Red Bull

RED BULL

SLOGAN “Vitalizes body and mind” VISION STATEMENT "We are dedicated to upholding Red Bull standards, while maintaining the leadership position in the energy drinks category when delivering superior customer service in a highly efficient and profitable manner. We create a culture where employees share best practices dedicated to coaching and developing our organisation as an employer of choice."

MEANING Of RED BULL Red Bull is the brand name of an energy drink that originated in Thailand and, in a version adapted to Austrian tastes, is now popular throughout the world. Sold by Red Bull GmbH as an energy drink to combat mental and physical fatigue, it contains, per 250 ml (8.3 U.S. fl. oz.) serving, about 27 g of sugar, 1000 mg of taurine, 600 mg of glucuronolactone, B-complex vitamins and 80 mg of caffeine. The caffeine in one serving is less than that found in an average cup of coffee (typically 100 mg/250 ml cup) or twice as much as found in a can of Coke (40 mg/330 ml can.) A sugar-free version has been available since the beginning of 2003 . Sugar-free Red Bull is sweetened with aspartame, as opposed to sucrose and glucose.

HISTORY OF RED BULL

In 1982, Dietrich Mateschitz learned about so-called “tonic drinks”, which enjoyed wide popularity in Asia. While he was sitting sitting in the bar at the Mandarin Hotel in Hong Kong he got the idea of marketing those particular functional drinks outside Asia. This was not a new idea, but a variation on the Lucozade theme, another popular energy drink marketed by Smith Kline Beecham. However, Red Bull included other ingredients to achieve a different flavour. So it was that in 1984, Mateschitz founded the Red Bull GmbH company. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987. Red Bull rapidly gained in popularity, giving people wings right from the start. In 1992, Red Bull touched down in its first foreign market, in Hungary. Today, Red Bull is energizing over 100 countries around the globe, such that many superstores have copied the idea with their own brand products, which invariably are inferior in one aspect or another.

Red Bull Energy Drink Red Bull Energy Drink Category: US Energy Drinks; Packaging: 8.3 oz can

While our opinion on Red Bull's flavor hasn't changed -- it is truly painful to drink -- we will give Red Bull credit where credit is due. Namely, the brand power that this product has created is truly amazing. Many people in the industry may hate Red Bull, but without Red Bull there wouldn't even be a market for the other 150+ products currently crowding the shelves. However, Red Bull faces some potential bumps in the road in the coming 24 months. First, the product has completely oversaturated the market -- Red Bull is in just about anywhere that you can fit a mini-cooler as well as mass merchandisers, bike shops, bars, etc, etc, etc. This could result in Red Bull becoming passe by removing the "cool" factor that made the brand so successful. Second, while other companies are improving formulations, flavors, and packaging, Red Bull stays the same. Will consumers find something that truly works better? Third, from our point of view Red Bull has a less-than-stellar industry reputation -- and many people are praying for their demise as a result. Finally, given that Red Bull is a one trick pony (compared to others such as Coke and Pepsi), the party is in serious jeopardy if sales start to slump, a price war starts, or press over energy drink health concerns start to proliferate (hypothetically speaking). Overall, tremendous brand power right now, but does it have true staying power to last another 5 years as number one? Ingredients: carbonated water, sucrose, glucose, sodium citrate, taurine, glucuronolactone, caffeine, inositol, niacin, D-pantothenol, pyridoxine HCL, vitamin B12, artificial flavours, colors Nutrition Facts: Serving Size: 8.3 fl. oz Servings per Container: 1 Amount per serving: Calories: 110

Total Fat: 0g Sodium: 200mg Protein: 0g Total Carbohydrates: 28g Sugars: 27g

Red Bull Sugar Free Category: US Energy Drinks; Packaging: 8.3 fl oz can

When we first heard about Red Bull Sugar Free we were extremely intrigued. First of all, this is a real test for Red Bull in that this is their first product extension in the US. Second, when you take the sugar out of a medicinal tasting beverage like Red Bull, we weren't quite sure what to expect. The flavor is basically the same as the original but with artificial sweetener. Not very exciting. In addition, they used the same packaging as the original. Not very innovative. Overall, it's the same old stuff, but with a different sweetener. This being said, we don't think Red Bull passed the product extension test. Ingredients: carbonated water, sodium citrate, taurine, glucuronolactone,caffeine, acesulfame k, aspartame, inositol, xanthan gum, niacinamide,

calcium pantothenate, pyridoxine hcl, vitamin b12, artificial flavors, colors Nutrition Facts: serving size 1 can; calories 10; fat 0g; sodium 200mg; total carb 3g; sugars og; protein less than 1g; niacin 100%; vitamin b6 250%; vitamin b12 80%; pantothenic acid 50% Company Description Hoover's coverage by Barbara Murray You don't have to twirl a red cape in front of this bull to get a charge out of it. Red Bull markets its eponymous functional energy drink around the...

Key Red Bull Financials Company Type

Private Main Headquarters

Fiscal Year-End

December

2004 Employees

1,850

Competition Competitive Landscape for Beverage Manufacture and Bottling Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The profitability of individual companies depends on effective marketing. Large manufacturers have economies of scale... Read more about Red Bull's competition across multiple industries Top Red Bull Competitors Coca-Cola Gatorade PepsiCo ACQUISITIONS Popular myth would have it that acquisitions activity must be slowing down in the new economic climate. Yet I find new announcements almost every day, many gaining very little coverage and some of real significance. Often they involve companies stretching out into new geographies or market sectors in very enterprising ways. Here is a

selection I have noted in the past three months. The Japanese seem particularly active. Feb 09 • • • • •

Water - Coca-Cola and Coca-Cola FEMSA buy Agua Brisa from SABMiller in Colombia $92m Beer - SABMiller and China Resources to buy 3 breweries in China Water - UAE Jeema buys Aquafina plant Beer - Kirin from Japan buys 43% of San Miguel in Philippines Food - Otsuka from Japan to buy Nardobel in France

Jan 09 • • • • • • • • • • •

Spirits - Access from US to buy 50% of Diamond Wodka in Benelux Beer - SABMiller buys 71% of Bere Azuga in Romania $25m assets Dairy - Japan’s Snow Brand to merge with Nippon Milk $5.7bn combined sales Beer - Asahi from Japan buys 20% of Tsingtao in China from Anheuser-Busch in US $666m Water - UK Lomond Hills buys Nestlé Waters Powwow Ingredients - Danisco from Denmark buys stake in GraceLinc of New Zealand Dairy - Germany’s Uckermarker buys plant from FrieslandCampina Dairy - Emmi from Switzerland buys Roth Kase in US Est $45m Nutrition - Otsuka from Japan to buy Nutrition & Santé in France €260m sales Ingredients - Frutarom from Israel to buy Oxford Chemicals in UK $12m Spirits - South Korea’s Lotte Chilsung buys spirits arm of Doosan $386m