hello everybody here Tom Ellsworth and
welcome back to case studies with the
biz doc this week I’m taking another
request from you many of you asked about
the dawn of red bull where do they come
from
did somebody invent that like at a soft
drink company or a beverage company well
not exactly
and you wanted to hear the full story
many versions of it circulate around the
internet but I’ve researched it and I
have the origins for you this week and
thank you for the request keep them
coming and one day I’ll be doing the
company that you suggested this week
there can be two key points as we look
at the dawn of red bull in the energy
drink category and that is when you find
something compelling being afraid to
partner that may be a faster way to get
to the market as we will find out that’s
what happened with red bull and second
in marketing customer alignment and
brand identity is gold and I don’t think
anyone can dispute the fact that Red
Bulls marketing the product itself and
the brand presence in the action sports
and racing communities how are anything
other than magically aligned so let’s go
take a look at it well first of all did
you know that Red Bull was once a rather
bizarre energy drink that was in
Thailand and it was in these gas
stations in these long-distance truckers
the people that would drive trucks a
long distance to deliver products and
things they used to come in and pick it
up it wasn’t called Red Bull back then
but that was the dawn of it the sugar
the caffeine the taurine the things that
were in there that’s what they used to
do and it would had a cult following
there where the truck drivers and people
absolutely swore by it well it was a
working class drink for those drivers
and it was originally invented back in
1970 by a guy named chili oh you did
yeah and I hope I pronounced that right
he was a tied business guy who was
seeking to make a low-priced alternative
to coffee for people and I think that’s
very interesting what he was going for
that’s what he came up with but it was
kind of rolled around in Thailand and it
became a success
it was until 1987 that redbull as you
and I know it was actually launched and
it came to the rest of the world in
phases and first was Europe there’s a
man on holiday in Thailand and his name
is Dietrich’s medicines and Dietrich he
found that this energy drink helped him
with his jetlag because he had some
business in Thailand and he says wow
that really helps a jetlag and people
told him it’s also good for hangovers
too he said seriously and he found out
that that was true and he said Wow what
is this stuff well he went to the owners
of the company and he said I think I
want to take this on a businessman from
Austria in Europe I’d like to go back
and I’d like to market this you know
worldwide if I could but I’ll start back
there they hatched out a plan where he
would actually take a half a million of
his own dollars and they took a half a
million dollars and they came together
and he owned 49% of the company and so
it was that near Salzburg Austria and if
you’ve been to Salzburg it’s an amazing
place big castle up on a clip they’re
fabulous I’m ashamed to say that I
climbed up the top of that clip with my
mom and went drinking beer all afternoon
one day so I’m hi mom anyway they’re in
Salzburg Austria was the birth of the
headquarters of what would be the Red
Bull you and I so dietrich puts the
headquarters there and he reworked the
taste a little bit because he felt that
needed to be a little carbonated and it
was a little too sweet for the taste of
the Western audience so in other words
they tweaked it and they tested it
carefully they came up with the branding
and there it was he launched his Red
Bull what he didn’t know at the time is
he wasn’t launching a new drink product
he was launching a new category energy
drinks did not have a category to
themselves in America energy drink was
called coffee if you were driving a long
way you stopped at a diner and got your
thermos full of coffee got back in your
truck and when driving on your way
coffee was your energy drink
well Red Bull would redefine the energy
drink segment to be a whole class of its
own and I think that’s one of the real
amazing things of the story of Red Bull
is they didn’t just launch a drink
they launched a brand
new category and a whole industry
followed so instead of marketing the
drink as a drink for working-class
people or people driving a long way like
truckers in Thailand he said no no I
want to position this as a slightly
upscale drink and you could see the
branding was very nice very elegant and
I want to associate it with some
higher-end connection points and so one
of the things that was very popular in
Europe is Formula One racing and in
Austria there is a driver named Gerhard
Berger one of my favorite drivers never
won a championship but he finished third
a couple times great guy wonderful
spokesman and dietrich went to him and
