Special Report: Energy products level up
Convenience stores have long been the go-to spot for a quick pick-me-up, and energy drinks remain a top seller. But the category is evolving, as shoppers seek functional benefits, new flavours and novel formats that go beyond the traditional energy drink can.
“More shoppers are looking for clean energy options with simple ingredients and no sugar crash, and retailers that carry these products are seeing strong interest,” says Glen Pratt, director of sales at Nuvona, which distributes Proper Wild energy shots in Canada.
“Functional energy is also bringing new shoppers into the category, who may not traditionally reach for a large energy drink.”
Founded in 2018, New York-based Proper Wild offers a line of energy shots made with simple, all-natural ingredients. Each 74 mL serving contains 100 mg of caffeine derived from green tea and 120 mg of amino acid L-Theanine. The shots are made with natural juices and contain no artificial sweeteners or flavours. They’re also vegan, GMO-free, dairy-free, soy-free and stevia-free, and come in three flavours: Peach Mango, Blackberry and Strawberry Kiwi.
Vincent Bradley, co-founder and CEO of Proper Wild, describes the development of his company as a personal project. Looking for an alternative to coffee, he found that many energy drinks are loaded with gut-harming, artificial, ultra-processed ingredients and preservatives.
“I gravitated towards matcha and learned that the best form of caffeine is often from green tea because of the polymers that encapsulate the caffeine,” Bradley says. “The other key element is L-Theanine, a natural amino acid that supercharges the caffeine, helping to enhance focus and energy. It also reduces negative side effects like jitters and the subsequent crash. They really are synergistic ingredients.”
Proper Wild’s target audience skews slightly female—around 55% to 60%, says Bradley. “When you look at the historical data around energy, the main consumer is male, and all the branding is very masculine. We wanted to be an energy product for everyone.”
In addition to its energy shot lineup, Proper Wild offers strawberry clean-energy gummies, which also contain caffeine and L-Theanine. They’re currently sold in the U.S., with plans to launch the gummies in Canada. Bradley says big selling points for gummies are convenience and familiarity. “Everyone grew up eating gummies and fruit snacks, and the format is exploding within the dietary supplement space,” he says.
Another emerging player in the functional energy space is Ryde, which sells Energize—a 60 mL energy shot containing caffeine, ginseng extract and vitamins B1 and B6. The brand, owned by BAT’s Water Street Collective, sells two other functional shots—Relax, which contains chamomile, L-Theanine and ginseng extract, and Focus, which contains L-Theanine, caffeine and ginseng extract. All three varieties have no sugar and no calories.
“Ryde Energize has 120 mg of caffeine and it’s beautifully mixed with B vitamins and the objective is to help you fight fatigue with no sugar crash,” Kervy Diaz, country manager Canada at Water Street Collective. “All three products are designed to be portable, fast-acting and easy—basically offering well-being in one shot.”
Pasquale Bufo, vice-president of customer management BAT, adds that the wellness market overall is booming. “Consumers want quick but credible benefits,” he says. “Yes, there’s the better-for-you market with the pills, powders and long routines, but there’s a clear shift toward functional beverages that are easy to use and provide immediate, science-backed benefits.”
For convenience and gas retailers, this represents a huge growth opportunity, adds Bufo. “These are consumers who are on the go. They’re either tired, distracted, or transitioning between moments, and they want to be able to go in and pick the product that’s right for them—an ideal functional shot. And C&G answers to that need incredibly well.”
5-Hour Energy, which pioneered the energy shot category more than 20 years ago, remains a category giant. Its three core flavours—Berry, Grape and Blue Raspberry—remain top sellers in convenience stores. Today, 5-Hour Energy is investing in new flavour development, as flavour innovation is one of the most notable trends in the category, says Yvon Bourgeois, VP of sales at Hilary’s Salesmaster Inc., which distributes 5-Hour Energy in Canada.
“Consumers are increasingly interested in new taste experiences, and the category is responding with a broader range of flavour profiles, including sweeter and more adventurous options,” he says. “Flavour variety has become an important driver of both trial and repeat purchase.”
Convenience and efficiency are also key trends. “Consumers are looking for products that deliver functional benefits quickly and without complexity,” says Bourgeois. “Energy shots remain uniquely positioned in this regard because they provide a simple, fast solution that fits easily into busy lifestyles.”
Though not marketed as an energy drink, Yerba Madre sells organic, shade-grown yerba mate beverages in a variety of flavours. The brewed and sparkling drinks contain yerba mate extract, sourced from the naturally caffeinated leaves of the yerba mate tree native to South America. “It’s not your traditional energy drink,” says Eric Clark, VP, GM of International, at Yerba Madre, who describes it as a hybrid between energy and tea. “A lot of energy drinks in the market today are developed in a lab, whereas yerba mate is developed in a field.”
Yerba Madre, which rebranded in 2025 from Guayaki Yerba Mate, is working to carve out a new category in Canada. Globally, the yerba mate market is expected to grow from US$2 billion in 2025 to US$3.46 billion by 2035, and Clark says momentum is building in Canada.
“People are a lot more aware of what they’re consuming and they’re realizing that the food and drink they consume throughout the day can affect their mood and can fuel their lifestyle—and you don’t have to do it in an unhealthy way,” Clark says.
For retailers, the biggest opportunity is that functional energy products and hybrid brands like Yerba Madre are high-revenue, high-profit items. Clark says while larger beverage brands tend to dominate planograms, it makes sense for retailers to carve out a section for an alternative offering. “Consumers are looking for something that adds function, not just quenching thirst or hitting on one specific need state. You want to offer products that offer a variety of need states—both refreshment and energy, or refreshment and mood support.”
Energy is also expanding into the gum category. Sunii Energy Gum delivers 50 mg of caffeine, along with taurine and B vitamins. CEO and founder Marie Thiffault says Sunii is based on the same concept as nicotine gum. “It’s your regular gum base that you chew on—it tastes like mint—and then you add active ingredients… And because it’s buccal absorption, it will kick in quicker than a coffee.”
Though Sunii initially targeted extreme athletes, Thiffault says the brand now has a much broader audience. “I started very niche, but it’s definitely snowballing. It’s anyone who wants the energy from coffee but doesn’t feel that it’s a convenient moment to have one—that’s when Sunii comes in.”
For retailers, Thiffault says Sunii is a fun, appealing addition—and that’s true for many innovative energy products. “You get to create some curiosity with existing customers because you have something new to offer.”
- EXPERT TIPS FOR SWEET SUCCESS
- While innovation is driving the energy category, success at retail comes down to the fundamentals. Glen Pratt from Nuvona (Proper Wild) advises retailers to keep the approach simple: visibility at the front end and the right assortment. “First, checkout merchandising at the front counter is critical,” he says. “Energy shots are impulse products. When they are part of the checkout set, they naturally become an easy add-on purchase. Second, make sure the assortment reflects where consumer demand is going.”
- Since energy shots are impulse-driven products, Yvon Bourgeois from Hilary’s Salesmaster (5-Hour Energy) says the most effective placement remains a dedicated rack at the front counter where customers naturally make purchasing decisions. Strategic pricing and periodic promotions also help encourage trial. “This allows retailers to grow the energy shot category while also expanding overall energy sales,” says Bourgeois.
- Educated employees who can help explain the product and its better-for-you benefits are also key, notes Pasquale Bufo from BAT (Ryde). “Because our products are science-backed, we’re working significantly outside of store to build awareness and bring consumers into store,” he says. “But when they’re in store, the educated staff of our C&G partners is a must-have.”
