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Red Bull

Brand of energy drinks

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  • 4 chapters

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Originally available only in a single undistinguished flavour called Red Bull Energy Drink, the drink added numerous variants over time. Rather than following a traditional marketing approach, Red Bull has generated awareness and created a "brand myth" through extreme sport events.

Red Bull was derived from a similar drink called Krating Daeng which originated in Thailand and was introduced by Chaleo Yoovidhya. While doing business in Thailand, Austrian entrepreneur Dietrich Mateschitz purchased a can of Krating Daeng and claimed it cured his jet lag. Mateschitz sought to create a partnership with Chaleo and formulated a product that would suit the tastes of Westerners, such as by carbonating the drink. In 1984, the two founded Red Bull GmbH in Fuschl am See, Salzburg, Austria.

History

In 1976, Thai entrepreneur Chaleo Yoovidhya introduced a drink called Krating Daeng in Thailand, which means "red gaur" in English. It was popular among Thai truck drivers and labourers. While working for German manufacturer Blendax (later acquired by Procter & Gamble) in 1982, Dietrich Mateschitz travelled to Thailand and met Chaleo, owner of T.C. Pharmaceutical. During his visit, Mateschitz discovered that Krating Daeng helped cure his jet lag. In 1984, Mateschitz co-founded Red Bull GmbH with Chaleo and turned it into an international brand. Each partner invested US$500,000 of savings to fund the company. Chaleo and Mateschitz each held a 49 percent share of the new company. They gave the remaining two percent to Chaleo's son, Chalerm, but it was agreed that Mateschitz would run the company. The product was first launched in Austria on 1 April 1987.

In Thailand, energy drinks are most popular with blue-collar workers. Red Bull re-positioned the drink as a trendy, upscale drink, first introducing it at Austrian ski resorts. Pricing was a key differentiator, with Red Bull positioned as a premium drink and Krating Daeng as a lower cost item. In many countries, both drinks are available, dominating each end of the price spectrum. The flavouring used for Red Bull is still produced in Bangkok and exported worldwide.

During the 1990s, the product expanded into Hungary, Slovenia, Germany, the Czech Republic, Croatia, the United Kingdom, Australia, and the United States. It entered Germany and the UK in 1994, the United States (via California) in 1996, the Middle East in 2000 and the Philippines in 2012. In 2008, Forbes magazine listed both Chaleo and Mateschitz as the 250th richest people in the world with an estimated net worth of US$4 billion.

Red Bull GmbH is headquartered in Fuschl am See, an Austrian village of about 1,500 inhabitants near Salzburg. The company is 51 percent controlled by the Yoovidhya family who, for "technical reasons", own the trademark in Europe and the US. Claims about the drink's effects and performance have been challenged on various occasions, with the UK's Advertising Standards Authority imposing advertising restrictions in 2001 in response to complaints recorded as early as 1997.

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