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RED BULL – Marketing Strategies

Contents

RED BULL – Marketing Strategies ............................................................................... 1

Contents ..................................................................................................................... 1

Vodafone gives Red Bull Australia’s mobile plans wings ............................................ 2

Red Bull’s Adrenaline Marketing Mastermind Pushes into Media ................................ 3

Australian non-alcoholic drinks market ..................................................................... 11

Red Bull prepares to defend market share as V takes up the challenge – ( a bit

dated- year 2000) ..................................................................................................... 17

Red Bull’s New Snowboarding Documentary The Art of FLIGHT Is on Tour ...............20

Sharjah tourism to sponsor Red Bull Quicket Final at Mega Mall.............................. 21

Red Bull Mini Drome Vancouver ............................................................................... 22



Vodafone gives Red Bull Australia’s mobile plans

wings

http://itechreport.com.au/2011/08/23/vodafone-gives-red-bull-australias-mobile-

plans-wings/

Vodafone was yesterday revealed as the network of choice for Red Bull’s new

mobile venture in Australia, with the company’s new 3G network to support the Red

Bull initiative from later this year.

Later this year, Red Bull will become a mobile provider offering a premium service

that’ll focus around the company’s Red Bull sports initiatives.

Red Bull already offers the service in a number of international countries, including

Hungary, South Africa, Poland, Switzerland, Austria and Belgium.

Customers will be able to watch unlimited amounts of Red Bull TV and the World of Red Bull on Red Bull branded handsets, with the company also boasting it’ll offer

“competitive tariffs” for those choosing to go with the Red Bull brand for mobile

services.

“Red Bull MOBILE is fully integrated into Red Bull’s marketing and communication

mix including sports properties such as Formula One; culture marketing initiatives

such as Red Bull Thre3Style; and media properties such as the Red Bulletin

magazine, offering our consumers a unique experience that no other brand can

offer,” Jason Sargent, Managing Director at Red Bull Australia explained.

While more details were light on (the company says it’ll announce more details

closer to launch), yesterday’s announcement focused on the selection of Vodafone

to provide the Red Bull service’s infrastructure.

http://itechreport.com.au/2011/08/23/vodafone-gives-red-bull-australias-mobile-plans-wings/






“Vodafone is excited to be working with Red Bull, which is gearing up to be a very

interesting and innovative new player,” General Manager, Wholesale and Vendor

Management at Vodafone Australia, David Harrison, said.

Vodafone is currently working on a major multi-million dollar revamp of its network

across Australia, following the disastrous network issues that it suffered earlier inthe year. This, it says, will help it provide the service to Red Bull customers.

Red Bull will outsource the retail sales, distribution management and customer

service support to another company, Aggregato, based in New South Wales.

Other than confirming it’ll launch by the end of the year, Red Bull was unable to

provide a specific launch date for Australian customers.

Red Bull’s Adrenaline Marketing Mastermind

Pushes into Media

http://www.bloomberg.com/news/2011-05-19/red-bull-s-adrenaline-marketing-

billionaire-mastermind.html

May 19 (Bloomberg BusinessWeek) -- Little known outside of his native Austria,

Dietrich Mateschitz is one of the most successful entrepreneurs of our age, a man

who single-handedly changed the landscape of the beverage industry by creatingnot just a new brand but a whole new category: the energy drink. As the visionary

who brought the world Red Bull, affectionately known as "speed in a can" or even

"liquid cocaine," Mateschitz, 67, has been a patron saint for more than two decades

to late-night partiers, exam-week undergrads, long-haul truckers, and, above all,

extreme-sports athletes everywhere.

In return for his sickly sweet innovation, the world has made him very, very rich.

Last year the privately held company, also named Red Bull, says it sold 4.2 billion

cans of its drink, including more than a billion in the U.S. alone. That represents a

7.9 percent increase over the year before, and revenues jumped 15.8 percent to

$5.175 billion. Mateschitz runs an efficient enterprise that has yet to trip on its rapidgrowth: At the end of 2004, he had just 2,605 employees; in 2010, Red Bull

employed 7,758 people—which works out to more than $667,000 in revenue per

person.

Now he's set his sights on media. On May 15, subscribers to the Los Angeles Times,

Chicago Tribune, Miami Herald, Houston Chronicle, and New York Daily News found

a magazine called Red Bulletin inserted in their Sunday papers. The 98-page glossy

http://www.bloomberg.com/news/2011-05-19/red-bull-s-adrenaline-marketing-billionaire-mastermind.html






features a cover story on San Francisco Giants ace Tim Lincecum, as well as pieces

on Bob Dylan, graffiti art, and Russian BASE jumper Valery Rozov. Billed as "an

almost independent monthly," the magazine is a product of Red Bull Media House, a

subsidiary media company launched in Austria in 2007 that expanded with a Los

Angeles outpost this January.

Red Bull knows what it's getting into. Over the years, it has produced TV programs

(No Limits on ESPN), films (That's It, That's All), magazines, a website, and a steady

diet of Web videos featuring snowboarders, rally cars, surfers, cliff divers, and

concerts. Even so, its current ambitions reflect a serious ramping up, as well as the

realization of a business plan that eschews conventional advertising in favor of

marketing through its own events, shows, and publications. The company shipped

more than 1.2 million copies of the first Red Bulletin in the U.S. (equal to Sports

Illustrated's paid circulation). This fall its first feature-length documentary, a look at

snowboarding called The Art of Flight, will be released in U.S. theaters. Earlier this

year, the company announced a partnership with Bunim/Murray Productions, best

known for creating the Real World reality-show franchise on MTV. The two areworking on reality TV concepts for Red Bull athletes.

