5 Strategies A Monk Used to Create "5-Hour Energy" and become a Billionaire

Did you know that the founder of 5-hour energy drink, once lived as a monk for 12 years?

5 Hour Energy was founded by Manoj Bhargava in 2004, he is an Indian-American entrepreneur known for his innovative thinking and focus on social impact.

Born in India, he moved to the United States at 14. After dropping out of Princeton in his first year, came to India where he became a member of the Hanslok Ashram order and lived the lifestyle of a Buddhist “monk” for 12 years.

Manoj Bhargava with his products
5 Hour Energy on the market shelf

In 1990, he started his first firm, a plastics company, which was later sold to a private equity firm.

The idea for 5-hour Energy came to Bhargava when he observed the need for a quick and effective energy boost in a fast-paced world.

Around 2003, Manoj was attending a natural products trade show in Anaheim, California.
During the show, he noticed a company selling, a 16-ounce concoction claiming an hours-long productivity boost.

He took inspiration from the ingredients of this drink and took just a couple of months to launch his own version of the drink with two ounces of caffeine-infused B vitamins, mixed with acids that would provide “5 hours of energy”.

Bhargava mostly refers to this as the conception of a 5-hour energy drink.

His drink introduced the concept of an energy shot, a compact, concentrated energy supplement that required no refrigeration.

Though hugely successful and popular among the adults, it is not recommended for the kids.

Bhargava's ideology to start small and bootstrap the business was a key factor in its success.

GNC, a popular health centre chain, at the time, was the first to give this product a chance and soon after initial success, Bhargava managed to Launch a 5-Hour energy drink in Walgreens and Sheetz.

5 Hour Energy drink in the regular packaging

Challenges

  • Market Skepticism: The energy shot concept was alien to consumers and retailers in the beginning and it took a ton of marketing to resolve that.
  • Regulatory Hurdles: Navigating FDA regulations and industry standards for dietary supplements was always an uphill battle for Bhargava.
  • Competition: Established energy drink giants never loved competition, their attitude towards Bhargava and energy shot was not any different.

Bharagava’s marketing genius is the foundation of the 5-Hour energy business, he has always believed in educating the user rather than selling something to them.
His most memorable campaign is the “2:30 concept” Scientific studies state that the afternoon energy slump that many people experience around 2:30 PM is actually very common.

Bhargava understood that this could be a potential problem that could be solved for a larger customer base and used this phenomenon as the central tool of his marketing campaigns for the energy shot.

The brand's advertising campaigns emphasised how 5-hour Energy could provide the needed energy to power through the afternoon, stay alert, and be productive.
Users who related to the mid-afternoon energy dip felt heard by the campaign and it played a significant role in the product's success.

5 key strategies that Bhargava used to turn 5 Hours into 5 Billions

1. Be Frugal & Start Small

  • Manoj Bhargava’s decision to start 5-hour Energy with limited resources and bootstrap the business.
  • Starting small allowed him to test his concept, refine his product, and conserve resources.

2. Product Innovation

  • 5-hour Energy’s introduction of the energy shot, a unique and compact energy supplement, helped it to differentiate its product and create a solution that stood out.

3. Solve a Real Problem

  • 5-hour Energy addressed the common “2:30 Feeling” when people experience an energy slump.
  • Its focus on providing research-backed solutions that improve people’s lives was a game changer for Bhargava.

4. Adaptability

  • The Brand expanded its product line and entered international markets.
  • Through continuously assessing market trends and consumer preferences, they diversified into new customer segments like caffeine-averse users when opportunities arose.

5. Social Impact

  • Manoj Bhargava’s commitment to social impact through the “Billions in Change” foundation was also a powerful differentiator.
  • It helped him to connect with socially conscious consumers while elevating brand reputation and loyalty.

The Underdog Success

5-Hour energy brand currently holds 88.4% market share in the energy shot market globally, selling more than $300 Million globally every year as of 2023.

Initial success journey of 5 Hour drink

Subscribe to Beyond Newsletter

Subscribe to receive the latest Newsletter right to your inbox every week.

By subscribing you agree to with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Join professionals going Beyond on our Weekly news brief.

Get access to growth hacks, expert interviews, and evidence-backed advice every week, Exclusive Downloadable Templates and Data Bases.

By clicking Sign Up you're confirming that you agree with our Terms and Conditions.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.