Red Bull is a brand of energy drinks created and owned by the Austrian company Red Bull GmbH. With a market share of 43%, it is the most popular energy drink brand as of 2020,[8] and the third most valuable soft drink brand, behind Coca-Cola and Pepsi.[9] Since its launch in 1987, more than 100 billion cans of Red Bull have been sold worldwide,[10] including over 12 billion in 2023.[11]
Red Bull was derived from a similar drink called Krating Daeng which originated in Thailand and was introduced by the pharmacist 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 Yoovidhya and formulated a product that would suit the tastes of Westerners, such as by carbonating the drink.[18] In 1984, the two founded Red Bull GmbH in Fuschl am See, Salzburg, Austria.[19] When branding their new product, Mateschitz referenced Krating Daeng's name: in Thai, daeng means red, and a krating (known in English as a gaur) is a large species of wild bovine native to the Indian subcontinent. Red Bull and Kraeting Daeng use the same red bull on yellow sun logo while continuing to market their drinks separately in the Thai and Western markets.
History
In 1976, Chaleo Yoovidhya introduced a drink called Krating Daeng in Thailand,[20] 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.[21] In 1984, Mateschitz co-founded Red Bull GmbH with Yoovidhya and turned it into an international brand. Each partner invested US$500,000 of savings to fund the company. Yoovidhya and Mateschitz each held a 49 percent share of the new company. They gave the remaining two percent to Yoovidhya's son, Chalerm, but it was agreed that Mateschitz would run the company.[22] The product was first launched in Austria on 1 April 1987.[23]
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.[24] Pricing was a key differentiator, with Red Bull positioned as a premium drink[25][26] and Krating Daeng as a lower cost item.[27] In many countries, both drinks are available, dominating both ends of the price spectrum.[24] The flavouring used for Red Bull is still produced in Bangkok and exported worldwide.[24]
During the 1990s, the product expanded into Hungary, Slovenia, Germany, the Czech republic, Croatia, the United Kingdom, Australia, and the United States.[28] It entered Germany and the UK in 1994, the United States (via California) in 1996,[29] the Middle East in 2000 and the Philippines in 2012.[28] 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.[30][31]
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.[24]
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.[32]
The caffeine content of a single 250 ml can of Red Bull is approximately 40–80 mg / 250 ml (15–32 mg / 100 ml).[40][41][33] The caffeine level in Red Bull varies depending on the country, as some countries have legal restrictions on how much caffeine is allowed in drinks. As is the case with other caffeinated beverages, Red Bull drinkers may experience adverse effects as a result of overuse. Excessive consumption may induce mild to moderate euphoria primarily caused by stimulant properties of caffeine and may also induce agitation, anxiety, irritability and insomnia.[42][43][44]
Variants
Over the years, Red Bull has offered many variations of its drink, all based on the same formula but differing in taste and colour.[45]
Red Bull began offering variations on its drinks in 2003 with a sugar-free version of the drink with a different flavour from the original, called Red Bull Sugarfree.[46] In 2012, Red Bull released Red Bull Total Zero, a variant with zero calories.[47] In 2018, the company released Red Bull Zero, a different sugar-free formulation designed to taste more like the original flavour.[48]
In 2009, Red Bull unveiled a highly concentrated variant of its drink called Red Bull Energy Shot,[49] supplied in 2 oz (60 ml) cans.[50]
The company began expanding its flavour offerings in 2013 with the launch of Red Bull Editions. Initially available in cranberry, lime, and blueberry,[51] the Editions line has expanded to include a variety of flavours, including some available only during specific seasons or in certain regions:[52][53]
Other products
Red Bull released a cola drink, called Simply Cola, in 2008. A new version of the cola was released in 2019, as part of Red Bull's Organics line.
