Energy Shots

Energy shots offer a simple proposition: from a concentrated potion of caffeine, vitamins and amino acids, consumers get the functional “bang” that they receive from an energy drink but without having to drink all the liquid of a whole energy beverage.

Small portable bottles

Fast and strong effect

Wide application

Daily consumption

Energy shots vs. substitutes

Energy Drinks: diluted - high volume of liquids(usually) high in sugarbig bottle - less convenientperceived as a drink for teenagers

Coffee: time consuminglower effect

(usually) not portableunhealthy

Case study - USA

The first energy shot was launched in 2004

Supported by an educational campaign from the leading brand, the market size reached $340m in three years and an estimated $1.2b in 2010

According to New Nutrition Business*, the market will continue to expand at 40-50% in the short term and will reach as much as $2.5b in 2012

With the price/litre around 5x higher than for the conventional energy drink (see next slide), and the price per portion 50% higher, the energy shot segment offers uniquely profitable growth opportunity

* - New Nutrition Business, http://www.new-nutrition.com/

Caste study - USA

*Source: NNB Surveys in Wal-Mart, Albertsons

Caste study – EU

Sales rose from 150$ million to 350$ million from 2009 to 2010 and still growing. Projected market size in 2012 is 1$ billion

Similar to the US market, price per portion is 40-50% higher for the energy shots vs energy drinks

UK market is more advanced compared to the mainland Europe and has the market structure similar to the US

Other EU markets are fragmented and lack a clear market leader

Per capital consumption in Europe is almost three times lower than in US

* - New Nutrition Business, http://www.new-nutrition.com/

The dynamics of US and EU market size for energy shots

* - http://www.bevnet.com

Potential marketplace analysis

We have selected the most promising markets by analyzing a number of metrics:

total population target market size (24-35 years old) working hours per week original NapNock rating*

Conclusion: top countries for energy shots are Germany, UK, France, and Italy

*Attached in the appendix

Marketplace rating

Countries Population Target market size

Working hours

Original NN rating*

Germany 82m 9m 52 3

U.K. 62m 7.6m 55 1

France 65m 7.8m 52 4

Poland 38m 6.6m 56 11

Italy 60m 7.2m 55 2

* NapNock includes with rating of individualism, uncertainty, masculinity, working hours, population, road network, students, price level in each EU country.

Is there still any potential in EU?

EU energy DRINKS market size amounts to €6 billion* and is still growing 6-8% annually

Western Europe usually lags 2-3 years from the US

EU energy SHOT market is growing 50%-60% annually

There is still no clear market leader in the mainland Europe

Why Red Bull is not successful?

No clear and distinctive marketing strategy - 0.25l can is not the same as 60ml bottleThey continue to target 14-23 year olds, whereas, in our opinion, the biggest potential is in a more mature 25+ segmentRedBull exited the US energy shot market in 2011 because of low sales (only 10-15% market share 2010)*

* - http://www.bevnet.com/news/2011/red-bull-discontinues-production-of-cola-and-energy-shot

NapNock energy shot

60 ml energy shotGinseng and ginkgo biloba combo reduces negative impact on the heartNo sugar – no crashLong lasting effect (4-5 hours)Innovative taste with green teaand lemon

Competitive advantages over RedBull, Burn and

Monster

Natural ingredients: ginkgo biloba and ginsengLonger lasting effect because of ginkgo biloba and higher dose of caffeineHealthier: lower impact on the heartTarget market 24-35 (careerists) Independent energy shot brandGuerilla marketing campaign

NapNock consumer

Age: 24-35 yearsWorkaholic careeristSelf confidentPrefers quality goodsSocial life: loves to travel, party, socializingMoto: “Work hard, party harder”Features: bold, vibrant, imaginativeCompetence: reliable, efficient

NapNock marketing campaign

The NapNock TRIP to ASIA

NapNock 48 hours trip (without any sleep)

NapNock flashmob

Guerilla marketing video

POS material (aggressive posters, fake money, t-shirts etc.)

WEB (beverage industry webpages, travelling webpages)

Appendix

Energy shots vs. substitutes

Product Strenghts Weaknesses

Energy Shot • Convenient and portable packaging

• Quick and easy to consume• Price-premium value for

money• Long lasting effect• The need to place it near the

cash desk

• High price (education of consumers)

Energy Drink • Refreshment and stimulation drink

• Low cost

• High amount• Can not close the can• Target market - younger people (16-21)• Not portable

Coffee • Low cost • Lifestyle• Wide market• Older consumers

• Time consuming• Lower effect• No additional ingredients• Not portable• Bad for teeth

Competitor analysis

Brand Target market Slogan A. Ingredients Pricing

Quick energy 30-45 Small But Powerful

Caffeine 175mg Taurine

2.25 EUR

5 hour energy shot

30-45 Drink it in seconds. Feel it in minutes. Lasts for hours.

Caffeine 138mgTaurineGlucoronolactoneCiticolineTyrosine

2.13 EUR

Burn energy shot 18-24 Burn. Fire to drink. (same as e.d.)

Caffeine 80mgTaurine 200mgGlucoronolactone 70mg

1.99 EUR

Ubershot 18-25 Energy for life with no lows

Caffeine 210mgTaurine 1050mgGlucoronolactone 210mg

2.15 EUR

On Go shot - Shot it in seconds. Feel it for hours.

Caffeine 177mgTaurineGlucoronolactoneGinseng

2.13 EUR

Active Ingredients

Ginkgo Biloba – natural ingredient which increases mental activity and metabolism

Ginseng – natural ingredient with a unique ability to increase human endurance and mental strength

Glucoronolactone – provides fast recovery from fatigue cause by exercise

Caffeine – psychoactive stimulant which increases energy

Taurine – helps to rebuild stamina

Health Focus International’s study

(32 countries)

Statistics: Targegt by age

Country Population 20-35 age PercentageUnited Kingdom 62,262,000 14,000,000 22%

France 63,136,180 12,283,012 19%

Germany 82,329,758 0%

Ireland 4,581,269 1,320,551 29%

Sweden 9,354,462 1,918,156 21%

Norway 4,973,200 958,214 19%

Netherlands 16,683,400 3,125,100 19%

Poland 38,186,860 0%

Source: http://www.nationmaster.com/country/fr-france/Age-_distribution

Statistics: Students

CountryStudents (thousands) Ranking

Germany 2500 1UK 2415 2France 2200 3Poland 2150 4Italy 2000 5Spain 1800 6Russia 1500 7Greece 637.6 8

Netherlands 618 9Belgium 425 10Sweden 422 11Czech 416 12

CountryStudents (thousands) Ranking

Hungary 397 13Portugal 373 14Austria 308 15Finland 296 16Slovakia 235 17Denmark 234 18

Swithzerland 233 19Norway 219 20

Lithuanian 210 21Ireland 182.6 22Estonia 68.4 23

Statistics: Working hours

CountryWorking hours per week Rating

Portugal 62 1Estonia 60 2Austria 59 3Sweden 58 4Hungary 56 5Ireland 56 6Poland 56 7Italy 55 8UK 55 9Spain 55 10Czech 53 11Finland 53 12

Country

Working hours per week Rating

Netherlands 53 13Norway 53 14Denmark 52 15France 52 16Germany 52 17Swithzerland 52 18Greece 51 19Lithuanian 51 20Belgium 50 21Russia 50 22Slovakia 49 23