Mateschitz calls the multimedia assault "our most important line extension so far.

As a major content provider, it is our goal to communicate and distribute the 'World

of Red Bull' in all major media segments, from TV to print to new media to our

music record label." He hopes Red Bull Media House will turn a profit, but, as with

his sports teams, he's willing to wait. "In literal financial terms, our sports teams are

not yet profitable, but in value terms, they are," he says. "The total editorial media

value plus the media assets created around the teams are superior to pure

advertising expenditures."

Red Bull has employees in 161 countries, but most of the major decisions still get

made either at Red Bull's headquarters in Fuschl, an Austrian village of 1,500, or at

Hangar-7, Mateschitz's private airplane complex a few minutes outside Salzburg.

Though he rarely gives interviews, Mateschitz's Hangar-7 provides ample evidence

that he is not shy about his success. Each of his buildings features architectural

flourishes that seem better suited to a design mecca like Berlin than to a bucolic

Austrian suburb. "The architect almost killed me when I told him I wanted to add

that," says Mateschitz, standing on a balcony and pointing straight up at the

Threesixty Bar—a circular all-glass room that appears to be suspended in mid-air.

It's extravagant, unnecessary perhaps, and that's precisely the point. "It wouldn't be

Red Bull if it didn't start harmless and end up as a catastrophe," Mateschitz says.

"And architects are really only paid discussion partners anyway."

Beyond the Flying Bulls—a performing fleet of vintage aircraft—the most fascinating

parts of Hangar-7 are the restaurants, including the Threesixty Bar, the Mayday Bar,

and Restaurant Ikarus. Directly below us sit a half dozen aircraft, all tattooed with



Red Bull's logo, including a Chance Vought F4U-4 Corsair fighter from 1945, a Pitts

S2B aerobatic biplane, two Alpha jets once used by European militaries for training,

and a couple of helicopters.

Mateschitz owns four soccer teams: New York's Red Bulls (and their stadium), Red

Bull Salzburg, Red Bull Brasil, and RB Leipzig. He also has a Nascar team and twoFormula 1 racing teams. One Formula 1 team has on occasion been sufficient to

cripple a billionaire's finances, but like everything at Red Bull, he finances the

annual $200 million cost of his F1 teams out of the company's healthy operating

income.

Mateschitz is Austria's richest man, and Red Bull is the biggest thing to come out of

the place since, well, Arnold Schwarzenegger. California's former governor has an

idea why Mateschitz is so successful: "He's a daring businessman, but he's also

quite visionary for an Austrian, because he thinks in terms of the whole world. It's

one thing to think that way in America, but it's much more rare when you come

from a small country like Austria."

Mateschitz's private office is called Lucky 7-Private Heaven. It's so private that we're

forced to wait as he struggles to get the digital fingerprint reader to grant him

access. It's the one time all day that he shows even an inkling of uncertainty. "I'm

not really this James Bond," he says as he places his finger on the reader for the

third time. "It was for my son when he was younger. But he was a little surprised

when I told him that it only worked with my fingerprint and not his as well."

Once inside, Mateschitz takes his place behind a modern wooden desk that holds

not a computer but rather a model plane, a bronze sculpture of two bulls flying on

an eagle's wings, and a few coffee-table books—on the Belgian artist Panamarenkoand the German aeronautical engineer Claude Dornier—and launches into a spiel

he's been delivering for the past 25 years. In near-perfect English, he explains that

Red Bull is not just a drink. Instead, it is a "philosophy"—one seemingly derived

from his own outlook on life—and a "functional product," used to improve strength

and performance and to revitalize the body and mind. An amiable man, Mateschitz

is also quite serious, prone to beginning sentences with the phrase "It is a must." As

in: "It is a must to believe in one's product. If this were just a marketing gimmick, it

would never work."

He says it with such certainty that it's easy to forget that Red Bull is just a

carbonated drink in an artfully designed eight-ounce can, the main ingredients of which are caffeine, an amino acid called taurine, and a carbohydrate called

glucuronolactone.

Mateschitz was born on May 20, 1944— under the sign of Taurus, naturally—in the

village of St. Marein, in Austria's southern region of Styria. His family was

predominantly conservative, full of officers, priests, and teachers—the profession of

both his parents.



From an early age, Mateschitz showed an aptitude for selling an idea, like the time

he persuaded his mother to let him attend university in Vienna rather than in

nearby Graz. "I chose the university for the city, not for the university," he says.

"But I could only find one course which wasn't available in Graz, which was ship

construction. So I convinced her that I had only one desire in life, and that was to

become a ship engineer."

It took him 10 years to get a degree in commerce from the Vienna University of

Economics and Business, and he spent part of that time working as a ski instructor

to pay the bills. After graduating, at 28, he spent 10 years as the international

marketing director of a German consumer products company called Blendax. He

was little more than a glorified toothpaste salesman, and by 38 he'd hit a wall. "All I

could see was the same gray airplanes, the same gray suits, the same gray faces.

All the hotel bars looked the same, and so did the women in them. I asked myself

whether I wanted to spend the next decade as I'd spent the previous one."

A chance trip to Thailand in 1982 would prove to be the turning point in Mateschitz'slife. Curious to know what attracted the locals to an uncarbonated "tonic" called

Krating Daeng (Thai for "water buffalo"), he tried some himself and found that it

instantly cured his jet lag. Not long after, while sitting in the bar at the Mandarin

Oriental in Hong Kong, he read in a magazine that the top corporate taxpayer in

Japan that year was a maker of such tonics. Suddenly, the idea hit him: he would

sell the stuff in the West.

