red bull controversy case study

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Red Bull Settles False Advertising Case for $13M

Red Bull GmnH has agreed to a $13 million class action settlement in a false advertising lawsuit filed in a New York federal court alleging that the beverage maker’s energy drinks had more benefits than coffee.

If approved, Class members will have the option of a $10 cash reimbursement or $15 in Red Bull products. Red Bull will also have seven days from the approval date to put $6.5 million toward the settlement, according to the class action lawsuit motion filed by Plaintiffs Benjamin Careathers, David Wolf, and Miguel Almaraz.

The $13 million class action settlement fund will cover the cash reimbursement, the Red Bull products sent out to Class members, the expenses of the Class action settlement administrator, for advertising the settlement to potential class members via various media resources, and attorney fees.

The Class will include anyone who bought “at least one Red Bull beverage dating back to Jan. 1, 2002.”

The plaintiffs are also asking that the alleged false advertising campaign by Red Bull be discontinued.

“Beyond monetary relief, although Red Bull denies wrongdoing and believes that its marketing materials and advertising have always been truthful and accurate, it has voluntarily withdrawn or revised the marketing claims challenged by plaintiffs, and will confirm that all future claims about the functional benefits from consuming its products will be medically and/or scientifically supported,” the plaintiffs said in their motion.

This agreement was made through extensive meetings between attorneys and a mediator.

False marketing

Careathers filed his Red Bull class action lawsuit in the U.S. District Court for the Southern District of New York on Jan. 16, 2013. Wolf and Almaraz filed their class action lawsuit against the beverage company on Feb. 27, 2013 in the U.S. District Court for the Central District of California. The California lawsuit was later “transferred and consolidated with the New York Action.”

The plaintiffs allege that “Red Bull falsely marketed its energy drinks as providing certain functional benefits and thereby induced consumers into purchasing and/or paying a ‘premium’ for those drinks over alternate sources of caffeine.”

In spite of the class action settlement agreement, “Red Bull denies all wrongdoing or liability, and is prepared to vigorously defend its marketing claims if the litigation proceeds.”

Careathers, Wolf and Almaraz all claim to be “longtime consumer[s] of Red Bull beverages.”

They claim that that “Red Bull labeling and marketing has deceived customers.”

“The thrust of the allegations herein is that the functional benefits of consuming Red Bull are not superior to the benefits from ingesting an equivalent amount of alternate sources of caffeine, and that consumers have been misled by Red Bull advertising to believe the drink is a superior source of energy beyond caffeine,” the plaintiffs explain in the motion.

The plaintiffs are represented by Benedict Morelli, David Ratner, Adam Deutsch, Jeremy Alters and Matthew Moore of Morelli Alters Ratner LLP and Frederic Fox, Justin Farar, Laurence King and Linda Fong of Kaplan Fox & Kilsheimer LLP.

The defendants are represented by Kenneth Plevan, Jordan Feirman, Jason Russell and Hillary Hamilton of Skadden Arps Slate Meagher & Flom LLP.

The Red Bull False Advertising Class Action Lawsuits are Benjamin Careathers v. Red Bull North America Inc., Case No. 1:13-cv-00369, and David Wolf et al. v. Red Bull GmbH, Case No. 1:13-cv-08008, both in the U.S. District Court for the Southern District of New York.

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Red Bull Puts Up $13m To Settle False Advertising Suit

Morelli Law Firm has filed a motion seeking class certification for settlement purposes only to resolve its false advertising class action suit against Red Bull GmbH (“Red Bull”). The Austrian-based energy drink company – famous for its promise to “give you wings”—agreed to pay over $13 million to settle a proposed class action that accused the company and its U.S. subsidiaries of falsely advertising that its energy drinks enhance performance, concentration and reaction speed, allowing the company to charge a premium price for its product. In fact, Plaintiffs allege that Red Bull doesn’t provide any more benefit to consumers than a cup of coffee.

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According to a plaintiffs’ motion seeking court approval of the agreed-upon settlement terms, the settlement could potentially include millions of individuals who purchased at least one Red Bull over a period of more than 10 years and would provide class members with the option of a $10 cash reimbursement or two free Red Bull products with an approximate retail value of $15, with Red Bull agreeing to cover the shipping costs.

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A brief about Red Bull

Red Bull is an energy drink offered by Red Bull GmbH, an Austrian private company founded in 1984. It's the brainchild of Austrian entrepreneur Dietrich Mateschitz (it's okay, we also couldn't pronounce it) and Thai businessman Chaleo Yoovidhya . Also, so that you know, the founders are among the top two richest persons in their respective countries.

Besides Red Bull, the company also distributes and markets other drinks like Simply Cola, etc., but Red Bull is the company's forte. The company's revolutionary energy drink Red Bull was originally the Thai truckers' sleep-depriving drink, named Krating Daeng. It was introduced to the European markets in 1987, and the rest is history. Taking the youth by storm, it made its footmark in the US in 1997, and within a year, it had already captured a whopping 75% of the US market! Wotta journey!!

Since then, there has been no looking back. After expanding its markets across 171 countries, the company sold 5.2 billion cans of Red Bull in 2012, thereby making it the world's most-consumed energy drink. And it didn't stop there. In 2019, when the world population reached 7.7 billion, Red Bull sold 7.5 billion cans, meaning almost one can for every person on earth! Shocked? We, too, are!

By the way, if you're aware, you would have known that Red Bull has been famous (or infamous, depending) for its widely popular advertisement -- "Red Bull gives you wings." And that's our matter of discussion today.

The advertisement - a metaphor or a deception?

Source: Red Bull advertisement

So, this is the advertisement we're talking about. Wait, don't tell us, you're also feeling like Red Bull literally meant it gives you wings! No, please.

Basically, this was just a very clever bit of branding technique, indicating high Caffeine content. Red Bull states that a 250ml can of its energy drink contains about 80mg of Caffeine, the same amount as contained in a cup of coffee. And being an energy drink, they charged a premium over a cup of coffee.

Anyway, how does Caffeine relate to wings, you ask? Well, first read this note from healthline.com regarding the effects of Caffeine -- "Caffeine acts as a central nervous system stimulant. When it reaches your brain, the most noticeable effect is alertness. You'll feel more awake and less tired, so it's a common ingredient in medications to treat or manage drowsiness, headaches, and migraines."

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So, when Red Bull said it "gives you wings", what it basically meant was that it stimulates your nervous system, reduces drowsiness, and makes you feel cool and active. Thus, you feel light and energetic. And it does, isn't it? Many even take it as a lite version of hard drinks! Gosh! So, now you know it didn't literally give you wings. Rather, it is a metaphor (a word that carries a different underlying meaning and not its literal interpretation).

And what did Red Bull plan to achieve, you ask? See, Red Bull's niche target market is the youth, and the youth wants mystery and vigour in all endeavours. Therefore, in a bid to entice the youth, they came up with this brilliant ad. As intended, the plane took off and the result... Red Bull became the most consumed energy drink in the world.

Okay, if this was just a metaphor, where was the deception part? Under what grounds was the suit filed? And who filed it? Well, let's explore.

Benjamin Careathers v. Red Bull North America, Inc.

Benjamin Careathers got no chill! Yes, that's our man. He, joined by others later, filed a case against Red Bull in 2013.

Although we did not attend the court proceedings, we feel Mr Benjamin would have said something like this -- " Your honour, I have been drinking Red Bull for over 10 years. It tastes a slight bit bitter, but that's okay. I don't have any complaints regarding its taste. But my problem is with the wings thing. Your honour, after I drink Red Bull, I don't feel like flying. Don't mistake me for being foolish; I am not taking it literally. I just mean that it doesn't make me feel so athletic and energetic. Oh, and if you think that's my problem, then NO. There is a problem with the advertisement itself. They advertise that a can of Red Bull contains the same amount of Caffeine as a cup of coffee. But facts state that a 250ml can of Red Bull contains about 80mg of Caffeine, which is much less than a smaller 207ml of coffee that contains as much as 150mg of Caffeine. And hence, I think the ad is deceptive and misleading. Thus, the premium paid over a cup of coffee also doesn't make any sense. I ought to be compensated for my expectations and consumption. "

Metaphorically put, Red Bull doesn't give you any more 'wings' than a cup of coffee, right?

And the cost-premium bit was also true. For instance, a 356ml cup of premium store Starbucks coffee costs around $1.85 and would contain far more (over 4 times) caffeine than a 250ml can of Red Bull, which costs around $2.19. Eh, gotcha?

In this case, the court ruled in favour of Benjamin and other plaintiffs and, thus, ordered Red Bull a class settlement for all victims. It agreed to pay a total of $13 Mn as compensation to the customers who felt cheated by drinking its energy drink in the last decade. The compensation per victim was a cash payout of up to $10 or two Red Bull products worth $15 combined, with the company handling the shipping charges. This means the higher the number of victims, the lesser the share of compensation of each. And that's how it went.

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The aftermath of the Red Bull case

Though Red Bull stood up to the claim settlement, it didn't admit its wrongdoing. Or so to say, Red Bull still believed in its' wings'. This is what the company officially stated -- "Red Bull settled the lawsuit to avoid the cost and distraction of litigation . However, Red Bull maintains that its marketing and labelling have always been truthful and accurate, and denies any and all wrongdoing or liability."

They underestimated the power of customers, and therefore, they had to cough up another $850,000 CAD in another similar case filed in 2019 in the same compensation structure.

And like Bill Gates says, "Your most unhappy customers are your greatest source of learning." This time, they realised and were cautioned. And thus, they changed their ad slogan to "Red Bull gives you wiiings." This was another clever shot, whereby this time, none could sue Red Bull because there won't be any dictionary meaning of 'wiiings' (with 3 i's), while it would still sound like 'wings'! A superb idea, indeed.

Source: Red Bull website

And now you know what's all about Red Bull's $13 Mn fiasco. Yeah?

