Topic updates
Red Bull sells 8 billion cars a year but manufactures none of them
24th December 2021
Red Bull sells eight billion cans of their energy drinks each year but it doesn't manufacture any drinks at all!
It outsources 100% of their manufacturing and in essence is purely a marketing company. Production is outsourced to Rauch, an Austrian bottler. Red Bull is the market leader in what is a $50 billion energy drink market.
This thread from Trung Phan is remarkable and provides some superb insights into the nature of the business. Please do have a look!
1/ Red Bull. Everyone's favorite concoction of sugar, B-vitamins, taurine and caffeine.
— Trung Phan 🇨🇦 (@TrungTPhan) December 23, 2021
Today, it sells ~8B cans a year and is the market leader in what is a $50B+ energy drink market.
So, how is it *only* a marketing company? pic.twitter.com/2ksnGKJOw0
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
You might also like
Four facts about UK manufacturing industry
22nd October 2014
British Manufacturing: solving the Productivity Puzzle
31st May 2015
Risks from Over-Specialisation - China's Underwear Town
22nd April 2016
Tesla scales back production target
2nd November 2017
How we make pencils
17th September 2019
State ownership - Sheffield Forgemasters is nationalised
28th July 2021
Should the Government Bail Out the UK Steel Industry?
23rd January 2023