Red Bull is a weird and fascinating company.
- $7.4 billion in 2020 revenue
- 43% energy drink market
- Makes nothing
Nope, not even the drinks they sell. Instead, they focus 100% on marketing.
Here's what's going on
1/
Before Red Bull there was Krating Daeng (KD).
Founded by pharmaceutical entrepreneur, Chaleo Yoovidhya, KD was created to serve Thailand's country's working class.
Yoovidhya chose the gaur, a member of the bovine family from the region, as the brand's symbol.
2/
Dietrich Mateschitz was a toothpaste marketer. On a business trip to Thailand he discovered KD and fell in love with the drink.
With Yoovidhya, he decided to bring it to Europe. He made changes:
- Name became "Red Bull"
- Added bubbles
- Used a thin can
- Targeted elites
3/
The deal Mateschitz and Yoovidhya struck outsourced production of the drink to the Thai entrepreneur's pharmaceutical company.
That fundamental structure has remained in place today: Red Bull outsources production and focuses on distribution (marketing).
4/
Mateschitz noticed the rise of extreme sports starting in the 1990s. He thought Red Bull should be a part of it.
The years since have seen the company amass an insane empire across sports, media, and apparel.