The bottom line

By the way, Red Bull wasn't the only brand that was dragged to court in such a false advertisement case. New Balance was similarly sued in 2011 for falsely claiming that its toning shoes burnt calories, Dabur was sued in 2017 for the deceptive advertisement of its tal oil doing "dugni tezi se sharirik vikas", L'Oreal was sued in 2014 for misleading customers that its skincare products were "clinically proven" to cause "visibly younger skin in just 7 days", and there were many other such instances.

You see, there is a very thin line separating clever and notorious. And the same works for marketing as well. A clever deceptive marketing tactic may enable a brand to take off, but in the end, if customers catch it, you won't be spared! Because, ultimately, the customer is the only real boss. And as Milton Hershey quotes --

"Give them quality. That is the best kind of advertising."

So, what do you think? Tell us in the comments below.

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Abhishek has a love for numbers and words alike. With a passion for finance and interest in writing, he’s blending both as a Finance Content Writer at Finology. He writes to simplify the toughest of the technical stuff for readers and tries to make the reading exercise interesting. He is a CA Final candidate and aims to pursue a management degree from a top-notch b-school.

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Red Bull: 'All future claims will be medically and/or scientifically supported'

Red Bull offers $13m to settle false advertising lawsuit; 'No way judge will approve this', says attorney

04-Aug-2014 - Last updated on 22-Jan-2021 at 16:40 GMT

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Along with other F&B giants which have recently sought to settle false advertising cases (Kashi, Trader Joe's, PopChips, PepsiCo), Red Bull has not admitted liability, and says it is " prepared to vigorously defend its marketing claims if the litigation proceeds.”

However, it is also keen to avoid the “uncertainty, risks, expenses and time investment” of protracted litigation.

Marketing and labeling changes : ‘All future claims will be medically and/or scientifically supported’

Under the terms of the proposed settlement, which has been agreed by the plaintiffs and Red Bull but is still subject to approval by the court, consumers who purchased any Red Bull product in the US between January 1, 2002 and the settlement date would be entitled to $10 cash reimbursement or $15 worth of Red Bull products.

Red Bull has also voluntarily " withdrawn or revised marketing claims challenged by the plaintiffs" , although it doesn't specify which ones (multiple claims are referenced in the complaints).

“Red Bull believes that its marketing and labeling directed at United States consumers have always been entirely truthful and accurate," said the firm in court papers filed on July 31. "Red Bull further confirms that all future claims about the functional benefits of its products will be medically and/or scientifically supported.”

Attorney: Settlement could be attempt by Red Bull to pre-empt future consumer fraud and product liability litigation

But in context, the sum was arguably “ comparatively paltry ” given that it could be regarded as an attempt by Red Bull to pre-empt consumer fraud or product liability lawsuits it may face down the road, he claimed.

He added: “ This is all about the lawyers getting paid ($4.5m), while Red Bull tries to forestall all actions by other prospective plaintiffs.”

‘No way is the Judge going to approve this’

Given that the plaintiffs allege that Red Bull has misrepresented the safety as well as the functionality of its products - something which Red Bull vigorously denies - it also seemed odd that class members would be offered samples as well as refunds, he added.

Meanwhile, the fact that the settlement does not spell out which claims Red Bull is dropping is unusual, he said, noting that the firm would likely have altered its marketing regardless of this case in anticipation of legal threats from other quarters - including states attorneys - which have already sued rivals Monster and 5-Hour Energy in recent months.

“ If you can say that you’ve already stopped the claims that are being challenged in these matters, then you’ve got sort of a free pass.

“Add on to this the fact that if the State attorney generals sue, they will be suing on behalf of their citizens to get restitution and injunctive relief. If Red Bull has already paid a settlement that purports to bind all Red Bull purchasers for $13m, then maybe these State AGs get nothing for their citizens. It’s an argument.”

He added: “No way is the judge going to approve this… I suspect that the lawyers in any current or pending product liability cases will also weigh in against the settlement.”

CSPI attorney: One thing immediately jumps out at me, and it is fatal to the settlement

Stephen Gardner, director of litigation at the Center for Science in the Public Interest, added: " O ne thing immediately jumps out at me, and it is fatal to the settlement ."

In short, he said, " it would release all claims by any Red Bull purchasers, not just the claims covered by the lawsuit. As a principle of class settlements, an overbroad release is always a negative. But here, although the settlement says it does not release “personal injury claims unrelated to the marketing or labeling of Red Bull products,” that does not suffice, b ecause the marketing and labeling of Red Bull products will almost invariably be relevant to a personal injury claim."

Class counsel should never have agreed to it

He added: "I’ve served as an expert witness providing testimony about the adequacy of class settlements in perhaps 20 cases. I would testify that this over breadth of the release is fatal to the settlement. It may be clever lawyering by Red Bull counsel but class counsel [ie. the plaintiff's attorneys] should never have agreed to it."

Plaintiff: Red Bull doesn’t give you any more wings than a cup of coffee

Benjamin Careathers filed his lawsuit against Red Bull in the Southern District of New York in January 2013, while David Wolf and Miguel Almaraz filed a near identical suit in February in the Central District of California. The two cases were later consolidated in New York.

Careathers argues that Red Bull - an 8.4oz can of which contains 80mg of caffeine, plus taurine, glucuronolactone, B vitamins, sucrose and glucose (click HERE ) - is falsely marketed as delivering functional benefits above and beyond what consumers might obtain from “ a simple cup of coffee or a caffeine pill ”, thereby inducing shoppers to pay over the odds for a product that does not deliver on its promises.

“The Red Bull defendants prey upon consumers by promising that, among other things, ‘Red Bull gives you wings’ by proving a mixture of ingredients that when ingested, significantly improve a consumer’s physiological and mental performance beyond what a simple cup of coffee or caffeine pill would do," he alleged.

Plaintiffs: 'Red Bull's advertising and marketing is not just puffery but is instead deceptive and fraudulent'

Citing a series of clinical studies showing that the benefits attributed to energy drinks such as Red Bull are likely derived from caffeine alone, and not their “ unique” formulas, he added:

“ There is no genuine scientific research and there are no scientifically reliable studies in existence that support the extraordinary claims of defendants that Red Bull branded energy drinks provide more benefit to consumers than a cup of coffee.

“Such deceptive conduct and practices mean that defendants’ advertising and marketing is not just puffery but is instead deceptive and fraudulent and is therefore actionable.”

A Red Bull spokeswoman told FoodNavigator-USA: "Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability. Per your question, we will continue to use [the marketing slogan] 'Red Bull Gives You Wings'."

*The cases are: Benjamin Careathers v. Red Bull North American Inc. et al, 13-cv-00369; and David Wolf et al. v. Red Bull GmbH et al. , 13-cv-08008.

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The real scandal in Formula 1 is its attitude toward women

The Christian Horner alleged sexting scandal isn’t just gossip. It reflects the sport’s systemic misogyny.

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Horner wears a headset and wearing sporty uniform looks at a row of screens on the pit wall.

The line between spectacle and sport has always been blurry. But when it comes to Formula 1 — the global motorsport with some of the fastest cars and deepest pockets — the biggest institutional players seem to forget that there’s a difference between delicious drama and legitimate controversy.

It’s easy to mistake the two when so much of the elite sport’s success can be attributed to Drive to Survive, the addictive Netflix show that explains the intimidating technicalities and stakes of F1 through the catty interpersonal drama between teammates and competitors alike. My colleague Byrd Pinkerton described the show in 2021 this way: “Basically, imagine the Real Housewives , if the housewives were driving around at 300 kilometers an hour, and if occasionally one of the housewives caught on fire.”

What’s at stake?

Prior to reporting this story, I attended several races in the last few years, bonded with an increasingly diverse fan community, and spoke with pit crew personnel at the 2023 Miami Grand Prix. Here’s what you need to know:

The investigation and allegations against Christian Horner, explained

Who gets to control the narrative
What this means for women employees and fans in motorsport

Have questions? Email me: [email protected].

As a result, F1 has experienced years of explosive growth , especially in the US. More eyes has meant more races: You might have heard Las Vegas residents griping about the construction inconveniences and inaccessibility of last November’s brand new street race . Or how Elon Musk, Shakira, and Vin Diesel rolled out to the Miami Grand Prix. There’s also the sheer stardom of the drivers: thirst traps of Lewis Hamilton going viral, Daniel Ricciardo gracing the cover of GQ , and endless brand deals for nearly everyone on the grid. (That’s where the 20 drivers start the race!)

Right now, though, a controversy might change how people see the ordinarily glitzy sport — especially the growing female fanbase F1 is all too happy to court via social media . In 2022, approximately 40 percent of fans were female , up 8 percent from five years ago, according to Stefano Domenicali , CEO of the Formula 1 Group.

In early February, energy drink company and team owner Red Bull launched an independent investigation into its Formula 1 team principal, Christian Horner, for potential misconduct toward a team member. Red Bull did not specify the details of the nature of the alleged misconduct nor who it was against, leading to rumors. Horner, who manages team strategy and personnel, was cleared a few days ahead of the start of the season.

A day after Red Bull dismissed the investigation, a Google Drive folder was anonymously sent to more than 100 reporters, other team principals, and members of the Fédération Internationale de l’Automobile (FIA), the governing body for the sport. The folder contains nearly 80 different files, most of which are screenshots of WhatsApp messages between what is allegedly Horner and a female employee.

Vox is currently in the process of verifying the images and videos. What we can say is that the undated messages include references to intimate acts, requests to delete messages, and what appears to be a nude picture. These WhatsApp messages share space with seemingly professional communication, including about whether this person could work from home.

Red Bull Racing, its parent company Red Bull GmbH, and Christian Horner did not respond to Vox’s requests for comment about the validity of the messages, the nature of the investigation, anything regarding potentially firing Horner, or whether they have opened any new investigations by time of publication.

While controversy isn’t new to F1 — just look at the cheating scandals , race interference , or the driver who lost his seat because his Russian oligarch father was sanctioned at the beginning of the war in Ukraine — the noise surrounding Horner should be more than fodder for a juicy season of Drive to Survive. It should prompt questions around how to best support the women pit crew members, engineers, assistants, and all other workers in a predominantly male sport. If F1 can’t protect its own female employees in the sport, then the efforts to create a pipeline for female drivers as well as make races safer for the recent influx of female fans will fall flat.

