Energy Drinks Amp Up Profits: "The names of energy drinks convey power, strength, speed, and yes, even virility—Red Bull, Go Fast, Erektus, Dynamite, Flying Horse, Warp 4. Whether these so-called 'energy drinks' deliver the physiological benefits they claim is a debate that may never be settled.
But there's one thing these drinks do deliver—big profits. Although the energy drink category is barely two years old, industry experts believe it represents much more than a fad driven by hyperactive 20-somethings. It's here to stay.
'Energy drinks have an allure, almost a sexual tension, a mechanism that people believe will exhilarate them,' says Tom Pirko, a leading beverage industry analyst with Bevmark LLC in Santa Barbara, Calif. 'I think we've seen that the category has legs. This is a niche, and it's proven to have the right qualities to maintain it. The issue is how big [the category] will become.' "
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