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View Full Version : Red Bull self-distributing?



fusion
08-15-2009, 09:19 PM
Recently I noticed the shelf tags in a store change from "Victory Beverage" to "Red Bull of PA." (Victory was the RB dist in SE PA, DE, South NJ, and part of MD). A quick search revealed that there is now a company called "Red Bull Distribution Company" who has locations all over that former area, and I also found job postings for locations in the Pittsburgh area, Florida, and California.

The only website I could find was http://www.redbulldc.com/ - but it's password protected.

monstertrucker
08-16-2009, 11:44 AM
After watching consistent slowdown in once sacred US SKUs, and US brands (~M~) moving into once exclusive international markets, Redbull is rethinking everything in the US including the distribution model that gave them ubiquitous quality shelf space and reliance on their characteristic advertising campaign. The word is to spare no expense. The distribution roll out started last year.

greg
08-17-2009, 09:29 AM
Personally I think this is step #1 to have the company go Public.

jetset
08-17-2009, 10:15 AM
Personally I think this is step #1 to have the company go Public.

I agree, seems like it is an initial step to create more core value.

jenks
08-17-2009, 10:56 AM
Red Bull pulled from the distributor and formed their own distribution co. called Premium Brands in Michigan. They distribute the entire state with the exeption of Detroit...too scary i guess. There, they sell to a wholesaler(s) and rely on them for distribution.

boodoo
08-17-2009, 11:51 AM
My vote is with Greg. RBNA has taken over distribution in several major areas over the last 12 months.

jenks
08-17-2009, 01:38 PM
Red Bull recently pulled on premise from powers distributing (illinois) and extreme (minnesota). The want to align themselves or partnership with distributors that carry globally marketed liquor ie. grey goose. so much for the philosophy that they did not want to be tied into or associated with spirits but to be seen for functionality.

fusion
08-17-2009, 06:27 PM
In this area, since beer and liquor can't be sold in grocery stores, beer/wine/alcohol distributors carry none, or very few non-alcoholic drinks. I know that over in Maryland (similar situation), one of the beer distributors had the Monster Java line, but Canada Dry carried the regular drinks. We got both lines when we took it over. Usually you just see the beer distributors at grocery stores dropping off non-alcoholic beer.

I dunno. I just feel bad for the distributors who built their whole business around this one brand, or used the leverage from this brand to get their foot in the door with other brands. Seems similar to what Jones did to their DSD distributors, although Jones didn't have near the market share Red Bull does.

I wonder if Victory Beverage will survive without RB - just look at the rest of their lineup:

Distributor of Red Bull Energy Drink Victory Beverage Co, Inc. (http://www.victorybeverage.com/products.html)

francoenergy99
08-17-2009, 07:33 PM
red bull sucks i can name 3 better brands joker energy, monster energy, and RIP IT energy!!

greg
08-18-2009, 09:18 AM
red bull sucks i can name 3 better brands joker energy, monster energy, and RIP IT energy!!


HMMMM the market leader sucks according to you! Although they have lost market share They are still number one. The didnt create the category but they marketed it better than anyone else before them.
What do you consider "better"?

Out of your 3 you only have one real contender in my opinion.

jetset
08-18-2009, 09:26 AM
HMMMM the market leader sucks according to you! Although they have lost market share They are still number one. The didnt create the category but they marketed it better than anyone else before them.
What do you consider "better"?

Out of your 3 you only have one real contender in my opinion.

Well, considering 2 of the 3 brands he listed are made by the same company, Hansen's seems like he is a bit influenced already!!

NRGSLLR55
08-18-2009, 09:27 AM
Personally I think this is step #1 to have the company go Public.

sign me up for the IPO!

jetset
08-18-2009, 11:25 AM
sign me up for the IPO!

I am sure it will do well but I think they are about 12-18 months too late - not saying they won't make a mint, however. Just like RockStar should have sold out when they were at the top of their game a couple years ago, now your sales and market share slides and you are on the outside looking in, some people can't get out of their ego's own way....

greg
08-18-2009, 03:28 PM
I am sure it will do well but I think they are about 12-18 months too late - not saying they won't make a mint, however. Just like RockStar should have sold out when they were at the top of their game a couple years ago, now your sales and market share slides and you are on the outside looking in, some people can't get out of their ego's own way....