Currently, much of the coverage of the controversy is focused on whether Red Bull will be able to maintain its enormous lead in the Drivers’ and Constructors’ Championships, or speculation about the other person’s identity and motivations in the texts, as if this is gossip fodder about reality stars and not a workplace concern. As of Thursday morning, Red Bull had reportedly suspended a woman who accused Horner of inappropriate behavior. It’s not clear if she is the same person in the texts. And on Friday afternoon, it was reported that Red Bull adviser Helmut Marko could face suspension.

The way everything is shaking out feels more like gossip , rather than a gut check to see if the sport’s institutions are capable of questioning breaches of power. From the FIA to the individual teams and their owners, the sport has proven time and time again that they hide behind claims that everything should “ just be about the racing ,” rather than having to concern themselves with the people who make it possible. How Formula 1 decides to move from here will determine if their efforts to support women employees and its fans have any merit.

Most Formula 1 fans would say the sport is pretty boring at the moment : Red Bull driver Max Verstappen, predictably, will take first position in most races . He’s in a league of his own. The engineers and leadership at Red Bull Racing guarantee that.

When you’re constantly crushing the competition, others try to find ways to take you down. There are several instances documented in Drive to Survive of petty reports to the FIA . So when Red Bull announced on February 5 that it would be looking into “certain allegations” made against team principal Christian Horner, it was hard to pin down whether this was an external attempt to get him fired for competition’s sake or if there was veracity to the claims of misconduct. Red Bull’s intentionally vague statement to the media ushered in rumors about “ aggressive management .” Of what kind? The company never explicitly said. And it still won’t.

“One of the biggest quotes from Drive to Survive is [motorsport commentator] Will Buxton always saying ‘In F1, when there’s smoke, there’s usually fire,’” said Kate Byrne, one of the founders of the fan community Two Girls 1 Formula . She explains that such internal matters rarely bubble up to the public, but she feels Red Bull weighing in was a red flag, saying it’s possible they wanted to “get in front of it by saying something. Red Bull will never do that on their own.”

Red Bull’s outside lawyer, who they refuse to publicly name, cleared Horner of any wrongdoing on February 28 — just ahead of the first Grand Prix of the season in Bahrain. “Red Bull is confident that the investigation has been fair, rigorous, and impartial,” Red Bull’s parent company said in another statement . “The investigation report is confidential and contains the private information of the parties and third parties who assisted in the investigation, and therefore we will not be commenting further out of respect for all concerned.”

Additionally, according to some reports , Red Bull was preparing to fire Horner as early as February 2 — three days before the investigation announcement — but he had allegedly insisted on arbitration. Horner has not made any statements regarding potentially being fired, and during this week’s press conference, he declined to give any more specifics.

“My wife has been phenomenally supportive, as has my family, but the intrusion on my family is now enough,” Horner said during a press conference Thursday in Saudi Arabia. “It is time now to focus on why we are here, which is to go Formula 1 racing.”

Who gets to control the narrative?

Horner’s career will likely be unaffected, given the portrayal of this investigation as simply a scandal rather than a potential workplace misconduct issue. F1 and Red Bull are certainly ensuring that Horner is able to do “ business as normal .” So naturally, all eyes were on Red Bull’s two drivers, Max Verstappen and Checo Perez, to scope out their performance last weekend. There were concerns, some raised by Max’s father Jos, who is a former racer, that things at Red Bull might “explode” if nothing is done. If it’s true that tensions were rising within the team, it would be evident in the first race, no?

As if. Verstappen led the race by a wide margin of about 20 seconds between him and his teammate. Simply put, he was coasting, taking his monster of a car for a joy ride, while no competitors even came close. It was like watching Simone Biles on a playground. After Verstappen snagged first place, Horner was right in front of the podium with his wife, former Spice Girl Gerri Halliwell , and the heir of the Red Bull fortune, Chalerm Yoovidhya. “Better to do your talking on the track,” Horner said after the race .

Standing in a crowd, three people laugh and smile, mid-conversation.

Focus on the continued dominance of the Red Bull team misses the point, however. Verstappen will continue to perform just fine regardless of tensions , but there are hundreds of women who work for F1 teams who, because of F1’s general mishandling of this whole situation, are being tacitly told that their experiences and safety within the sport don’t matter. If they speak up, they may be ridiculed — all because of the obsessive focus on winning races and ratings.

And yet, the FIA and Red Bull have made no statements or promises about how they’re going to support women (and nonbinary and trans) workers in light of the conversation around Horner. Even the whispers of such behavior should launch wider investigations across teams, set up a stronger whistleblower policy, and add more concrete consequences for senior leadership who do end up embarking on romantic relationships with employees without clearing it with the appropriate bodies. The FIA has not responded to a request for comment on whether they have started an investigation into Horner and Red Bull by the time of this publication.

But given how each F1 team has its own CEO and operates in several different countries, internal protocols and processes vary, according to Nicole Sievers, co-founder of Two Girls 1 Formula.

“In a sport that’s so heavily male dominated, there are also likely pressures on women that are working for these teams,” Sievers said. “That’s a really tough position to be in, especially when you do see kind of the overwhelming majority of the ruling class of F1. We’ve seen that play out historically. Money just breeds power, which breeds a loss of a feeling of consequence.”

On top of that, so much of the makeup of the current media pool skews a certain way: older, male, white. This old guard has been covering F1 for a very long time. Coverage around sexism, racism, and other types of discrimination may not be top of mind.

Strict rules on F1 coverage don’t help. Typically in American sports, getting press accreditation is fairly routine, but with F1, there are very strict rules for who is eligible and what you can produce, from prohibiting moving images to not providing credentials to websites that don’t meet certain traffic figures on their F1 coverage, with relatively small-scale offenses resulting in extended bans.

When there’s such a tight leash on reporters, asking hard questions with an eye for accountability becomes difficult. As Lily Herman, author of the F1 culture newsletter Engine Failure , explains, “There are all these fears that exist in F1 around, ‘Hey, if I speak up, I’m going to get my media access revoked or my entire media organization will if I do something wrong.’”

A perfect case study of this dynamic can be seen with Road & Track’s editor-in-chief Daniel Pund taking down a critical piece by Kate Wagner analyzing the opulence of Formula 1 because he felt it was the “wrong story” for the publication. The story itself was entertaining, but not necessarily news-breaking, and the removal raised questions about whether the FIA reached out (according to Pund, they haven’t).

What does this mean for women in motorsport

How this story ultimately unfolds will demonstrate if F1 understands its changing fanbase and what it takes to make its employees feel supported, and whether it can get with the times.

“As someone who loves the sport, it’s definitely disappointing to see what’s going on right now,” said Lewis Hamilton , Mercedes driver and seven-time world champion, during media day for this weekend’s race in Saudi Arabia. “It doesn’t look good to the outside world. It doesn’t look good from the inside either. It’s a really pivotal moment for the sport, in terms of what we project to the world and how it’s handled.”

By sweeping such allegations under the rug, Red Bull may hope the various dramas of the sport will cause the news to die out. That’s wrong. If anything, F1’s growing female fanbase is hungry for accountability.

“We need to firmly stake our chair to the ground at the table and say: ‘We’re not leaving and we’re going to force you to be better,’” Byrne said. To her, what employees face mirrors the experiences of fans. You can’t improve one without the other, and turning off the sport won’t help, she added. “The only way you can do that is not by stopping, but by continuing to go on and being louder about it.”

And we’ve seen fans demand equal pay for female workers, safety protections for all fans regardless of gender identity at races , and increasing opportunities for female drivers through F1 Academy . The sport, of course, made promises that it will do better in these avenues. Talk is just talk though, if there aren’t actions to back it up when the stakes have never been higher. (F1 Academy, for instance, was criticized for not being broadcasted during its debut in 2023.)

“I always question very openly what exactly the point of all of this is,” Herman said, “It’s great that women are getting opportunities like F1 Academy. But we should always kind of question what exactly those opportunities are, what they do, and who they don’t extend to. What’s just kind of lip service being paid in the moment of crisis?”

At the end of the day, we’re talking about people’s lives, not just some reality TV show. When winning is prioritized over well-being, we all lose.

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Red Bull settles false advertising lawsuit for $13M

Redbull gives you... a settlement, social sharing.

It turns out a can of sugar-laden energy drink may not spontaneously make you sprout wings after all.

According to court documents filed in New York Federal Court, Europe-based energy drink company Red Bull has agreed to pay out up to $13 million US in compensation to settle a class-action suit launched by an upset customer who says the company uses false advertising to promote its product.

"The defendant's prodigious advertising marketing and promotional spending has been used to mislead customers into believing that Red Bull is a superior product worthy of a premium price and has the ability to 'give you wings' and provide energy and vitality," reads the complaint brought forward by New York resident Benjamin Careathers, who has been drinking the product since 2002.

Although it contains many ingredients that the company claims are stimulants, the active ingredient is caffeine. The company makes those claims despite mounting evidence that its eponymous product contains no more stimulation than could be found from any other source of caffeine. A 250-ml can of Red Bull contains about 80 mg of caffeine. That's less than other caffeine fixes, including coffee, a 207-ml cup of which can contain as much as 150 mg of caffeine.

"Even a 12-ounce [356-ml] serving of Starbucks coffee costs $1.85 and would contain far more caffeine than a regular serving of Red Bull," which has a suggested retail price of no less than $2.19 a can, the complaint reads.

"Despite the lack of any reported scientific support for a claim that Red Bull provides more benefit to consumers than a caffeine tablet or cup of coffee, defendants continue to market the product as a superior source of energy worthy of a premium price," another court filing alleges.

Company defends product

For its part, the company defends its marketing claims, with a spokesman for its Canadian division telling CBC News that "Red Bull settled this lawsuit to avoid the unpredictability and high costs of litigating in the U.S. Red Bull’s marketing has always been witty, truthful and accurate," the spokesman said, adding that the settlement applies to U.S. customers only.