said I want to sponsor you personally so
there you had Gerhard Berger at Formula
One events with cans of Red Bull and a
little thermos thing drinking Red Bull
out of it and he was the first
Motorsports
sponsorship that they put together and
again associating Red Bull with upscale
racing because Formula One is the
highest and most expensive form of
racing on the planet attracts all kinds
of high-end sponsors and that was what
dietrich wanted and it seemed to have
worked because in Europe
Red Bull started going in waves it
didn’t explode right away it just kind
of went in waves and then he opened up
new markets France Sweden methodically
opening up and again he wasn’t Coke or
Pepsi so he had to do things with
supplies and manufacturing and he he
couldn’t just step on the gas with a
brand new product like Coke or Pepsi
could so a way he went well it
eventually happened that Red Bull became
a marketing and promotions company
because the one product they had was Red
Bull and it was going very well and they
started putting events around it and
they went and they invented some events
Red Bull Air Races
downhill motocross they even invented
things like things you may see on TV the
Red Bull Crashed Ice where it’s like a
it’s almost like a skateboard parkour
a MotoGP course and that then you’ve got
people in ice skates coming down and
full pads helmets and everything
actually crashing into each other and
it’s spectacular to watch it’s basically
a failed video waiting to happen
but redbull was sponsoring things like
that also they invented an event that I
think is phenomenal it was called flume
tag which really meant in German Friday
and Flugtag was where you’d get a bunch
of teams together that would make an
airplane that they would launch off the
end of an elevated pier over water like
a lake and five guys would push it and
one guy would ride whatever kind of
airplane kind of more like a glider that
he had made and they all crashed and
they went in the water and people
thought it was fantastic
teams would would build these gliders
from around the world and come to the
Red Bull Flugtag just to come up and run
their glider off the edge and be judged
for creativity originality things like
that and it was a hit and it was making
Red Bull and even greater hit because
they were associating Red Bull with with
bravery and even a little silliness and
just bowled the bents that were just so
entertaining
there was actually a record set two
hundred and twenty thousand people went
to Red Bull Flugtag in Cape Town South
Africa do you know that’s over two times
as many people can get into the largest
stadium that holds the Superbowl in the
United States two times to watch a bunch
of idiots go off the end of a pier and
with these gliders they’ve made and
crashed in the water and I have to
confess in 2013 the Red Bull Flugtag was
here in Dallas and I took my daughter
Bailey to see it Bailey loved it one of
the great things was you walked around
earlier with a little flag yeah these
two thumbs-up or thumbs-down indicated
whether you thought this one would fly
or this one would sink and it was just
all part of the fun I did not load my
daughter up on Red Bull that day I may
have had one or two but it was all fun
so when you take a look at these
mountain bike races everything you can
see their brand was coming together that
they were just a marketing and
promotions machine
and they were sponsoring great athletes
they sponsored the entire team in
Formula 1
you know Red Bull Racing which done one
of the guys where I got this shirt from
and they’ve sponsored some of the big
world events there is a huge world event
in 2012
do you remember Felix Baumgartner who is
also from Austria he took that was
called the Red Bull Stratos up to the
stratosphere and from 24 miles above
Earth he jumped and came all the way
down at 800 and something miles an hour
in turn 40 3.6 miles an hour hurtling
toward Earth finally opened his
parachute and it was the longest skydive
in the history of mankind all watched
for a two-hour special that was watched
by tens of millions of people around the
world simply called the Red Bull Stratos
jump and so those kind of things
this marked this wonderful energy drink
pioneer became just a marketing company
because they knew their customer they
knew what they liked and they said if
they like this they’re going to love
this and these events came together so
from its humble roots as an energy tonic
and a drink for Thai truckers driving
long distances overnight to the world’s
most well known sports and energy drink
that defined a category redbull success
is undeniable you know if it wasn’t for
that trip to Thailand Dietrich
Mateschitz never would have discovered
it never would have discovered that it
helped his jetlag and it would help
hangovers wouldn’t have made that deal
that brought it there and it just goes
to show you how opportunists are
entrepreneurs and entrepreneurs are
opportunists it’s a house Dietrich doing
