Owning stock in the maker of energy drinks, Red Bull, could seem like a wise investment given that it is one of the most recognizable companies in the world.
The fact that you cannot own Red Bull stock may startle you.
A worldwide corporation, Red Bull has interests in the beverage, sports, music, travel, and media sectors. It is the world's most well-known energy drink brand, accounting for around 42% of the global market for these beverages.
However, there is a battle tale behind every triumph. Red Bull had several challenges and setbacks along the road, and things didn't always go as planned.
This essay will examine the history of Red Bull's success and why its stock cannot be traded.
How was Red Bull created?
Privately held Red Bull is well known for its energy beverages and ownership of sports franchises.
Dietrich Mateschitz, the company's CEO, launched the business in 1987. It is incorporated in Austria as Red Bull GmbH.
The first version of the Red Bull energy drink, also known as Krating Daeng (which translates to "red bull"), was developed in 1976 by Chaleo Yoovidhya in Thailand. Yoovidhya created the beverage to aid construction and transportation personnel stay focused while at work.
When Mateschitz tried the beverage while on a business trip to Thailand in 1984, it helped him get over his jet lag and motivated him to ask Yoovidhya for permission to launch a different company in Austria that would manage sales of the beverage internationally, he eventually received this permission.
Caffeine, carbohydrates, Alpine water, B-group vitamins, and taurine are all ingredients in Red Bull energy drinks.
Red Bull GmbH employed slightly over 13,600 people in 171 nations as of December 2021, and its energy drink cans were sold in 9.804 billion cans globally.
Mateschitz has also built an empire in the media and sports. Professional rugby, hockey, basketball, and soccer teams are owned by Red Bull GmbH in both the United States and Europe.
The business supports Nascar and Formula 1 teams. Additionally, it supports competitors in extreme sports like cliff diving and aerobatic flying.
Red Bull's sporting empire operates under the dual goals of raising revenue and brand awareness for its energy drink.
Mateschitz is the largest stakeholder in the energy drink industry, with a 49 percent stake in Red Bull.
The remaining 11 family members of Yoovidhya split the business. The last 2 percent belongs to Chalerm, Yoovidhya's oldest son. At the age of 88, Yoovidhya died away in 2012.
According to statistics gathered by Forbes magazine, Mateschitz is said to have earned a wealth of $27.5 billion, making him the richest person in Austria and one of the top 60 richest persons in the world.
Shares of Red Bull may be traded.
Unfortunately, Red Bull shares cannot be bought or sold, and there is no Red Bull stock since it is a privately held business.
Due to the company's size and wealth of assets, it has refrained from selling its shares to the general public.
Red Bull's income stream and excellent marketing and promotional efforts have allowed the business to run without turning to the public markets for funding.
Fortunately, the corporation does compete with several publicly listed businesses.
If we examine the yearly revenue, the value may be between $10 billion and $20 billion. While some experts claim that the lower figure is the right one, it would undervalue the brand's strength. Should they want to sell, they would probably get much more than this. If a firm with the same history as Cadbury can get $19 billion in a sale, then one with greater worldwide appeal, like Red Bull, should be able to fetch more. Of course, many other elements would affect the price per share, but if an IPO ever occurs, the price would not be low, and the demand would probably be considerable.
The instant success of a stock like Snapchat is all the evidence you need to recognize how popular; well-known companies are right now. They are in high demand because inexperienced investors are hopping on the bandwagon, and more serious investors are following suit since they anticipate a swift increase in value. One of the reasons cryptocurrencies like Bitcoin and Ethereum have become so popular is because, unlike in the past, when only those in the know and those willing to look at charts and analyze data were allowed to trade, everyone wants in. Many investors base their decisions on hype and social media posts.
Will Red Bull ever go public? We've been asked this question a few times, and the answer is simple: no. Our articles on Aldi and Lidl stock have already explored such topics. Simply described, they are privately held businesses that have greatly increased the wealth of their founders and main shareholders. There is no need to divide those shares up and make them available to the general public since they are the market leader and possess everything a large corporation requires.
It will cede control and make life more difficult for those in power. And it wouldn't work for a business that prides itself on the odd.
Another question is posed to us, and this one again has a simple "no" response. There is no stock symbol since they are not traded publicly. Equities with symbols like "RB" may be mistaken for Red Bull, and however, they are not Red Bull.
Sponsorships for Red Bull
Every year, Red Bull sells billions of cans of its energy beverages. While it undoubtedly contributes to the company's financial stability, it owns sports franchises and sponsors athletic competitions. We wish we could own Red Bull shares.
Over twenty professional sports teams are sponsored by the firm, and at least 10 of those teams are owned. Here are some of the most exciting competitions, teams, and events that Red Bull supports.
Ice-crushing Red Bull: This well-known competition changed its name to the Red Bull Ice Cross World Championships in 2020. Still, I like Crashed Ice better. A group of ice skaters competes in this sport by racing through a cityscape that includes jumps, sharp curves, and dramatic vertical drops.
It is executed swiftly and fits perfectly with Red Bull's aggressive sports brand. Jasper Felder of Sweden was the Wayne Gretzky of Red Bull Crashed Ice, winning the singles competition seven times between 2001 and 2009.
Including six times in a row between 2001 and 2005! Most participants play ice hockey, but Felder played bandy, a well-liked winter activity in Europe.
Even Cooler Sponsorships for Red Bull
Red Bull Stratos: In a highly innovative endeavor, Red Bull sought to set a record for the highest skydive ever made. The corporation selected Felix Baumgartner, a well-known Austrian skydiver and daredevil born in Salzburg.
Baumgartner soared around 24 miles into space on a launch balloon, reaching the stratosphere. Following the first leap, Baumgartner set a world record and broke the sound barrier by reaching a peak speed of 843.6 miles per hour.