The settlement includes a cash payout of up to $10 to anyone who has purchased a Red Bull product in the last decade. Instead of cash, recipients can choose to receive their payout in two Red Bull products worth up to $15 combined, with the company handling the shipping costs.

Red Bull has also agreed to pay up to $4.75 million in legal costs associated with the settlement, which will not come out of the payout funds. But the payout will be capped at $13 million, which means the more people apply to be included in the settlement, the less each will be paid out.

The company has set up a website , where Red Bull users can fill out a form to be included in the settlement. No proof of payment is necessary, but there's a deadline of May 2015 to submit an application.

The suit alleges that since launching in North America more than a decade ago, Red Bull has spent more than $2 billion on marketing its product in the U.S., including $364 million in a single year, 2009.

Christian Horner ‘absolutely committed’ as Red Bull F1 boss amid ongoing investigation

Red Bull Racing's British team principal Christian Horner looks on during the third practice session for the Abu Dhabi Formula One Grand Prix at the Yas Marina Circuit in the Emirati city on November 25, 2023. (Photo by Giuseppe CACACE / AFP) (Photo by GIUSEPPE CACACE/AFP via Getty Images)

Stay on top of the biggest stories in Formula One. Follow our F1 page here to not miss a single story in 2024.

MILTON KEYNES, UK — Christian Horner says he remains “absolutely committed” to Red Bull’s Formula One team despite an ongoing investigation into reported allegations of controlling behavior made by a female employee, which he has denied.

Red Bull Racing ’s parent company, Red Bull GmbH , said earlier this month it had commenced an investigation into Horner after becoming aware of the allegations.

A hearing took place on Friday, conducted by an independent barrister in London, but no further action or outcome has yet been announced. Red Bull GmbH said in a statement last week before the hearing that it took the allegations “extremely seriously.”

Speaking at the launch of Red Bull’s new F1 car, the RB20, on Thursday, Horner said his focus was “very much on the season ahead” and the team’s title defense.

“Some allegations have been made which I fully deny,” Horner said. “I’m complying with that process, and will continue to do so until its conclusion.”

Although he declined to discuss details regarding the ongoing investigation, including a timeframe for a resolution, Horner said it had been “business as usual” for him as Red Bull’s team principal, going into the factory each day to help prepare for the new season.

Horner said he has not thought about backing away from his role. He added that he would be in Bahrain, which hosts F1 preseason testing from Feb. 21-23 and the opening race of the 2024 season on March 2.

“I’ve built this team,” Horner said. “I’ve convinced people to come here and work here. I enjoy working with the team, with the people. The biggest asset of this team is the people. And that continues to be the case.”

Horner has been in charge of Red Bull’s F1 operation since the energy drink giant acquired the Jaguar team ahead of the 2005 season, making him the sport’s longest-serving team principal.

Under Horner, Red Bull has won seven drivers’ championships, including each of the last three courtesy of Max Verstappen, six constructors’ titles and 113 grands prix.

Horner claimed the support of Red Bull’s shareholders had been “fantastic,” noting the commitment to the F1 team and its wider projects, including its future engine program with Ford and its advanced technologies division.

“We’re one team, and that support has been very clear,” Horner said.

Red Bull enters the 2024 season as the heavy favorite to defend its titles, and Horner did not think the ongoing investigation would pose any kind of distraction to its preparations.

“At moments of uncertainty, it brings the team together, and I’ve never seen the team more together or more supportive than it is,” Horner said.

“Everybody’s focused on one thing, which is the performance of that car, to go out and defend both the world titles that we’ve worked so hard to achieve over the past couple of years.”

Verstappen, the three-time world champion, also denied the investigation could overshadow preparations, saying morale was “fantastic” and that everyone in the team was “very focused and motivated.” He also said his interactions with Horner had been “like normal.”

But the team instructed the media that Verstappen and teammate Sergio Pérez could not answer questions about the ongoing process, with Verstappen saying: “No, because you will come up with stories again around it, and then there’s speculation.

“It’s better to just not ask anything about it, and just wait for the process.”

The launch of Red Bull’s car was staged as a celebration of the team’s history, including appearances from key figures such as chief technical officer Adrian Newey, technical director Pierre Wache and David Coulthard, who scored the first Red Bull F1 podium at the 2006 Monaco Grand Prix.

Coulthard drove the first Red Bull F1 car, the RB1, in a demonstration alongside Verstappen in the RB20 car at Silverstone on Wednesday during a filming day.

The event gave Verstappen a first chance to sample the new Red Bull car, which features a number of modifications from last year’s model that won 21 out of 22 races, becoming the most dominant car in F1 history.

The changes include a Mercedes-style engine cover and “shoulder,” as well as alterations to the sidepod, an area in which Red Bull set a design trend the last two years. But the team kept the true design of the car’s floor hidden, meaning the RB20 will only be fully revealed when preseason testing starts in Bahrain next week.

“For sure it’s better,” Verstappen said of the new car. “I think we’re happy with what we have done. Of course we don’t know how much other people have improved, but we’re happy.

“It’s not like we felt like we underachieved or whatever. I think we’re proud of what we have put on the car.”

(Photo: Giuseppe Cacace / AFP via Getty Images)

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Luke Smith is a Senior Writer covering Formula 1 for The Athletic. Luke has spent 10 years reporting on Formula 1 for outlets including Autosport, The New York Times and NBC Sports, and is also a published author. He is a graduate of University College London. Follow Luke on Twitter @ LukeSmithF1

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Red Bull has shaken up its US leadership and global marketing operation. Here's how the energy drink company has responded to turmoil over Black Lives Matter and calls to increase diversity.

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In July, energy drink giant Red Bull fired three top executives , including its North American CEO and CMO, and dissolved the cultural marketing divisions that organized events like live music festivals.

These moves came after internal tensions over Black Lives Matter went public and an offensive slide from a company presentation that was first published by Business Insider drew attention from major media outlets like The Wall Street Journal .

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18 false advertising scandals that cost some brands millions

Uber was forced to pay $20 million to settle claims brought to the FTC alleging the ride hailing service had inflated the hourly earnings for drivers in its online advertisements.

The FTC started investigating Uber in 2015 and finished its investigation at the beginning of 2017.

In a statement Uber said: " We’ve made many improvements to the driver experience over the last year and will continue to focus on ensuring that Uber is the best option for anyone looking to earn money on their own schedule."

Uber misled drivers about how much they could make.

Ads for Dannon\'s popular Activia brand yogurt landed the company with a class action settlement of $45 million in 2010, according to ABC News . The yogurts were marketed as being "clinically" and "scientifically" proven to boost your immune system and able to help to regulate digestion.

The Activia ad campaign, fronted by actress Jamie Lee Curtis, claimed that the yogurt had special bacterial ingredients. As a result, the yogurt was sold at 30% higher prices than other similar products. However, the Cleveland judge overseeing the case said that these claims were unproven.

The lawsuit against Dannon began in 2008, when consumer Trish Wiener lodged a complaint. On top of the fine of $45 million, Dannon was ordered to remove "clinically" and "scientifically proven" from its labels, according to ABC.

Phrases similar to "clinical studies show" were deemed permissible. Dannon denied any wrongdoing and claimed it settled the lawsuit to "avoid the cost and distraction of litigation."

Activia yogurt said it had "special bacterial ingredients."

Ads for Dannon's popular Activia brand yogurt landed the company with a class action settlement of $45 million in 2010, according to ABC News . The yogurts were marketed as being "clinically" and "scientifically" proven to boost your immune system and able to help to regulate digestion.

Phrases similar to "clinical studies show" were deemed permissible. Dannon denied any wrongdoing and claimed it settled the lawsuit to "avoid the cost and distraction of litigation."

The two biggest fantasy sports companies were ordered to pay $6 million each in 2016 to settle multiple false advertising lawsuits, Fortune reported.

At the heart of the complaints was that both companies misrepresented the chances casual and novice players had of winning cash prizes and the chance to earn positive returns on their entry fees. It resulted out of an investigation that showed professional and high-volume players used automated computer scripts and sophisticated statistical game theory to achieve huge payoffs.

According to a statement from the New York AttorneyGeneral the " settlement agreements impose the highest New York penalty awards for deceptive advertising in recent memory."

According to Bloomberg , the merger discussions between both companies is progressing.

DraftKings and FanDuel exaggerated novice users' chances of winning.

According to a statement from the New York AttorneyGeneral the " settlement agreements impose the highest New York penalty awards for deceptive advertising in recent memory."

In 2016, the Federal Trade Commission (FTC) filed a lawsuit against Volkswagen , which claimed the car company had deceived customers with the advertising campaign it used to promote its supposedly "Clean Diesel" vehicles, according to a press release .

The year prior, it was exposed that VW had been cheating emissions tests on its diesel cars in the US for the past seven years .

The FTC alleged that "Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly."

On top of potential fines for false advertising, the company could have to pay out up to $61 billion for violating the Clean Air Act, according to Wired .

The total settlement for Dieselgate was estimated to have reached $15 billion .

VW falsely advertised environmentally friendly diesel cars.

The FTC alleged that "Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly."

In 2013, UK supermarket chain Tesco was criticized after it ran a "misleading" ad campaign in the wake of its horse meat scandal, according to The Telegraph .

The supermarket had been caught selling beef contaminated with horse meat in some of its burgers and ready meals .

In an attempt to recover from the PR disaster, Tesco ran a two-page spread in national newspapers with the headline "What burgers have taught us."

In the ad, Tesco was criticized for implying that the whole meat industry was implicated in the horse meat fiasco, which was untrue. The UK advertising regulator ASA banned the campaign.

Nearly £300 million ($432 million) was wiped off the value of Tesco following the horse meat scandal, according to The Guardian .

Tesco was criticized for an ad in response to the horse meat scandal, which suggested the problem affected "the whole food industry."

In 2013, UK supermarket chain Tesco was criticized after it ran a "misleading" ad campaign in the wake of its horse meat scandal, according to The Telegraph .

