Dunkin’ is introducing “SPARKD’ Energy” iced drinks in berry burst and peach flavors to tap into the popularity of highly caffeinated beverages.
However, this move comes with a potential risk, as Panera Bread is currently facing lawsuits over its Charged Lemonade energy drink.
Starting from Wednesday, Dunkin’ will offer these energy drinks, promising a refreshing boost of energy with added vitamins, minerals, and caffeine, according to a press release.
It’s interesting to note that Dunkin’ is venturing into a beverage category that has led to legal issues for its competitor, Panera. Panera is currently dealing with three separate lawsuits related to its Charged Lemonade, with allegations linking the product’s high caffeine levels to the deaths of two customers and severe health complications in another case.
Panera’s Charged Lemonade contains up to 234 mg of caffeine in a large 30-oz cup, while Dunkin’s energy drink has a slightly lower caffeine content of 192 mg for the same cup size, as per its website.
The US Food and Drug Administration suggests that a safe amount of caffeine for healthy adults is around 400 milligrams per day, equivalent to approximately four or five cups of coffee.
Panera has asserted the safety of its product, stating that its investigation did not find a link between the customer’s death and their product. Despite the legal challenges, Panera continues to sell Charged Lemonade.
Despite the controversies, energy drinks remain popular for various chains. Dutch Bros, for example, reports that a significant portion of its sales comes from energy drinks, contributing to about 25% of its revenue. McDonald’s spinoff, CosMc’s, also offers beverages with caffeine syrup for an energy boost.
Energy drinks are especially favored by younger consumers, particularly men aged 18 to 34, and the market is substantial, with over $21 billion in US sales in 2022. Research firm Mintel predicts further growth of 7% in 2023.