Yeap, that's me.
Paying $250 to jump out of the plane just for the triller
I love it for a moment even though doesn't look like it
Kinda like this guy.
I feel I was flying just with a lot of wind in my face
But of course, Redbull didn't sponsor me back then. I wish I had.
Red Bull sells 7.5 billion cans every year.
That's close to one can per person in the world.
Because people are hook-up on this stuff!
and you see their logo everywhere.
But, this is nothing compared to Coca-Cola, which sells 1.9 billion units each day!
So, how does Red Bull afford all this?
That's a company Forensics story
All accounts agreed that it was hot as hell when Dietrich Mateschitz landed in Bangkok in 1982.
He was exhausted jet lag but had to meet with the local distributor, Chaleo Yoovidhya.
I try really hard to get the names right this time, and I hope I did
But anyway
Yoovidhya saw this Austrian dude struggling, he offered him a specially-brewed tonic.
Not just any tonic: it was his own recipe.
Mateschitz drank it, and it was instant.
"One drink and suddenly the jet lag was gone".
Mateschitz was hooked like an addict on heroin.
Or, like someone on Red Bull.
Anyways.
Every time he visited Thailand, he told his driver to stop at any store to get Krating
Daeng.
Whatever this miracle beverage was, he loved it!
And he wasn't the only one.
Blue-collar workers, farmers, drivers, everybody in Thailand was drank this thing.
And it wasn't by chance.
Chaleo Yoovidhya was a marketing genius.
Tonics and specialty drinks had been popular in Asia long ago; some even sold as medicine.
Thailand was no exception.
There, they drank Japanese and Korean brands.
But, they were expensive.
So, blue-collar workers couldn't afford them.
But, Yoovidhya felt they needed them the most.
He analyzed the existing beverages and looked at the ingredient list.
Then, he realized he could create a recipe of his own.
After all, he had worked in pharmaceuticals before.
And we are gonna talk about the ingredients.
But later.
Because, in the seventies, Yoovidhya created his tonic
The bottle had two imposing bulls ramming against each other, with a yellow sun in the
background.
Then, he made sure that it was cheap.
You see, he had a very tough upbringing as a duck farmer.
So, his audience was the same people: laborers, drivers, and factory workers.
Katring Daeng was a success.
In less than two years, people all over Thailand were drinking it to get through the day.
Then, Yoovidhya started sponsoring Muay Thai tournaments.
These are essential to Thai culture and cemented his drink as a must-have in events.
By the time Mateschitz tried it, Katring Daeng had proved its worth.
So, the Austrian salesman did some research.
He found that, at that time, the largest taxpayer in Japan was an energy drink company.
There was potential on a global scale.
Mateschitz approached Yoovidhya with an offer.
Lets take Katring Daeng to Europe.
Fast forward to now, and Red Bull is away of life.
for many, it's more than a drink.
It's an icon.
That's all Mateschitz's work.
Next, he made it his mission to exploit the marketing side of Red Bull.
But, judging by what we see today, you couldn't imagine that it would be his biggest challenge.
Nowadays, Europe is one of Red Bull's hotspots.
In 2020, Red Bull grew the most in Turkey, Germany, Scandinavia, Russia, and Switzerland.
Plus, the brand has cemented its name in sports with global attention, such as F1 and football (soccer).
So, no wonder Europe loves Red Bull.
But it wasn't always like this.
Red Bull, as an idea, was a paradox.
The beverage was more expensive than Coca-Cola; it came in a smaller can and tasted weird.
And, it gave us energy?
Nothing about Red Bull made sense.
So, when Mateschitz tried to sell the idea to European investors, he ran into a brick
wall.
Nobody wanted it.
Still, he believed in Katring Daeng.
So, he convinced Yoovidhya for both to put in $500,000, with the remaining 2% going to
Yoovidhya's son.
They would take the brand to Europe themselves.
But, not before some changes.
The flavor and desired effects didn't have to change.
On that side, everything was great.
But the rest wasn't.
First, there was the name: Katring Daeng.