In an attempt to recover from the PR disaster, Tesco ran a two-page spread in national newspapers with the headline "What burgers have taught us."

Nearly £300 million ($432 million) was wiped off the value of Tesco following the horse meat scandal, according to The Guardian .

Energy drinks company Red Bull was sued in 2014 for its slogan "Red Bull gives you wings." The company settled the class action case by agreeing to pay out a maximum of $13 million — including $10 to every US consumer who had bough the drink since 2002.

The tagline, which the company has used for nearly two decades, went alongside marketing claims that the caffeinated drink could improve a person\'s concentration and reaction speed.

Beganin Caraethers was one of several consumers who brought the case against the Austrian drinks company. He said he was a regular consumer of Red Bull for 10 years, but that he had not developed "wings," or shown any signs of improved intellectual or physical abilities.

Red Bull released this statement following the settlement: "Red Bull settled the lawsuit to avoid the cost and distraction of litigation. However, Red Bull maintains that its marketing and labeling have always been truthful and accurate, and denies any and all wrongdoing or liability."

Red Bull said it could "give you wings."

The tagline, which the company has used for nearly two decades, went alongside marketing claims that the caffeinated drink could improve a person's concentration and reaction speed.

New Balance was accused of false advertising in 2011 over a sneaker range that it claimed could help wearers burn calories, according to Reuters . Studies found that there were no health benefits from wearing the shoe.

The toning sneakers claimed to use hidden board technology and were advertised as calorie burners that activated the glutes, quads, hamstrings, and calves. Plaintiffs in the lawsuit claimed to have been harmed and misled by the sneaker company.

On August 20, 2012, New Balance agreed to pay a settlement of $2.3 million, according to The Huffington Post .

New Balance said its shoe could help wearers burn calories.

In January 2016, the makers of popular brain-training app Luminosity were given a $2 million fine from the Federal Trade Commission , which said the company deceived players with "unfounded" advertising claims.

The app company made false claims about being able to help prevent Alzheimer\'s disease, as well as aiding players to perform better at school, the FTC found. Luminosity said in its ads that people who played the games for more than 10 minutes, three times a week would release their "full potential in every aspect of life,” according to Time.

Jessica Rich, a director at the FTC said : "“Lumosity simply did not have the science to back up its ads."

Lumos Labs said Luminosity could help prevent Dementia.

The app company made false claims about being able to help prevent Alzheimer's disease, as well as aiding players to perform better at school, the FTC found. Luminosity said in its ads that people who played the games for more than 10 minutes, three times a week would release their "full potential in every aspect of life,” according to Time.

Jessica Rich, a director at the FTC said : "“Lumosity simply did not have the science to back up its ads."

Kellogg\'s popular Rice Krispies cereal had a crisis in 2010 when the brand was accused of misleading consumers about the product\'s immunity-boosting properties, according to CNN .

The Federal Trade Commission ordered Kellogg to halt all advertising that claimed that the cereal improved a child\'s immunity with "25 percent Daily Value of Antioxidants and Nutrients — Vitamins A, B, C and E," stating the the claims were "dubious."

The case was settled in 2011. Kellogg agreed to pay $2.5 million to affected consumers, as well as donating $2.5 million worth of Kellogg products to charity, according to Law360 .

Kellogg said Rice Krispies could boost your immune system.

Kellogg's popular Rice Krispies cereal had a crisis in 2010 when the brand was accused of misleading consumers about the product's immunity-boosting properties, according to CNN .

The Federal Trade Commission ordered Kellogg to halt all advertising that claimed that the cereal improved a child's immunity with "25 percent Daily Value of Antioxidants and Nutrients — Vitamins A, B, C and E," stating the the claims were "dubious."

Herbal supplement Airborne was a national hit throughout the 1990s. Marketing of the product claimed that it helped ward off harmful bacteria and germs, preventing everyday ailments like the flu and common cold.

There were no studies to support Airborne\'s effectiveness claims that met scientific standards — so the Center for Science in the Public Interest (CSPI) got involved.

The high-profile scandal ended with a huge settlement, with Airborne having to pay $23.3 million in the class-action lawsuit, and an additional $7 million settlement later, according to NPR .

Airborne claimed it could help ward off harmful germs.

There were no studies to support Airborne's effectiveness claims that met scientific standards — so the Center for Science in the Public Interest (CSPI) got involved.

Wal-Mart agreed to pay more than $66,000 in fines, after over-charging customers from 117 stores in New York for Coca-Cola. The supermarket chain had advertised a nationwide sale on the soft drink in 2014, where 12-packs would cost just $3.oo.

However, customers in New York State were charged $3.50. Wal-Mart staff allegedly lied about the reasons for the price-hike, telling customers that New York has a "sugar tax," according to Corporate Crime Reporter.

New York Attorney General Eric Schneiderman, who conducted the investigation, concluded the price violated New York State’s General Business Law 349 and 350.

Wal-Mart falsely advertised the price of Coke in New York.

New York Attorney General Eric Schneiderman, who conducted the investigation, concluded the price violated New York State’s General Business Law 349 and 350.

Hyundai agreed to pay more than $85 million in a settlement in 2004, after it overstated the horsepower of cars imported to the US, according to Consumer Affairs . The class action lawsuit was on behalf of around 840,000 people who bought the 1996 to 2002 models of the Hyundai Elentra sedans and the Tiburon sport coupes.

In 2001, the Korean Ministry of Construction and Transportation had uncovered the misrepresentation, which, for some models, overstated horsepower by 10% .

The class action lawsuit was brought in southern California in September 2002. After it was settled in 2004, Hyundai sent letters offering prepaid debit cards to affected owners. They were worth up to $225.

Hyundai over-sold its cars' horsepower.

In 2013, Kellogg was in even more trouble. The company agreed to pay $4 million for false advertising claims it made about Frosted Mini-Wheats. The cereal company had falsely claimed that the Mini-Wheats improved " children\'s attentiveness, memory and other cognitive functions ," according to Associated Press. The ad campaign claimed that the breakfast cereal could improve a child\'s focus by nearly 20%.

In its defense, Kellogg said that the ad campaign ran four years previously and that it had since adjusted its claims about the cereal. Kellogg also noted that it "has a long history of responsible advertising."

People who consumed the cereal during the time the ad ran (January 28, 2009 to October 1, 2009) were allowed to claim back $5 per box, with a maximum of $15 per customer , according to Associated Press.

Later, Kellogg said Mini-Wheats could make you smarter.

In 2013, Kellogg was in even more trouble. The company agreed to pay $4 million for false advertising claims it made about Frosted Mini-Wheats. The cereal company had falsely claimed that the Mini-Wheats improved " children's attentiveness, memory and other cognitive functions ," according to Associated Press. The ad campaign claimed that the breakfast cereal could improve a child's focus by nearly 20%.

The maker of penis enlargement pill Extenze agreed to pay $6 million to settle a class action lawsuit in 2010, according to CBS . Extenze had claimed its pills were "scientifically proven to increase the size of a certain part of the male body" in notorious late night TV commercials .

Extenze agreed to pay $6 million to settle a false advertising class action lawsuit. CBS noted that its website was also updated to say: "These statements have not been evaluated by the Food and Drug Administration. Extenze is not intended to diagnose, treat, cure, or prevent any disease."

Extenze claimed it could extend penis length.

The Sugar Association asked for an investigation into alternative sweetener Splenda\'s "Made from Sugar" slogan. It complained that the tagline was misleading, and that the sweetener is nothing more than "highly processed chemical compound made in a factory," CBS reported .

In 2007, a resulting lawsuit led by the makers of rival sweetener Equal, settled against Splenda. Equal was looking for $200 million from Splenda in the settlement for unfair profits. However, the exact amount of the settlement remains confidential, according to NBC .

Splenda said it was "made from sugar."

The Sugar Association asked for an investigation into alternative sweetener Splenda's "Made from Sugar" slogan. It complained that the tagline was misleading, and that the sweetener is nothing more than "highly processed chemical compound made in a factory," CBS reported .

In 2014, cosmetics company L\'Oréal was forced to admit that its Lancôme Génifique and L’Oréal Paris Youth Code skincare products were not "clinically proven" to "boost genes" and give "visibly younger skin in just seven days," as stated in its advertising.

According to the FTC, the claims were "false and unsubstantiated."

In the settlement, L\'Oréal USA was banned from making claims about anti-aging, without "competent and reliable scientific evidence substantiating such claims," the FTC said. Though L\'Oreal escaped a fine at the time, each future violation of this agreement will cost the company up to $16,000.

L'Oreal claimed its skincare products were "clinically proven" to "boost genes."

In 2014, cosmetics company L'Oréal was forced to admit that its Lancôme Génifique and L’Oréal Paris Youth Code skincare products were not "clinically proven" to "boost genes" and give "visibly younger skin in just seven days," as stated in its advertising.

In the settlement, L'Oréal USA was banned from making claims about anti-aging, without "competent and reliable scientific evidence substantiating such claims," the FTC said. Though L'Oreal escaped a fine at the time, each future violation of this agreement will cost the company up to $16,000.

According to the FTC, the claims were "false and unsubstantiated."

Eclipse gum claimed in its ads that its new ingredient, magnolia bark extract, had germ-killing properties.

A lawsuit brought by consumers alleged that the ads were misleading, according to Businessweek . Wrigley denied wrongdoing, but was ordered to pay more than $6 million to a fund that would reimburse consumers up to $10 each for the misleading product, in 2010.

Eclipse said its gum could kill germs.

Millions of people lit up when Classmates.com sent them an email saying old friends were trying to contact them, promising to rekindle old friendships and flames if subscribers upgraded to a "Gold" membership. But with the upgrade, the expected reunions never came. It turns out the social networking site used the ploy to get users to give up extra dollars. In 2008, one miffed user filed a suit alleging the "deceptive" emails were false advertising. Classmates.com eventually agreed to pay out a $9.5 million settlement —$3 for every subscriber who fell for the dirty trick — to resolve the case, according to the Business Journal .

