PDA

View Full Version : Red Bull vs Red Line



ALLPRO
09-15-2006, 11:35 PM
Found a pretty interesting article in the Miami Hearld: Looks like Red Line is staring to wake the "sleeping giant"!
I would love to get some of your feedback.

ENERGY DRINKS
Red Bull challenges Redline in trademark disputeA trademark-infringement dispute between energy-drink giant Red Bull and Redline, made by a Davie company, has escalated into a brouhaha, with each claiming the other's drink doesn't live up to promises.
BY PATRICK DANNER
pdanner@MiamiHerald.com
VS.

It started as a simple trademark-infringement spat, with Red Bull, the Goliath of the energy-drink business, claiming the packaging of competitor Redline is ''confusingly similar'' to Red Bull's.

But the brouhaha over Redline -- made by Davie's Vital Pharmaceuticals -- has escalated, with each side now charging that the other's drink doesn't live up to claims touted on the packaging.

Red Bull calls Redline's fat-burning boasts bogus, referring to a trademarked rhyme on Redline's bottles that reads, ``Feel the Freak / Feel the Freeze / Watch the Fat Drop / Off with Ease!''

Red Bull says its drink ''improves performance'' and ''reaction speed'' and ''increases endurance'' and ''concentration.'' Vital says those assertions are unsupported. The firm is challenging Red Bull's purported benefits in Miami federal court.

The legal dispute turns a spotlight on whether popular energy drinks -- a burgeoning realm of the soft-drink market -- actually deliver on what they promise. It also raises questions about how such claims are regulated.

Policing such advertising claims is the job of the Federal Trade Commission, which has ''no public cases involving any of these energy drinks at this point,'' said Richard Cleland, the FTC's assistant director of division advertising practices.

Any benefits the drinks offer can be attributed to the caffeine they contain, said David Schardt, senior nutritionist with the Center for Science in the Public Interest, a consumer-watchdog group in Washington.

''They both exaggerate their claims,'' Schardt said.

Lisa Dorfman, a sports nutritionist at the University of Miami, agreed.

''I don't find them any more effective than a good, strong cup of cafe cubano,'' she said.

POPULARITY

Still, the popularity of energy drinks is rising. They accounted for $3.5 billion of the $68 billion in carbonated soft drink sales last year, according to Beverage Digest. That's up from about $2 billion in 2004.

''From the perspective of beverage companies and retailers, it's a very, very high-priced and profitable category,'' said John Sicher, Beverage Digest's editor and publisher.

Launched two decades ago in Austria, Red Bull has been the king of energy drinks. But its share of the market slipped by 10 percentage points last year to about 37 percent as other brands gained fans, Beverage Digest data shows.

Redline didn't make the publication's list of the top sellers.

Redline has been on the market for a few years in various forms, including gel caps and liquid concentrate, said Gregg Metzger, a lawyer representing Vital Pharmaceuticals, which does business as VPX Sports. Jack Owoc, company president, couldn't be reached for comment.

Redline comes in 8-ounce plastic bottles, which feature a shade of blue that's similar to the color on Red Bull's 8.3-ounce cans. Too similar, to Red Bull's liking. Its lawyers sent a cease-and-desist letter to Vital in October, demanding it stop using the Redline name and color scheme.

A week later, in a preemptive move, Vital sued Red Bull in Miami federal court seeking a judgment it wasn't infringing on Red Bull's trademark.

In court documents filed in March, Red Bull accused Vital of false advertising with its fat-burning claims. VPX's website says Redline is a ''scientific breakthrough'' that coaxes the body to burn fat through the ''shivering response'' -- similar to when someone shivers because they are cold. Redline describes itself on bottles as a ``Fat Incinerator.''

DISCLAIMER

As proof the claims are false, Red Bull noted the disclaimer on Redline's bottle: ```Do not use for weight reduction.''

''VPX stands behind Redline's product,'' Metzger said.

Red Bull's charge, though, drew a sharp response in an April letter from Redline's legal team.

'Red Bull has a choice to make that brings to mind the old adage, `What's good for the goose is good for the gander,' '' the letter states. It warned that if Red Bull proceeded with its ''spurious claims,'' VPX would have no choice but to assert its own false-advertising claims against Red Bull.

The two sides unsuccessfully tried to settle their differences through mediation.

Last week, U.S. District Judge Cecilia Altonaga granted Vital the right to pursue the false-advertising claims against Red Bull. Among other charges: Vital says Red Bull is a nutritional supplement subject to Food and Drug Administration regulations. Redline is considered a nutritional supplement.

Patrice Radden, a spokeswoman for Red Bull, said company policy is not to comment on litigation.

greg
09-18-2006, 10:23 AM
Nobody's trying to tackel you if you don't have the ball!

