How Red Bull Makes Money? | Red Bull’s Business Strategy
In 2019, Red Bull sold one can for almost every person on the planet. But besides selling 7.5 billion cans of a very sweet drink, they also run two Formula One Teams, five professional football clubs and one ice hockey team. Not mentioning events like the crashed ice challenge or the Wings for Life Run. The thousands of athletes that Red Bull sponsors and the media production they run. Obviously, Red Bull does much more than selling an energy drink. But is all that just marketing?
We take a closer look at how Red Bull makes money. In the summer of 1982, the Austrian businessman Dietrich Mateschitz found himself suffering from jet lag during a business trip to Thailand. He tried a local drink called Krating Daeng, which improved his jet lag substantially. Krating Daeng can be translated to Red Gaur, a Gaur being a huge bison from Southeast Asia. So it basically means Red Bull.
Inspired by the magical qualities of the product, Mateschitz decided to bring the product home in the format of a brand new product category — the energy drink. He pitched his idea several times to Western investors but got turned down because they didn’t see a market for the product outside of Asia. Mateschitz was well aware that there was no market at the time.
So he decided to create one. He was so convinced of his product, that he invested half a million himself. He then teamed up with the boss of the Krating Daeng manufacturer, who also invested half a million for the other half of the company. Next, Mateschitz adapted the formula and flavor for the European market and successfully launched the product in Austria in 1987. Read more this article on Current Digest magazine’s website.
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