In 2018, the company launched Organics by Red Bull, a line of organic sodas with four flavours; bitter lemon, ginger ale, tonic water, and a new version of Red Bull Simply Cola.[54]
Regulatory approval and legal status
Authorities in France, Denmark, and Norway initially did not permit the sale of Red Bull.[55] However, as of 2021[update], it is on sale in all 27 member states of the European Union and in 171 countries around the world.[56][57]
The French food safety agency was concerned about taurine; a Red Bull drink that did not contain taurine was introduced. The French refusal of market approval was challenged by the European Commission, and partially upheld by the European Court of Justice in 2004.[55] The French food safety agency relented in 2008, because it was unable to prove a definite health risk, taurine-related or not.[58]
Litigation
In 2013, Red Bull told the Redwell Brewery, a Norfolkmicro brewery, to change its name or face legal action, because it sounded too similar to Red Bull. The eight-man brewery in Norwich was told its name could "confuse" customers and "tarnish" its trademark.[59] The two companies reached a settlement permitting Redwell to continue using its name.[60]
In 2014, Red Bull entered into a US$13 million settlement to resolve two consumer class action lawsuits in the United States District Court for the Southern District of New York.[61] Named as plaintiffs were Benjamin Careathers, David Wolf, and Miguel Almarez,[62] who had sued the company claiming breach of express warranty and unjust enrichment, saying that Red Bull falsely asserted performance-enhancing benefits from the drink's ingredients that were unsubstantiated by scientific studies.[63] On 1 May 2015, the Court approved the settlement, giving customers who had submitted claims the opportunity to receive a US$10 cash reimbursement or US$15 in Red Bull products[64] within 150 days of affirmance on any appeal.[65] Contrary to reports from some news outlets, the plaintiffs had not alleged that the drink did not give consumers actual wings.[66]
Advertising, sports team ownership, and sponsorships
Since 1992, Red Bull is known for making a series of animated commercials under the slogan "Red Bull gives you wings", featuring squint-eyed large-nosed characters who grow a pair of wings after drinking the product. To this day, the campaign has been broadcast in over 170 countries worldwide. The commercials were directed by artists Tibor Hernádi and Horst Sambo with the collaboration of Johannes Kastner, the owner of German-based agency Kastner & Partners.[67]
Red Bull owns football teams, with clubs in Austria,[90] Germany,[91] the United States,[91] and Brazil[92] featuring the Red Bull trademark in their names. In Germany, RB Leipzig nominally refers to lawn ball to avoid corporate sponsorship restrictions.[93] By associating the drink's image with these activities, the company seeks to promote a "cool" public image and raise brand power. The energy drink has created a market for over 150 related types of products.[94]
In the PlayStation 3's social gaming platform, PlayStation Home, Red Bull developed its own in-game island, specifically advertising its energy drink and the Red Bull Air Race event (for which the space is named) released in January 2009.[95] In late November 2009, Red Bull produced two new spaces, the Red Bull Illume space, and the Red Bull Beach space featuring the Red Bull Flugtag, both released on the same day.[96] In January 2012, Red Bull released its first personal space called the "Red Bull House of Skate" featuring an indoor skate park.[97]
In 2022, Red Bull announced a full-on production of a hypercar called RB17, also designed by Newey.[99]
Red Bull Arts
Red Bull Arts is an art fellowship program launched by Red Bull in 2013 under the name Red Bull House of Arts.[100][101] The program has multiple locations, including Detroit, Michigan; São Paulo, Brazil; and formerly New York City.[100][102][103] The program typically consists of a three-month period during which six to eight participants create new artwork to be displayed at a final exhibition.[102][104] During the fellowship, artists receive unlimited access to the galleries and a stipend for art supplies.[105] Some of the artwork has been used in Red Bull advertising campaigns.[100][106]
Sports and esports sponsorships
Red Bull has used sports sponsorships as an advertising vehicle for most of its existence. The company first started sponsoring athletes in 1989, initially focusing on Formula One racing and extreme sports such as windsurfing and hang gliding, and later growing to include more mainstream sports such as basketball and soccer.[107][108][109] As of 2016, the company sponsored more than 750 individual athletes and more than a dozen teams in various disciplines, including motorsports, soccer and esports.[110]
The first team sponsored by Red Bull was ice hockey's EC Salzburg during the 1987–88 season.[121] Red Bull acquired the club outright in 2000.[121] Since 2014, Salzburg has also hosted the company's joint ice hockey and soccer academy.[122] Red Bull became the title sponsor of DEL team EHC München in 2012, and took full ownership the following year.[123] It also financed the team's new arena, SAP Garden.[124]
In 1995, Red Bull sponsored its first motorsports team, the Swiss Formula One team Sauber and in 1999 started sponsoring the Flying Bulls, a Czech aerobatics team.[125][126]
In the 2000s, the company expanded its sporting team ownership to include several soccer teams, including the Austrian Bundesliga team SV Austria Salzburg (rebranded as Red Bull Salzburg), the Major League Soccer team the New York MetroStars (rebranded as the New York Red Bulls) in 2006, and the fifth-tier German team SSV Markranstadt (rebranded as RasenBallsport Leipzig) in 2009, which the company sought to move to the top of the German Bundesliga.[108] RB Leipzig has been divisive and the subject of protests by some fans but has also experienced rapid success, climbing through the German soccer divisions to get a place in the top-flight German Bundesliga and earning berths in the UEFA Champions League in 2017–2018 and 2019–2020, the latter trip ending with a semi-final loss to Paris St. Germain.[108][127] The company also sponsors the Los Angeles ClippersNBA team and Red Bull 3X, a series of men's and women's 3x3 basketball tournaments.[128][129]
In the 2010s, Red Bull began sponsoring gamers and esports organizations, including OG, G2 Esports and Cloud9, and founded the Red Bulls League of Legends team.[130][131][132]
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