CStoreCatMan
09-18-2006, 12:39 PM
I don't know if there's enough to dispute here. The name Redline, though similar, is not IMO an infringement on the Redbull name. Also, Redline comes in a blue, plastic bottle. But RB is saying the shade of blue is too similar? Come on! Could this have anything to do with RB losing 10 points of market share last year?

NRGSLLR@
09-18-2006, 01:13 PM
Good Luck Gregg,

greg
09-18-2006, 01:50 PM
Originally posted by NRGSLLR@:
Good Luck Gregg, Thanks! David vs Goliath

Nick Laugher
09-18-2006, 04:37 PM
If Redbull's that concerned, why not go after Red Rain, Red Rave, Red Fire, Red Jak, Red Dragon and Blue Ox too?

Coco Rico
09-18-2006, 07:40 PM
They probably are...

CR

ALLPRO
09-18-2006, 08:59 PM
None of those products you mentioned are "clocking in" @ #3 or 4 in sales in certain areas of the country! Red Line is a legitimate contender in the category!

SumPoosieCat
09-18-2006, 09:37 PM
Red Bull once the big bad boys on the block look more like the old desperate man still seeking the fountain of youth. Red Bull now wears a hair piece and drives a Caddy...lol !

I guess applebee's better watch out... Apple computer may come after them.... :rolleyes:

Ron Swedelson
09-19-2006, 12:52 PM
Hey...nothing wrong with a Caddy...

CStoreCatMan
09-19-2006, 06:14 PM
Originally posted by ALLPRO:
None of those products you mentioned are "clocking in" @ #3 or 4 in sales in certain areas of the country! Red Line is a legitimate contender in the category! "Certain areas of the country" being the key phrase there. Redline hasn't really hit the radar in Southern California yet. And this is one of the biggest and most developed energy markets in the world...

SumPoosieCat
09-19-2006, 06:52 PM
Red Bull going after Redline???? what a sorry joke!!! Red Bull needs to get a life.

ALLPRO
09-19-2006, 10:28 PM
I see Red Line in almost every c-store in Orange County. Once distributors in other parts of the U.S. learn how to sell Red Line into their accounts, it will be one of the best selling ED's in the country. Trust me, RedLine is only going in one direction...UP!

SumPoosieCat
09-20-2006, 09:53 AM
Go get em Redline !!!

greg
09-20-2006, 11:58 AM
Originally posted by CStoreCatMan:
</font><blockquote>quote:</font><hr />Originally posted by ALLPRO:
None of those products you mentioned are "clocking in" @ #3 or 4 in sales in certain areas of the country! Red Line is a legitimate contender in the category! "Certain areas of the country" being the key phrase there. Redline hasn't really hit the radar in Southern California yet. And this is one of the biggest and most developed energy markets in the world... </font>[/QUOTE]I have 3 truckloads a month going into S. Cal( I know thats not much compared to RB but we are gaining ground)However, being the 2nd largest market in the world(behind Tokyo) it will take time to saturate the area. My 2 distributers in S. Cal have been selling since May 1st and July 1st respectively. We have only been going mass market since the 1st of the year and to get noticed from RB as a threat we take with pride. If they weren't concerned about our marketability they would not bother with us in my opinion.

greg
09-20-2006, 11:59 AM
Originally posted by TallThinBlonde:
Go get em Redline !!! Thanks TTB,
Are you going to NACS?

Ron Swedelson
09-20-2006, 12:04 PM
I don't think I will ever try Redline...not because I don't like it, but because everyone I know who has tried it, definatly swear to how good the effects are. Way to strong for me to sit in my cubeical all day.

greg
09-20-2006, 12:17 PM
Originally posted by Ron Swedelson:
I don't think I will ever try Redline...not because I don't like it, but because everyone I know who has tried it, definatly swear to how good the effects are. Way to strong for me to sit in my cubeical all day. Yea, I wouldn't suck one down and sit behind a desk all day. You will go batty.

NRGSLLR@
09-22-2006, 01:26 PM
Greg are you going to NACS?

greg
09-22-2006, 05:06 PM
Originally posted by NRGSLLR@:
Greg are you going to NACS? I'll be there. Booth # 1017 Look for the 40 X 8 ft REDLINE banner above our booth.
I'll be the tall bald guy!( not to be confused with the shorter bald white guy)

[ 09-22-2006, 04:06 PM: Message edited by: greg ]

NRGSLLR@
09-22-2006, 05:35 PM
I look forward to meeting you.

greg
09-22-2006, 05:39 PM
Originally posted by NRGSLLR@:
I look forward to meeting you. I look forward to meeting you and hopefully a lot more of the members here at Bevnet .com

SumPoosieCat
09-23-2006, 08:45 PM
I was going to do NACS but I am going to a little busy ... I will fill you in next week.

CStoreCatMan
09-29-2006, 01:31 PM
I'll be there on Monday walking the floor...I'll stop by and give Redline a try!

[ 09-29-2006, 12:32 PM: Message edited by: CStoreCatMan ]