Krystal to offer energy drinks

By Joe Guy Collier

The Atlanta Journal-Constitution

Krystal, best known for its square sliders, will break ground next week by introducing a drink that carries a kick.

The Chattanooga, Tenn.,-based chain will roll out the Krystal Blitz, the first branded energy drink by a major fast-food chain. The 20-ounce beverage combines Coca-Cola Co.’s Sprite brand with an energy syrup to provide the caffeine equivalent of two cups of coffee.

The Blitz also contains some other common energy drink boosters — taurine, guarana and green tea extract. It will be offered at more than 380 Krystal outlets, including 64 in metro Atlanta, the chain’s biggest market.

Krystal developed the drink because it saw increased interest in energy drinks in the broader beverage market, said Brad Wahl, Krystal vice president of marketing. It also saw an overlap between the core consumer of energy drinks and its customers, he said.

“The younger generation — the 16- to 24-year-olds — seemed to be the real heavy users of energy drinks,” Wahl said. “That’s a heavy user of fast-food, and especially the Krystal brand.”

Energy drinks have been a growing category but typically offered in cans. The growth also has been slowing during the recession. Energy drink sales grew 4 percent in 2008 after a 29 percent jump in 2007, according to Beverage Digest, a publication that tracks the industry.

Energy drinks typically are not consumed with meals, presenting a hurdle for a fast-food chain, said John Sicher, Beverage Digest editor and publisher. Customers also are loyal to brands, such as Red Bull and Rockstar, he said.

“The challenge of establishing an energy drink brand is significant,” Sicher said.

Krystal is launching the energy drink largely because it hopes to attract customers between meals, said Wahl, the Krystal marketing executive.

“We’re looking for it to be that in-between meals pick me-up at 2, 3, 4 in the afternoon,” Wahl said. “And certainly, we have an anticipation of this being a very strong late-night product as well.”

Krystal believes the drink fits its reputation as an unconventional fast-food chain, he said.

Initially, Krystal will offer the drink in two forms: a frozen version blended with ice and an “on-the-rocks” version over ice. Suggested prices are $2.49 for the frozen and $1.99 on-the-rocks.

It comes in one flavor that uses Sprite as a base and adds a lemon berry syrup made by Monin. Krystal, though, tested other flavor and base combinations, Wahl said. If the Blitz does well, new flavors could be coming.

“That’s one of [the] exciting things about the future of the product to us,” Wahl said. “We have a lot of options... We had several flavors mixed with Coke and Diet Coke that delivered a very good taste.”