January 27, 2010 Leave a comment
Xyience’s Xenergy energy drink line-up has recently introduced four new flavors (above image – black cans) to supplement their successful energy drink launch. It’s interesting to see how Xyience has managed to carve out a following among all the other energy drinks. This success is likely to be directly correlated to their partnership with the Ultimate Fighting Championship (UFC) organization. As the mixed martial arts sport has grown in popularity, so has the energy drink. The UFC gradually hit mainstream media and surged in popularity in 2007, and Xyience signed up with a partnership since 2007 as well.
Xyience has benefited enormously from exposure and product placement in the UFC matches, advertisements, and even video games. As the UFC official energy drink, their logo is featured prominently in the UFC Octogon, round cards, towels, t-shirts, and so forth. Even from their own website (www.xyience.com), they claim that each pay-per-view UFC broadcast brings in 9 million viewers, which means that there are 9 million captive viewers for Xyience. In turn, the UFC’s logo is also featured on all the Xyience energy cans and this lends additional credibility. Customers that are exposed the UFC will undoubtedly pick Xyience when they choose an energy drink, with the UFC’s logo prominently displayed on the Xyience energy cans.
Of course, the energy drink market leaders are still Red Bull, Monster and Rockstar – controlling nearly two-thirds of the energy drink market. But just how much has Xyience’s Xenergy grown in the past year? Nielsen market data had Xyience ranked in the Top 15 energy drinks, behind Sobe, Beaver Buzz, Red Rain and Guru last year. This year, Xyience has moved into the Top 10 energy drinks, overtaking Sobe, Beaver Buzz, and Guru while growing sales over 80%! That’s phenomenal growth, and only Amp and Chaser 5 (Living Essentials’ 5 Hour Energy) has managed to sell more energy drinks (in absolute dollars). So where should Xyience go from here to maintain strong growth?
To continue their growth, Xyience will likely have to expand their product offering or expand into new markets. Energy shots for Xyience are already available, so product offering growth means either additional flavors or energy multi-packs. New markets means expanding into other areas where the UFC has a strong fan base – which could likely be anywhere since this sport is internationally televised and holds competitions across various cities. Multi-packs and additional flavors may be an option, but this will proliferate the brand and dilute the customer base. Therefore, expanding into new markets is their best option. By forming solid distribution systems in international countries, Xyience will be able to penetrate into the markets where the UFC holds a strong following and lend credibility toward the energy drink.