Beyond the Buzz: The Business of Energy Drinks
By Meline Beach
The energy drink category is one of the fastest changing and fiercely competitive in the convenience and gas (C&G) channel. According to 2023 data from Statista, established leaders like Red Bull and Monster continue to dominate sales volumes. Red Bull holds nearly 50 per cent of the U.S. market, while Monster follows with almost 30 per cent. Meanwhile, the category is seeing a wave of innovation from both legacy and emerging brands, driven by growing consumer demand for functional benefits, healthier options, and more variety.
Tracking Sales
Energy drink shoppers are highly brand loyal, but they’re also curious, willing to try new or trending brands with unique flavours or better-for-you claims. Many C&G retailers have coolers dedicated to energy drinks, ensuring depth and variety. While a healthy portion of sales is still impulse driven, especially for limited flavours and new releases, planned purchases are common among loyal consumers who know exactly what they want.
Retailers like Weigel’s and Valor Oil report a noticeable shift in the energy drink category, with consumers increasingly seeking functional and better-for-you options.
“Over the last couple of years, we’ve seen a clear shift from purely traditional energy toward functional and better-for-you options,” says Nick Triantafellou, director of marketing and merchandising at Weigel’s. “Categories like clean-label energy, plant-based caffeine, and hydration-plus-energy blends have grown fast. Sugar-free SKUs continue to surge, and energy-plus-focus/nootropics are pulling in new demographics.”
Triantafellou also points to the rise of female-focused brands as a major development, highlighting Alani Nu as a breakout performer. “Originally popular with women for its vibrant branding, clean ingredients, and approachable flavours, Alani Nu has expanded its audience thanks to social media buzz, attracting teen customers and becoming one of the fastest-moving brands in the category.”
According to Alani Nu’s website, their top-selling energy drink flavours include Pink Slush, Orange Kiss, Cherry Slush, and Sunkissed Mixed.
Katy Hart, director of marketing at Valor Oil, says the energy drink category is evolving across their locations. Monster and Red Bull continue to dominate sales volume, with both brands typically stocked in dedicated coolers within five feet of the register, making them highly visible and convenient for both planned and impulse purchases. However, the surge in low-sugar energy drinks is attracting new customers.
“We’re noticing that younger customers are particularly drawn to new, colourful, limited-edition designer cans,” says Hart. “While most purchases are premeditated, seasonal flavours and special releases still drive unplanned buys.”
Energy drink buyers span a wide range of demographics, from teens and young professionals to sports enthusiasts, on-the-go parents, and blue-collar workers. Placement in coolers with maximum visibility help drive sales.
Innovation Drives Differentiation
While top sellers maintain their stronghold, functional beverages are gaining traction with health-conscious consumers. Brad Woodgate, founder and CEO of Joyburst, notes, “Consumers are moving away from traditional high-sugar drinks and leaning into clean-label, functional beverages.”
The Joyburst brand offers a lineup that includes hydration, clear protein, energy, protein coffee, and super soda. Their Super Soda contains zero grams of sugar and comes in tall, slender, colourful cans. It blends prebiotic ingredients, such as inulin and citrus fibre, with immunity-boosting additions like baobab fruit pulp, reishi mushroom, and lion’s mane mushroom. Its Renew Hydration drink, packaged in distinctive Tetra Pak cartons, combines essential electrolytes with a powerful vitamin B blend to support hydration, energy, and overall well-being.
While Joyburst is currently available in traditional grocery stores and Costco, the C&G channel is a win-win opportunity for both the brand and retailers.
“The C&G channel is very important to us,” says Woodgate. “It’s where fast decisions are made and new products are often discovered. It’s a strong driver of trial and in return, repeat purchases.”
Current distribution methods include direct-to-retailer shipping, third-party distribution, and warehouse fulfillment, depending on the channel. The brand’s target demographic is consumers looking for better-for-you beverages made with premium ingredients.
“Whether their goal is hydration, mental focus or overall wellness, Joyburst is a great fit for customers who want products that support their lifestyle without added sugar or unnecessary ingredients,” says Woodgate. “We see strong engagement from health-conscious shoppers and people actively seeking cleaner alternatives to traditional drinks.”
Triantafellou also sees functional hybrids, energy drinks combined with electrolytes, protein, or collagen, as an emerging growth driver. He notes that while sugar-free options are increasingly important, full-sugar varieties still have a loyal following, and brands like Red Bull have excelled by launching sugar-free versions alongside their full-sugar flavours.
Energy Shots Hold Their Own
Energy shots continue to perform well in the C&G channel. According to Yvon Bourgeois, vice president of Sales at Hilary’s Salesmaster Inc. in Canada, “5-hour ENERGY’s portable format makes it absolutely essential for high-traffic convenience locations.” He credits the brand’s success to premium placement at the checkout, strong point-of-sale materials, and deep retailer engagement.
“We’ve invested heavily in retailer partnerships and visibility strategies as the C&G continues to be one of our most successful channels,” says Bourgeois. “Our target demographic includes busy professionals, tradespeople, first responders, students, and truck drivers – anyone who needs quick, effective energy to power through their day post-lunch, pre-workout, or during long commutes. Lately, we’ve also seen increased interest from fitness-focused consumers (at only four calories and 15 grams of sodium per shot, zero sugar, zero carbs) and those juggling hybrid work lifestyles.”
Top sellers include Extra Berry, Extra Grape, and Extra Strength Blue Raspberry, with Peach Mango performing particularly well in Western Canada. A limited-edition Birthday Cake flavour, launched for the brand’s 20th anniversary in Canada, has quickly become a bestseller.
Merchandising and Promotions
Today, all major brands are tapping into social media, brand ambassadors, and loyalty initiatives with multiple perks to engage consumers and influence purchasing behaviour.
Alani Nu, for example, connects with its audience through Instagram, TikTok, Meta, and X. Their website also highlights an ambassador program and a two-tier rewards program, VIP and Insider, that offers perks such as birthday discounts and rewards for engaging with social media posts.
Joyburst partners with affiliates, brand ambassadors, and influencers to create collaborative marketing opportunities. In addition to its better-for-you ingredients, Joyburst highlights its sustainability efforts to appeal to environmentally conscious consumers.
By combining eye-catching visuals, innovative flavours, ingredients, and strategic offers, brands aim to capture both impulse buyers and loyal customers, maximizing their impact in a competitive, high-traffic retail setting – where seconds matter.
Looking Ahead
Innovation shows no signs of slowing. Joyburst plans to debut a Protein Coffee, functional “Super Soda,” and limited-edition collaborations, while 5-hour ENERGY will continue to use seasonal and celebratory flavours to engage loyal fans. Weigel’s expects even greater emphasis on functional hybrids and female-focused branding, along with more sugar-free variants.
For retailers, the challenge will be balancing the dependable draw of category leaders with the excitement of new entrants and formats. As functional benefits, bold branding, and creative merchandising drive the next wave, energy drinks are destined to keep energizing the C&G channel for years to come.
Meline Beach is a Toronto-based communications practitioner and frequent contributor to Convenience & Carwash Canada. In addition to freelance writing, Meline provides communications and public relations support to businesses across Canada. She can be reached at www.mlbcomms.ca.
