Red Bull GmbH

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Red Bull GmbH
Type Private
Founded 1984
Founder Dietrich Mateschitz and Chaleo Yoovidhya
Headquarters Fuschl am See, Austria
Key people Dietrich Mateschitz
Industry Drink
Products Energy drinks
Revenue 2,6 billion (2006)
Operating income 1.3 billion (2006)
Net income 650 million (2006)
Employees 3,903 (2006)
Subsidiaries Red Bull Racing
Scuderia Toro Rosso
Team Red Bull
Red Bull New York
Red Bull Salzburg
Website redbull.com

Red Bull GmbH is the producer of Red Bull, an energy drink that originated in Thailand and, in a version adapted to Austrian tastes, is now popular throughout the world. Almost 1 billion of the slim 250 ml cans were sold in 2000 in over 100 countries, 260 million of them in the UK. In 2006, more than 3 billion cans were sold in over 130 countries. 3,903 employees generated 2.6 billion euros in turnover. [1] The headquarters of Red Bull GmbH are located in Fuschl am See, Austria.

The original Red Bull drink was developed in 1981 by Chaleo Yoovidhya, a Thai businessman, and sold under the name Krating Daeng (กระทิงแดง, Thai for Red Bull) by T.C. Pharmaceutical Company.[2] The recipe was based on Lipovitan, an earlier energy drink that had been introduced to Thailand from Japan. Krating Daeng sales soared across Asia in the 1980s, especially among truck drivers, construction workers and farmers. Truck drivers used to drink redbull to stay awake during the long late night drive. The working class image was boosted by sponsorship of Thai boxing matches, where the logo of two fighting bulls charging each other was often on display.

The Thai product was transformed into a global brand by Dietrich Mateschitz, an Austrian entrepreneur. Mateschitz was international marketing director for Blendax, a German toothpaste company, when he visited Thailand in 1982 and discovered that Krating Daeng helped to cure his jet lag.[3] Between 1984 and 1987, Mateschitz worked with TC Pharmaceutical (a Blendax licensee) to adapt Krating Daeng for European audiences. At the same time Mateschitz and Chaleo founded Red Bull GmbH; each investing $500,000 of savings and taking a 49% stake in the new company. They gave the remaining 2% to Chaleo's son Chalerm, but it was agreed that Mateschitz would run the company.[4] That left the Thais as silent partners. Red Bull GmbH launched the “Austrian” version of Red Bull in 1987, which is carbonated and not as sweet as the original Thai recipe. It is the Austrian formula that has taken almost half of the U.S. market for energy drinks, and up to 80% of the market in some other countries.

In addition to owning half of Red Bull GmbH, Chaleo and his son continue to market the original formula across Asia. The original Thai Krating Daeng is often available in many Asian grocery stores in New Zealand, Australia and Canada. It is usually cheaper than the domestic (mainstream Red Bull) variety. Government mandated nutrition fact labels are usually added by the importer. In 2006, Forbes Magazine listed Chaleo as being the 292nd richest person in the world with an estimated net worth of over $2.5 billion[5] while Mateschitz was listed at number 317.[6]

Contents

[edit] Red Bull distribution

The Red Bull company also distributes and markets a number of other drinks in the United Kingdom including the Carpe Diem range of herbal soft beverages, and the Sabai Wine Spritzer (the latter in association with the Thai Siam Winery in Thailand)

[edit] Marketing

Initially, Red Bull distributed free cases of the drink to college students in an attempt at viral advertising. This strategy was wildly successful, resulting in the rapid proliferation of sales. Red Bull has since become known for its sleek marketing targeted at young urban professionals through various sports and entertainment based advertising campaigns. The current mottoes, "Red Bull Gives You Wings," and "No Red Bull, No Wings" are direct plays on the proposed stimulate properties of the beverage.

[edit] Sports sponsorship

Since the initial viral campaign, Red Bull's efforts have included sponsoring extreme sport events including cliff diving, BMX, skiing, flying and skateboarding. In the 1990s, Red Bull sponsored the rower Xeno Müller, who won an Olympic gold medal in the single sculls in 1996[7]. Today, Red Bull sponsors skier Tanner Hall, who won the X Games gold in half-pipe skiing. Red Bull also sponsors the Flugtag ("flight day" in German), a competition where entrants launch themselves off a 30-foot ramp in homemade "flying machines" into a body of water (reminiscent of the Birdman Rally); its own version of the soapbox derby called the Red Bull Soap Box Race; the Red Bull Art of the Can Competition, an international art competition in which artists are asked to create works using the Red Bull can; and the Red Bull BC One individual breakdance competition.

