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Friday, 13 July, 2001, 15:53 GMT 16:53 UK
Red Bull: Raging success
Concerns have again been raised about the energy drink, Red Bull, after the deaths of three people in Sweden, all of whom had drunk it just before they died. This follows deaths in Europe and America linked, though without proof, with Red Bull. As Bob Chaundy of the BBC's News Profiles Unit explains, despite these health scares, it has become a worldwide phenomenon.
It is banned in France, classified as a medicine in Norway and, until recently was only available in pharmacies in Japan. Yet, Red Bull, the drink that "gives you wings" sold more than a billion cans last year across 50 countries.
It has been described as "the Porsche of soft drinks" but one that combines well with alcohol, most popularly, vodka. Its logo can be seen flashing by on Sauber Formula One cars and Yamaha 500cc racing motorcycles. A high octane drink for those in life's fast lane. It was even rumoured to contain testosterone distilled from bull's semen. In fact, Red Bull's energy is derived from a mixture of caffeine, vitamins, carbohydrates and taurine, an amino acid that jump-starts the body's metabolism. It was the brainchild of Austrian businessman, Dieterich Mateschitz, and has made him a multi-millionaire and the richest man in Austria. He adapted it from a cheap tonic called Krating Daeng (Thai for Red Bull) that he discovered in the early 1980s in a brown bottle in Bangkok, a favourite tipple among blue-collar workers in the Thai capital, trying to stay awake through the long hours of labour.
They agreed to sell him the foreign licensing rights in return for a 51% stake in his Austrian Red Bull company. The Thais remain sleeping partners. Mateschitz returned home, tinkered with the taste and texture of the tonic, and emerged, in 1984, with a carbonated, watered-down version of the original Thai recipe that satisfied the regulating authorities. But it was the marketing which proved the masterstroke. As a former Procter and Gamble salesman who peddled toothpaste and shampoo, Mateschitz knew the importance of branding. He realised it would be impossible to convince the factory workers of Vienna to give up their morning coffee, so he decided to target the young urban professionals who also work long hours but who have more cash to flash.
Even the original Thai drink has benefited from reflected glory, significantly increasing its market share at home. Such has been Red Bull's success, now everyone is jumping on the bandwagon. Supermarket shelves now creak under the weight of energy drinks with names such as Whoop Ass, KMX, Powerade, Red Devil etc. "Imitation is the best form of flattery," says Fiona Mollet of Red Bull UK. "Last year, 23 new functional energy drinks were introduced to the UK alone, yet we still control 86% of the market." According to Alex Bachelor, of the branding consultancy firm Interbrand, Red Bull's market share is firmly embedded and likely to remain dominant for the time being, despite the recent health scares.
It seems that under the control of Dieterich Mateschitz, the marketing matador, his Red Bull will continue to charge forward. |
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