However, the website did not learn from its mistakes and in 2015 it was slapped with another $11 million in fines, according to Consumer Affairs .

Classmates.com was accused of tricking users into paying to respond to friends, who weren't actually on the site.

Average housing prices up 10% in Jan-Mar across the top eight cities

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How Red Bull Creates Brand Buzz

David Aaker

The value of creative, edgy, and on-brand sponsorships.

On Sunday October 14, Felix Baumgartner rose more than 24 miles above the New Mexico desert in the 55-story ultra-thin helium “ Red Bull Stratos ” balloon, jumped off, and reached 830 mph during a 9 minute fall, setting records for both the height of the jump and the speed of descent. It was a Red Bull event and about 8 million of us watched it as it was happening. The post-event pictures on Facebook got nearly 216,000 likes and 30,000 shares in less than 40 minutes, and another 32 million-plus have seen the YouTube account since.

DA David Aaker is Professor Emeritus at UC Berkeley and the vice chairman of Prophet

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Red Bull Loses Its Wings To STING In Trademark Infringement

Contributor

The Hon'ble Delhi High Court in its judgement 1 in the case titled as RED BULL AG vs. PEPSICO INDIA HOLDINGS PVT LTD & ANR , refused to provide protection to Red Bull's registered tagline 'VITALIZES BODY AND MIND' in a trademark infringement and passing off suit filed against Pepsico for the use of the tagline 'STIMULATES MIND. ENERGIZES BODY' for the energy drink 'Sting'.

The Plaintiff claimed that it had been manufacturing and marketing its energy drink under the trademark 'Red Bull' and had been using the tagline 'VITALIZES BODY AND MIND' since 1987. The said tagline is registered in India since 2010 with effect from 2004 in class 32, and 73 other countries around the world.

The Plaintiff claimed that the usage of the aforesaid mark has become a source identifier of the Plaintiff's products and on account of long and extensive usage, it had acquired distinctiveness in relation to its products. The Plaintiff also stated that it had spent enormous amounts on the marketing of its product in relation to the aforesaid tagline and enjoys the dominant market share in respect of energy drinks all over the world, including India.

Submissions made by the Plaintiff

The Plaintiff contended that Defendants' launched their energy drink STING in India in 2017 with the tagline STIMULATES MIND. ENERGIZES BODY., which was deceptively similar to the Plaintiff's registered tagline 'VITALIZES BODY AND MIND', wherein the words BODY and MIND have been copied by the Defendants, whereas the words STIMULATES and ENERGIZES are both synonyms of the term VITALIZES as used in the Plaintiff's tagline. Therefore, the Defendant's tagline was conceptually identical to the Plaintiff's registered mark and had been used by the Defendants with mala fide and dishonest intention, as the same has not been not used by the Defendants anywhere in the world.

The Plaintiff placed reliance upon the judgment of the Division Bench of this Court in Proctor & Gamble Manufacturing (Tianjin) Co. Ltd. & Ors. v. Anchor Health & Beauty Care Pvt. Ltd. 2 ; Shree Nath Heritage Liquor Pvt. Ltd. & Anr. v. Allied Blender & Distilleries Pvt. Ltd. 3 ; and Anil Verma v. R.K. Jewelers SK Group & Ors. 4

Submissions made by the Defendants

The Defendants drew a comparison between the getup and layout of the cans of the products of both the parties and contended that they are totally different, therefore no action of passing off could be made out.

With regard to the claim of infringement, the Defendants contended that the exclusive right to use the mark under Section 28 of the Act, can be averred only if the registration is valid and the same is subject to other provisions of the Trade Marks Act.

Defendants filed a rectification petition against the said tagline registration of the Plaintiff, on the ground of it being in contravention of Section 9 of the Act, alleging that the tagline was completely descriptive and the Plaintiff is using the same in a descriptive matter. Therefore, registration ought not to have been granted by the Trade Marks Registry in terms of Section 9(1)(b) of the Trade Marks Act.

Defendants further averred that they are selling their drink under their registered trademark STING and the tagline was used only in a descriptive manner and no registration had been sought in respect thereof, as a trademark. Hence, there was no case of injunction made out under Section 29 of the Act.

The Defendants took the defence of Sections 30(2)(a) and 35 of the Trade Marks Act, placing reliance upon the Division Bench judgments of this Court in 'Marico Limited v. Agro Tech Foods Limited' 5 and 'Stockley Van Camp, Inc. v. Heinz India Private Limited'. 6

In addition, the Defendants also submitted that the suit is hit by delay and laches as the product of the Defendant was launched in the Indian Market in October 2017, whereas the suit was only filed by the Plaintiff in August 2018, after the Defendants had established their presence in the market.

Plaintiff's Submissions in the Rejoinder

The Plaintiff contented that its tagline is not descriptive and is rather used an imaginative phrase. It also averred that as per the terms of Section 31 of the Act, the registration of a mark is prima facie evidence of its validity and prima facie registration has to be assumed to be valid. Further, Defendant's use of the tagline is not in a descriptive manner, as alleged.

Court's Observations and Order

Hon'ble Mr. Justice Amit Bansal of the Delhi High Court, made the following observations and held:

Trademark Passing Off

In regards to the case of Passing off, the Hon'ble Court stated that the basic premise for passing off, is deception caused on account of the Defendant attempting to show its goods as that of the Plaintiff. The Hon'ble Court relying on the case of Satyam Infoway Ltd. v. Siffynet Solutions (P) Ltd. 7 , stated that common law remedy of passing off restrains a Defendant from riding on the reputation and goodwill earned by a Plaintiff, being the prior user/owner of a distinctive mark. The purpose of an action of passing off is to prevent confusion and deception amongst consumers and the public at large.

Comparison of Plaintiff's and Defendants' Products

After referring to a comparison of the products being sold by both the parties, the Hon'ble Court noted that there is no similarity between the two products and that the layout of the cans is totally different, therefore, no case for passing off was made out.

Trademark Infringement

The Hon'ble Court observed that the Defendants were using their tagline in a descriptive manner and not as a trademark, relying upon the principles laid down in 'Marico Limited v. Agro Tech Foods Limited' and 'Stockley Van Camp, Inc. v. Heinz India Private Limited'. The Hon'ble Court noted that while the Plaintiff's tagline had been granted registration in India in 2010, the rights granted upon registration under Section 28 of the Trade Marks Act are not absolute, and are therefore subject to other provisions of the act.

While making a reference to paragraph 10 of the plaint, the Hon'ble Court stated that it was a clear acknowledgement on behalf of the Plaintiff that the aforesaid tagline/mark had been used by the Plaintiff in a manner so as to describe the attributes or quality of its drink. The Hon'ble Court took a prima facie view that the tagline used by the Plaintiff was of a descriptive/laudatory character, which ought not to have been granted registration in view of Section 9(1)(b) of the Trade Marks Act.

While also noting that the Defendants had not sought any registration for their tagline and that the use of the said tagline was also in a descriptive/laudatory manner and not as a trademark, the Hon'ble Court was of the view that the Defendants would be entitled to protection under Section 30(2)(a) and Section 35 of the Trade Marks Act.

Delay and Laches

As for the issue pertaining to delay and laches, the Hon'ble Court observed that the Defendants had been selling their product now for a period of five years with the aforesaid impugned tagline and therefore the balance of convenience would be against the grant of interim injunction.

The said judgement is in appeal before the Division Bench of the Hon'ble Delhi High Court as is fixed for hearing on November 30, 2022.

Conclusion/Author's Comments

Though the Hon'ble Court has rightly observed in this case that there was no similarity in the two conflicting taglines, however, the reasoning given behind such conclusion that the 'Plaintiff has used the aforesaid tagline in a descriptive manner since it appears as a sentence on the can of the Plaintiff's product, wherein the first word 'VITALIZES' has the alphabet 'V' in capital letters and the sentence ends with a full stop, raises a pressing concern pertaining to the protection of registered trademarks in a descriptive phrase/tagline despite the fact that it may have acquired a distinctiveness and secondary meaning, as most taglines are descriptive in nature.

1 CS Comm 1092/2018

2 211 (2014) DLT 466 (DB)

3 221 (2015) DLT 359 (DB)

4 2019 (78) PTC 476 (Del).

5 174 (2010) DLT 279 (DB)

6 171 (2010) DLT 16

7 (2004) 6 SCC 145

For further information please contact at S.S Rana & Co. email: [email protected] or call at (+91- 11 4012 3000). Our website can be accessed at www.ssrana.in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Case Study: Red Bull Wins the “Extreme” Niche

Photo of a can of Red Bull "energy drink."

Red Bull is an Austria-based company started in 1987 by Dietrich Mateschitz that sells one product: an energy drink containing taurine (an amino acid) that’s sold in a slim, silver-coloured 8.3-ounce can. The drink has been an enormous hit with the company’s target youth segment around the globe. In the year 2018, Red Bull boasted sales of $1.06 billion USD in the United States alone [1] , and has held the majority of the energy-drink market share for years, with a 35.3% market share in 2019 (Monster Energy, their closest competitor, held 25.4%). [2] From Stanford University in California to the beaches of Australia and Thailand, Red Bull has managed to maintain its hip, cool image, with virtually no mass-market advertising.

Red Bull’s Targeted Approach to Marketing

“Red Bull. It gives you wings.” Over the years, Red Bull has organized extreme sports events (like cliff diving in Hawaii and skateboarding in San Francisco), parties, and even music festivals to reinforce the brand’s extreme, on-the-edge image. In 2012, they sponsored Felix Baumgartner’s record-setting freefall from 128,000 feet:

(Note that the following video has limited narration. Access audio description using the widget below the video.)

You can view the transcript for Felix “Baumgartner’s supersonic freefall from 128k’ – Mission Highlights” . (opens in new window)

Their grass-roots approach to reaching the youth market worked: “In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi,” said Nancy F. Koehn, author of Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell . Red Bull’s success has also gained attention (and concern) among beverage-industry giants, and some have tried to follow its lead: For a time Coke ran a stealth marketing campaign, packaging its cola in a slim can reminiscent of Red Bull and offering it to customers in trendy bars and clubs in New York City.