In 1984, Mateschitz approached one of his Blendax contacts, Chaleo Yoovidhya, a

Thai businessman who was selling the tonic in Southeast Asia, and suggested that

the two introduce the drink to the rest of the world, with one crucial change: It

would be carbonated. Yoovidhya liked the idea, and they agreed to invest $500,000apiece to establish a 49/49 partnership, with the remaining 2 percent going to

Yoovidhya's son. (Yoovidhya remains a silent partner in the company.) Mateschitz

then returned to Austria to plan the all-important packaging and slogan. For help,

he turned to his university friend Johannes Kastner, who owned his own ad agency

in Frankfurt.

"He said he had no money, so we agreed that he would do freelance work for me to

pay me for it," says Kastner. Over the next year and a half, Kastner and his team

put together about 50 different designs for Red Bull, with Mateschitz finally deciding

on the distinctive blue-and-silver can emblazoned with the logo of two muscular

bulls about to smash heads in front of a yellow sun. A slogan was harder to come

by. "Nothing satisfied him, and I was finally so upset that I told him to find another

agency," says Kastner. "He asked me to think about it for one more night. And at 3

a.m. it came to me—'Gives You Wings.' I called him right then and told him it was

the last one I'd give him, but he said, 'That's it.'"



It was just what Mateschitz needed—something to convey that Red Bull had

tangible effects. That, in turn, would allow his product-positioning master stroke: He

would sell Red Bull as an ultra-premium drink in a category all its own. At about $2

a can, it was far-and-away the most expensive carbonated drink on the shelves. "If

we'd only had a 15 percent price premium, we'd merely be a premium brand among

soft drinks, and not a different category altogether," says Mateschitz. In 1987 heintroduced the drink in Austria. Next came Hungary, the U.K., and Germany, and

before long sales were spiking all over Europe.

At this point most histories of Red Bull tend to depart from Mateschitz and focus on

Red Bull itself, which is exactly how he wants it. A curious hybrid of a mogul,

Mateschitz has a zest for life that rivals Richard Branson's, but his obsession with

controlling information puts him closer to Steve Jobs. Like the Apple (AAPL) chief,

Mateschitz pulls the strings behind a consumer cult. And cults rely on message

control.

While he's engaging in person, Mateschitz is notoriously secretive. (His elusivenesshas prompted his staff to nickname him The Yeti.) He has a long-standing policy of

refusing to discuss his private life, and until recently he wouldn't even consider

answering questions about his only child, Marc, whose mother is a schoolteacher

Mateschitz dated for two years.

He's close to some of Austria's most prominent people, though Mateschitz says he

doesn't place a premium on collecting friends or socializing: "I don't believe in 50

friends. I believe in a smaller number. Nor do I care about society events. It's the

most senseless use of time. When I do go out, from time to time, it's just to

convince myself again that I'm not missing a lot." On those rare occasions, however,

he invariably arrives with an attractive woman on his arm. "It's just that I'm not oldand wise enough to be married yet," he says. "But is it necessary that you write

about this?"

The success of Red Bull defies logic in one important regard: It doesn't taste very

good. The amber-colored elixir's taste has been likened to "liquid Sweet Tarts" or

"cough medicine in a can." (Although it does grow on you.) One early market

research report in the U.K. put it bluntly: "No other new product has ever failed this

convincingly." Mateschitz says he didn't care about the taste issue then, and he

doesn't care about it now. "It's not just another flavored sugar water differentiated

by color or taste or flavor," he says. "It's an efficiency product. I'm talking about

improving endurance, concentration, reaction time, speed, vigilance, and emotional

status. Taste is of no importance whatsoever."

But if Red Bull doesn't please the palate, what exactly does it do for you? The short

answer is that no one outside of Red Bull is entirely sure. There's the caffeine

content: 80 milligrams per can, twice that of a can of Coca-Cola (KO) and about the

same as a cup of coffee. Those drinking original Red Bull and not the sugar-free



version also receive a healthy dose of carbohydrates. But the rush Red Bull delivers

is different from what you'd feel after drinking a coffee or two cans of Coke.

Enter the "crucial" ingredient: taurine, an amino acid found in meat, eggs, and

human breast milk. While some studies have shown small doses of taurine to be

beneficial against problems ranging from epilepsy to cardiac arrhythmias, there'sscant evidence of its impact on the body, positive or negative. A "nonessential"

amino acid, it's manufactured from other amino acids in the liver, and scientists say

it's therefore unnecessary to a healthy diet. But Mateschitz scoffs at this. "We have

meters and meters of scientific evidence and support" showing its benefits, he says.

The company has shared the results of these studies with health authorities each

time it has sought to enter a new country, and most governments have approved

the drink for sale. It was banned, for a time, in both Denmark and France, where

authorities were focused not on Red Bull's benefits but on the potential danger

posed by its unusually high levels of taurine, caffeine, and certain B vitamins. In

1991 two young Swedes died on a night when they'd drunk Red Bull with vodka,and in 1999 an Irish teen who had consumed three Red Bulls died while playing

basketball. Although investigators found no connection between the deaths and Red

Bull, the cases raised alarms, as did a French study in which rats that had been fed

taurine were found to exhibit bizarre behavior, including self-mutilation. Still, the

data on taurine remains inconclusive.

