By Mark Seavy  

After years of spotlighting highly caffeinated energy drinks, beverage suppliers appear to be reversing course.  

That doesn’t mean energy drinks with caffeine levels that top out at around 200 milligrams will vanish from store shelves. But there is a growing focus on drinks that fit into the “better-for-you” category and, with health and wellness continuing to trend, there is a push for beverages that boast caffeine levels below 100 milligrams. And licensing opportunities are following suit.  

In large part this shift is due to concerns about caffeine levels and the health of targeted consumers, many of whom are under 18 years old. Those concerns reached a fever pitch in 2022 when influencer Logan Paul and Olajide “KSI” Olatunji’s Prime energy drink posted $250 million in revenue and landed sponsorship deals with the Los Angeles Dodgers and the Ultimate Fighting Championship (UFC). The company has since been hit with several lawsuits, including one alleging false advertising because the drinks were listed as having 200 milligrams of caffeine when there were 215-225 milligrams.  

Some countries responded by imposing a ban on the sale of energy drinks to those under 18 years old (including Poland, Lithuania, and Latvia), citing concerns about caffeine levels that could cause insomnia, anxiety, and behavior issues. The U.S. has no restrictions on caffeine. And while the U.K. has no age restrictions, major retailers have voluntarily agreed not to sell energy drinks to consumers under 16 years old.  

As a result of these growing concerns, some IP owners have tred carefully with character licensing for energy drinks that could be sold to younger consumers, licensing industry executives said. Moving forward, many of these companies are focusing on non-caffeinated or low-caffeine alternatives.   

Boston America, for example, has launched a line of 12-ounce non-caffeinated drinks, including those for brands like publisher Shueisha’s Naruto, Peyo Co.’s Smurfs, DreamWorks’ Shrek, Cloudco Entertainment’s Care Bears, WildBrain’s Strawberry Shortcake, Paramount Consumer Products’ SpongeBob SquarePants, and developer Scott Cawthon’s Five Nights at Freddy’s. 

Liquid Death, meanwhile, which has an extensive licensing program, recently launched products with “unextreme caffeine” levels of 100 milligrams, about the same as an eight-ounce cup of coffee. Other top energy drink brands like Monster Beverage Corp.’s Monster Energy and Gamma Labs’ G-Fuel also joined the race for less caffeine.  

G-Fuel’s powdered drink mix has 140-150 milligrams of caffeine, and includes a licensing deal with Microsoft’s Bethesda Softworks Division’s Fallout videogame franchise. The brand’s canned drinks, however, can run up to 300 milligrams. G-Fuel also has non-caffeinated energy brands (Hydration).  

Talking Rain Beverage Co. launched the retro-inspired Sparkling Ice Caffeine Soda Shop collection, which features three flavors and 70 milligrams of caffeine. And Monster Energy drinks have hovered around 160 milligrams in a 16-ounce can, although the version that is paired with Formula 1 driver Lando Norris has 145 milligrams. 

“There are valid concerns among licensors about caffeine levels,” Boston America President Matthew Kavet said. “But, in our case, I am not sure consumers are buying our drinks because they are non-caffeinated or a functional beverage. They are buying them because they have a license that resonates with them. They are buying two—one to drink and one to collect, and then probably never buying it again. More than anything, consumers want to buy the drink to see what it tastes like, but it might not be the main reason they are purchasing it.” 

For convenience stores, specifically, the trend towards health and wellness drinks—including those with probiotics—is taking a turn, according to the research firm Acosta Group. At convenience stores, 61% of consumers surveyed are seeking products with health benefits, including vitamin-infused waters and protein drinks, Acosta reported. The research also showed that Gen Z and Millennial shoppers are the most likely to seek healthier options.  

But, even with that healthier focus, high-velocity beverages remain the top sellers over better-for-you options, according to Acosta. 

“Packaged beverages continue to evolve and are being driven by health trends and functionality,” Scott Johnson, EVP of Strategy at the beverage consulting firm Enliven, told Convenience Store News. “We are seeing this in emerging brands that are providing cleaner labels in energy products, lower or no sugar offerings, and protein enhanced beverages. These are long-term trends that have spiked recently with general awareness of younger consumers and the adoption of GLP-1s into the lives of many.”