5-Hour Energy’s President and CEO, Jeff Sigouin, acknowledges that the brand might have been slow to enter the powdered format segment but has no immediate plans to venture into it.
However, the company does intend to introduce more functional innovation into both its shots and beverages in the coming year. Additionally, a packaging refresh is on the horizon for 2024.
Market Impact of COVID-19
The COVID-19 pandemic brought about changes in consumer shopping habits. Online shopping and self-checkout became more prominent, altering the retail landscape.
5-Hour Energy experienced a boost in bulk e-commerce sales through platforms like Amazon, Walmart.com, and Target.com, particularly in formats like 24- and 30-packs. However, this increase has not fully compensated for the softening of brick-and-mortar sales.
Jeff Sigouin remains confident in the energy drink maker’s ability to thrive, even in a retail environment undergoing transformation. Despite the challenges posed by reduced impulse purchases at physical stores, where 65% of the brand’s business typically thrives, he believes in the enduring value proposition and product appeal.
