Source | FBIF Food & Beverage Innovation ID | FoodInnovation Author | FBIF
An energy drink that removes the key ingredient taurine has broken historical sales records at 7-Eleven in the US less than two months after its launch. It is Phorm Energy. In October, Phorm Energy became the best-selling Dollar Deals (a promotional mechanism or pricing tier, literally translated as one-dollar deals) energy drink brand in 7-Eleven's history. Notably, it was only launched at 7-Eleven, Speedway, and Stripes convenience stores in the US in August.
Cherry Slush limited edition flavor Image source: Phorm Energy official website
On November 6, just four months after the brand's launch, Phorm Energy released a new limited edition flavor, Cherry Slush, which will be sold exclusively at 7-Eleven. The product is an energy drink co-developed by Anheuser-Busch, the parent company of Budweiser, and US sports nutrition brand 1st Phorm International. Anheuser-Busch CEO Brendan Whitworth wrote on his verified LinkedIn account: Phorm Energy......redefine what an energy drink can stand for......
Brendan Whitworth's post about Phorm Energy Image source: LinkedIn
Unlike mainstream products on the market, it breaks the traditional formula—removing taurine, which is considered essential for alertness in energy drinks, and sourcing caffeine entirely from a natural plant: green tea extract. In fact, as early as 2019, startup energy drink brand Rowdy attempted to remove taurine and use green tea extract as the sole caffeine source, promoting it as "all-natural, healthier," and achieved over $1 million in revenue in its first year. However, the product was discontinued in 2024 after preservatives were detected, involving false advertising. Interestingly, one of Rowdy's co-founders, famous American racing driver Kyle Busch, did not give up on this "new type" of energy drink. According to US Sports Business Journal, Kyle Busch has returned to the energy drink market as a brand ambassador for Phorm Energy. With traditional beer giant Anheuser-Busch officially entering the market, it also means that obtaining caffeine from green tea extract is moving from a niche trend to the mainstream market.
An Energy Drink Without Added Taurine
In the energy drink category, taurine is almost a "default presence." From Red Bull to Monster to Rockstar, it is a basic ingredient for alertness—whether domestic or international, almost all brands list taurine prominently on their ingredient labels. But Phorm Energy is "different" because it does not use taurine. This means Phorm Energy is removing a brick from the pillar that energy drinks rely on most. To ensure the "energy" of the drink is not weakened, Phorm Energy bets all its alertness on caffeine—and uses only one source: green tea extract. Phorm Energy's official website repeatedly mentions: A 16-ounce can of Phorm Energy contains 200mg of natural caffeine from green tea. In terms of formula, it attempts to establish a narrative of a "natural" energy source, replacing the traditional combination of taurine and caffeine with a purer alertness substance.
Phorm Energy's official website highlights three key points: 0 sugar, 200mg natural caffeine from green tea extract, and focus Image source: Phorm Energy official website
From data, Phorm Energy's caffeine content is even higher than many leading brands that contain both taurine and caffeine, to some extent "filling" the energy gap left by removing taurine. Image source: FBIF
Phorm Energy's second difference is integrating the function of electrolyte drinks. In brand promotion, it not only emphasizes "alertness and energy replenishment" but also "improving focus and hydration." This is uncommon in energy drinks—traditional energy drinks focus on alertness, while electrolyte drinks focus on hydration, and the two are almost unrelated. Phorm Energy attempts to combine them. To achieve this, Phorm Energy adds an electrolyte blend to its ingredients, and its nutrition facts label shows "Magnesium." In short, Phorm Energy creates a new type of energy drink that can both refresh and hydrate.
Additionally, in the ingredient list, Phorm Energy includes L-Tyrosine, which is not found in leading brands like Red Bull, Monster, or Celsius. Tyrosine is a precursor to neurotransmitters such as dopamine and norepinephrine. Simply put, it plays a fundamental role in the nervous system's "focus/cognition" dimension. This is also one of the core substances that helps Phorm Energy drinkers concentrate.
