• Brandchannel, Monday, January 18, 2010 10:49 AM

Barry Silverstein examines the very successful seat-of-the-pants approach that Living Essentials founder Manoj Bhargava has taken in launching and expanding his energy drink -- the 2-ounce "liquid energy shot" dubbed "5-Hour Energy."

"You can tell from the name, we didn't hire consultants to come up with it," says Bhargava. It also did not hire consultants for its distribution strategy, which has been to sell the tiny bottles at the cash register. A test that began at GNC outlets has expanded to such retail heavyweights as Home Depot, Kroger, Wal-Mart and Dick's Sporting Goods. Sales were north of $300 million last year.

The brand is spending $60 million in advertising and, unlike competitors, targets adults rather than adolescents. The product itself relies on a blend of B-vitamins, amino acids and nutrients rather than caffeine and sugar.

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