How a re-energized PepsiCo stung Red Bull with Sting

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₹20 for a 250ml bottle, it is the country’s first affordable energy drink. It is also low on sugar—6.8gm to Sprite’s 9.5gm and Red Bull’s 11gm per 100ml of serving. However, its relatively high caffeine—72mg—acts as a stimulant and makes it edgy.

But that’s still less than a double shot of espresso. Starbucks’ doppio contains about 150mg of caffeine. According to Euromonitor International, a market research company, the energy drinks segment has grown at a compound annual growth rate (CAGR) of over 110% in the last five years (see table).

All of it is largely due to the success of Sting. From less than 0.5% share before its launch in 2017, energy drinks now account for almost 5% share in the overall market in 2023. For PepsiCo, it has played an even more outsized role.

Last year, the drink accounted for 15% of its local bottler Varun Beverages Ltd (VBL)’s overall volume portfolio. VBL accounts for 90% of PepsiCo’s production and sale of beverages in India. “In a lot of markets and especially in the emerging markets, energy drinks are 14%-15% of the mix.

Sting has reached around 14%-15% of our portfolio mix and there is still a lot of potential left for the energy drinks industry," Ravi Jaipuria, chairman, VBL, said at an investor call on 6 February. “It is now a six-year-old brand and still doing extremely well. We think there is enough room for us to play." While Sting has upset Red Bull’s apple cart in India—one of the world’s most sold energy drinks—it is also a rare win for PepsiCo over arch-rival Coca-Cola in India, particularly when it comes to beverages.