Coca-Cola launches energy drink

Author: Thomas Wandler
Date: 13.06.2019

Sales stop already imminent

A few days ago, Coca-Cola launched its own energy drink in Germany. In contrast to its competitors, the US Company does not use taurine and instead purchases the caffeine from guarana. In addition, the drink is sugar-free. For the introduction on the market Coca-Cola invested seven million euros according to the industry portal horizon.

But now there is already a threat of a sales stop. The reason for this is an agreement with the Austrian competitor Monster. In 2015 Coca-Cola took over 16.7 percent of the shares and the worldwide distribution rights of the Monster drinks for 2.15 billion. The contract also contains a clause prohibiting Coca-Cola from producing and selling its own energy drinks. This was announced last November by Monster boss Rodney Sacks. However some exceptions are valid. Meanwhile it is debated whether the new Guarana drink is an exception or illegal.

Coca-Cola commented to the newspaper “Tagesspiel”: “During the arbitration process, the introduction of Coca-Cola Energy continues.” Both Monster and the arbitral tribunal were informed of this step. Now a decision must be made in the coming weeks. If Monster is granted justice, Coca-Cola will have to withdraw its energy drink from the market. However, Coca-Cola will not be easily beaten with regard to the expensive market launch.

Success of energy drinks

The energy drinks business is one of the fastest growing areas in the beverage segment. In Germany, sales have already passed the billion marks. The target group of the new beverages is particularly health-conscious millennials.

The cola beverage division, on the other hand, has been falling for years. As a result, Coca-Cola is now forced to expand its range. In the first seven months of 2018, 16 new products were launched in Germany. In 2017 there were six new drinks, in 2016 nine.

In 2006, Coca-Cola already tried to enter the energy market. At that time, the Relentless brand was founded. Despite a great deal of marketing effort, the energy manufacturer was unable to compete against Red Bull and Rockstar.