Running With the
Bull
Daytona native burns into energy drink market
By CATHERINE KLASNE
Food Editor
Last update: July 27, 2005
Tyler Benedict, a Seabreeze
High School graduate and son of a Daytona Beach advertising
mogul, got the idea for his new energy drink, Source Burn,
while watching his cycling buddies water down Gatorade to
drink during a ride.
In 1987, Austrian Dietrich
Mateschitz started selling his creation, Red Bull, the first
mass-market energy drink, after being inspired by the
revitalizing, tonic-type drinks popular in Asian bars.
Between Red Bull's U.S.
launch in 1996 and the 2002 introduction of Burn, entrants
in the energy-drink category have come and gone, mostly
gone.
Most contain some combination of caffeine, taurine and
guarana, and the purpose is to give consumers the oomph to
finish a sporting event or, for that matter, the workday --
or to stay up all night, whether to party or study.
Mixability with alcohol was an early consideration, but
competitors finally are expending energy to make this stuff
taste good on its own.
"Red Bull is the category leader, and it tastes like cough
syrup," Benedict said on a recent publicity swing through
the Daytona Beach area. S.R. Perrott Inc. began to
distribute Burn locally this month.
It's the only product line
with the Source Beverage brand, which is the only division
of Benedict's Greensboro, N.C.-based P.R. Performance Inc.
Benedict, 31, has lived in Greensboro since 2001, is married
and has a 5-month-old son.
Typical descriptions of the
taste of energy drinks usually include the words
"medicinal," "SweeTarts" or "chewable vitamins." Some who
tried Source Burn at The Daytona Beach News-Journal didn't
find it to be superior, but others said it was pleasant,
either peachy or citrusy in character.
"We've got more caffeine,
more vitamins and taste better," Benedict said.
Though he mentioned taste
last, it was important enough to send him to a "flavor
house" after experimenting with his own home brews for a
while. Flavor companies help food, beverage and drug
developers to determine how products should taste and smell
and what ingredients to use to achieve the flavor and aroma.
Benedict knew the drink
shouldn't be too carbonated. As a mountain biker, he had
seen fellow cyclists shake cans of cola to make them
gulpably flat before taking them along on rides.
And he knew it shouldn't be
too sweet or tart or acidic. He perceived all three as
problems with Gatorade.
The "flavor house," which
Benedict wouldn't identify for publication because of
confidentiality concerns, helped to give Source Burn what
Benedict describes as a lightly carbonated citrus-tropical
profile.
The functional part of the
8.3-ounce canned drink is 110 milligrams of pure caffeine,
guarana (this extract of a rainforest plant seed contributes
eight more milligrams of "natural" caffeine), taurine (an
amino acid, so named because it was first obtained in 1826
from ox bile -- get the "bull" connection?), ginseng, and
vitamins B6, B12, A, C and E. Most drinks that size have
only 80 milligrams of caffeine, total. For comparison, it
helps to know that, on average eight ounces of brewed coffee
has 85 milligrams of caffeine.
There is also a
zero-carbohydrate, sugar-free Burn, sweetened with Splenda
and ace-K (acesulfame potassium) instead of sucrose, glucose
and maltodextrin.
A 16-ounce version also is
in the works, in keeping with a new industry trend that
strays from those narrow eight-ounce bullet cans that
everyone is hoping to ride into beverage history, their shot
at following Red Bull's ultra-successful creator.
Power
Surge: Who Buys All the Energy Drinks?
Phil Lempert, editor of
Facts, Figures and the Future, says energy drinks are soon
to be a $2 billion market, a market that grew about 56
percent between April 2004 and April 2005. "The increase has
been driven by several factors, including":
- An "on-the-go"
American consumer looking for quick bursts of energy
throughout the day.
- The adoption of energy
drinks by "Generation Y" -- the skateboard, dirt-bike,
snowboard, X-Games set -- as a drink they can call their
own.
- The popular use of
energy/alternative beverages as mixers for alcoholic
drinks, both in nightclubs and at home parties.
Making of an Energy Drink
1998: University of Florida
graduate Tyler Benedict returns to Daytona Beach from
Charlotte, N.C., with his wife, Kristi, to work at Benedict
Advertising, owned by his father, Jim. The emerging energy
drink market catches Tyler's attention.
1999: Benedict introduces
Propel, a powdered energy drink, and files paperwork for a
"use in commerce" trademark. The mix has no citric acid and
a little caffeine and is a mild-tasting alternative to
Gatorade. Quaker Oats trademarks a bottled water with the
same name, Propel, two days later and afterward pays
Benedict six figures to surrender his trademark. Two months
after launching, he changes the product's name to ProLyte
and hits the extreme sports circuit to sell it. "We had
decent distribution in specialty shops," he says, but he
yearns for a mainstream market.
2001: The couple moves back
to North Carolina, Greensboro this time, still using the
Quaker money as "seed capital," working from home and
borrowing money from family and friends to develop a new
energy drink. Tyler is the founder, owner and CEO of P.R.
Performance Inc. with its Source Beverages brand.
2002: Benedict begins
selling Burn, with 48 percent more caffeine than industry
leader Red Bull.
2004: Sugar-free Burn is
launched.
2005: P.R. Performance Inc.
is thriving, with an expected annual revenue of $2 million
and distribution in more than 20 states. In May, Burn
sponsors advance screenings of "Unleashed," the martial-arts
action film with Jet Li and Morgan Freeman, in 11 cities,
including New York, San Francisco, Chicago and Greensboro.
Other sponsorships include mountain bike races, hot-body
contests, video game tournaments and drag races. Benedict
plans to release a 16-ounce version of Burn in August.
-- Staff and Wire Report n
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