Low-octane energy drinks want to become the next big thing

As a former collegiate and pro hockey player, Jack McNamara is no stranger to the bright colors and fruity flavors of canned energy drinks. “Basically every locker room I've ever been in, from the age 12 to 25, was packed with artificial energy drinks and sugary sports drinks,” McNamara recalled.

But something about elite athletes guzzling artificial ready-to-drink (RTD) beverages never sat right with him. And once his playing days were over, McNamara decided to pursue the product he always wished had existed. “I just wanted to create something that I could truly feel good about consuming, that still provided the benefit that it said it provided,” he explained.

The result was Tru Energy, an energy and health shot company that launched in 2016, then expanded into canned drinks in 2020, after a suggestion from a colleague and friend at the soda manufacturer Polar Beverages.

Eight years into its journey, Tru is one of a small yet growing number of brands creating functional energy drinks that dial down the caffeine, trim back ingredients to the essentials, and focus on short, clean labels and functional ingredients serving different goals. 

Here’s what makes these products stand out in the crowded energy drink space.

Different energy levels for different occasions

For much of its history, the energy drink market has been impervious to health and sustainability dialogs, according to Scott Dicker at SPINS. What mattered was energy — and when it came to consumers like gamers and students, the more of it the better. But as the market for energy drinks has expanded, so have the different use case scenarios. 

“They all kind of get lumped into the ‘energy drink’ category, but we’re talking about very different occasions and different types of consumers,” he said. “What someone wants who’s going to a nightclub, or looking for a little boost for afternoon work, might be very different from someone getting ready for the gym. Those are all different types of energy drinks.”

While plenty of consumers still crave the full-send experience, Dicker says there’s a growing number who want something a little less intense than a 200 mg-300 mg candy-flavored tornado of energy. They’re looking for a slight morning or afternoon boost from clean ingredients — think more “optimized” than “weaponized.”

“There’s been this influx [in the energy drink market] of the fitness community, which is correlated with health but in a different way, because they’re still worried about physical performance,” Dicker said. “There are drinks popping up in that space. We just haven’t seen one make it huge yet.”

So, why not? Why haven’t those drinks become household names like C4 or Celsius? Dicker says it’s largely because the energy drink market has exploded so dramatically, it ends up hiding some promising growth along the perimeters. 

“They’ve seen so much growth that it kind of drowns out the growth of some of the other brands when you just look at the category as a whole,” Dicker said. “But I do think there’s interest and opportunity.”

More “enhanced water” than “energy drinks”

What’s a brand to do when everyone seems to be making power-packed energy drinks? Find a whole new category to lean into.

Rather than using the E-word, Tru’s marketing and website label their drinks “enhanced seltzers.” Even the most caffeinated formula tops out at a modest 125 mg, compared to 200 mg in Celsius or C4. Others have no caffeine at all.

“We’re really a carbonated complement to enhanced waters, hopefully sitting right next to Vitamin Water or Lemon Perfect,” McNamara said. “From a flavor perspective, we really look to brands like Spindrift for inspiration.”

Not focusing explicitly on caffeine has also created room for the brand to lean into non-caffeinated products: beauty, immunity and even a forthcoming gut-health soda. Tru’s biggest seller on Amazon right now is a sleep-focused seltzer.

“If we were to launch an energy drink today, I think we’d really struggle, because there's already a gazillion energy drinks out there,” McNamara explained. “But sleep — that’s a unique product. I think that’s the only way to win these days.”

Dicker agrees that the borders of the energy drink market contain big opportunities for brands willing to take the risks. “There are a lot of health focuses that have not really had major beverage categories expansions, and I think they’re ripe,” he said. “Just look at what's popular in supplements today, and you'll see the opportunities for better functional beverages.”