• NY Times, Wednesday, November 23, 2005 11:45 AM

Marketers looking for the latest hot category need look no further than energy drinks. Beverage Digest says these quick pick-me-upper beverages represent the fastest-growing sector of the $93 billion domestic beverage industry, with sales that have grown a red-hot 61 percent this year in the U.S. The drinks have evolved into a $3 billion business since their introduction eight years ago and are expected to accelerate profit growth for the beverage industry more than any other drink category in the next few years. "The energy drink category came out of nowhere," said John Sicher, publisher of Beverage Digest. "It's been a pleasant surprise for the industry." But the rapid success has not come without a downside. The drinks are loaded with sugar and caffeine and that has health experts worried. They say the beverages carry the potential to become addictive and are concerned about their popularity among teenagers, a problem only enhanced by product names like Full Throttle, Rockstar and Adrenaline Rush. In fact, four countries have barred the sale of energy drinks with current levels of caffeine: France, Denmark, Norway and, two months ago, Argentina. But sales continue to explode in America and Coca-Cola Co. executives have estimated that additional industry-wide profits from energy drinks from 2005 through 2008 will total $540 million. That compares to $210 million for regular soft drinks, $130 million for bottled water, and $290 million for sports drinks.

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