Mateschitz proved his marketing genius, especially in an era of "crisis

management," with his early decision to foster rumors about Red Bull's content

instead of trying to quash them. In the early 1990s, when the drink emerged as a

hit in the infamous all-night party circuit on the Spanish island of Ibiza, tales began

to circulate that taurine was derived from bull testicles or even bull semen. Thecompany let the gossip travel unchecked, and even set up a page devoted to the

rumors on its website. "In the beginning, the high-school teachers who were against

the product were at least as important as the students who were for it," says

Mateschitz. "Newspapers asked, 'Is it a drug? Is it harmless? Is it dangerous?' That

ambivalence is so important. The most dangerous thing for a branded product is low

interest."

Was it all by design? Did he really anticipate that a combination of rumor and public

outcry would play such a big part in driving early sales? Mateschitz is emphatic:

"Yes. We expected it. It was a part of the strategy from the beginning. We would

make the brand interesting enough that people wanted to get their hands on it."

Controversy aside, the central pillar of Red Bull's marketing campaign has always

been its claim that it can improve athletic performance. To prove it, the company

took a page out of Gatorade's (PEP) book and targeted athletes, except that, in a

timely twist, Mateschitz zeroed in on the extreme-sports crowd. The first athlete he

signed up to be an "ambassador" was fellow Austrian Gerhard Berger, winner of 10



Formula 1 races. In short order, Red Bull was sponsoring events and athletes in a

variety of perilous endeavors.

Today, Red Bull underwrites more than 500 athletes in 97 sports—100 of them in

the U.S. But in a departure from the traditional sponsorship arrangement, Red Bull

doesn't offer its athletes contracts, just a verbal agreement to "support" them inachieving their dreams. Some of those athletes don't need any "support" per se—

Red Bull counts soccer star Thierry Henry and snowboarder Shaun White as part of

its "family"—but some, like Canadian ice-climber Will Gadd surely welcome the

extra bucks.

The sports Red Bull tends to focus on are definitely not for the faint of heart. In the

last 20 years, three Red Bull athletes—whom Mateschitz calls "family members"—

have died in separate incidents: Shane McConkey and Ueli Gegenshatz (BASE

jumpers) and Eli Thompson (Red Bull Air Force). "There are almost no sports within

which mortal accidents are not a reality," Mateschitz says. "The sports they helped

pioneer carry inherent risks which each would take with or without our support. Andwhile we were hit hard by it and deeply concerned, they chose their journey long

before we met."

Felix Baumgartner, the world's best-known BASE jumper, is in Mateschitz's inner

circle, and his association with the company dates back to 1996. (BASE is an

acronym for the fixed objects from which such athletes usually jump: Building,

Antenna, Span—or bridge—and Earth.) Red Bull sponsors most of Baumgartner's

stunts, such as a 120-foot leap from the arm of the Christ the Redeemer statue in

Rio de Janeiro in 1999 that set the record for the lowest parachute jump in history.

Baumgartner later admitted to Jay Leno that the idea sounded stupid. Leno replied,

"It doesn't sound stupid. It is stupid."

Like everything else at Red Bull, the negotiations that lead to sponsorship deals are

unorthodox as well. Windsurfer Robby Naish recalls his first meeting with Mateschitz

almost 20 years ago. "We talked in the courtyard of his office in Fuschl, and pretty

soon realized that we're both really into cars. That was the end of our business

meeting, because he wanted to show me his Ferrari GTO. We went driving off into

the mountains, and after 15 minutes he pulled over, got out, and told me to drive

back. I didn't want to—it's a million-dollar car—but he said I was either going to

drive the Ferrari or walk back. I was so scared, I drove like my grandmother."

The lines between Red Bull, Red Bull athletes, and Red Bull events are blurry onpurpose. To Mateschitz, it's just one big image campaign with many manifestations.

Americans might see 2005 Heisman Trophy winner Reggie Bush on television

wearing a Red Bull hat. Or they might stumble on a YouTube video of Shaun White

secretly training on the private half pipe built by Red Bull. Or they might actually

attend one of dozens of global Red Bull events, like the May 21 Red Bull Soapbox

Race in Los Angeles or a motocross spectacular in Brazil the week after. This is fun



stuff, and it's a lot more interesting than writing a check to buy 30 seconds during

the Super Bowl.

Despite the fact that he's approaching 70, Mateschitz maintains quite a clip. He still

moves like an athlete, rides horses, pilots planes, and last year competed in an off-

road motorcycle race. He has, however, installed a board of directors at Red Bull towork on broader strategic issues. Red Bull now has hundreds of competitors (the

latest entrant: Tiger Blood energy potion, an homage to Charlie Sheen). For a time,

there were rumors that Coca-Cola had offered to buy the company, but those have

died down. Mateschitz has long insisted that he has no plans to sell or take Red Bull

public. "It's not a question of money," he says. "It's a question of fun. Not only that,

can you imagine me in a shareholders' meeting?"

The bigger question is whether the juggernaut he has built will survive him,

factoring in that Red Bull is the vehicle for his passions and ideals. Mateschitz thinks

so. And he even has a successor in mind. "My 19-year-old son will join the company

after finishing his studies, if he wants to and if the time is right," he says.

Meanwhile, Mateschitz has certainly created some enviable havens for himself. Like

Richard Branson, he has his own private island, the 3,000-acre Laucala, in Fiji. The

flamboyant Malcolm Forbes bought the island for $1 million in 1972. Mateschitz

heard about it from his friend George Harrison, the ex-Beatle, who had planned to

buy the island himself before his death. In 2003, Mateschitz purchased it for a

reported $10 million.

