Montreal-based organic energy drink producer Guru has several reasons to believe that his new tropical-flavored mixture will allow him to make significant gains.
The success of the Guayusa drink’s launch this fall will be measured in market share gains, and Guru CEO Carl Goyette expects the increase to be “significant.”
Three main reasons lead him to believe that Guayusa – the fourth variety offered by Guru – is more successful than the addition of the drink Yerba Maté last year to its family of products.
The tropical effect
The new drink, produced with a caffeinated plant from the Amazon jungle, was first launched in Quebec, the company’s main market.
“Guayusa drink is believed to be a superior product [à la boisson Yerba Maté] because it tastes more of a mass. The flavor is tropical. It is reminiscent of passion fruit, guava and clementine. In the energy drink industry, it is a mass taste that is well accepted by all consumers, ”explains Carl Goyette.
The Pepsi Machine
Benefiting from Pepsi’s “delivery machine” for launch is another element Guru is counting on to support its launch efforts.
Since the beginning of October, Pepsi has been selling, distributing and marketing Guru’s drinks in Canada, particularly in convenience stores and grocery stores. Guru is counting a lot on this partnership to increase its influence in the country.
Advertising campaign
Finally, Carl Goyette adds that a “more significant” marketing campaign will support the launch of his new product as of next week. The Guayusa drink is set to make an appearance on the reality show on Thursday Double occupation.
Initial feedback from store employees is “overwhelmingly positive” and the product appears to be selling well even though its official launch has yet to take place, says analyst Martin Landry, of Stifel / GMP, in a report. recent research report.
Outraged OD, billboards, and social media content with, among other things, the help of influencers (they get cans) are other aspects of the marketing campaign that Guru has developed for its launch.
“When you launch a new product, there is always a certain cannibalization,” says Carl Goyette. “In the beginning, a big chunk of sales comes from Guru drinkers. So you can sell a lot of cans at first, but if you sell cans to Guru drinkers, you don’t necessarily gain market share. “
It gets interesting when drinkers of Monster, Red Bull and other competitors start drinking it.
Carl Goyette, CEO of Guru
The “assessment” will be done by the measurement and data analysis company Nielsen. “This is where we will see if Guru has gained market share compared to the competition,” says Carl Goyette. “If we gain market share, in total, we sell more cans, so the turnover increases. ”
From chemical to biological
Studies indicate that between 50% and 70% of chemical energy drink drinkers seek a natural drink, according to Carl Goyette.
“Tropical flavors are very popular in the energy drink industry. There are some in all brands (Red Bull, Monster, Rockstar, etc.). Just go and find the tropical flavor lovers who consume chemicals and bring them to a natural and organic tropical flavor. ”
PHOTO MARTIN TREMBLAY, THE PRESS
“Tropical flavors are very popular in the energy drink industry,” says Carl Goyette, CEO of Guru.
He points out that just a few weeks after the launch of Yerba Maté last year, Guru had already gained nearly 2% of the market share. “We expect to exceed more than 2% with the Guayusa. It would be a success. ”
Guru now has a 14% market share in Quebec, behind Red Bull (42%) and Monster (28%).
Other projects
The company intends to launch other organic drinks based on “super plants” still little known for their benefits in the energy drink industry.
PHOTO FRANÇOIS ROY, PRESS ARCHIVES
Carl Goyette, CEO of Guru
There is still room for innovation and also room for formats. It could also happen in 2022.
Carl Goyette, CEO of Guru
Guru only offers packs of four cans, while there are packs of 8 and 12 on the market. The size of the can could also represent an opportunity. Guru currently offers two formats: 250ml and 355ml.
When the CEO is asked if an expansion to pouches or food is being considered, he responds “possibly, but longer term”. “The canned energy drink industry is valued at $ 16 billion in North America and is made up mostly of chemicals. This industry needs a big cleaning. This is what we want to change first. ”
Martin Landry, of the firm Stifel / GMP, believes that Guru’s turnover may reach 160 million in 2025, that is to say almost five times the level of the financial year of 2021. This analyst leaves so hear that Guru’s action could triple in the next three years.