Winning Shots

Manoj Bhargava, an American entrepreneur, created Five Hour Energy in 2003. The “energy shot” contains caffeine, B vitamins, and amino acids. Five Hour Energy is the leading energy shot brand in the United States, with over 900 million Shots Sold Annually.

You know this product. And where you’ve seen it matters a lot.

To prepare for a trade show, Bhargava bought a leading energy drink. He thought it was terrible. So, the relentless tinkerer had that entrepreneurial thought: I can do better.

He removed most of the water because people weren’t buying hydration. They were buying energy.

This insight was essential.

Most energy drinks are sold through convenience stores' refrigerators - which are dominated by soft drink and beer companies. The market leaders had no inclination to share shelf space.

But Bhargava didn’t need to compete to get in the cooler, he went straight for the counter. Five Hour Energy shots fit perfectly on the counter - and incumbents couldn’t say anything. The location also led to impulse purchases which led to lots of habitual users.

The Daily Entrepreneur newsletter delivers brief meditations on the principles & practices of the world's greatest business builders. This newsletter will always remain free and dedicated to helping you get a little better each day.