Beaver Soda and Beaver Buzz Energy enters US, but at what price?

Courtesy of www.beaverbuzz.comBeaver Soda and Beaver Buzz, two brands of functional beverages produced by Double D Beverages Corp is expanding into the American market.

“Until recently there has been such a saturation of new products and we didn’t want to get lost in the mix moreover we really felt we needed to build a strong enough brand and company in Canada before we attempted to gain a foothold in the United States” said Double D Beverage Corps. Co President and CEO Richard DeBanks. “Let’s face it, the US is a game changer it’s going to demand complete focus and an executable strategy.”

DeBanks also suggests, “In the last few years it’s been ok for the big multi nationals to throw in another SKU and ride double digit growth, but that’s no longer the case.  Any growth or sustainability in the category will only come from products with a genuine point of difference. and we can offer distributors and retailers a profitable addition to their portfolio.  It’s been proven time and again that if you offer a better product at a competitive price and you support your distributors and retailers you will grow your brand and gain market share.”

Double D Beverages will be releasing 3 Beaver Buzz Energy flavors (Cirtus, Saskatoon Berry, and Green Tea) along with two Beaver Soda flavors (Canadian Cola and Retro Root Beer).  Distribution will be through 7-Elevens in Washington, Oregon and Northern California.

An interesting area to consider will be the company’s pricing strategy.  The Beaver beverages comes in a 355ml (12oz) package, while the majority of energy drinks come in a 473ml (16oz) can.  The only other 355ml energy drink out there is Red Bull.  If Beaver Buzz Energy launches into the US market with a 355ml package size, it will be interesting to see what price point they set.  Red Bull is currently priced at $2.99/355ml can, while most 473ml energy drinks are priced at $2.19.

Should Beaver be priced at $2.99 like Red Bull, because it is a 355ml package?  Of course not, Beaver is trying to penetrate the market and have nowhere near as much brand stature and recognition as Red Bull.

Should Beaver be priced at $2.19 like all the other energy drinks that are 473ml?  If it does this, then why would consumers choose to purchase Beaver in the first place?  The price is the same as other energy drinks, but the product is smaller and offers the consumer less value.

Then what price should Beaver beverages set?  $1.99 may be a good starting point.  This price shows the consumer that they will receive similar value compared to Red Bull or the other energy drinks.  With Red Bull bring at the same size but $1 more, it may be easy convincing price-conscious consumers to purchase or try Beaver beverages.  In addition, being smaller than a 473ml energy drink, a lower price shows the understanding of this size difference and a willingness to compete.

The price for Beaver Buzz Energy will be an interesting point, and we will know what they set for prices when it launches on July 1st 2009.


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