...Throughout the years, energy drinks have been perceived as an attractive beverage and as of recently, has insinuated into the lives of a range of demographic groups including youth, ethnic groups and athletes. “Energy Drinks” manufacturers entered the beverage market utilizing an advertising route, dignifying the various inimitable elements featuring health claims linking their ability to restore energy and alertness . The lack of regulatory oversight has caused a marketing blitz of this popular beverage and has drawn concern from health activists and has caused regulators, specifically Health Canada to regulate caffeine content in such beverages stringently. In a recent study, it was found in a study at a university, 39 percent of students had consumed at least one energy drink in the past month, with considerably higher rates for men . While health officials have attempted to publicize the detrimental effects in the consumption of these beverages, manufacturers have contended there is a lack of empirical proof that the caffeine content in their drinks is harmful. This paper will spotlight the need for regulation on the caffeine content of these beverages based on the concepts of risk assessment and risk management. Furthermore, the need for an ex ante and post strategy from a risk assessment standpoint will be proposed in order for regulators to proactively standardize the acceptable range of caffeine concentrations of energy drinks and to effectively redress harm in the context...
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...throughout its course. It was actually on the brink of extinction when prohibition took place. If Richard would have not opened a creamery during that time, we might have never known what this beer tasted like. By selling legal near-beer, the company stayed afloat. During WWII, when grain was being rationed, other big brands used less grain in their beers but Yuengling held their ground. This is when people started to like lighter beers which made Yuengling’s sales plummet. Yuengling stated, “We were out of business and too dumb to know it.” Richard and his father had some disagreements with the company. Richard was all about cutting costs while his father was more about keeping it the same. Richard took a break from the company due to some arguments but later bought the company in 1985 due to his father’s illness. At this time, sales were right around 137,000 barrels. Once Richard owned the company, he had unusual strategies. His first strategy was to sell its beer within...
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...1102 Ashley Molina 10/29/2012 ENERGY DRINKS Recently, it seems that energy drinks have become the latest fad - from tired college students to business professionals and children. While there may be countless different reasons for the consumption of these drinks, the question remains, are energy drinks ultimately harmful to your health? As a college student who has to stay up late at times to study, I myself have had to use energy drinks. However, I found myself wondering what was inside these drinks and when I looked at the ingredients, I realized I didn’t recognize many of the ingredients that I was drinking. As I try to be very cautious with my health and the things I consume, I wanted to further explore what was in these energy drinks and if they were ultimately harmful to my health. To begin my research, I searched Google to see whether these energy drinks were harmful to my health. I found an article by the McKinley Health Center, published in 2011, and titled “What’s the Buzz with Energy Drinks?” This article discussed how the amount of caffeine in energy drinks is usually much higher than the Food and Drug Administration allows in cola beverages. A high intake of caffeine may have minor effects in the short term, however, in the long term, it can have more substantial and detrimental effects such as bone density, harming unborn children, and weight gain. This article provided some good evidence to the detrimental effects of energy drinks; however, I wanted to see if...
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...RED BULL GMBH IN SOFT DRINKS (WORLD) April 2013 SCOPE OF THE REPORT Scope This global profile focuses on the industry trends in soft drinks. Disclaimer All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012). 2012 figures are based on part-year estimates. Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised. All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Carbonates 169.5 billion litres Fruit/Vegetable Juice 62.0 billion litres Concentrates 43.7 billion litres © Euromonitor International Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205.1 billion 16.2 billion litres Concentrates litres 43 billion litres RTD Tea 30.1 billion litres RTD Coffee 4.5 billion litres SOFT DRINKS: RED BULL GMBH While Red Bull remains...