Laucala was first sighted in 1789 by Captain William Bligh of the HMS Bounty after

he'd been relieved of his duties and set adrift by his mutinous crew. Mateschitz

plans to use it mainly as a getaway for his small circle of friends, but he has alsobuilt an exclusive resort on the island. When I ask him what motivated him to buy a

vacation home so far from Salzburg, he resorts to quoting Forbes himself: "He gave

a nice answer, which was, 'Doesn't everybody want their own South Pacific island?'

Well, in my case, he was right. I did." He also says that he has always been

attracted to the idea of having his own independent state—the country of Red Bull,

as it were—which would have the shortest set of laws in the world. "The rules would

be simple. Nobody tells you what you have to do—only what you don't have to do."



Australian non-alcoholic drinks market

http://www.ozbevnet.com/consumer-intelligence/australian-non-alcoholic-drinks-

market.html

Australian non-alcoholic drinks market.

Vive la difference.

While energy drinks and sports drinks appeal to distinct customers, they still have

plenty in common … like enormous growth and fantastic profit potential

ACNielsen CLOSEUP

MAT 31/12/2006 ACNielsen C*Track

Category Market Breakup Sport Drinks $ Millions

Grocery $219.4

Major Convenience $46.7

Energy Drinks $ Millions

Grocery $308.7

Major Convenience $96.4

At a Glance

http://www.ozbevnet.com/consumer-intelligence/australian-non-alcoholic-drinks-market.html






•Energy drinks and sports drinks are both enjoying growth in excess of 20%, as on-

the-go consumers become increasingly health aware.

•Powerade and Gatorade are dominant in the sports drinks market, while Red Bull

and V boast a combined 94% share of the energy drinks market.

•Coca-Cola has high hopes for its recently launched Mother energy drink, which will

be supported by a multi-million dollar marketing campaign.

•A second type of energy drink, generally containing carbohydrates, protein, milk,

vitamins and minerals, is also gaining popularity with convenience customers.

While energy drinks and sports drinks serve completely different functions, both

categories are enjoying growth in excess of 20% as an increasingly time-pressured

and health-aware public continues to embrace them.

And, with the future forecast to be just as bright, the convenience store operator

who doesn’t seize the opportunity to truly understand these products and the profitpotential they present, could be making an extremely costly error.

Sports Vs Energy drinks

Put simply, sports drinks are designed to replace fluids and to deliver re-hydration.

They contain carbohydrates and electrolytes (minerals such as sodium and

potassium).

There are really two kinds of energy drinks. The first, which dominates the market,

generally contains performance-enhancing substances such as caffeine and taurine

and is said to improve concentration and reaction speed. These energy drinksstimulate the metabolism, vitalise the body and are bought by people looking for a

quick energy boost or to enhance performance. The second type of energy drink,

which also holds great growth potential, generally contains carbohydrates, protein,

milk, vitamins and minerals, and is designed to provide a longer lasting, nutritious

energy.

Both sports drinks and energy drinks have two major players. Red Bull and V

account for 94% of total energy drink sales and, similarly, Powerade and Gatorade

account for 94% of total sports drink sales.

“Since 1999, more than 250 different energy drinks have been launched in Australia

and the only ones that have been successful are Red Bull and V,” said Red Bull’s

Sales Operations Manager, Karen Aldridge, who argues that C-Stores should

maintain their focus on the big brands.

“If there was a proliferation of brands within these categories, such as has been the

case in the flavoured soft drink category, the potential for sales growth can be

compromised,” she said.



Certainly, an increasing number of smaller operators are attempting to grab a

profitable slice of the ever-growing energy pie. Few newcomers have made

significant inroads into the market share of the big two, particularly through

convenience, but it will be interesting to see how Coca-Cola’s new Mother energy

drink fares.

Coca-Cola says the growth in energy drink consumption and consumer demand for

a new and improved energy drink is the rationale behind January’s launch of

Mother.

The all-natural, juice-based energy drink which contains acai, guarana, ginseng and

caffeine, is targeted at males aged 18-24, and is supported by a multi-million dollar

marketing campaign.

Convenience a key channel

“Convenience is a key channel for the launch of our new energy drink, Mother,” said

Emma Seberry, Marketing Manager, Mother. “Energy drinks tend to be purchased

from immediate consumption outlets, and convenience is vital for reaching our ‘on-

the-go’ 18-24 year old target audience.

“We know that one of the key elements to successfully launching Mother will be

ensuring the convenience channel is supported properly. We have developed point-

of-sale material especially for convenience and built a sampling campaign which

targets this channel.”

Certainly, strong marketing and advertising support is considered critical to energy

drink sales, and helps to explain the ongoing success of Red Bull and Frucor’s V.

“Both market leaders invest heavily in marketing,” said Red Bull’s Ms Aldridge. “In

fact, Red Bull’s marketing investment for 2007 will reach record highs and will be

increased to $33 million. This is an increase of 38% on 2006 and 65% on 2005.”

As well as ‘above-the-line’ advertising, Red Bull marketing dollars are continuously

invested into consumer-focused events such as F1 and the Red Bull Air Race. It also

invests in a sampling program and has found multi-buy promotions, whereby

customers might buy two Red Bull cans for $5, or two Red Bull bottles for $6, to be

highly effective.

Ms Aldridge also hopes that the launch of the Red Bull 355ml can earlier this yearwill further increase convenience store sales and profits.

“Red Bull is consumed throughout the day and night with a higher proportion in the

afternoon and evening, so it is a good idea for store owners to check their stock

levels at this time to avoid potential out of stocks and missed sales opportunities,”

Ms Aldridge said.



