Energy Drink Overview

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Energy Drink Overview
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History of the Industry

• Fastest growing segment of the beverage industry
  in the USA, over US1 billion (IRI data) of the
  US60 billion soft drink industry
• The category has emerged since 1997 grew from
  US100 million four years ago to over 250
  million two years later.
• Market growing at 30 per year right now.
• Future of the market is seen as replacing other
  caffeine delivery categories (coffee declining).

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History of XS

• Developed by a nutrition company with a focus on
  low glycemic products forefront of Atkins-type
  diets
• Launched in traditional distribution with mixed
  success
• Huge success when sampled at grocery/Costcos
• Need guerilla marketing and sales (lacking 70
  million required to hit beverage market).
• Looking for niche channel that would allow for
  successful distribution without street war.

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Success via Quixtar-Amway to Date

• Launched September 13, 2002 by IBOs to IBOs
  (could not even find XS on Quixtar site for first
  two weeks of launch)
• Six months of back orders and catch up -- first
  major success in a beverage category, lessons for
  Australia
• Biggest selling product on Quixtar
• Called the future of Quixtar by Steve Van Andel
  at his IBOA address and at Quixtar Live (National
  Convention) in the spring of 2003.
• Listed among four products Doug DeVos quoted as
  being responsible for North American growth in
  2002.
• Largest energy drink manufactured in North
  American in a 250ml can BevNet.com industry
  review.

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XS Energy Drink

• Grape-Berry Blast
• Citrus Blast

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Whats in the Drinks

• Flavors and masking taste of herbs and vitamins
  why we chose cranberry and citrus
• Artificial Sweetners (0 sugar, 0 carbs, 8
  calories from amino acids proteins)
• Acesulfame Potassium (Ace-K) an inert salt, it
  passes through the body without change or effect,
  is 150-200 times sweeter than sugar, has had over
  90 clinical trials, launched to the world market
  in 1988, approved for use in drinks in 1997.
• Sucralose unique for launch as both sugar
  derivative and most broadly approved. 600 times
  sweeter than sugar, yet inert. Tested for over
  20 years and sold in over 100 countries.

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Whats in the Drinks

• Caffeine 60 mg of synthetic caffeine (not like
  caffeine bound to organics in coffee and tea),
  helps deliver vitamins faster. Caffeine
  Advantage.
• Herbs Adaptogenic Blend
• Soviet formula used to sweep Lillihammer
• Tom Jones runs 120 maratons in 120 days
• Stress recovery
• Vitamins
• Not a replacement for Nutriway B Complex, more
  like a Boracca tablet
• Metabolism benefits and diabetic testimony
• Recommended serves per day vs. US blend

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Objectives

• Implement an exciting, Full PV/BV, exclusive
  Energy Drink
• Leverage the excitement and momentum created from
  the United States success with XS Energy Drink
• Capitalize on the exceptional growth of the
  energy drink market.

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Target Audience

• Males and females age 18-30, or people who think
  they are 18-30
• Mothers (someone who buys a diet coke and a red
  bull in the same shopping cart).
• Active IBOs and consumers
• Retail customers
• People currently drinking stimulant drinks to
  obtain some type of boost.
• People who are concerned with the amount of
  sugar, caffeine, and calories contained in a
  majority of popular drinks.

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Marketing

• XS as a sponsoring tool
• Lead with a product
• Younger market
• Door opening
• Sampling events
• Sports events
• Health clubs
• Energy breaks( see rules of conduct for specific
  information)

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Profitability

• High consumability makes it one of the most
  profitable products.
• Full PV/BV
• XS Consumer requirements and profitability based
  upon being an XS Consumer.

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Future of XS

• Forecast of energy drink and beverage market
• Come back next year as a New Diamond
• IBO potential to be number one drink in
  Australia.

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