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...0 Mälardalen University MIMA-International Business and Entrepreneurship School of Sustainable Development of Society and Technology EFO705 Master Thesis The internationalization process of Red Bull from the perspectives of global expansion Group 2263: Karakawat Sarasalin 830117 Thitiporn Watthanachai 831031 Supervisor: Jean-Charles Languilaire 23rd November 2009 1 Abstract Date: 23rd November, 2009 Level: Master Thesis in International Business and Entrepreneurship (EFO705), 15 credits Authors: Karakawat Sarasalin (830117-T255) Thitiporn Watthanachai (831031-T124) ksn08001@student.mdh.se twi08001@student.mdh.se Title: The internationalization process of Red Bull from the perspectives of global expansion Supervisor: Jean-Charles Languilaire Problem Statement: How did RED BULL manage to be as an important central international market player? Purpose: The purpose of this research is to describe the internationalization process of Red Bull; how Red Bull created, sustained and developed? Method: We mainly use secondary data and the qualitative data. Qualitative data in the form of interview questions through e-mailing. But we also use quantitative method based on documental research from books and internet. Conclusion: Red Bull does not follow the standard pattern of establishment chain presented in the Uppsala model. Its establishment chain is composed of three stages: licensing ,wholly owned sales subsidiaries and jointed venture...
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...Energy drinks such as Red Bull, 5-Hour energy and Monster are the hottest-selling items of the beverage industry, but medical experts are concerned about the possible health hazards they pose and are on a mission for better regulation. The energy drink industry is doing very well looking at it from an economic standpoint. The industry has grown 60% between from 2008-2012, and had total U.S. sales of more than $12.5 billion in 2012, according to new market data from Packaged Facts. According to the “Energy Drinks and Shots: Market Trends in the U.S." report, sales of energy drinks and shots will grow to a value of $21.5 billion by 2017 (Energy drink sales). With this being said, the industry is facing many criticisms due to their health risk. Energy drinks are beverages with a high concentration of caffeine and other uppers. Some of the most laid-back regulatory requirements reside in the U.S. There are increasing reports of caffeine intoxication from energy drinks, and it seems likely that problems with caffeine dependence and withdrawal will also increase. They are sold in many places and are easily accessed by children, adolescents, and young adults. Many experts argue that this is actually their target market. Many reports warn about potential adverse effects associated with their consumption, especially in combination with alcohol among adolescents, and in combination with stimulant medications among children treated for attention deficit hyperactivity disorder. In children...
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...MANAGEMENT CASE STUDY DR PEPPER SNAPPLE GROUP, INC. ENERGY BEVERAGE PREPARED BY: RAMSIS ANAK WILLIAM AGIM 2012402536 Strategic Issues and Problems Being the consultant of Dr Pepper Snapple Group, Inc. (DPSG), I am charged to assess whether or not a profitable market opportunity existed for a new energy beverage brand to be produced, marketed, and distributed by the company. The decision to explore a new energy beverage was made by senior company management of DPSG as part of a corporate business strategy to focus on opportunities in (1) High Growth and (2) High Margin beverage businesses. My tasks involve a number of important factors. I must assess the likelihood that DPSG Competitive environment will be liberal or conservative in its marketing of the new energy beverage. An important consideration is DPSG role in affecting this environment, given its strong presence in the CSD market and utilizing that strength to push the new energy beverage. Ultimately I must make a “go-no go” decision. A “go” decision requires a recommendation in the form of the new energy beverage, its target market, its price, and promotion. A “no go” decision must take into consideration Dr Pepper’s profit and growth position without the new energy beverage and measures to minimize their impact. The problem facing Dr Pepper’s is how to retain its present competitive position given an environmental threat (other energy beverage) while at the same time preserving profitability...
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...Snapple Group, Inc. – Memo of Recommendation Strategic Issue Energy beverages in 2006 were the fourth largest nonalcoholic beverage category in the United Sates after carbonated soft drinks (CSD), bottled water, and sport drinks. Currently the company sells ready-to-drink tea, juice, juice drink, and mixer categories. The main issue is Dr Pepper Snapple sells four categories which are not among the top four. Therefore, they are missing out on a huge opportunity in the market. It would be in their best interest to penetrate the energy beverage market based on their current standing. Dr Pepper Snapple should enter into the energy beverage market with an all-natural, non-carbonated energy beverage. The Market and Competitors The energy beverage market is expected to grow at an average annual rate of 10.2% until 2011. It has slowed down recently due to the maturing of the market as well as new competitors to the market of hybrid energy beverages. Dr Pepper Snapple major competitors in the energy drink market are Red Bull North America, Hansen Natural Corporation, Pepsi-Cola, Rockstar Inc., and Coca-Cola. Each competitor is very power and influential in the drink, but each also have their own strengths and weaknesses. Every competitor struggles in this market due to brand loyalty, Dr Pepper Snapples most challenging obstacle to overcome. Competitors offer very similar product which provide consumers with an energy boost, mental alertness, refreshment, and great taste. The difference...
