Coca-Cola
Coca-Cola is rolling out its first Coke-branded energy drink in the US.
- Coca-Cola is rolling out Coca-Cola Energy, the first energy drink under the Coca-Cola brand, in the US in January 2020.
- The American launch of Coca-Cola Energy marks the first time that Coke has launched a beverage that isn't soda under its iconic flagship brand.
- Energy drink sales are "exploding," according to a Coca-Cola executive. Coca-Cola is aiming to win over customers by offering more variety as far as what it means to sip a can of Coke.
- Visit Business Insider's homepage for more stories.
Coca-Cola is rolling out its first Coke-branded energy drink in the US in 2020.
On Tuesday, the company announced that Coca-Cola Energy, the first energy drink under the Coca-Cola brand, will come to the US in January 2020. The energy drink will launch with four flavors: Coca-Cola Energy, Coca-Cola Energy Zero Sugar, Coca-Cola Energy Cherry, and Coca-Cola Energy Cherry Zero Sugar.
Janki Gambhir, a Coca-Cola brand director, described the launch as the Coca-Cola brand's "first foray outside of the traditional cola category."
"We always just want to make sure we're servicing consumers with the experiences and the benefits that they're looking for from the brand," Gambhir told Business Insider.
Coca-Cola has been pushing the boundaries for what brands fit under the Coca-Cola umbrella over the last few years.
In early 2018, the company launched new Diet Coke flavors - including Feisty Cherry and Twisted Mango - to win over millennials. Coke Zero has been a significant sales driver, as shoppers seek out classic Coke without the sugar. Earlier in 2019, the company launched Orange Vanilla Coke, the first new Coca-Cola flavor in more than a decade.
Read more: Coca-Cola is debuting its first new flavor across America in more than a decade
According to Gambhir, these new Coca-Cola variations have sparked enthusiasm for the brand more generally. Beyond Coca-Cola Energy, the company is also planning on launching Coca-Cola Cinnamon for a limited time in the coming months and Cherry Vanilla Coke in early 2020.
Energy drink sales are 'exploding'
Monster Energy
As people across the US are buying less soda, energy drink sales are booming. Dollar sales of energy drinks increased 11.2% in the 52 weeks ending September 24, going from $11 billion to $12.2 billion, according to Nielsen data.
"The category is exploding at the moment without Coca-Cola being in it," Gambhir said.
Coca-Cola Energy will have more caffeine than a traditional can of Coca-Cola, with 114 mg, more than three times as much as the classic Coke's 34 mg. Gambhir says the company predicts the drink will be appealing because its caffeine levels are similar to those of rival energy drinks, without losing the familiar classic Coca-Cola flavor.
"One of the things that we've been learning from consumers too is they need something to go from day to night," Gambhir said. "Their days don't end at five o'clock. They transfer into a night full of - hopefully - fun things that they like to do, versus things they kind of have to do during the day."
Previously, Coca-Cola's involvement in the category has primarily been through Monster Energy.
In 2018, Monster tried to prevent Coca-Cola from launching its own brand of energy drinks in the US. Monster argued that when Coca-Cola agreed to take a 16.7% stake in the energy drink company in 2014, the contract prevented Coke from launching its own brand of energy drinks. In July, the American Arbitration Association determined that Coke would be allowed to launch and sell Coca-Cola Energy under the terms of the contract.