the ‘Sugar Free’ label,” said Scott Coon, partner with Vanderveen in XS.
XS currently offers 11 different flavors and is a pioneer in sugar-free energy drinks. Their flavors include: Cranberry-Grape Blast, Citrus Blast, Tea Berry Blast, which is the first tea energy drink, Tropical Blast, Electric Lemon Blast, Cherry Blast, Rootbeer Blast, Cola Blast.
In addition, XS offers caffeine-free versions of the Tropical Blast, Cranberry-Grape Blast and Rootbeer Blast.
All the flavors are sugar-free and low calorie. The caffeine-free versions have folic acid and as much Vitamin C as the same sized serving of orange juice.
Besides being innovators in the energy drink arena, they are also trendsetters in how they distribute their product, “I think the real success story behind XS isn’t about the product as much as it's about the distribution model we embraced. Quixtar, an Internet e-retailer, and their Independent Business Owners have been a radical force that has really disrupted traditional energy drink distribution,” said Coon. Quixtar’s Independent Business Owners sample the drinks and sell them direct-to-consumers so XS doesn’t advertise and promote like other energy drinks.
Their way of distributing seems to be working, “We sold through our six-month forecast in the first weekend and did over $51 million in retails sales our first year, over $70 million our second year, $90+ million our third year and over $120 million in retail this year. The growth, sales and success that Quixtar and Independent Business Owners deliver is pretty amazing,” said Vanderveen.
“It’s been a great ride so far,” said Coon. “We’ve launched with Quixtar, their parent company, Alticor and Independent Business Owners in the USA, Canada, New Zealand, Australia and the UK.”
“We’ve got all these brand evangelists out there promoting XS, driving it via word-of-mouth in a very unorthodox distribution channel for drinks, and it’s a lot of fun. We wouldn’t trade it for anything right now,” said Vanderveen.
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