It wouldn't click with the European market, but its meaning was significant.
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Now, back to the story and to the name.
When Yoovidhya created his product, he needed a name that appealed to Thai culture.
All he could think of was one thing: the Gaur.
Native to Southeast Asia, the Gaur is big.
Some can reach 7-feet in height at the shoulder and weigh up to 3,300 pounds.
These are massive dudes, and they epitomize hard work and strength.
So, it was an ideal match for a beverage for the working class.
That's how he came up with the two bulls butting heads, with a yellow sun in the background.
Ok, so now we are going to talk about the ingredients
Yoovidhya realized that almost all "tonics" had the same core ingredients:
Caffeine, Sucrose, Glucose, and Taurine.
All Yoovidhya did was make a specific recipe and add his flavors; that was it.
The recipe for the original Red bull, to this day, remains unchanged.
However, in some markets, it's the caffeine content that varies, and you'll see why.
That's where we get controversial, for better and for worse.
Let's talk about this ingredient: Taurine.
Oh, and to get it out of the way, it's not bull sperm.
if you don't know what I'm talking about.
Since 2016, a myth circulates in social networks that Taurine in Red Bull comes from bull sperm.
Taurine is a sulfuric amino acid that is actually found in humans.
We have it in our retinas, brain, heart, and even our blood.
We get it from meat, fish, and many animal products.
Taurine comes from the Latin Tauras, which means ox or bull.
The first extraction of Taurine came from ox bile in 1827.
Nowadays, Red Bull gets its Taurine from pharmaceutical companies that manufacture it.
So, no, no sperm.
But, back to the point.
Taurine is anti-inflammatory.
Plus, there are suggestions that it can help certain conditions like epilepsy.
Now, that isn't Red Bull's goal or any other energy drink out there.
But, Taurine is in energy drinks because of tradition.
People believed that Taurine helped improve athletic and mental performance.
Regardless, Taurine was controversial enough for countries to ban Red Bull.
That's the fascinating bit.
There's not enough evidence to prove that Taurine in Red Bull is harmful.
Plus, there isn't enough to prove that it works.
In fact, in 2008, France dropped the ban as it could not prove that Taurine in Red Bull
was harmful.
The weird thing is that the ingredient isn't controversial in Asia.
But, in Europe and the US, Red Bull has a bad reputation.
Many say that it's dangerous for your health and can even cause death.
And, yes, many people focus on Taurine.
But let's not forget about the other ingredient: caffeine.
Now, I know, I know.
Caffeine isn't "addictive."
But the good thing about caffeine
It doesn't threaten your economic, social, and physical health as other drugs do.
But you can definitely get hooked on it.
Let's look at the numbers and, for this, we'll use an original Red Bull can.
So, Red Bull has as much or more sugar as Coca-Cola and has a lot of caffeine, plus
the controversial Taurine.
No wonder it gives you wings.
Or you end up in the hospital.
There are many reports of people ending up in the ER or even dying because of it.
In some cases, they drank 8 or more cans in a row.
That's about a cup and a half of sugar and 1.5 the daily the recommended dosage of caffeine.
When it comes to partying, it's even worse.
Ever since the 80s, people have mixed Red Bull with alcohol, and that's not healthy at all
Even though is kinda delicious
And, believe it or not, carbonation has a lot to do with it.
If you go to Thailand and try Katring Daeng, you'd see there's no carbonation.
This wasn't a thing in tonics back then.
Mateschitz knew that Europeans would prefer carbonation.
That's how the world became addicted to Red Bull.
People enjoyed the beverage, but Mateschitz took things further.
Sure, Katring Daeng aimed at workers, but Mateschitz had other ideas.
When the brand launched in 1987, he made it exotic.
The can, the visuals, and the price.
It was more expensive and aimed at the elite.
The sense of adventure wasn't in anyone's mind when they drank Katring Daeng in Thailand.
Instead, they needed it to stay awake.
In Europe, why not?
Why not aim at the wealthy adventurers?
And, for this, Mateschitz had a clear strategy.
He targeted parties, skiers, clubbers, and wealthy students.