well not too bad thanks to redbull he’s
worth 5 billion dollars and the company
is sold 62 billion cans of Red Bull from
1987 to now and by the way that’s 10
cans for every man woman and child alive
on earth today now with all that success
you’re probably asking well what’s your
chart tom and what was Coke and Pepsi
doing what was Gatorade doing what were
these companies that they sell beverages
and also
this thing is taking up space at the
7-eleven or the Kwik Stop or the grocery
store and and they’re like wait a minute
this is our turf and you’re moving in on
it and what is an energy drink anyway
well one of those companies that was
reacting was Hansen beverages Hansen
beverages was a maker of some fruit
beverages fruit sodas and things and on
the board was a wonderful guy I came to
know Harold Tabor who previously led la
coke was a group president for Coca Cola
in Los Angeles and Harold was leading
and then on the board of Hanson’s and
they decided that they were going to
come out in 2002 with a competitor to
Red Bull Red Bull had done well in 87
grown across Europe and then in 97
starting in California they launched in
the United States and this was really
when the boom took off for Red Bull when
they went to the US market well with
that boom happening people took notice
enhancing beverages just five years
later saw what was going on and they
introduced monster beverage and the
monster was in a much larger can there’s
a funny story that circulates in the
halls of Hanson beverages is when they
were deciding what they were going to do
with this monster beverage they were
looking at the packaging and they said
well this Red Bull man it’s this little
8 ounce can you know most sodas are in
12 ounce cans 16 ounce bottles mean is a
little teeny thing do we want to bring
out a product in that and they were
looking at packaging in their conference
room when apparently as the story goes
and I hope this is true somebody looks
at it like this and says I don’t know
what can to pick but I’ll tell you that
one on the end looks like a monster and
supposedly that was the genesis after
the branding people took over they gave
it its image but that was the genesis of
monster take up the drink together they
figured out how they were going to
market it and take it out and the
incredible logo that looks like a
monster in the can clawing its way out
and they came out to compete not too
long after they attracted the attention
of coca-cola and of course Harold Taber
knew a thing or two about coca-cola and
coke ultimately
ended up owning about 16% of monster
beverage thanks to a deal that was
finished in 2015 but the whole point to
this is that was where the response came
from it was the innovation of Red Bull
at that led to monster beverage and
monster sponsoring motocross and X Games
and sports like that and as a matter of
fact a recent deal where Monster has
just been named the title sponsor of the
NASCAR series now it’s the Monster
Energy Cup when you take a look at
defining a category that led to a giant
like Coke having to buy its way in not
invent its way in you’ve really
accomplished something there you have it
and it all started the revolution and
energy drinks at his Red Bull started on
a trip to Thailand bye dieter medicines
and he created a new category and a
beverage that we now know and love in
all corners so let’s look back at the
two key points shall we when you find
something compelling be unafraid to
partner you don’t have to own the whole
thing Dietrich is worth five billion
dollars and they only owns half of Red
Bull the second point was you know when
you get alignment between the product
itself the branding and the customer and
the marketing it is pure gold and the
way action sports and an energy beverage
and the brand that is redbull came
together you can do it too it’s a focus
on the customer the marketing and how
you’re cut your products being used
which is a you know marketing strategy
is probably a whole key study that we
could do together one day and as it is
for today that’s the story Red Bull
that’s how they got started and that’s
what led to the energy drink category we
know today well that’s this week’s case
study so I’m going to need the pillow
but first this is about Red Bull we
don’t need this monster thing hanging
around here oh well that’s a I guess
that’s a a a trophy that probably should
have been made out of glass you know
just so we’ll clean it up and we won’t
tell Patrick what just happened anyway I
need the pillow the pillow the pillow
thank you so much Paul well please
subscribe to value tainment the best
channel on the internet for
content for entrepreneurs until next
time I’m Thomas and I hope I led you
better than I found you and that’s the
case study for this week whoa give me
the bill
famous for everybody’s giving the best
and linear algebra concept killed in the
freaking Sun name is Tom Mel’s real hope
I love you better I found you [Music]
