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Starting an Energy Drink Company The Logan Paul Way

As the title suggests, this is not a generic article which would advise you to start an energy drink company the traditional way. Rather, this article would be about personal branding and how important this is these days.

The traditional way of starting an energy drink company, or any beverage company for that matter, was to create your own formula for a beverage drink, build factories & offices, manufacture and bottle it, and then market it to your customers.

But times have changed. Today, you no longer need expensive manufacturing facilities just to create and sell energy drinks. For the most part, you can outsource almost all of your business processes.

This is what media personality Logan Paul and his partner, KSI have done. They used their celebrity fame to sell energy drinks.



Table of Contents:

1. The Growth of Energy Drinks


2. Why Are Energy Drinks Popular?


3. Are Energy Drinks Bad for Your Health?


4. Who is Logan Paul?


5. The Popularity of Prime Energy Drink


6. What is Logan Paul’s Business Strategy


7. The Importance of Personal Branding



Final Words



The Details:




1. The Growth of Energy Drinks

First, let’s talk about the explosive growth of the energy drinks market. According to leading online industry statistics and research firm, Statista:

The global revenue for energy and sports drinks amounted to USD 159 billion in 2021, and it is estimated that this would increase to just over USD 233 billion by 2027. This is an estimated increase of over USD 12 billion per year.

But this doesn’t tell the real story of the explosive growth of energy drinks. In fact, the first energy drink was invented in 1949, but it was only in 1997, after Red Bull was introduced, that energy drinks became mainstream.

They have become so popular that there are people who have ditched coffee in the morning and have substituted it with energy drinks.
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2. Why Are Energy Drinks Popular?

Energy drinks are marketed as beverages that contain a lot of energy. But this is not the true reason why energy drinks became popular all of a sudden. It was the marketing strategy of Red Bull who made energy drinks popular.

The makers of Red Bull tied their energy drink to extreme active lifestyles like skydiving, motocross, racing and so on. They made Red Bull cool and forever changed the image of energy drinks.

It also helps that the ingredients of energy drinks like taurine, caffeine, sugar and so on, are actually ingredients that can give you a burst of energy.

Whether it is true or not that energy drinks do give you extra energy, many people, especially the young, have been convinced by energy drink companies, that energy drinks do give people extra energy to do their tasks.
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3. Are Energy Drinks Bad for Your Health?

According to an online report from the website insider.com and similar online articles, excessive or regular consumption of energy drinks can lead to heart arrhythmias, headaches, high blood pressures and anxiety.

According to the online article, energy drinks were associated with 20,000 emergency room visits in 2011.

But as the word “excessive” and “regular consumption” suggests, drinking energy drinks occasionally is not bad for your health, but being dependent on energy drinks to boost your energy levels is unhealthy.

But we could also mention that the “energy kick” one gets from drinking energy drinks can become addictive, leading to health problems along the way.
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4. Who is Logan Paul?

Logan Alexander Paul (born April 1, 1995) is an American social media personality, actor, boxer, and professional wrestler who is currently with the WWE or World Wrestling Entertainment.

His first career was as a boxer, where he gained recognition because of a good win record. While boxing, he also dabbled into becoming a social media personality.

His boxing and social media fame made him a media celebrity. He has more than 26.5 million social media followers.

He has also dabbled into acting and becoming an entrepreneur. Among his entrepreneurial venture is the Prime energy drink of which he has partnered with fellow media celebrity, KSI.  
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5. The Popularity of Prime Energy Drink

To say that Logan Paul’s Prime energy drink is a very profitable business success is an understatement.

For example, Aldi’s Crawley Store in the UK sold out of Prime Energy drinks in just 30 minutes after it opened on Thursday, the 29th of December.

Customers lined up round the block in the hope of being able to obtain crates of Prime energy drink, while the store’s staff were forced to limit customers to one bottle per person. Notices were placed warning that they had completely sold out soon after.

Prime energy drinks were also being sold online at huge markups, up to seven times their retail value. This is how big is the demand for Prime energy drinks.
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6. What is Logan Paul’s Business Strategy

But contrary to what you might expect, Logan Paul and his partner KSI doesn’t actually manufacture Prime energy drinks. Rather, they use their celebrity status to market Prime energy drinks, leaving the manufacturing to another company.

In effect, Logan Paul and KSI have partnered with the actual manufacturer of Prime energy drink, lending their celebrity status to the brand.

But this is nothing new these days, especially in the age of “influencer marketing”. Many celebrities these days are using their fame to market their own products, using contract manufacturers to market their products for them.

Gone are the old days when celebrities were just exclusively used by companies to market their products. Now, it is the celebrities who are taking charge and marketing their own products under their own name and brand.
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7. The Importance of Personal Branding

That’s why it’s advisable to build a personal brand. With a personal brand, you can use the power of your media influence to sell your own products without needing a lot of capital to create your own manufacturing facilities.

With a personal brand, you have theoretically no limit on the kind of products you can sell. If you look at Logan Paul for example, he has marketed products that have been totally unrelated to energy drinks.

Logan Paul has endorsement deals from such companies as Nike and Dunkin Donuts. He has even endorsed failed cryptocurrencies.

As you can see, as many customers are concerned, it’s not the product that matters, but who is endorsing it. This is the power of personal branding.
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Final Words

According to many sources online, Logan Paul is a confirmed multimillionaire. His fortune as of 2023 is reported to be USD 245 million.

He amassed his fortune through his numerous ventures which include his foray into energy drinks. As can be seen from his example, he has successfully leveraged his social media influence to make his Prime energy drink products a much sought after product.

The business landscape has greatly changed these days, especially with the increasing power of influencer marketing and personal branding.

All you need these days to setup a successful energy drink brand or any product these days is to become a popular media personality and subcontract the rest of your business operations to other parties or partners.

For example, there are many Indian and Chinese companies who manufacture energy drinks by the bulk and deliver worldwide. They can even customize your bottling and labeling. All you need to do is to add your brand to these energy drinks. This is how easy it is these days.
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You Might Be Interested To Read This Article:


Starting a Bottled Water Business Using Tap Water

More people these days buy bottled water than bottled soda. The global market for bottled water is accelerating fast, while the global market for soda is ebbing. Many business experts predict that globally, bottled water would overtake bottled soda in terms of market size.

In fact, according to an old 2017 article by CBS, bottled water overtook soda as the number one drink in America. This is according to the consulting firm Beverage Marketing Corporation.

It’s also now 2023, and a lot of people know that many of the bottled water being commercially sold is nothing but tap water. Health experts in the US have determined that even the biggest water bottling companies are bottling tap water.

Also, bottled water is sold at a much bigger markup than bottled soda, making them more profitable to sell, although they are cheaper to produce.

With all these details presented, it is safe to assume that you have a high chance of earning a lot of money if you sell bottled water, even though it is just bottled tap water.

Here are a few steps to starting one: ...

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