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Diving overview:
- AB-InBev’s Anheuser-Busch is partnering with sports nutrition and supplement company 1st Phorm to launch energy drinks and other related beverages. The partnership includes sports and entertainment mogul Dana White;
- Initial energy products are expected to hit the market this summer and will be distributed through Anheuser-Busch wholesalers. The companies have not announced a name for the new drink.
- The energy drink will give brewers Bud Light and Michelob Ultra a greater presence in a category dominated by Monster, Red Bull and Chelsea.
Dive Insights:
With beer sales struggling as consumers cut back on spending or switch to other forms of alcohol, brewers are looking for other opportunities for growth. One of the most persistent is the $21 billion energy drink market.
Anheuser-Busch Archives Molson Coors last November purchased a majority stake in Zoa, the energy brand created by Dwayne “The Rock” Johnson. The Coors Light manufacturer cited growth opportunities for the brand, noting that Zoa has a 50% consumer repeat purchase rate and 30% of the brand’s consumers are new to the category.
Anheuser-Busch is undoubtedly hoping to replicate this success through its partnership with 1st. Form. The company did not provide further details. Although White is involved, his celebrity status and previous brand-building experience will likely play a key role in launching and promoting the new energy drink.
“1st Phorm brings more than 20 years of category experience and deep relationships in the sports nutrition industry and fitness community,” 1st Phorm CEO Sal Frisella said in a statement. “By combining our strengths with Anheuser-Busch’s experience in beverage innovation and scale, we look forward to creating a new wave of energy and other beverages.”
Anheuser-Busch has a small presence in the energy drink space. It acquired Hiball, a maker of organic energy drinks and sparkling energy water, in 2017 before selling the brand to cannabis producer Tilray Brands six years later.
AdAge reports that 1st Phorm is currently producing an energy drink that will be reformulated and rebranded for launch this summer, citing Beer Marketer’s Insights. Anheuser-Busch CEO Brendan Whitworth said the goal of the partnership was to weaken the market power of Red Bull and Monster.
Non-alcoholic beverage companies have also gained a larger presence in the energy sector, primarily through acquisitions. In 2020, PepsiCo acquired Rockstar for nearly $4 billion. Keurig Dr Pepper spent more than $1 billion to acquire Ghost in 2024, after paying $863 million for the owner of C4 Energy’s stake two years later.