welcome back to case studies with the
biz doc this week I’m taking another
request from you many of you asked about
the dawn of red bull where do they come
from
did somebody invent that like at a soft
drink company or a beverage company well
not exactly
and you wanted to hear the full story
many versions of it circulate around the
internet but I’ve researched it and I
have the origins for you this week and
thank you for the request keep them
coming and one day I’ll be doing the
company that you suggested this week
there can be two key points as we look
at the dawn of red bull in the energy
drink category and that is when you find
something compelling being afraid to
partner that may be a faster way to get
to the market as we will find out that’s
what happened with red bull and second
in marketing customer alignment and
brand identity is gold and I don’t think
anyone can dispute the fact that Red
Bulls marketing the product itself and
the brand presence in the action sports
and racing communities how are anything
other than magically aligned so let’s go
take a look at it well first of all did
you know that Red Bull was once a rather
bizarre energy drink that was in
Thailand and it was in these gas
stations in these long-distance truckers
the people that would drive trucks a
long distance to deliver products and
things they used to come in and pick it
up it wasn’t called Red Bull back then
but that was the dawn of it the sugar
the caffeine the taurine the things that
were in there that’s what they used to
do and it would had a cult following
there where the truck drivers and people
absolutely swore by it well it was a
working class drink for those drivers
and it was originally invented back in
1970 by a guy named chili oh you did
yeah and I hope I pronounced that right
he was a tied business guy who was
seeking to make a low-priced alternative
to coffee for people and I think that’s
very interesting what he was going for
that’s what he came up with but it was
kind of rolled around in Thailand and it
became a success
it was until 1987 that redbull as you
and I know it was actually launched and
it came to the rest of the world in
phases and first was Europe there’s a
man on holiday in Thailand and his name
is Dietrich’s medicines and Dietrich he
found that this energy drink helped him
with his jetlag because he had some
business in Thailand and he says wow
that really helps a jetlag and people
told him it’s also good for hangovers
too he said seriously and he found out
that that was true and he said Wow what
is this stuff well he went to the owners
of the company and he said I think I
want to take this on a businessman from
Austria in Europe I’d like to go back
and I’d like to market this you know
worldwide if I could but I’ll start back
there they hatched out a plan where he
would actually take a half a million of
his own dollars and they took a half a
million dollars and they came together
and he owned 49% of the company and so
it was that near Salzburg Austria and if
you’ve been to Salzburg it’s an amazing
place big castle up on a clip they’re
fabulous I’m ashamed to say that I
climbed up the top of that clip with my
mom and went drinking beer all afternoon
one day so I’m hi mom anyway they’re in
Salzburg Austria was the birth of the
headquarters of what would be the Red
Bull you and I so dietrich puts the
headquarters there and he reworked the
taste a little bit because he felt that
needed to be a little carbonated and it
was a little too sweet for the taste of
the Western audience so in other words
they tweaked it and they tested it
carefully they came up with the branding
and there it was he launched his Red
Bull what he didn’t know at the time is
he wasn’t launching a new drink product
he was launching a new category energy
drinks did not have a category to
themselves in America energy drink was
called coffee if you were driving a long
way you stopped at a diner and got your
thermos full of coffee got back in your
truck and when driving on your way
coffee was your energy drink
well Red Bull would redefine the energy
drink segment to be a whole class of its
own and I think that’s one of the real
amazing things of the story of Red Bull
is they didn’t just launch a drink
they launched a brand
new category and a whole industry
followed so instead of marketing the
drink as a drink for working-class
people or people driving a long way like
truckers in Thailand he said no no I
want to position this as a slightly
upscale drink and you could see the
branding was very nice very elegant and
I want to associate it with some
higher-end connection points and so one
of the things that was very popular in
Europe is Formula One racing and in
Austria there is a driver named Gerhard
Berger one of my favorite drivers never
won a championship but he finished third
a couple times great guy wonderful
spokesman and dietrich went to him and
said I want to sponsor you personally so
there you had Gerhard Berger at Formula
