Red Bull’s dominance in Formula One boosts energy drink sales

Red Bull’s dominance in Formula One boosts energy drink sales

  • Red Bull Racing’s dominance in Formula 1 this year translates directly to higher energy drink sales, team principal and CEO Christian Horner told CNBC.
  • Red Bull has conquered the grid this season, winning 19 of the 20 Grand Prix weekends so far, with its world champion driver, Max Verstappen at the wheel.
  • Red Bull is the second most popular energy drink brand in the world with a 13% market share, behind only Monster Beverage.
Red Bull’s Max Verstappen celebrates after winning the Brazilian Grand Prix on November 5, 2023.

Amanda Berobelli | Reuters

Red Bull Racing’s dominance in Formula 1 this year translates directly to rising sales of its namesake energy drink, team principal and CEO Christian Horner told CNBC.

“There’s an old saying that goes: ‘Win on Sunday and sell on Monday.’ Well, what we do for the Red Bull brand, for the energy drink in advertising the product globally for 23 race weekends a year, we are the biggest marketing influence for the beverage company. ,” Horner told CNBC’s Sarah Eisen in the documentary “The Inside Track: The Business of Formula 1,” which premieres Thursday at 8 p.m. ET.

Red Bull, which also counts tech giant Oracle as a title sponsor, has topped the grid this season, winning 19 of the 20 Grand Prix weekends so far. Its world champion driver, Max Verstappen, took the checkered flag in 17 of those victories, while his teammate Sergio Perez took victories in Saudi Arabia and Azerbaijan.

Verstappen already clinched the 2023 drivers’ title – his third world championship – in early October during the 17th Grand Prix weekend of the season, in Qatar. Red Bull had clinched the Constructors’ Championship the previous weekend in Japan.

The drivers will return to the track again on Sunday in Las Vegas before concluding the season at the end of this month in Abu Dhabi.

Red Bull declined to share specific sales metrics, but a company spokesman reiterated the “uptick” in Formula 1 and said it was particularly noticeable in corresponding racing markets.

“They see it, they can measure it. It’s unbelievable the amount of Red Bull consumption that’s going on,” Horner told CNBC.

Red Bull is the second most popular energy drink brand in the world, with a market share of 13%, according to data from Euromonitor International. It trails only Monster Beverage’s namesake brand, which has a 16.4% global market share.

But the energy drinks market is becoming more crowded, putting pressure on Red Bull. The company’s market share fell from 13.5% in 2021 to 13% this year as new players, such as PepsiCo, entered the category.

In recent years, beverage giants Coca-Cola and Pepsi have set their sights on the fast-growing energy drink category — with varying degrees of success. Soda consumption has declined over the past two decades, but sugary energy drinks have bucked the trend due to their caffeine content and related effects.

Coca-Cola launched its energy drink in the UK in 2019. But Coca Energy failed to gain a foothold with US consumers; The company discontinued the drink in North America in 2021, roughly a year after its launch.

Coca-Cola’s competitor, Pepsi, has had more success with deal-making. It bought Rockstar Energy for $3.85 billion in 2020, gaining ownership of both the company’s namesake energy drink and fast-growing company Sting Energy.

Last year, Pepsi took a $550 million stake in Celsius, which markets itself as a healthy energy drink that enhances workouts. These deals come on top of efforts such as shifting Mountain Dew into the energy drink category and adding caffeine to Gatorade.

Tune in to CNBC on November 16 at 8 PM ET for the film’s premiere “The Inside Track: The Workings of Formula 1.”

    (Tags for translation) Energy Drinks 

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