BevNET

**monstertrucker** · 08-16-2009, 11:44 AM

Red bull Ramp Up

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

Originally posted by greg View Post

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.

**francoenergy99** · 08-17-2009, 07:33 PM

red bull sucks

red bull sucks i can name 3 better brands joker energy, monster energy, and RIP IT energy!!

**greg** · 08-18-2009, 09:18 AM

Originally posted by francoenergy99 View Post

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

Originally posted by greg View Post

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

Originally posted by greg View Post

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

Originally posted by NRGSLLR55 View Post

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

Originally posted by jetset View Post

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

Originally posted by greg View Post

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.