“The demographics of the main buyers of the energy category is pretty much

anyone in the community who requires energy. This includes, but is certainly not

limited to athletes, drivers, office workers, shift workers, partygoers, young parents

and uni students.”

If Red Bull and V are dominant in energy drinks, the same can certainly be said of Coca-Cola’s Powerade and Cadbury Schweppes’ Gatorade in sports drinks.

Powerade has been enjoying growth in excess of 23% and is the number five drink

in convenience behind Coca-Cola itself, V, Red Bull and Mount Franklin. Its recent

success can be partly attributed to last year’s launch of the isotonic formulation

product — designed to allow rapid absorption of water, electrolytes and

carbohydrates.

For its part, Gatorade is the number six drink sold through convenience, and is

growing at nearly 40%. According to Cadbury Schweppes, the difference in

consumer purchase intent between energy drinks and sports drinks is functionality.Consumers generally purchase energy drinks for a mental lift/stimulation while

sports drinks are purchased for hydration, and the majority of consumers will have

made their decision on what benefit they require from their beverage choice before

entering the store. Fixtures and fridges should be appropriately segmented to

display these differences, which is current practice.

Australia’s per capita consumption of both energy drinks and sports drink is still

lower than similar markets around the world and this explains why so many firms

are battling for a foothold in the marketplace.

“We are niggling away at the big boys in convenience,” said Lance Robey, General

Manager, Sales and Marketing for Steric, makers of Staminade. “It is a vital channel

for us but we are having to work hard because of the marketing power of the major

brands. We represent a huge opportunity for C-stores to increase their profits

because we are, in general, about 34% cheaper than Gatorade or Powerade, and

the retailer can pick up most of that extra margin.”

While many companies consider the differences between sports drinks and energy

drinks to be pretty clear-cut, Barry Jenkin, Brand Manager for Aussie Bodies,

believes the distinctions are becoming more blurred.

“Some drink products will have dual applications in energy production and sports

performance, yet be market-positioned as one or the other,” he said. “C-Stores can

take advantage of this, as the crossover appeal presents an opportunity to

introduce new consumers to the fastest growing category in convenience, while

upselling existing ones to higher-margin product.”

And he says hybrid energy-sports drinks, like Aussie Bodies’ Protein Revival deliver

the best of both worlds.



“Being carbohydrate and protein balanced, it can be used for sustained energy,” he

said. “And the protein boost delivers the sports benefits of muscle recovery and

growth. In addition, because of the nutritional balance, the product can also

function as a meal on-the-go.”

Better for you offers growth opportunities

Mr Jenkin says Protein Revival posted record-high scan sales figures in convenience

last year with 45% value sales growth (ACNielsen), consolidating its number one

position in protein-boosted beverages. He expects even more growth to come.

“The biggest opportunity exists in the better-for-you market where consumers may

seek a healthier or energy-enhanced version of their favourite drink. Products like

Protein Revival appeal because they offer a flavoured milk with a taste profile

closely matching the big dairy-case brands, but with more protein, less sugar and

less fat per 100ml,” he said.

Another low-fat product with a wholesome image is Up & Go from Sanitarium. In the

past 12-18 months growth in the brand has been driven by the success of Up & Go

Energize, which has higher protein levels and is tagged as an all-day body fuel.

“Sanitarium recognises that people often have to consume food ‘on-the-run’. We

want to provide those with busy lifestyles with a convenient, nutritious option for

long-lasting energy,” said Susan Wilson, Sanitarium Group Product Manager (Meals

and Convenience).

“We have seen good growth in the past 18 months and we have been going well in

convenience, although we still don’t have full distribution. I think there is a real

opportunity in petrol and convenience to grow the brand as it is a definite impulseproduct.”

Musashi’s P30 Milk Drink (30g Protein in a ready-to-drink 327ml container) has also

proven extremely popular, and the company is equally pleased with sales of its

Growling Dog Cola and eSHOT energy drinks. It says the convenience channel gives

customers all-hours access to brands that can give them a boost whenever they

need it.

“Products like eSHOT should be positioned for a ‘quick buy’ somewhere easy to find

near the counter,” a Musashi spokesperson said. “C-Stores should also have a

comprehensive range so customers can always find something they want.”

Getting a foothold offers challenges

Glaxo SmithKline says its single-serve 300ml Lucozade is a fantastic proposition for

the convenience channel, with promotions such as two-for-$5 and lunch combo

deals working particularly effectively. A spokesperson said C-Stores could grow



sales of the brand by positioning it with other energy drinks such as V and Red Bull

in the energy fridge door.

Without doubt, it is the dominating presence of the big two that presents the

biggest challenge to companies seeking a foothold in the energy drinks market.

P&N Beverages believes its Wild NRG, which was launched in late 2005, was able to

get a headstart on other energy drink wannabes thanks to its association with

dance music and a Channel Seven TV show, also called Wild.

“The cross branding created a lot of interest,” said Harris Spyrou, P&N’s Marketing

Manager. “It was something very different and that helped us to make some

progress in convenience. We are currently working on new plans to take our

success with Wild NRG to the next level and, with our target demographic being 16-

25 year olds, convenience will be an important part of those plans.”

Similarly, Matthew Shea, Director of Naughty Energy says the all-natural, all-

Australian ingredients of Naughty Energy drinks offer a point of difference.

“We taste more like a soft drink, but with functional ingredients such as herbs and

natural amino acids delivering the pick-me-up qualities customers want,” he said.

“We have distinctive packaging that appeals to a particular demographic, and we

are keen to expand our presence in convenience as that is where people looking for

something there and then shop.”

