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Red Bull self-distributing?

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  • #16
    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.

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    • #17
      Originally posted by monstertrucker View Post
      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"?
      Whether you think can or think you can\'t, you\'re probably right!

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      • #18
        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.

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        • #19
          Originally posted by monstertrucker View Post
          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. "
          Whether you think can or think you can\'t, you\'re probably right!

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          • #20
            Looks like Victory didn't waste any time rebranding their trucks. Found this today.



            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.

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            • #21
              damn

              That is a fine truck
              banned

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              • #22
                anyone here willing/ able to opine/ speculate on how this Red Bull shifting strategy affects Monster/ Hansen Natural going forward? thanks in advance.

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                • #23
                  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. >:->

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                  • #24
                    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?

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