This most likely less of an ego thing and more of a legacy endeavor. The MAN has enough money, He is getting older and would like to leave a legacy of more than just being a great beverage marketer.
Philanthropic endeavors help shape a man of his age. The company is way too big for a complete sell off to one or two companies so he will offer up shares that will enrich his foundation, thereby creating a lasting legacy of more than just his current total net worth. It will live for years to come.

jetset
08-19-2009, 08:45 AM
This most likely less of an ego thing and more of a legacy endeavor. The MAN has enough money, He is getting older and would like to leave a legacy of more than just being a great beverage marketer.
Philanthropic endeavors help shape a man of his age. The company is way too big for a complete sell off to one or two companies so he will offer up shares that will enrich his foundation, thereby creating a lasting legacy of more than just his current total net worth. It will live for years to come.

Sorry Greg, bad wording, I didn't mean to infer that the ego of Red Bull's owner was getting in the way, rather that the ego of RockStar's owner is getting the best of him.

monstertrucker
08-19-2009, 12:02 PM
To me it looks like they want to improve execution. I think this is a natural maturing of the business after after a growth period. And it would be natural for them to see numbers slowing and look for anyone else to blame. Next they'll have to blame customers.

greg
08-19-2009, 12:16 PM
To me it looks like they want to improve execution. I think this is a natural maturing of the business after after a growth period. And it would be natural for them to see numbers slowing and look for anyone else to blame. Next they'll have to blame customers.

It seems the only distributors that they have "bought back/out" have been top performers. Why would they want the guys that already do a good job if they are loking to "improve execution"?

monstertrucker
08-19-2009, 06:22 PM
If you're going to build a national network wouldn't you want to start with the best talent and the largest volume outfits. I don't think it's like Coke's hospital ward of distributors where they turn around losers. It wouldn't make sense for RB to absorb the losers, they would just want the territory back. Improving execution could simply mean vertical integration creating efficiencies, increasing market leverage and capturing downstream profit. It could also be a smart move before releasing a broader range of product. We shall see.

greg
08-20-2009, 10:13 AM
If you're going to build a national network wouldn't you want to start with the best talent and the largest volume outfits. I don't think it's like Coke's hospital ward of distributors where they turn around losers. It wouldn't make sense for RB to absorb the losers, they would just want the territory back. Improving execution could simply mean vertical integration creating efficiencies, increasing market leverage and capturing downstream profit. It could also be a smart move before releasing a broader range of product. We shall see.

Valid points, but why get nominal success from successful distributors already? How much can you improve a distributor that has saturated his market and is in 97% of On Premise and C-store outlets already? Logic dictates that the focus should be on "bringing up" poor performers to levels of other distributors to increase shareholder/brand value if you are looking to improve execution.
You dont kill the bird dog thats doing all your hunting with another dog that is just as good....you replace the weaker ones to improve the hunt!
I still think they are positioning themselves for an IPO. Wall Street is going to want to see sustainability and strong performers in their segment. By Buying Back the stronger players and most successful distributors the numbers will be there to back up their offering. Once the IPO is initialized and executed they will use the cash to buy back smaller "underperforming" distributors to "...Improve execution by installing vertical integration efficiencies, increasing market leverage and capturing downstream profit. "

fusion
08-27-2009, 04:05 PM
Looks like Victory didn't waste any time rebranding their trucks. Found this today.

http://img.photobucket.com/albums/v608/garya/skinny-truck.jpg

Skinny Water is a Philadelphia area company, headed up by the former President/CEO of Philadelphia Coke. They have pretty good distribution around here, with a lot of chain authorizations.

scum1
08-27-2009, 07:20 PM
That is a fine truck

el_rumbalero
08-27-2009, 11:14 PM
anyone here willing/ able to opine/ speculate on how this Red Bull shifting strategy affects Monster/ Hansen Natural going forward? thanks in advance.

monstertrucker
08-27-2009, 11:55 PM
It's too bad they are doing this so late. Look like they are adding sku's with different flavors, including Red Bull Coffee and Red Bull Fruit Punch. Great imagination. You probably do need rocket science distribution so as not to confuse the typical Red Bull customer with these enticing options. I think it's especially great for Monster. If the Red Bull customer starts thinking dangerously, I think some of them will wander over to the dark side and try some Monster. >:->

David
09-07-2009, 01:14 AM
It looks to me like the Bull is playing catch up to Monster.

I figured that something was going on when I started seeing RB advertising for "Company" employees in the major markets. I wonder how the Miller Houses are viewing this move?