Another relatively new player on the energy drink scene, Jugular, has been striving

equally hard to gain access to the convenience market.

“It is very difficult to get facings because of the stranglehold of the major brands,”said Jugular Global Pacific’s Company Director, Tim Xenos. “However, where Jugular

has been placed it has been very well received.

“We sit in the middle ground in that Jugular provides a boost for busy on-the-go

people without the crash, and we also provide the rehydration benefits offered by

the sports drinks.”

Mr Xenos said Jugular, which has just launched a sugar-free version, could therefore

be consumed as an energy drink or as a sports drink and thus offered C-Stores

something different. And, he said, as it does not contain caffeine or guarana, Jugular

is a drink that can be consumed by people of all ages.

The fact that the energy drinks category is growing day by day and is still

underfaced in Australian C-Stores makes the Manager of Hype Energy, Melvin

Butler, confident that his cranberry and elderberry flavoured product can gain

traction in convenience.



“You simply can’t come on to the market and try to steal market share from the

market leaders. It won’t work,” he said. “We are just that little bit different and

appeal to genuinely health-conscious people because we have no preservatives,

and no artificial flavours or colours.

“We have some major TV ads coming up as we further increase our distribution, andconvenience stores should take advantage of those initiatives ... it’s a genuine

opportunity.”

While energy drinks and sports drinks are clearly targeted at adults, Zenergy

Beverages and its PLaY Sports Water drink is aimed squarely at health-conscious

children and their parents.

Available in school canteens up and down the country, the product will this year

become available in convenience and is likely to cause quite a stir.

“Our existing relationship with nearly two million kids and their parents means that

the transition of PLaY into a new channel is relatively seamless,” said Zenergy

Beverages Director, Sharon Evans. “Parents and kids are looking for healthy options

and it’s much easier to convince kids to drink well if the product looks good, the

packaging is fun and it tastes great.”

The same appeal to image is clearly key in the ongoing success of both sports and

energy drinks to adults, and there seems to be no shortage of innovation and

creativity in this regard. Sports and energy drinks, it seems, like most of their

consumers, are fighting fit and more than ready to face the next challenge.

Red Bull prepares to defend market share as V

takes up the challenge – ( a bit dated- year 2000)



http://www.just-drinks.com/analysis/red-bull-prepares-to-defend-market-share-as-v-

takes-up-the-challenge_id85547.aspx

The Southern Hemisphere is host to a fierce battle for the hearts of energy drink

consumers. And as Dave Robertson reports, with Frucor's V flexing its muscles in

Europe now, the fight with Red Bull is about to go global.

Red Bull's domination of the global energy drink market is under threat from

Australasian upstart Frucor.

Frucor makes V and has 60% of the growing Australasian market. It has launched

into the UK and South Africa and plans to expand overseas taking on Red Bull's

worldwide dominance. Its first target is to become the number two energy brand,

behind Red Bull, in the £300m UK market.

But Red Bull is fighting back by taking on V in its domestic markets of Australia andNew Zealand. The two companies have already clashed over V's marketing and the

use of the phrase "vitalises body and mind" which Red Bull claims as its own.

Red Bull is protesting the use of the slogan and has already won in South Africa

where the Advertising Standards Authority ruled V could not use it.

"Red Bull has been using the line "vitalizes body and mind" in its advertising and on

its cans since 1987 when the product was first launched in Austria," said Red Bull

corporate projects manager Paul Devereux.

"It was then launched in English in the UK in 1993 and we have been using theslogan since we arrived in New Zealand in 1996 - long before V was even thought

of. The slogan is a key element of our global positioning.

"Consequently, we have applied to register the slogan as a trade mark in both New

Zealand and Australia and, following the South African ruling, we are confident of

success."

While Red Bull has had a limited presence in Australasian markets it has only been

in recent months that the brand has received a big push - and this has prompted

the "vitalize" challenge.

While Red Bull has languished, Frucor has turned V into the market leader and it isalmost solely responsible for the growth of the energy drink market in Australia and

New Zealand. The market was worth just NZ$2m in New Zealand in 1997 when V

was launched but it has since grown to $72m a year.

Australia is a less developed market but both companies see big growth

opportunities. Energy drink consumption in Australia is about half a litre per capita

http://www.just-drinks.com/analysis/red-bull-prepares-to-defend-market-share-as-v-takes-up-the-challenge_id85547.aspx






compared with 2.3 litres in New Zealand. Both companies are vying to be the big

winner as the Australian market expands.

Frucor is challenging the Red Bull "vitalize" complaint and is considering appealing

the South African decision. "We have been using this phrase for three years and

they have only just come out and said they think that it is wrong. The fact we havebeen using it for three years proves that there has been no issue up to this point so

why should there be one now?" Frucor chairman Simon Pullar told just-drinks.com.

"Also the phrase is reasonably generic to the sector. There are lots of people using

variations of the vitalize theme. Red Bull is also trying to lay claim to a generic

word. They are taking a word from the English language and saying 'that is ours'."

But Red Bull crashing V's Australasian party doesn't worry Pullar.

"I think any good company says competition is a good thing as it is 'vitalizing'. Red

Bull is a very strong company and they have done a fabulous job worldwide.

"But I think our products are complimentary and usage is different. They will be a

force in the Australian market but our share is staying solid. It is the smaller brands

that are getting squeezed as the market is consolidating towards two strong

brands."

Frucor was formed when the New Zealand Apple and Pear Board was privatised. It

floated half the company for $940m in June but analysts had been disappointed that

the starting share price of $1.50 was well below estimates of $1.95 to $2.25. But

since the floatation the share price has rocketed and is now above the $2.25 mark.