One events with cans of Red Bull and a
little thermos thing drinking Red Bull
out of it and he was the first
Motorsports
sponsorship that they put together and
again associating Red Bull with upscale
racing because Formula One is the
highest and most expensive form of
racing on the planet attracts all kinds
of high-end sponsors and that was what
dietrich wanted and it seemed to have
worked because in Europe
Red Bull started going in waves it
didn’t explode right away it just kind
of went in waves and then he opened up
new markets France Sweden methodically
opening up and again he wasn’t Coke or
Pepsi so he had to do things with
supplies and manufacturing and he he
couldn’t just step on the gas with a
brand new product like Coke or Pepsi
could so a way he went well it
eventually happened that Red Bull became
a marketing and promotions company
because the one product they had was Red
Bull and it was going very well and they
started putting events around it and
they went and they invented some events
Red Bull Air Races
downhill motocross they even invented
things like things you may see on TV the
Red Bull Crashed Ice where it’s like a
it’s almost like a skateboard parkour
a MotoGP course and that then you’ve got
people in ice skates coming down and
full pads helmets and everything
actually crashing into each other and
it’s spectacular to watch it’s basically
a failed video waiting to happen
but redbull was sponsoring things like
that also they invented an event that I
think is phenomenal it was called flume
tag which really meant in German Friday
and Flugtag was where you’d get a bunch
of teams together that would make an
airplane that they would launch off the
end of an elevated pier over water like
a lake and five guys would push it and
one guy would ride whatever kind of
airplane kind of more like a glider that
he had made and they all crashed and
they went in the water and people
thought it was fantastic
teams would would build these gliders
from around the world and come to the
Red Bull Flugtag just to come up and run
their glider off the edge and be judged
for creativity originality things like
that and it was a hit and it was making
Red Bull and even greater hit because
they were associating Red Bull with with
bravery and even a little silliness and
just bowled the bents that were just so
entertaining
there was actually a record set two
hundred and twenty thousand people went
to Red Bull Flugtag in Cape Town South
Africa do you know that’s over two times
as many people can get into the largest
stadium that holds the Superbowl in the
United States two times to watch a bunch
of idiots go off the end of a pier and
with these gliders they’ve made and
crashed in the water and I have to
confess in 2013 the Red Bull Flugtag was
here in Dallas and I took my daughter
Bailey to see it Bailey loved it one of
the great things was you walked around
earlier with a little flag yeah these
two thumbs-up or thumbs-down indicated
whether you thought this one would fly
or this one would sink and it was just
all part of the fun I did not load my
daughter up on Red Bull that day I may
have had one or two but it was all fun
so when you take a look at these
mountain bike races everything you can
see their brand was coming together that
they were just a marketing and
promotions machine
and they were sponsoring great athletes
they sponsored the entire team in
Formula 1
you know Red Bull Racing which done one
of the guys where I got this shirt from
and they’ve sponsored some of the big
world events there is a huge world event
in 2012
do you remember Felix Baumgartner who is
also from Austria he took that was
called the Red Bull Stratos up to the
stratosphere and from 24 miles above
Earth he jumped and came all the way
down at 800 and something miles an hour
in turn 40 3.6 miles an hour hurtling
toward Earth finally opened his
parachute and it was the longest skydive
in the history of mankind all watched
for a two-hour special that was watched
by tens of millions of people around the
world simply called the Red Bull Stratos
jump and so those kind of things
this marked this wonderful energy drink
pioneer became just a marketing company
because they knew their customer they
knew what they liked and they said if
they like this they’re going to love
this and these events came together so
from its humble roots as an energy tonic
and a drink for Thai truckers driving
long distances overnight to the world’s
most well known sports and energy drink
that defined a category redbull success
is undeniable you know if it wasn’t for
that trip to Thailand Dietrich
Mateschitz never would have discovered
it never would have discovered that it
helped his jetlag and it would help
hangovers wouldn’t have made that deal
that brought it there and it just goes
to show you how opportunists are
entrepreneurs and entrepreneurs are
opportunists it’s a house Dietrich doing
well not too bad thanks to redbull he’s