In fact, Phorm Energy is Anheuser-Busch's first non-alcoholic beverage in its 165-year history. "I think this is the first attempt in Anheuser-Busch's 165-year history," said Brendan Whitworth. At launch, Phorm Energy offered four flavors: Blue Blitz, Orange Fury, Grape Smash, and Screamin' Freedom.
Phorm Energy's four flavors Image source: Phorm Energy official website
From a sales perspective, the drink has received a good response. To maintain market supply, Anheuser-Busch even decided to invest an additional $1 million to expand the production line at its Los Angeles factory.
"Overturning" Traditional Energy Formulas: Green Tea Extract Becomes a Selling Point
Removing taurine and sourcing caffeine from green tea extract is seen by outsiders as Phorm Energy's most "disruptive" move. Phorm Energy actively amplifies this point. On its official website and product materials, "natural caffeine" runs through almost all core highlights—emphasizing that all 200mg of caffeine comes from green tea extract, calling it a "unique formula." Although startups have tried similar formulas before, when a beer giant enters and overturns the classic, market-validated traditional energy drink formula, it still attracts considerable attention. Shortly after Phorm Energy's release, its search volume surged on Google.
In fact, the US energy drink market has never lacked challengers, but breaking through the highly concentrated landscape is not easy. Data shows that in 2024, traditional brands like Red Bull and Monster still hold a 91.7% market share, firmly controlling industry dominance. For a long time, mainstream energy drinks represented by Red Bull have almost all used classic formulas—carbohydrates, vitamins, minerals, and most importantly, caffeine and taurine. What truly tore open a market gap was Celsius.
Celsius Image source: Celsius US official website
It differentiated itself with "sugar-free" and "natural caffeine," successfully becoming the third-largest brand. Before Celsius, Red Bull and Monster together held nearly 80% of the market share. At that time, mainstream energy drinks mostly contained sugar, and the caffeine, taurine, and B vitamins in formulas were mostly synthetic. Celsius not only proposed 0 sugar and 0 calories, using sucralose instead of sucrose, but also proposed extracting caffeine from natural plant sources like green tea and guarana, making it the first generation of sugar-free energy drinks. After Celsius, green tea extract gradually appeared in more energy drink ingredient lists. For example, products like Bloom Energy and Wild SOCIETY use green tea extract as one of the natural caffeine sources. Some brands also attempt to use green tea extract as the sole natural caffeine source, such as Rowdy Energy, but its caffeine content is usually controlled at 160mg per 16-ounce can. In contrast, Phorm Energy increases caffeine content to 200mg per 16-ounce can, all from green tea extract, further amplifying this core selling point. Green tea extract, once a "supporting role" in natural caffeine, has now become the protagonist, standing at the center of the stage.
Incorporating green tea extract into products is not easy. Chris Fields, Vice President of Scientific Affairs at AFS, once explained: "On one hand, green tea extract tastes bitter; on the other hand, its solubility is limited." There are solutions to reduce the bitterness of green tea extract. McCormick mentioned in its 2016 flavor forecast report, listing matcha green tea and suggesting pairing matcha powder with ginger and citrus fruits to balance its bitterness. Although Phorm Energy has not publicly disclosed its specific solution, from its flavor design, the product uses fruit flavors like orange and grape, which may to some extent mitigate the bitterness of green tea extract. James Tonkin, a beverage expert and founder of consulting firm Healthy Brand Builders, said in an interview a few years ago that green tea is a highly potential natural caffeine alternative source. He said, "Green tea extract is a high-quality and natural energy ingredient. If it can be better communicated and marketed, contrasting with the synthetic or relatively unhealthy ingredients in energy drinks, it has the opportunity to open a larger market."