Even though the highest skydiving record held by Baumgartner has since been surpassed, this incident remains one of the brand's pivotal moments.
Although it has an Austrian operating permit, Red Bull Racing is an F1 racing team with its headquarters in England. The team had had periods of dominance, like the years 2009 through 2014, when Red Bull Racing came in first or second place in the standings.
Even though it is not as well-known in the United States, Formula One is one of the most watched sports in the world.
Red Bull Soccer Teams: Red Bull is heavily involved in supporting and sponsoring soccer teams as it is situated in Europe. FC Red Bull Salzburg, as well as RB Leipzig in Germany, represent the city of Salzburg. They also support teams in other nations, including the MLS's New York Red Bulls and clubs in Brazil and Vietnam.
Art and Red Bull?
The Red Bull Art House: Even if it's not as severe as the others, Red Bull nevertheless exhibits the cultural sensitivity that many other companies do not. The business started the Red Bull House of Art initiative to aid emerging artists in creating new works of art and exhibits.
Many of the pieces have also been utilized by Red Bull in its advertisements and commercials. The program typically lasts for three months and provides budding artists with money for art equipment and full access to the gallery. At present, the places are San Paulo, Brazil, and Detroit. Red Bull stock would benefit greatly from this.
Why Do Red Bull Sports Teams Exist?
This is merely a marketing tactic. Red Bull has always been targeted mostly at college students and athletes participating in extreme sports. They invested a ton of money in still-expanding sports, which allowed them to essentially take over, develop their spin-off competitions, and expand the brand.
The co-love owners of flying and the fact that the company has always seen itself as more than simply an energy drink are also related to this.
What is the value of Red Bull?
The two Red Bull founders have a combined net worth of more than $5 billion, or at least they had a few years ago, before Chaleo's passing. Beyond these two, the business now brings in over $7 billion in annual sales, of which over $1.5 billion comes from operational profits.
The brand is continually expanding and making investments. Across all subsidiaries, it employs more than 11,000 people, and as explained below, quite a few of them exist.
Am I Allowed to Invest in Energy Drinks?
Absolutely! Over the last ten years, the energy drink sector has seen significant growth. Red Bull stock is not available for purchase, but many other firms are! Here are a few businesses you could be interested in investing in if you believe that energy drinks are more than simply a trend.
Coca-Cola (KO) (NYSE): Coca-Cola produces a range of energy beverages with added sugar, guarana extract, and increased doses of caffeine. There are many distinct tastes and several varieties that are sugar-free.
But you must move swiftly if you like Coca-Cola energy drinks! Coke decided to end the trial in May because it failed to gain traction. By 2021, Coca-Cola energy drinks will no longer be sold in stores. However, the corporation does own 16.7% of the following brand.
(NASDAQ: MNST) Monster Beverage Corporation Which stock has had the best returns throughout history, according to the stock market? You're right if you choose Monster as your answer! Even though the company has gained over 87,500% over the previous 20 years, not all energy equities are successful.
As previously said, Coca-Cola owns a portion of Monster, making this a highly lucrative supply and logistical network to be a part of. The market for American energy drinks was dominated by Monster last year to close to 40%.
PepsiCo (NASDAQ: PEP): Pepsi has a portfolio of energy drink brands that customers would undoubtedly remember. The most well-known ones are Mountain Dew Amp, Bang, and Rockstar. In addition, Pepsi owns Gatorade, the leading sports drink brand. Therefore it goes without saying that PepsiCo is a wise investment if you like these non-alcoholic beverages.
A Company to Consider for New Energy
NASDAQ: CELH Celsius Holdings is a brand that is relatively new to the energy drink industry. It has gained traction as a well-liked brand and stock on FinTwit, and sales have increased. Similar to Monster, Celsius was a penny stock with exceptional profits. The stock has given investors returns of more than 3,300% over the last five years and more than 263% in the most recent year. The company's market value has increased to $5 billion, and it's unclear how much higher it can go.
I don't consume energy beverages. However, I am aware of this business. Someone I follow who works in dog rescue loves Celsius energy drinks. So check out the Asher House if you're interested in dog rescue. Along with cute animals, you'll often see this business on his feed. Due to the lack of Red Bull stock, this may make it a fantastic purchase.
Do Energy Drinks Have Any Benefits?
Debatable, I suppose. This isn't really up for debate. Caffeine, sugar, taurine, and other artificial substances that are often bad for humans are present in increased concentrations in energy drinks. Why am I mentioning this? Many investors choose not to fund businesses that encourage unhealthy habits.
These are sometimes referred to as "sin stocks," and ethical investors typically choose not to purchase shares in these businesses. from sectors including fast food, alcohol, tobacco, and gaming. Therefore, if you buy in equities using your moral compass, maybe the energy drink sector isn't for you.
Summary of Red Bull Stock
Therefore, you are now unable to purchase Red Bull shares. It is a privately held business. Red Bull: When will it go public? It appears improbable at this time. I fail to understand Mateshcitz's decision to make Red Bull public now, as it has been private since 1987. Maybe if the firm's management changes at some time in the future or if a bigger company decides to acquire Red Bull.
Before that, we discussed some additional businesses you may invest in if you enjoy the energy drink sector. Blue-chip equities like PepsiCo and Coca-Cola are consistently wise additions to your portfolio, and the single best-performing stock of all time is Monster Beverages.
You can probably utilize that bit of trivia to win a bar bet sometimes. There's a good chance that Monster's next 20 years won't be as successful as the previous 20. The name Red Bull is unquestionably synonymous with energy beverages worldwide. So it's unfortunate that it's private since it would be a fantastic investment!
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