Red Devil Energy Drink Australia
The 12 year old Red Devil Energy Drink has arrived in Australia with a franchise opportunity strategy. For $98,000.00 (Secured by Red Devil stock, equipment, agreements etc. No franchise fees, no goodwill etc.) you get the challenge of setting up in a competitive, costly and deteriorating market.
Shelf space is prime real estate, hence the high charges associated with ranging product. I believe the Energy Drink Sector will slow down next year as the biggest economic con job bites. If anyone was listening to me about the predictions of economist Marc Faber then the Australian economy is going into battle with a glass jaw.
Red Devil drinks distributor package claims you get an immediate cash flow from retail stores, convenience stores and vending locations. You will also enjoy high profit margins which the exact amount is is not stated. If you want to be a boss and have no experience in the beverage industry you get full training. As the boss you can do it part time or full time. Your duties are to replenish Red Devil energy drink stock in Vending Machines and Retail accounts and collect the dough.
Red Devil Energy Drink also claims an amazing growth potential for the year 2009, I believe this information is outdated and should reflect the current economic climate. Some Australian supermarkets are cutting lines, who knows if the non-alcoholic beverage section will come out unscathed. In the route trade I doubt shop owners will be willing to carry extra stock unless they remove another competitor. This means cannibalism on a large scale and the new energy drink entrant is under pressure to perform or be eaten.
Smaller beverage companies in the USA and UK market are hurting, these are not the times to go on past figures and paint a bright future. Unless Red Devil Energy Drink can splash cash like Mother Energy Drink and size up the chemical fix, then their new franchised owners have a battle on their hands to make the new business venture a success. On the positive side is the return of capital could lead to job security, which in these unheralded times could prove to be a smart investment. But I stress the success rate could be limited to large franchise territories and very few of them.
The current energy drink market in Australia is hotting up, Coca-Cola Amatil is looking all smug with
the relaunched Mother Energy Drink, what they forget is that the competition can easily change the size of the packaging to match Mother’s obesity levels.
Young Australians are looking for the value sized chemical fix, the Mother brand has taken a 12.7% share of the energy drink sector in the grocery and convenience channels. If you subtract the market share of their previous failures of energy drink product, one will get an idea of the realistic inroads it has made.
In my opinion the future is looking interesting, when Monster Energy Drink from the USA, finds a way to launch in Australia. Monster USA is currently in a bitter and prolonged battle with Bickfords Australia and their Monster Energy Drink. Once this situation is resolved through the courts or through a substantial buyout, you will see Coca-Cola Amatil’s Mother energy drink fade into the background whilst they distribute Monster Energy Drink as they do in the North American market.
If Coca-Cola Amatil thinks they may have found the right energy drink to compete with V and Red Bull, with sales of Mother surpassing expectations, then why are they bidding for Frucor? Is it because that V Energy Drink is the jewel in the crown. Coca-Cola Amatil are good at buying success, the company is not innovative unless you go back to a history when they were a tobacco company.
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