Natural Caffeine Sources: From Guarana to Green Tea
Caffeine and taurine are important sources for the "alertness" effect of energy drinks. However, natural extraction of taurine is costly, and in most cases, taurine in energy drinks is synthetic. Red Bull's US official website clearly states that taurine, caffeine, and vitamins are synthetic to ensure high quality and stability. Therefore, many brands exploring "healthier" and "more natural" energy drinks can only find new solutions in caffeine. The innovation of removing taurine and sourcing caffeine only from green tea extract has been tested by some brands before Phorm Energy. Rowdy is one representative. It was founded in 2019 by American racing driver Kyle Busch, along with Jeff Church, founder of bottled water brand NIKA Water and juice brand Suja Juice. At the time, Rowdy Energy promoted the concept of "all-natural, healthier." Its formula—no sugar and no artificial additives, with 160mg of caffeine from green tea per serving, and added L-Theanine, which helps with focus. It helps drinkers avoid irritability and discomfort while boosting energy when energy drops.
Rowdy Energy Image source: Photo@©JETCITYIMAGE STOCK.ADOBE
Rowdy did achieve results. The brand's revenue exceeded $1 million in its first year, and in 2021, Rowdy's revenue was approximately $11 million. In the same year, it also successfully secured $13 million in financing. However, Kyle Busch once admitted that the market leaders were too strong, and as an emerging consumer brand, Rowdy found it difficult to continue developing. In 2023, the US Federal Court in California filed a lawsuit against Rowdy, accusing its Rowdy Power Burn product of falsely advertising "no preservatives." Under multiple adverse factors, Rowdy declared bankruptcy in 2024.
Despite being short-lived, Rowdy's success still confirms a trend: caffeine sourced solely from green tea extract is recognized by consumers and seen as a more natural and healthier formula. After Rowdy, US energy drink brand Kill Cliff launched Kill Cliff IGNITE in 2020, adjusting its caffeine source to use only green tea extract and labeling it "pure caffeine," allowing consumers to more intuitively feel the value of natural caffeine, while also adding antioxidants like L-theanine to the formula. It is reported that Kill Cliff IGNITE contains 150mg of natural green tea caffeine per 12-ounce can.
Kill Cliff IGNITE Image source: Kill Cliff official website
Although Kill Cliff has not published sales data, it is an indisputable fact that compared to old leading players like Red Bull and Monster, Kill Cliff is relatively small in scale and has limited retail distribution. There were reports that in the first quarter of 2020, it achieved unprecedented growth, mainly due to its products successfully entering all Publix supermarkets. At that time, Kill Cliff was also continuing to expand offline channels, which to some extent affected its visibility.
With Anheuser-Busch's entry, Phorm Energy has had a strong distribution system from the start. 1st Phorm International founder Frisella once admitted: "Anheuser-Busch's distribution network is the strongest in the industry, and Phorm Energy's uniqueness lies in combining 'first-class formula' with 'first-class distribution.'"
Like green tea extract, the previous caffeine ingredient amplified by natural energy drinks was guarana. Guarana is native to Brazil and the Amazon region. People collect its seeds, then dry, roast, and grind them. Guarana is known for having more than twice the caffeine content of coffee beans; 1 gram of guarana is equivalent to 40mg of caffeine. This is one reason guarana was earlier considered a natural caffeine extraction source. Guarana and guarana seed extract appear in the ingredient lists of leading brands like Monster and Celsius, as well as BAWLS Guarana, Wired X‐344, and NOS High Performance. When guarana extract was widely used in energy drinks, many brands began seeking more natural plants as caffeine sources. Notably, although guarana is often chosen as one of the caffeine ingredients, most brands still mix it with other plant extracts.
As caffeine sources gradually shift from a mix of multiple plants to a single green tea extract, this is also related to changes in consumer demand in the US energy drink market: consumers are increasingly concerned about health and whether ingredients are natural and organic. With the increasing popularity of "natural" caffeine and the diversification of source plants (such as guarana, yerba mate, coffee fruit, guayusa, and yaupon holly), "clean ingredients" has gradually become an important selling point for brands to break through and differentiate.