COLLEGE PARK, Md. — The power drink of the moment costs 20 times as much per ounce as Coca-Cola, comes in a tiny bottle and tastes so bad that most people hold their noses and down it in a single gulp.
Despite all that, sales of “energy shots” are soaring in the middle of a recession. The two-ounce drinks, which give people a concentrated dose of caffeine, B vitamins and amino acids, were all but unheard-of four years ago. Today they are the hottest drink category in the country, with sales expected to almost double this year from last, to about $700 million.
Near the University of Maryland the other day, students thought nothing of paying $3 or more for a shot. That is $1.50 an ounce; at that price, a 20-ounce bottle of Coca-Cola would sell for $30.
Sales of the shots are rising even as sales of traditional energy drinks like Red Bull have flattened out. Bill Pecoriello, chief executive of Consumer Edge Research, estimated that shot sales could reach $700 million this year, nearly double last year’s $370 million, not counting sales by Wal-Mart Stores. The estimate was based on sales data collected by Information Resources, a market research firm.
The market is dominated by a tiny company in suburban Detroit called Living Essentials, which began test sales in late 2004 of a product called 5-Hour Energy, packaged in small plastic bottles. Today, 5-Hour Energy accounts for about 80 percent of the rapidly expanding market, according to Mr. Pecoriello.
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