worth 5 billion dollars and the company
is sold 62 billion cans of Red Bull from
1987 to now and by the way that’s 10
cans for every man woman and child alive
on earth today now with all that success
you’re probably asking well what’s your
chart tom and what was Coke and Pepsi
doing what was Gatorade doing what were
these companies that they sell beverages
and also
this thing is taking up space at the
7-eleven or the Kwik Stop or the grocery
store and and they’re like wait a minute
this is our turf and you’re moving in on
it and what is an energy drink anyway
well one of those companies that was
reacting was Hansen beverages Hansen
beverages was a maker of some fruit
beverages fruit sodas and things and on
the board was a wonderful guy I came to
know Harold Tabor who previously led la
coke was a group president for Coca Cola
in Los Angeles and Harold was leading
and then on the board of Hanson’s and
they decided that they were going to
come out in 2002 with a competitor to
Red Bull Red Bull had done well in 87
grown across Europe and then in 97
starting in California they launched in
the United States and this was really
when the boom took off for Red Bull when
they went to the US market well with
that boom happening people took notice
enhancing beverages just five years
later saw what was going on and they
introduced monster beverage and the
monster was in a much larger can there’s
a funny story that circulates in the
halls of Hanson beverages is when they
were deciding what they were going to do
with this monster beverage they were
looking at the packaging and they said
well this Red Bull man it’s this little
8 ounce can you know most sodas are in
12 ounce cans 16 ounce bottles mean is a
little teeny thing do we want to bring
out a product in that and they were
looking at packaging in their conference
room when apparently as the story goes
and I hope this is true somebody looks
at it like this and says I don’t know
what can to pick but I’ll tell you that
one on the end looks like a monster and
supposedly that was the genesis after
the branding people took over they gave
it its image but that was the genesis of
monster take up the drink together they
figured out how they were going to
market it and take it out and the
incredible logo that looks like a
monster in the can clawing its way out
and they came out to compete not too
long after they attracted the attention
of coca-cola and of course Harold Taber
knew a thing or two about coca-cola and
coke ultimately
ended up owning about 16% of monster
beverage thanks to a deal that was
finished in 2015 but the whole point to
this is that was where the response came
from it was the innovation of Red Bull
at that led to monster beverage and
monster sponsoring motocross and X Games
and sports like that and as a matter of
fact a recent deal where Monster has
just been named the title sponsor of the
NASCAR series now it’s the Monster
Energy Cup when you take a look at
defining a category that led to a giant
like Coke having to buy its way in not
invent its way in you’ve really
accomplished something there you have it
and it all started the revolution and
energy drinks at his Red Bull started on
a trip to Thailand bye dieter medicines
and he created a new category and a
beverage that we now know and love in
all corners so let’s look back at the
two key points shall we when you find
something compelling be unafraid to
partner you don’t have to own the whole
thing Dietrich is worth five billion
dollars and they only owns half of Red
Bull the second point was you know when
you get alignment between the product
itself the branding and the customer and
the marketing it is pure gold and the
way action sports and an energy beverage
and the brand that is redbull came
together you can do it too it’s a focus
on the customer the marketing and how
you’re cut your products being used
which is a you know marketing strategy
is probably a whole key study that we
could do together one day and as it is
for today that’s the story Red Bull
that’s how they got started and that’s
what led to the energy drink category we
know today well that’s this week’s case
study so I’m going to need the pillow
but first this is about Red Bull we
don’t need this monster thing hanging
around here oh well that’s a I guess
that’s a a a trophy that probably should
have been made out of glass you know
just so we’ll clean it up and we won’t
tell Patrick what just happened anyway I
need the pillow the pillow the pillow
thank you so much Paul well please
subscribe to value tainment the best
channel on the internet for
content for entrepreneurs until next
time I’m Thomas and I hope I led you
better than I found you and that’s the
case study for this week whoa give me
the bill
famous for everybody’s giving the best
and linear algebra concept killed in the
freaking Sun name is Tom Mel’s real hope
I love you better I found you [Music]
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