You make a valid point let me explain. 5hr is the giant and they own the energy category. They have had lots of bad press and their ads on TV have been attacked but the big thing now is that there is a movement against them and Monster and Rock Star for targeting young people in ads and there is a lot of wrongful death suites that 5hr is fighting, its really hurting them and they have lost some market share but not much. The same thing is going on with Monster and I have been following all this in the beverage magazine and on Bevnet. SK is owned by the rapper 50 cent and he made fortune in Vitamin Water as they gave him lots of stock for ads etc. plus he wealthy from rap. He started SK which is know as Street King. It basically has been targeting more urban area and cities. Sales as you think would dictate the counter but it does not, let me explain. They are paying what is know as slotting fees or huge rebates to the retailer for counter space. It's called pay to play. Hangover Joe's has got in the stores because its a new category and has great branding also, 7-11 is a believer in the category, but the key is they don't pay to play or have the money to do this at this time. A typical chain store is $50 to $75 for slotting fees for a counter so take that times 4K stores its lots of money over chains etc. to get on these counters. I hope that answers you question. See i have been watching what is going on 5hr is a giant but your correct its not all cracked up to be what they advertise, there a lot of not natural stuff in here and sugar and caffeine which the market is actually getting beat up on there is a movement in beverage to be sugar free and promote health etc . SK have spent 20mm and still cannot touch 5hr because well the branding in my opinion is not strong enough its really not good at all and they focus big on an African American demographic their billboard are all over the inner cities. 5hr believe me can be taken down or loose market share in time but its going to take a strong brand and that going to take money and a product that creates energy without all the problems that 5hr and these energy drinks are fighting. That time will come I believe in time some brand will rise to take them on but I see nothing in the market that can do it at this time. Hangover Joe's is not energy but hangover and that category will never get the turns of energy and you really cannot compare the two. Yes the bottle looks the same but its all about the branding and the function and the category. Hangover Joe's has an opportunity I think to be a global brand as well as domestic. Energy only sells massive in the USA and 5hr cannot even get listed in the UK or other countries based on what is in the product. Hangover Joe's need to continue to focus on the category and grow the brand. It's going to take time and money. Also being a new category its harder as I sell the product and unlike energy you have to educate the consumer. Energy is energy but hangover they want to know do I take it before I drink, do I mix it with my drink, do I take it before I go to bed, we have to always educated the consumer at the store level unlike energy. Just giving you my insights as I see it folks.
AI
