View Full Version : Red Bull Contract
01-12-2005, 08:21 AM
Is it legal to sign a RB contract in Florida? Does it put a 4cop licence in jeopardy due to the tight house law?
01-12-2005, 09:00 AM
As per the legalities of it all, well, I am no lawyer so I cannot say. But there are plenty of locations that have contracts in Jax as well as up and down the coastline. Most of these are quite large. A few also have aligning contracts with other E drinks (just to give you an idea of their worth -- if a place has more than one contract you can assume that they spend a lot of money in and out of the club and the case sales alone are enough to warrant a pact with a company even though they serve "competetion").
01-13-2005, 09:53 PM
One small note. Many bev co's are trying like hell to get away from these as too many facilities expect to take advantage of them now. From what I can see and hear, they are harder and harder to come by. Many existing ones are going to be let run out.
01-14-2005, 09:53 AM
Thanks for your help,
Can you give me some Orlando accounts that have an exclusive contract with you. I know a few bar owners in that area and I want to ask their oppinion on if I should do it or not before I contact Red Bull..
01-15-2005, 11:00 AM
What I meant was that there are some accounts I am aware of that have told me that they cannot serve Red Bull in lieu of existing contracts.
We both have dilemmas here. One, they wish they did not have a contract with another co because they feel now they can serve and make more with a more popular product (and they sold out this option with a contract for a brief paymant and things like radio advertising and flyers). Two, I have to wait for the contract to run out for them. Some have brought us on despite an ongoing contract but the company they signed it with doesn't even show up anymore so they don't really mind.
A Red Bull contract, be it a thing of the past or current, is something I am never told about in my position. There are higher ups that would handle anything like that. Personally, I think it is a waste of money for a company as Big as Red Bull, whereas the club who sells it will make their money back in spades, should pay a club for selling a product that has such a high demand.
There are competitors in certain markets that create a stir at times but overall they make their piece and we make enough already to support ours (AC Nileson helps us to dictate this on a monthly basis).
I know this was not always the case and that there were times that the exclusive contract was more of a way to get accounts to carry Red Bull. But now that we've grown to this level, you may have to dig a little deeper and/or show a significant case/order ratio to see if this would apply.
With Coke and Pepsi it is significantly different; two huge dogs vying for ditribution of like-products that most can't tell the difference in. With E drinks, it is usually the person who needs you to try their product and like it and see if it will sell first who assists you in an incentive like a contract.
Red Bull does not allow me to throw money around like that. Funny enough, I am allowed to do some of the more fun things. We have just had a large trip to the Keys for a three day excursion totally comped for our key accounts. This month I have a limo to bring some key Orlando accounts to the Rolex 24hour race for a comped event. This is how it appears this company likes to deal with their accounts. There is a lot of effort in maintaining a relationship in this manner.
Well, I've said enough. Even reading this over it sounds like a blatant promtion of Red Bull which actually terrifies me.
01-18-2005, 11:46 AM
You should also note that Red Bull was forced into starting these contracts with bars since less scrupulous energy drinks were convincing bar owners to sell their knock offs as Red Bull without informing the consumer.
Even though passing off is illegal, it didn't stop some owners and Red Bull had to resort to stronger measures to protect themselves in their larger accounts.