Kraft Foods Is to Enter Energy Drinks Sector with MiO Energy

Kraft Foods will launch a caffeinated version of its popular MiO drink water enhancer in the beginning of 2012. The producer is to take on Red Bull and Burn with its MiO Energy, with caffeine equivalent of 12 to18 cups of coffee containing in each bottle. Flavors will include ‘Black Cherry’ and ‘Thunder Punch.’ 


Photo: New MiO Energy package design, from www.bevreview.com

MiO, a liquid used to add to water to make it taste better or different has generated $100 million in revenue in its first year on the market and now Kraft is planning to continue its sales growth at the energy drinks sector too.

Kraft is to split itself into two businesses soon. Snacks producing will be based on Cadbury which Kraft bought two years ago for £12 billion and focus on producing such brands as Oreo cookies, Cadbury chocolates and Trident gum. The North America-based foods business will develop potential of products like Kraft cheese, Maxwell House coffee and Oscar Mayer meat. And a $6 billion US market for energy drinks is worth the risk of expanding to the energy drinks sector, says IB Times.

Kraft CEO Irene Rosenfeld says: “We have certainly seen strong growth in the energy drink category. We’ve had a smashing success with MiO and I think this is the perfect platform for the category.”

MiO Energy will target mostly male consumers who normally buy energy drinks at convenience stores. Kraft says it will not recommend the drink to kids under 18. The new energy drink will come in varieties of 12 or 18 servings. Each half-teaspoon that is squirted into water will contain the same amount of caffeine as a cup of coffee.

According to Kraft, the MiO drink is expected to bring approximately $100 million in revenue in its first year on the market.