“Red Bull Energy Drink Sales U.S., 2015–2018.” Statista. (September 25, 2019). https://www.statista.com/statistics/558082/us-sales-of-red-bull-energy-drinks/ . ↵
"Energy drink market share in the US in 2019." Statista. (2019, September 25). https://www.statista.com/statistics/306864/market-share-of-leading-energy-drink-brands-in-the-us-based-on-case-volume-sales/. ↵

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The Brand Hopper

All Brand Stories At One Place

A Case Study on Red Bull: “Stratos” Campaign

A Case Study on Red Bull: “Stratos” Campaign 7 min read

In the realm of marketing and adventure, few campaigns have achieved the level of notoriety and awe-inspiring impact as the Red Bull Stratos campaign. Red Bull, renowned for its daring and groundbreaking marketing strategies, orchestrated a truly unprecedented event that not only pushed the boundaries of human achievement but also marked a significant milestone in the annals of scientific exploration. At the heart of this campaign was Austrian daredevil Felix Baumgartner , a fearless individual chosen to undertake a skydiving project that would etch his name into history.

Red Bull Stratos was not just a conventional marketing ploy; it embodied words like dangerous, groundbreaking, earth-shattering, daring, and courageous. Conceived by the energy drink company, the campaign aimed to surpass records by orchestrating the highest-altitude jump ever attempted. On October 14, 2012, Felix Baumgartner ascended 24 miles into the stratosphere above New Mexico, suspended by a helium balloon, before taking a free fall that would test the limits of human courage and scientific understanding. During this breathtaking descent, Baumgartner not only shattered records but also achieved the remarkable feat of breaking the sound barrier without the aid of any engine power.

The live broadcast of this audacious endeavor marked a pivotal moment in the history of global social media events. Red Bull, leveraging its sponsorship of the jump, strategically utilized social media platforms to showcase the magnitude of its reach. This was not just a promotional stunt; it was a calculated move to demonstrate the company’s prowess and ability to make significant strides in the exploration of Earth’s outer layers. The campaign not only served as a testament to human resilience and courage but also contributed to human, medical, and scientific interests by advancing our understanding of the outer reaches of the Earth’s atmosphere. In essence, the Red Bull Stratos campaign transcended traditional marketing boundaries, leaving an indelible mark on both the commercial and scientific landscapes.

Campaign Elements – Social Media will never be the same again

The Red Bull Stratos campaign left an indelible mark on the landscape of brand engagement and social media reach, transforming the event into more than a mere promotional stunt. At its core, Stratos served as a unique community within the larger Red Bull brand , uniting individuals worldwide in their shared passion for witnessing daring feats and memorable moments that defy the ordinary.

YouTube emerged as the primary battleground for the campaign’s social media conquest. The live stream of the event shattered records, with a staggering peak of over 8 million concurrent viewers , surpassing the previous benchmark set during the 2012 Summer Olympics. Red Bull’s adept use of YouTube extended beyond the Stratos event, with the brand consistently posting adrenaline-fueled content, from dirt bike stunts to snowmobile tricks and the iconic Harlem Shake skydiving edition. This strategy catered to their niche yet diverse audience, predominantly comprised of high-energy young adults and teens with a penchant for motor sports, winter sports, skateboarding, and biking—an alignment that resonates with Red Bull’s overall brand identity.

Facebook and Twitter played pivotal roles in amplifying the Stratos narrative , each platform having its dedicated Stratos accounts. These platforms maintained a consistent target audience aligned with the broader Red Bull brand, primarily catering to males aged 18 to 34. The separation of Stratos accounts from the general Red Bull brand was strategically crucial, highlighting the campaign’s distinct mission: “Red Bull Stratos will attempt to make history and deliver valuable learnings for medical and scientific advancement that will aid the exploration of space in future years,” as articulated on its Facebook page. On Twitter, the slogan “Mission To The Edge of Space” underscored the campaign’s unique objective compared to Red Bull’s conventional “Gives You Wings” commercials.

The content shared on these platforms transcended the event itself, offering glimpses into the behind-the-scenes intricacies, interviews with Felix Baumgartner, and snapshots from Stratos museum exhibits. This multifaceted approach not only sustained engagement but also showcased the campaign’s commitment to transparency and its broader impact on medical and scientific advancement, cementing Red Bull Stratos as more than a marketing triumph—it was a cultural phenomenon that resonated across platforms, fostering a sense of community and anticipation for the next daring leap into the unknown.

Results of the campaign

The Red Bull Stratos campaign stands as a testament to the power of strategic social media engagement, with success concentrated in a condensed timeframe that encapsulated the days leading up to the jump, the jump itself, and the aftermath.

YouTube served as a significant battleground for Red Bull’s social media triumph. The campaign triggered a substantial surge in subscribers, with an average daily growth of 2,142 subscribers, as reported by Socialbakers. Notably, the day of the jump witnessed the most significant spike, attracting a staggering 87,801 new subscribers. This surge catapulted Red Bull’s YouTube channel to a total subscriber count of 10.5 million, showcasing the campaign’s profound impact on expanding the brand’s online community.

Red Bull YouTube Subs growth over the campaign period

On Facebook, Red Bull Stratos’ dedicated page experienced remarkable interactions on October 14, recording over 900,000 interactions and 83,000 shares . A standout post, illustrated in Figure 4, garnered nearly 460,000 likes, 18,000 comments, and 44,000 shares, solidifying its position as the most interacted-with post. Socialbakers’ analysis of reach and engagement suggested that this post could have reached tens of millions of people worldwide, underlining the campaign’s global resonance.

The Twitter front echoed the success seen on other platforms, with over 20,000 mentions in a two-day period . Crucially, the official Red Bull Twitter account did not experience a parallel surge, highlighting the distinctive impact of the Stratos account and its 127,000 followers specifically dedicated to the campaign.

The key to social media engagement lay in the campaign’s narrative specifics. Posts concerning the jump’s particulars, including delays, Felix Baumgartner’s preparation, and his safe landing, drew the highest levels of engagement across platforms. This nuanced approach to content creation not only capitalized on the audience’s anticipation but also cemented the Stratos campaign as a captivating success in the digital realm. In essence, Red Bull Stratos not only broke records in the stratosphere but also soared to new heights in the digital sphere, leaving an enduring mark on the brand’s online presence.

Concluding..

In the annals of marketing triumphs, the Red Bull Stratos campaign stands tall as a resounding success, achieving its scientific, marketing, and social media objectives with unparalleled flair. This endeavor, designed to break barriers and redefine the brand’s identity, emerged as a testament to Red Bull’s prowess beyond merely selling energy drinks.

The campaign not only shattered the sound barrier but also left a mark on social media records. With over 8 million simultaneous viewers and millions more engaging across various platforms, Red Bull Stratos set new standards in the digital realm. The event garnered coverage from 40 TV network stations and 130 digital outlets , while a single Facebook post reached over 2 million people within 40 minutes of Felix Baumgartner’s ground landing . Online conversations worldwide were dominated by Baumgartner, Red Bull, and the Stratos Mission, capturing 54% on Twitter, 26% on Facebook, 6% on blog sites, and 14% on other video platforms.

This triumphant campaign offers valuable lessons for future marketers and those embarking on social media endeavors. Firstly, the power of awe-inspiring and daring content cannot be understated. Red Bull’s ability to create and showcase something extraordinary captivated audiences globally. Moreover, the campaign demonstrated the importance of thinking outside the conventional marketing box, aligning brand values meticulously, and going beyond traditional advertising norms.

Harnessing the potential of social media was a pivotal strategy. Red Bull understood that in the age of interconnectedness, people yearn to be part of something significant. By leveraging popular hashtags like #livejump and #stratos, the brand ensured prolonged engagement, turning a one-time event into a lasting conversation. The campaign’s success also underscores the importance of proactively driving engagement, not merely waiting for it to happen organically. Red Bull took charge of the narrative, providing a platform for the public to discuss and share their experiences.

At the heart of it all was the content. Red Bull Stratos demonstrated the essence of effective social media campaigns — diverse, shareable, and creatively presented content. This campaign didn’t just reach for the stars; it went to the moon and back, leaving an enduring legacy that future marketers can draw inspiration from. In the intersection of daring feats, scientific breakthroughs, and digital dominance, Red Bull Stratos emerged not just as a campaign but as a cultural phenomenon, transcending expectations and setting a new benchmark for excellence in marketing and engagement.

Also Read: A Case Study on Budweiser: “Wassup?” Brand Campaign

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The Rise and Fall of the Apple iCar: A $10 Billion Failure

A case study on the “got milk” campaign, a case study of doritos locos tacos campaign: taco bell & doritos co-branding.

Terms and Conditions

Module 3: Segmentation and Targeting

Case study: red bull wins the “extreme” niche, learning objectives.

Explain how targeting influences each element of the marketing mix

Red Bull’s Targeted Approach to Marketing

Red Bull used Collegiate Brand Managers to promote the drink via free samples handed out at student parties. The company also organized extreme sports events—like cliff diving in Hawaii and skateboarding in San Francisco—to reinforce the brand’s extreme, on-the-edge image. Their grass-roots approach to reaching the youth market worked: “In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi,” said Nancy F. Koehn, author of Brand New: How Entrepreneurs Earned Consumers’ Trust from Wedgwood to Dell . Red Bull’s success has also gained attention (and concern) among beverage-industry giants, and some have tried to follow its lead: For a time Coke ran a stealth marketing campaign, packaging its cola in a slim can reminiscent of Red Bull and offering it to customers in trendy bars and clubs in New York City.

