Energy Drink and Red Bull

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RED BULL GMBH IN SOFT DRINKS (WORLD)
April 2013

SCOPE OF THE REPORT

Scope
 This global profile focuses on the industry trends in soft drinks.  All values expressed in this report are retail/off-trade in US dollar terms using a fixed exchange rate (2012).  2012 figures are based on part-year estimates.  All forecast data are expressed in constant terms; inflationary effects are discounted. Conversely, all historical data are expressed in current terms; inflationary effects are taken into account. SOFT DRINKS OFF-TRADE RTD VOLUME 534.8 billion litres Bottled Water 192 billion litres Sports and Bottled and Energy Drinks Sports Energy Water 15 billion litres Drinks 205.1 billion 16.2 billion litres Concentrates litres 43 billion litres RTD Coffee 4.5 billion litres Disclaimer Much of the information in this briefing is of a statistical nature and, while every attempt has been made to ensure accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors. Figures in tables and analyses are calculated from unrounded data and may not sum. Analyses found in the briefings may not totally reflect the companies’ opinions, reader discretion is advised.

Carbonates 169.5 billion litres

Fruit/Vegetable Juice 62.0 billion litres

Concentrates 43.7 billion litres

RTD Tea 30.1 billion litres

While Red Bull remains the world leader in energy drinks, it is facing growing competition from other players. TCCC in particular, with Monster in the US and Burn in Brazil, is also posing an increasing threat. These two markets are emerging as energy drinks battlegrounds and the implications are considerable for Red Bull’s ability to remain the number one ranked player.

© Euromonitor International

SOFT DRINKS: RED BULL GMBH

PASSPORT 2

STRATEGIC EVALUATION COMPETITIVE POSITIONING MARKET ASSESSMENT CATEGORY AND GEOGRAPHIC OPPORTUNITIES BRAND STRATEGY OPERATIONS RECOMMENDATIONS

STRATEGIC EVALUATION

Red Bull a pioneer in its category
 The privately-owned Austrian company Red Bull’s core business is energy drinks. Dietrich Mateschitz and Chaleo Yoovidhya each owned a 49% stake prior to 2012 when Mr Yoovidhya passed away. Mr Yoovidhya’s son Chalerm holds the remaining 2%. While Mr Yoovidhya was alive he acted as a silent partner.

Red Bull GmbH
Headquarters: Regional involvement: Category involvement: Fuschl am See, Austria Global Carbonates, sports and energy drinks

 Red Bull has created the global market for energy drinks, and the pioneering Red Bull brand has became synonymous with energy drinks for a large number of consumers. Red Bull remains bullish and ambitious in their corporate brand. Despite rising competition, Red Bull continues to comfortably lead the global energy drinks market in both volume and value terms. However, the threat from The CocaCola Co (TCCC) has been mounting.

World soft drinks share by off-trade 0.2% RTD volume (2012): World soft drinks off-trade RTD volume 12.4% growth (2011-2012):

© Euromonitor International

SOFT DRINKS: RED BULL GMBH

PASSPORT 4

STRATEGIC EVALUATION

Red Bull continues to see strong net sales growth
 Red Bull operates many other businesses aside from energy drinks The company owns and manages a construction company, football clubs, youth academies and TV broadcasting and recently online clothing (Red Bull label only) sales.

 Additional media products include print magazines about football, motor racing, celebrity gossip and lifestyle. The company has even ventured into the mobile phone service business in Austria, Hungary, Switzerland and South Africa.  As a privately-held company, financial information is limited however the company reported net sales of €4.9 billion in 2012 and 5.2 billion cans sold, representing growth of 15.9% and 12.8%, respectively. © Euromonitor International

 Red Bull reported exceptionally strong net sales growth in South Africa (+52%), Japan (+51%), Saudi Arabia...
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