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...Pune Following the confirmation of the state public health laboratory about the energy drink ‘Cloud 9’ containing more than the permissible level of caffeine, the state Food and Drug Administration (FDA), Pune region, has now filed an application seeking judicial action against the manufacturers and distributors of the drink Pushpam Foods and Beverages and Goldwin Healthcare Private Limited. The manufacturer had made misleading statements on the label that suggested that the drink was recommended for medical purposes. “We have now filed an application seeking judicial action against the offenders,” said C D Salunkhe, Assistant Commissioner, state FDA, Pune office. A central notification, issued on June 19, 2009, says energy drinks should not contain more than 145 parts per million (ppm) of caffeine, while the earlier official cap was 200ppm. Many popular energy drink brands thus overshot the limit by nearly 100 ppm. “It was a clear violation of a 2008 amendment to the Prevention of Food Adulteration Act banning energy drinks with caffeine content more than 145 parts per million (ppm). We sent samples of the drink to the public health laboratory and they have confirmed that the level of caffeine was 228.2 ppm,” says the laboratory report that gave its findings recently. Chetan Chopra, director of Pushpam Foods and Beverages said that the product was already in the market before the new rules came into effect on June 17, 2009. “How can the FDA apply the new rules about...
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...their consumption of carbonated soft drinks. • Coca-Cola, PepsiCo, and other beverage companies were intent on expanding the market for alternative beverages by introducing energy drinks, sports drinks, and vitamin drinks in more and more emerging international markets. • Beverage producers had made various attempts at increasing the size of the market for alternative beverages by extending existing product lines and developing altogether new products. • Expanding the market for alternatives beverages and increasing sales and market share, beverage producers also were forced to content with criticism from some that energy drinks, energy shots, and relaxation drinks presented health risks for consumers and that some producers’ strategies promoted reckless behavior, the primary concern of most producers of energy drinks, sports drinks, and vitamin-enhanced beverages was how to best improve their competitive standing in the market place. • Rapid growth in the category, coupled with premium prices and high profit margins made alternative beverages an important part of beverage companies’ lineup of brands. (b) How do the economic characteristics of the alternative beverage segment of the industry differ from that of other beverage categories? Explain. The alternative beverage segment help companies to sustain volume growth in mature markets where consumers were reducing their consumption of carbonated soft drinks. Also the alternative beverage industry...
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...Case Study – THE THIRST QUENCHER Gatorade is a dominant product in the sports drink market, however Gatorade is only one brand in the stables of the PepsiCo Company. Therefore, before talking about Gatorade it is appropriate to talk about the company that owns the brand. This Company is currently PepsiCo, whom bought out Quaker Oats in late 2000 and in the process acquired the Gatorade brand. Corporate Context PepsiCo’s mission: “To be the world’s premier consumer products’ company focused on convenient foods and beverage. (They) seek to produce healthy financial rewards to investors as (they) provide opportunities for growth and enrichment to (their) employees, (their) business partners and the communities in which (they) operate. And in everything (they) do, [they] strive for honesty, fairness, and integrity” (http://www.pepsico.com). PepsiCo Incorporated wants to put their mission “into action through programs and focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company” (http://www.pepsico.com). PepsiCo Inc. competes within two key businesses: food and beverage. When it comes to being a food and beverage corporation, PepsiCo is the world’s third largest. However, they are the second largest in the carbonated soft drink industry. PepsiCo is definitely a market-oriented corporation. The definition of a company in the market-orientation stage is when it is able to...
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...world’s first energy drinks. Both of them contain caffeine and people have been using these beverages for year to receive an extra boost of energy for their day. I could remember my grandmother would wake up in the morning and the first thing she would do was to start to boil water for her morning tea. As a child I had no idea why she drunk tea. All I knew that if you added lemon and a bunch of the sugar to the tea, then it wasn't so bad. My grandmother was a local babysitter for the neighbourhood and the tea helped to give her energy for the day. My grandmother has passed away for years now but the idea of drinking something to gain energy didn’t pass with her. Tea and coffee has gotten a little out-dated and people today have adopted a new energy increaser, the energy drinks. The energy drinks as we know it today has gotten very poplar. From 2008 to 2012 the energy drink market has grown 60% (wallstreetinsanity.com). Energy drinks of today, besides coffee and tea, have been around for years. From it’s unknown origin, the energy drink has traveled around the world, and have gained substantial market shares in the functional beverage industry of several parts of the world. Europe is one of the largest functional beverages markets in the world. The energy drink has made a sizeable impact on the functional beverage markets in both western and eastern Europe. In this research project we are going to explore a number of objectives targeted to the impact of the energy drink on the european...