Red Bull has had a sponsorship presence in a number of sports for some time, especially in the world of motor sport, with the company having a presence in the DTM (Deutsche Tourenwagen Masters) especially the Abt Audi team, Dakar Rally sponsoring the VW Race Touareg Team, KTM Factory Motocross Team, Moto GP, British Superbike's (BSB) Red Bull Honda and HM Plant Red Bull Honda teams, World Rally Championship with the Skoda team run by Armin Schwarz, The SEAT team in the World Touring Car Championship, in Champ Car with Neel Jani and PKV Racing, Rhys Millen's Pontiac in Formula D, sponsoring the GP2 Series team owner by Red Bull Racing team principal Christian Horner, Arden International. The team previously sponsored the Sauber and Arrows Formula One teams, the Red Bull Cheever Racing Team in the IRL, and in 2007 Team Red Bull will compete in the NASCAR Nextel Cup. Also Red Bull is now sponsoring the Cyberathlete Professional League and its own air racing event called the Red Bull Air Race. Red Bull does not pay their athletes to wear or promote their logo. The 2005 DARPA Grand Challenge, a competition for driverless cars, was won by a student team from Stanford. The Team's robotically driven Volkswagen Touareg "Stanley", was sponsored by Red Bull.

Red Bull also has sponsored various racing drivers including NASCAR driver Robby Gordon and Formula One drivers Christian Klien, Vitantonio Liuzzi and Scott Speed. Red Bull is also sponsor to young Canadian racing prodigy Robert Wickens and teammate John Michael Edwards in the Champ Car Atlantic Series, as well as Moto GP riders Nicky Hayden and Dani Pedrosa, American Superbike (AMA) riders Eric Bostrom, Ben Bostrom and Jake Zemke and British Superbike (BSB) riders Jonathan Rea, Eugene Laverty and Ryuchi Kiyonari. Red Bull is sponsoring two new NASCAR teams under 2007; racing under the new Toyota Camry label. Aside from that, its Thai unit and its Philippine partner has been responsible in forming, licensing, and funding the Red Bull Barako basketball team in the Philippine Basketball Association since 2000. It has become one of the most successful sports teams in the Philippines.

[edit] Ownership/Rebranding of sports teams

Red Bull established Scuderia Toro Rosso in 2006 by buying the Minardi team.  This followed the purchase of Jaguar to become Red Bull Racing the previous year.
Red Bull established Scuderia Toro Rosso in 2006 by buying the Minardi team. This followed the purchase of Jaguar to become Red Bull Racing the previous year.

Red Bull has also extended its presence to purchasing and entirely re-branding a number of sports teams. These teams include the Red Bull Racing (previously Jaguar)[7] and Scuderia Toro Rosso (Italian for Red Bull Team) (previously Minardi)[8] Formula One teams. On April 6, 2005, Red Bull also bought the Austrian football club SV Austria Salzburg and renamed it to Red Bull Salzburg, a move which has been heavily criticised by supporter groups within Austria and across Europe. Salzburg's pro ice hockey team is named "The Red Bulls", and so is its farm team.

In 2005, Red Bull purchased the MetroStars, a soccer team in the United States league Major League Soccer based in New Jersey, from Anschutz Entertainment Group and renamed the franchise Red Bull New York.

In 2006, Team Red Bull debuted in the NASCAR Nextel Cup series at Lowe's Motor Speedway. The team, with Bill Elliott, failed to qualify for the race and the team didn't qualify for the two subsequent races they attempted with A.J. Allmendinger. The Red Bull-owned 2-car operation debuted on the full-time circuit in 2007 under the Toyota banner. Both cars, Allmendinger in the #84 and Brian Vickers in the #83, failed to qualify for the Daytona 500. Vickers, however, qualified for the race in California Speedway and posted the team's, and Toyota's, first top-10 in Nextel Cup competition.

[edit] Promotional cars

In addition to sports sponsorships, Red Bull has developed the MET (Mobile Energy Team) program. The teams consist of mostly college students, who drive specially designed Red Bull "Racers". The racers are detailed with the Red Bull logo, and most carry an oversized can of Red Bull on their chassis (Suzuki Vitara, MiniCooper, SportTrac, etc.). The METs complete daily missions that include sporting events, businesses, colleges, shopping centers, etc. The Mobile Energy Team is trained to know the properties of the energy drink thoroughly and present them to consumers.

[edit] Promotional Aircraft

The company uses numerous historic fixed wing and rotary wing aircraft [9] in their promotions including:

  • Chance-Vought F4U-4 96995 (OE-EAS)

[edit] References

  1. ^ Rekord bei Red Bull, ORF online (Austrian national television), 2006 [1]
  2. ^ Energy Drinks in the U.S. Beverage Marketing Corporation, 2006 [2]
  3. ^ Selling Energy, Economist, May 9 2002 [3]
  4. ^ Soda with a buzz, Forbes, 28 March 2005, [4]
  5. ^ Billionaires, #292 Chaleo Yoovidhya, Forbes , 2006 [5]
  6. ^ Billionaires, #317 Dietrich Mateschitz, Forbes , 2006 [6]
  7. ^ Red Bull snaps up Jaguar F1 team article
  8. ^ Red Bull swoop for Minardi deal article
  9. ^ Red Bull Aircraft (airliners photo collection)

[edit] External links

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