Hello all, I have been in the beverage industry for only six years with a GREAT Miller Distributor. As I evaluate the on premise channel and the world of energy drinks I have found that the beer industry approach is much different than that of Red Bull. If you have a moment to share thoughts with me on Red Bull’s approach to the local market it would be greatly appreciated. I would like to preference these questions by stating that we are not a red bull distributor.

A. For those of you who distribute Red Bull: How do you rate the support of RBNA as a partner in your brand portfolio?

B. Has anyone heard of successful local marketing that Red Bull sales teams, distributors or others have implemented with this brand that drives sales.

C. With the brand equity that Red Bull has, does anyone see a collapse of the current pricing umbrella with this product to allow for volume growth.

Any information that the members could provide on RBNA and its approach to Distributors, local marketing, sales force or other would be appreciated.


Thanks

KcBevGuy

This is J. S. Clayborn in Texarkana, AR and I sell Nitro2Go Energy Drinks, and you can visit our site @ www.drinknitro2go.com for more information. Basically, what RB does is make the c-store or big box retailer think that they have to carry the RB product. They make specials: IE: buy 10 cs get 1 cs free, and they give them 1 to 2 cs per month for shelf space. Also, they set sales goals for each store and if they meet these goals they give them more product as a bonus. The RB Distributor that covers our market drives 150 miles just to get to Southern Arkansas, and does a fair job, but when you have pre-arranged agreements with everyone in the market, this is an easy task for the distributor. Very few stores do not carry RB, as it is king of the industry. They were 1st to the shelf and this will continue forever. However, in some markets if you have the same shelf space as RB, RB will not do as well. When you have 8 facings in every location, there is little room for other brands. This is something they have done very successful. Also, their 4 pack program, and now 12 pack program is working very well to sell more product. All I can say about RB is if you want to see someone that does a good job, follow their lead and you will not go wrong. Another example is Budweiser or Miller, they do the same thing, just in discounts or volume pricing purchases. The name of the game is VOLUME. How many facings can you get choked down someones neck and let the fun begin. I am starting to see Coke aka as Full Throttle or Rock Star follow the lead of RB and it works for them too. Watchout for Monster, as they are gaining momentum slowly but surely.

If everyone had equal space, it would be very interesting to see which one would sell the best.

I doubt we will see this, but time will tell. Just a few years ago, Energy Drinks only held two shelves, now there are full doors of Energy Drinks. The population is growing, so that is one reason energy drinks are now slowing down. It kind of runs a cycle, starting @ age 16-age 35.

Everybody is shooting @ Red Bull, but they are NOT to be shot down, and the rest of us are just happy to have a small piece of the pie. If you can gain 5% of the total energy drink category, you have done something, based on the millions of $$ sold each year. Red Bull is solid, however most of the Corporate Guru's at the top or regional guys are for a better word, BUTT HEADS. Also, they think they are better than anyone else. Maybe they are, but lets see one of those guys take another brand of any type and see how they fall. I think anyone could sell Red Bull, Budweiser or Coca Cola, as they are merely ORDER TAKERS and Delivery Boys. No salesmanship required. Nuf Said. JSC

Thank you so much for the input. I see the Monster growth in the KC market. It will be intreasting to see how AB distributors handle this new product and if they are capable on the local level of focusing on Monster with the same focus that they give Bud Light.

Cheers and thanks again

What I dont look for with AB is distribution of Monster into accounts that dont carry Bud. If you have a dry market or county, then they will NOT service those markets with Monster. JSC

AB has one of the largest distribution networks in the world! Monster will thrive as will Rockstar because Coke too has a fantastic network setup to help Rockstar continue to grow. Red Bull has sat by and let these huge deals happen and what has been their response?
A 16.9 ounce can that cost nearly 4 bucks...

Tall I agree with you and JSC. I do not think that Ab will take advantage of Monster distribution in places that they do not sell beer in. Additionally, for Red Bull to remain the dominate industry leader in this category they are going to have to collapse the huge pricing umbrella to regain the competitive edge and grow volume.

Great input, THANK YOU!

Trust me, you have to sell thoes shelf programs, pricing, location, 4 packs, 12 packs, all that into stores...Red Bull gives very little away free if not on a contract, were as every other drink goes by the buy 3 get 1 free, and at a cheaper price. Out of 100 stores, 98 will want Red Bull. But only 35 will want to do any sort of program, 20 will not want to carry the Sugar Free or the 4 packs. 10 will always be comparing your prices to that of the loacl cash and carry, 60 will always say "so and so is giving me free cases this week, you have to give me free cases too", only 10 will want fridges, 25 will take some sort of case stacker, shelf power wing, or display piece...need I go on. If you let thoes number be, simply because that is all the market asks for...yes, you are an order taker. I never allowed these numbers to sit and always tried to sell in more skus of product, better placement, more POS. Everyone wants your brand, but they don't want the whole portfolio. Sorry, I take offence to being called a former order taker.

Congrats on 1800 posts, Ron. Lots of insight in that history!

Thank you...I have worked very hard the achive this milestone...next stop....2000!!

Ron,
Congrads on the big 1800. [img]smile.gif[/img] <Said with respect.>
Not that numbers matter; you old timers are the life blood of this board. [img]smile.gif[/img]
Zabe

[ 05-27-2006, 07:57 PM: Message edited by: Mr Zabe ]