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...#4 Red Bull GmbH is a privately-owned company based in Austria. Red Bull energy drink is based on the Thai energy drink, Krating Daeng (Thai for Red Bull), first produced in Thailand by the T.C. Pharmaceutical Company. The formula became popular as a tonic for blue-collar workers in Thailand. Red Bull Beverage Company Inc. became a subsidiary of the T.C. Pharmaceutical Company in Thailand in 1984 and Red Bull GmbH began marketing Red Bull in Austria in 1987. One millions cans were sold in Austria during the first year of production. The original formula was adjusted for “western” tastes adding sugar and carbonation. Its unique selling proposition was increased stamina and mental concentration relevant to its initial target market of long-distance truck drivers. Red Bull was introduced to the U.S. in 1997 focusing on four western states: California, Oregon, Texas, and Colorado. While the target appeal was initially to athletes, it soon became clear that Red Bull had a special appeal to young, white-collar workers looking for endurance for after-hours “clubbing.” The club scene developed Red Bull as a very popular mixer with vodka. Red Bull has expanded their product line from the original one can, one size, one label, one sticky-sweet liquid energy drink to Red Bull Sugarfree, Total Zero, Energy Shot, and most recently, Red Bull Editions. Red Bull Editions is their line of fruit flavored drinks which include cranberry, lime, and blueberry. The can looks like a global product...
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...Fiscal Policy Paper Learning Team B ECO/372 November 30, 2015 DON OLSEN Fiscal Policy of the U.S.A People of a country are influenced by the economic conditions of the country in several ways. There were different phases faced by the U.S economy in different period of times from shortage of funds and budget and excess of funds and budget to huge debts. These economic situations influence the lives of the people in many ways. In this paper the United States economy’s surplus, debts and deficits as well as the ways it influences the lives of normal taxpayers of the US, social security situation in the coming years and Medicare beneficiaries, people with no employment, Students of University of Phoenix, the status and repute of the financial position of the US in the world, a local self-propelled production exporter, an importer of Italian Company Clothes, and the GDP of the US, will be discussed. Taxpayers Taxpayers in the US are impacted very much by the US surplus, deficits, and debts etc. There would be definitely low money available in the country when there is deficit in the budget of the country that would affect the taxpayers. The government takes the help to improve the money situation in the country. A surplus in the country impacts the taxpayers as although there is excess of money in the country and there are fewer taxes, but they are there. Despite of excess of money, people in the country have to pay taxes. The people in the country paying taxes are affected...
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...retail shelf. More and more consumers are moving away from traditional soft drinks to healthier alternative drinks. Demand is expected to grow worldwide as consumer purchasing power increases. PepsiCo was the worldwide leader of alternative beverages with a global market share of 26.5% and a 47.8% share of the U.S. market in 2009. Coca-Cola held a global market share of 11.5%. Although Coca-Cola was the worldwide leader in carbonated soft drink sales, they trailed PepsiCo in alternative beverage sales. Fast on the heels of the larger marketers are Red Bull, Monster, and “other” mainly consisting of privately held bottlers. Red Bull was the world’s number one seller of energy drinks which made it the third-largest producer of alternative beverages worldwide and the number two seller of alternative beverages in the U.S. and Europe. In 2009, Monster was the second-best-selling energy drink brand in the U.S. with revenues growing to more than $1.3 billion. There are hundreds of regional and specialty brands of energy drinks, sports drinks, and enhanced beverages in the U.S. and internationally. Of these, Rockstar was the most noteworthy privately held alternative beverage company. Which of the five competitive forces is strongest? Competitive pressure from rival sellers is high in the alternative beverage industry. The number of brands competing in sports drinks, energy drinks, and vitamin-enhanced beverage segments of the alternative beverage industry...
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