Why?
Because they don't want a boring cup of coffee.
He also paid popular university students to host parties and give out many Red Bulls.
Mateschitz even pimped out some of their cars with Red Bull logos.
That's how the famous Red Bull Mini was born.
It was an effective grassroots campaign that worked to perfection.
In the first year of existence, Red Bull sold 1 million cans.
But Mateschitz wasn't satisfied.
Red Bull had to become a part of the culture.
It had to be a conversation that transcended the beverage and blew people away.
That's where extreme sports come into the picture.
In 1989, Mateschitz partnered with Gerhard Berger, a race car driver.
It was a small effort: a brand sponsoring a driver, not even a team.
But, after that, Red Bull didn't stop.
Red Bull has sponsored everything from BMX to skiing, from mountain biking to Dakar Rally.
There's this, which I love.
And, this.
And within each sport, Red Bull made sure that it stood out.
Every time Red Bull sponsored something, it was an all-out party and a lot of Red Bull
to hand out.
Even if this recipe was successful, Mateschitz knew that partying wasn't for everyone.
So as the brand gained momentum, so did the scope of sports under the Red Bull name.
The company leaped from allying with one driver, Berger, to sponsoring an F1 team.
Then, it aimed at football.
Red Bull has teams in Austria, the MLS, and the German Bundesliga.
Most of these have had great success.
That's actually part of the magic.
Red Bull was into ice hockey, drifting, motorcycle racing, and then, there's this.
Mateschitz took a man to the edge of space and had him jump.
Why?
Because they could afford it.
It's more than fanfare.
Every year, the brand becomes more successful, further fueling its expansion.
But let's talk about F1, for example.
Red Bull purchased the failing Jaguar team for $1.
But Mateschitz promised to invest $400 million.
By 2018, the team was worth $640 million and, by 2021, it had won the championship five
times.
It's all part of Mateschitz's strategy.
Yes, I know 2021 was controversial.
But, hey, Red Bull won.
Their recipe for F1 success is even the topic of conversation.
A lot of the money comes from Red Bull itself.
Other sources include prizes, sponsorships, and other sources of income.
By the way, we had never talked about F1.
but we'll have it if you want us to make a video, let us know in the comments.
Then there are the standalone projects.
These include spending $30 million to send Baumgartner to the edge space and back.
A lot of money, sure, but a 1:41 video on Red Bull's YouTube has 47 million views.
What better promotion than that?
It's estimated that, in the six months after the jump, sales increased 7%.
Global sales increased 13%.
Pure genius!
In the end, Red Bull isn't about beverages.
It's a marketing company, and it's excellent at it.
Take the German football team, RB Leipzig.
In 2009, Red Bull purchased the rights to play in the fifth division
They renamed the team and invested millions in it.
Then, the team qualified for the UEFA Championship in 2019.
Today, RB Leipzig is worth 497 million euros.
And, get this: they don't produce anything, not even the drinks.
That's the job of TC Pharmaceuticals, back in Thailand.
It produces the original concentrate, and other outsourced factories make different
flavors.
Now, there's something about to change.
Because this "not producing anything" model might change.
This is because red Bull F1 Racing plans to take full responsibility for manufacturing, producing F1
engines in 2023.
It began as a drink, and now it has plans to make F1 engines.
But, as for the rest of the products, Red Bull doesn't make the clothing or any goods
they sell.
Instead, they focus on making sure the world sees, hears, and breathes Red Bull.
And this applies even in the factory.
Saravoot Yoovidhya says that 95% of employees don't drink Red Bull when they enter the company.
But, once they're in, they start drinking it.
So, it started with an addicting beverage, but Mateschitz knew that it couldn't end there.
And, now, the world loves this stuff.
It's sold in 171 countries.
It dominates the energy drink market.
Of course, there are a lot of competitors, but we're talking about 7.5 billion in one
year.
We Millenials lived at a pace where we need some extra fuel to get through the day.
So at least for us, It's no longer about the party, it's about getting through the day, and that's maybe not good.
See you next week.