The company will reveal its results for the financial year ending June 30 next week.

Forecasts predict that operating revenue will be up 64% to $184m and profit will be

166% higher at $13.3m.



Red Bull’s New Snowboarding Documentary The

Art of FLIGHT Is on Tourhttp://popsop.com/50126

Red Bull Media House in association with Brain Farm Digital Cinema has presented a

new snowboarding documentary The Art of FLIGHT. The film was premiered last

month on September 7 at New York City’s Beacon Theatre and now the filmmakers

and stars are on a world tour with it throughout October and November.

The film directed by Curt Morgan follows Red Bull’s That’s It, That’s All picture on

the same theme. The sports action adventure filled with captivating and risky tricks

features famous and the most talented snowboarders like Travis Rice, John Jackson,

Mark Landvik, Scotty Lago, Jake Blauvelt, Nicolas Muller, DCP, Pat Moore, EeroNiemela and Jeremy Jones. They open up unexplored snow hills of the world.

“Through the riders full immersion into the making of this film, we are able to show

in the truest way what it is like it for us to travel to some of the most remote places

on earth and search out the most dynamic terrain and conditions,” says Rice.

Red Bull is a brand known for its passion to extreme sport and originality. For

example, it arranged a flying competition in September in the USA. Currently, the

brand runs the Canimation competition searching for talanted animators in Britain.

It took two years for the energy drink producer to make the film. The mostadvanced and progressive filmmaking technology was used to shoot on location in

places like Jackson Hole, Alaska, Chile, Aspen, Patagonia and British Columbia.

The Art of FLIGHT has everything to attract young and active people: astounding

tricks preformed in remote areas, accidents, avalanches and wrong turns on the

mountains.

http://popsop.com/50126

http://popsop.com/50126



There is a special film web site where fans can view the trailer, get to know more

about the film crew and play a virtual snowboarding game. The film can be

previewed and purchased in the iTunes store for $7.99.

Sharjah tourism to sponsor Red Bull Quicket Final

at Mega Mallhttp://www.ameinfo.com/277978.html

Sharjah is set for a unique cricket extravaganza, with an entirely novel concept

called Quicket on Friday, October 14. The one of its kind cricket or quicket

championship is being hosted by Red Bull and sponsored by the Sharjah Commerce

and Tourism Development Authority as part of government and private sector

initiatives to promote Sharjah.

The sporting event that has evoked tremendous interest in the huge population of

cricket aficionados in the emirate and beyond will be held in the parking lot of

Sharjah's Mega Mall.

The final showdown will see 16 teams fight for the title and each team will have two

players. The qualifies for the Quicket match opened a month ago on September 16

and have been held in Abu Dhabi, Dubai, Fujairah, Ras al Khaimah and Sharjah.

Speaking on the association of SCTDA with the cricket event, officials said that this

is part of the Authority's strategy to promote sports in Sharjah and enhance the

emirate's profile as a world class destination for international sports as well as a

favourite tourist destination entire family.

In the new form of cricket, which is becoming increasingly popular around the world,

each team will have two players facing two overs with the team scoring the most

runs emerging winners. The field for Quicket is split into Four Zones, with each zone

fetching the batsmen different number of runs. In the event of a tie, a Super Over of

three balls will decide the winner.

Sharjah is celebrated and instantly recognized the world over for its international

cricket thrillers in the 1980s and 1990s that attracted thousands of spectators and a

http://www.ameinfo.com/277978.html

http://www.ameinfo.com/277978.html



global audience glued to their television sets as the best of the best from India,

Pakistan, Sri Lanka, Australia, England and elsewhere clashed.

In recent years, Sharjah with its rich cultural heritage, tourist attractions and golden

beaches has increasingly attracted international visitors from Europe and around

the world.The first half of this year saw more than 750,000 tourists visit the emiratedesignated by the United Nations as the Cultural Capital of the Arab and Islamic

world, registering an increase of 3%.

While Sharjah has focused on portraying itself as a family and heritage tourism

destination, it has also been hosting and promoting international sports such as

water sports, football, cricket and equestrian events.

Red Bull Mini Drome Vancouver

http://www.pinkbike.com/news/RED-BULL-MINI-DROME-VANCOUVER-2011.html

Red Bull Mini Drome is the ultimate arena to showcase your single speed cycling

skills. A scaled down velodrome was constructed for the sole purpose of seeing who

can complete ten laps in the shortest time.

Cyclists will take their street skills to the track in a test of mental stamina, technical

precision and raw strength. From its roots across the pond, in England, Red Bull Mini

Drome will take its debut laps in Canada with stops in Montreal QC, Toronto ON, and

Vancouver BC.

Red Bull Mini Drome brings skill, speed, balance, and bravado together on a steep

and shrunken version, far from the traditional velodrome, to give competitors the

most challenging and treacherous ride of their lives.

All registrants will get a time trial at which point the top riders will be placed in a

bracket to go head to head with each other until there is only one cyclist left to becrowned victorious.

EVENT DETAILS - SINGLE SPEED BIKES WITH 26" OR LARGER WHEELS ONLY

Location: Rocky Mountaineer Station

Address: 1755 Cottrell Street





Free for Competitors and Spectators

Minimum 18 years of age

Pre-Register at Super Champion Bike Shop, 245 Main Street

Qualifiers: 12pm

Main Event: 5:30pm

Follow Red Bull Canada and Red Bull Vancouver on twitter for all the latest info!

Sample Redbull

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