Question

Identify several problems energy drinks such as V energy may face, especially in Australia.

Answer 1

In Australia, the energy drinks such as Red Bull or V Energy are being blamed for the poor performance of the students. So, the first problem is the attracting of the negative branding to such energy drinks that can make the Australian authorities to pass the regulation that bans the product to the individuals below the certain age. The second problem associated with the energy drink is the addiction problem that people are facing in Australia. There are becoming addicted to it due to high level of caffeine content. People are getting dependent upon the energy drink. The third problem faced by the energy drink is the stringent regulatory standards against such products that can eliminate the competitive advantage over ordinary soft drinks. The regulation will cause the putting chemicals in permissible amount that should not create harm or addiction. The fourth problem is the change in value proposition among the consumers that will reduce the demand of energy drink and reduction in sales, will take place. So, it is a survival challenge for these energy drinks.