DD (Double D) Beverage Co. is “dam” proud to be 100 percent Canadian owned and operated. In fact, being Canadian is the essence of the Kelowna, British Columbia-based company’s strategy.

Wanting to bring an energy drink to the market that was truly Canadian, Richard DeBanks, Andrew Drayson and James Drayson established DD Beverage in 2005 to market their Buzz Energy drinks. DeBanks is CEO and Andrew Drayson is CFO; they share the title of president. James Drayson is junior partner/shareholder.

“We created Double D Beverage to have a global strategy with a regional approach,” says DeBanks. Buzz Energy drinks are designed to be fun, functional and Canadian through and through.

Playing up its Canadian roots, DD Beverage decided to use a cartoon beaver—the national animal of Canada—as the logo for Buzz Energy drinks. “The packaging designs are edgy and patriotic, and the marketing speaks to the Canadian sense of humor,” notes DeBanks. Each can is tagged with the phrase “Dam Good.”

The cans also sport a maple leaf, the national symbol of Canada. In Québéc, Buzz Energy is called Le Castor Bleu—blue beaver—and features a fleur de lis, the provincial symbol of Québéc, rather than a mapleleaf.

Beaver Buzz Citrus Energy launched in June 2005. In addition to the Canadian-oriented packaging and marketing, DD Beverage uses regional identifiers from Canada as ingredients whenever possible to help differentiate the product.

One example is the Saskatoon berry, a berry that is native to Saskat-chewan. Its flavor profile is a cross between a cherry and blueberry, although slightly more tart. The Saskatoon berry is high in antioxidants and DeBanks says the flavor, which was launched in 2006, has become the company’s best-selling  energy drink.

Buzz Energy drinks are sweetened with cane sugar rather than high fructose corn syrup. “Cane sugar is healthier than corn syrup because it is released into the system slowly,” says DeBanks. This provides for a more sustainable energy than a “rush,” an important distinguisher from other energy drinks as the original targets for Buzz Energy drinks were hockey players and other athletes. The consumer base has now expanded beyond athletes to males and females in the 18-25-year-old demographic and consumers in their 30s and 40s—and some are even in their 60s, according to DeBanks.

Buzz Energy drinks also contain taurine, Siberian ginseng, guarana seed extract and vitamins such as A, B2, B6, B12, C and E. “Our energy drinks have more caffeine and vitamins than Red Bull,” says DeBanks, adding that the 420 milligrams of ginseng found in the 473 ml/16-ounce cans is the most on the market.

There are now nine flavors on the market with names like Core, Chronic, Green Machine and black currant. Pink Energy is a sparkling grapefruit flavored energy drink with no added sugar and sweetened with acesulfame potassium. Two of the flavors, iced tea and green tea, are non-carbonated. “The teas are surprise hits,” raves DeBanks.

Another Energy Drink?
DeBanks and Drayson had the concept, the name, the product and the element of differentiation, but the challenge was getting retailers to buy into a new energy drink.

“Retail buyers were not too keen on the idea of another energy drink. No one said, ‘great, we’d love to meet you, come on down,’” DeBanks admits laughingly. He and Drayson showed videotapes of consumers’ reactions to Buzz Energy after first trying the product. This, coupled with the Canadian focus, convinced some buyers to try the product and DD Beverage has been growing quickly ever since.

Buzz Energy is available in a variety of retailers in all regions of Canada and retails for CAD$2.49 for 355 ml and CAD$2.99 for 473 ml. Distribution in Canada was up from 17,000 cases in 2005 to 70,000 cases in 2006 and 175,000 in 2007. DeBanks projects that DD Beverage will ship between 220,000 and 250,000 24-pack cases this year, and global expansion has begun.

In January the company introduced the citrus flavor into the United Kingdom under the brand name Bulldog Buzz. Bulldog Buzz Berry Energy debuted in the UK in June. The company launched Bulldog Buzz in grocery stores, but says DeBanks, “the bulldog is more muscular and macho, so placement is C-store heavy and is quickly gaining distribution in bars.” DD Beverage plans to increase the flavor portfolio in the UK as well, with black currant likely being the next flavor to launch there.

Buzz Energy drinks are hitting select retail shelves in the United States this month. “The US is such a big market—and a highly competitive one—and we want to do it right so we’re starting off slowly,” says DeBanks. DD Beverage is focusing on tier-one distributors to introduce the energy drinks to the Western US first. It is targeting convenience and grocery stores with three flavors, citrus, berry and either Core or green tea, depending on buyer interest. Products will retail around $1.99 for 12-ounce cans in the US.

Maple Leaf Pride
When DD Beverage was established, DeBanks and Drayson used variations on “buzz” in the marketing and promotions (e.g. Big Buzz for the 16-ounce cans). Now, further emphasizing its Canadian roots, Buzz Energy is being rebranded as Beaver Buzz across the entire line, with the cartoon beaver and “Canadian” prominent on all packaging.
With distribution of Beaver Buzz Energy Drinks rapidly increasing and estimated annual revenues of CAD$7 million, and an additional CAD$1 million in the UK, DD Beverage is on a growth trajectory. “We are receiving a lot of serious inquiries from both potential master distributors and suitors interested in purchasing Double D Beverage,” says DeBanks. “We are open to both scenarios if it will help us market the brands worldwide and achieve greater awareness and penetration in North America.”

Although energy drinks remain a core competency, DD Beverage is looking to expand beyond the category. In mid-September the company plans to introduce a line of sodas to the Canadian market. “We’re bringing fun and function back to sodas,” says DeBanks, and as with Beaver Buzz Energy Drinks, the sodas will have a truly Canadian focus and attitude.

VITAL STATS
DD (DOUBLE D) BEVERAGE CO.
CEO & CO-PRESIDENT: Richard DeBanks
HEADQUARTERS: Kelowna, British Columbia, Canada
REVENUE: Approximately CAD$8 million
EMPLOYEES: 25
GOALS: To become a global company while maintaining its Canadian roots and attitude.

From Beverage World July 15, 2008