Revision and adaptation. Provided by : Lumen Learning. License : CC BY-SA: Attribution-ShareAlike
Marketing 2014. Provided by : Boundless. Located at : https://www.boundless.com/marketing/textbooks/alternative-to-marketing-2014-17th-william-m-pride-ferrell-1133939252-9781133939252/consumer-marketing-segmentation-targeting-and-positioning-6/market-segmentation-targeting-and-positioning-47/measuring-a-successful-segmentation-220-7588/ . License : CC BY-SA: Attribution-ShareAlike
Red Bull Gives you Strobes. Authored by : Aurimas. Located at : https://www.flickr.com/photos/needoptic/3828156829/ . License : CC BY-ND: Attribution-NoDerivatives

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49 Case Study: Red Bull Wins the Extreme Niche

Red Bull’s Targeted Approach to Marketing

(Note that the following video has limited narration. Access audio description using the widget below the video.)

You can view the transcript for Felix “Baumgartner’s supersonic freefall from 128k’ – Mission Highlights” . (opens in new window)

“Red Bull Energy Drink Sales U.S., 2015–2018.” Statista. (September 25, 2019). https://www.statista.com/statistics/558082/us-sales-of-red-bull-energy-drinks/ . ↵
"Energy drink market share in the US in 2019." Statista. (2019, September 25). https://www.statista.com/statistics/306864/market-share-of-leading-energy-drink-brands-in-the-us-based-on-case-volume-sales/. ↵

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Red Bull is dominating Formula 1. But internally, the team is navigating turmoil.

M IAMI GARDENS, Fla. — Eras of dominance are a common occurrence in Formula 1. But it’s very uncommon to see a driver and team win so much on track while simultaneously navigating so much turmoil off track.

Yet that’s the story of Red Bull Racing this season.

Max Verstappen won the “sprint” race Saturday as he pursues five out of six victories this season at Sunday’s Miami Grand Prix. But the defending champion's on-track brilliance is being overshadowed — again — by the team's off-track drama and controversies.

The talk of the paddock all weekend has been Red Bull’s legendary chief technical officer Adrian Newey's shocking announcement on Wednesday that he'll leave the team early next year after building all seven of its title-winning cars. That news unfolded against a backdrop of a power struggle among the team's top brass and after the company investigated and dismissed allegations of bad behavior against team principal Christian Horner.

“In all my years of Formula 1, there have always been teams that have been dominant for a certain period. It doesn’t last forever. When I came in, it was McLaren and then soon thereafter it was Michael Schumacher with Ferrari. And then after that, it was Red Bull. And then Mercedes. And now Red Bull again. So that happens,” Otmar Szafnauer, the former team principal of Alpine until last year, told NBC News. “I’ve never seen controversy like we’ve seen now during a period of domination. So I think that that’s unique.”

Newey's exit also dominated conversations at the press conferences with drivers and team bosses. Is this the beginning of the end of Red Bull’s reign? Will it push Verstappen to leave? Who will hire Newey, and will it catapult them to the top? Will the 65-year-old Newey even stay in Formula 1 or sail off into retirement?

Seven-time champion Lewis Hamilton said with a sly grin he would “very much” like Ferrari to hire Newey as the British driver leaves Mercedes next year to join the Italian team.

“If I was to do a list of people that I’d love to work with, he would absolutely be at the top of it,” Hamilton told reporters Thursday, two days before Newey was spotted on the starting grid eyeing up Carlos Sainz's Ferrari, while swarmed by photographers.

Zak Brown, the American CEO of McLaren, said Friday it was just the start of Red Bull’s problems.

“Six months ago, I would have been surprised. I think given everything that’s gone on since the start of the year — and knowing Adrian pretty well, and he’s a very high-integrity individual, I’m not surprised he’s moving on. The stuff that’s going on there is a bit destabilizing,” Brown said. “It’s probably the first domino to fall. My guess is not the last based on the resumes that are flying around.”

Brown added that “we’ve seen an increase in CVs coming our way from” Red Bull staffers who want to leave the team.

'An opportune moment'

For all the drama that has surrounded Red Bull since the death of Red Bull co-founder Dietrich Mateschitz in 2022, the team had kept its core leadership intact: Horner, influential adviser Helmut Marko and Newey.

But that stability has now been disrupted.

“To win in Formula 1, you need to put all the pieces together,” Szafnauer said — the right driver, team, engine and car design. “I wouldn’t like to lose one of the elements.”

In a statement, Newey called it “an opportune moment to hand that baton over to others and to seek new challenges for myself.”

What Newey has done is unprecedented: build title-winning cars for three different teams — Williams, McLaren and Red Bull — over three decades of evolving regulations. Red Bull said he’ll exit in “the first quarter of 2025” after 19 years with the team — and earlier than his contract was slated to expire.

“I would have preferred Adrian to stay,” Verstappen said. “Of course, I’m sad that he is leaving.”

But he said Red Bull isn’t a one-man team and that the role of Newey, for all his “incredible” talents, has evolved over time. “I also really trust in the technical team we have at the moment.”

Would he also consider leaving Red Bull for other opportunities?

“Not for the moment,” Verstappen said.

Red Bull teammate Sergio Perez, whose contract expires after this year, said he didn’t expect more departures from the team.

“I don’t think so. I think everyone is fully committed to the team. We’re having a tremendous season once again. The future looks bright in the team,” he said. “It’s normal that you have this sort of movement within some people but I think the organization remains really strong. And I don’t see any more changes in that regard.”

Red Bull's internal drama provided a stark contract to the weekend’s kickoff Friday at “sprint” qualifying, when Verstappen put his car on pole position yet again — to the Dutch driver's own surprise.

“LOL. What happened to the others?” he quipped on team radio when told about his triumph, adding that his lap was “terrible.”

This article was originally published on NBCNews.com

Red Bull is dominating Formula 1. But internally, the team is navigating turmoil.

Red Bull Marketing Strategy: The Case Study

Red Bull is an invincible marketing powerhouse.

When it comes to its marketing strategy, the brand takes great care of everything they do.

However, their marketing efforts always put the audience first.

In fact, their product sales are second to none.

Although Red Bull is active on multiple channels and uses many different strategies, they all revolve around the same concept: creating content and experiences that appeal to people regardless of the energy drink brand.

Like major publishers, they have become one of the most talked-about brands in the world, producing content, providing mind-blowing programs, and much more.

Table of Contents

Red Bull Company: A Brief History

When the Austrian toothpaste seller Dietrich Mateschitz arrived in Thailand in 1987, Red Bull first heard of the “ energy tonic ” created by Chelio Yovidya. The tonic was thought to help keep drinkers awake and alert.

After three years of testing, Red Bull was launched in Austria, but two businessmen are skeptical. “There is no demand for such a drink in the market,” he said. No one is likely to try. But they were wrong

Today Red Bull dominated 2015 with a 43% market share . The best part? They are still going strong. Considering that Red Bull has kept the market in the first place, it is not bad to dominate almost half of it after almost three decades.

Here, is the infographic showing the growth of the Red Bull brand:

The Case Study of Red Bull’s unconventional marketing strategy

When the Red Bull first appeared, there were no energy drinks and traditional advertising was expensive.

Therefore, the Red Bull became a rookie and chose a different strategy.

What did he actually do?

They went straight to their target audience (men between the ages of 18 and 35) at college parties, libraries, cafes, bars, and other places.

They put the product in the hands of consumers by bringing free samples to the public.

It talked to people promoting its product for free.

They still use the same strategy: wherever they go, they go.

That means sponsoring a music festival or creating the most cultural content, they do.

In fact, the content that Red Bull publishes is displayed on a par with a professional publishing house. They are a media company intended to effectively sell energy drinks, not the other way around.

What is the best way to dominate the market?

Create one that does not yet exist.

This is exactly what happened to Red Bull Energy Drinks 30 years ago.

Thanks to smart marketing and creative strategy, they have been at the top for three decades.

How does Red Bull incorporate a content marketing strategy?

The elements of the Red Bull do exceptionally three things.

First , it covers topics that interest its audience. Extreme sports, music festivals, and concerts are just some of the topics covered on the Red Bull website. Imagine being able to (or necessarily) enjoy Red Bull wherever you see it and its content covering it.
Second , it is their ability to sell their brand, but not to push their product. Their content is focused not only on Red Bull sales but also on the pleasure of the readers. In turn, audiences begin to associate their product with the content they want to consume .
Third , it delivers videos, blog posts, landing pages , and other types of content on the same professional level as the media sites where your target audience uses the content.

Take this video for example. It is packed with ingredients that anyone who loves high-energy, high-impact, and extreme aerobics will appreciate:

How will Red Bull reach its target market?

Red Bull focuses on three important tips for attracting its target audience:

Excellent Content Delivery: The content created by Red Bull’s marketing team is on par with other major media, allowing viewers to access the content.

Massive advertising stunts: Red Bull takes “ Go Big or Go Home ” to the next level by performing massive stunts to freeze everyone and see what happens.

Sponsorship or Event Creation: Red Bull showcases its marketing skills by taking its product and linking it to what the audience likes or creating events for them.

How does Red Bull use events to reach customers?

Part of their strategy is to host and sponsor events that their target market is already participating in. Whether it’s a concert, a film event, or extreme diving, Red Bull creates or sponsors an event around them.

Why is this a great move? His audience is already there. Their target audience is an active group. They love to try new and crazy stunts, extravagant sports, or extravagant at a music festival.

So Red Bull appears in places where they know they are their target audience .

Take Coachella for example. This huge music festival takes place over two weekends in the desert and fans should not miss a single second. This means sacrificing a few hours of sleep.

The Red Bull appears and gives them the wings (and energy) they need to stay awake and play at the festival.

How does Red Bull use advertising stunts to promote itself?

Another part of Red Bull’s marketing strategy is its insane advertising stunts. They sent a man aboard a small ship and a helium balloon 128,000 feet above the ground and sent him out. Known as the Red Bull Stratos Jump, this stunt broke two different world records:

By creating massive stunts like the Stratos jump, it makes his audience (and probably everyone agrees) stop and think, “Yeah? I have to see this.”

8 Ways to Implement Red Bull’s Marketing Strategy

The ability of Red Bull to adhere to its brand and values makes them successful.

1. Maximize the idea behind their slogan

Red Bull’s message strategy revolves around its motto, “ Red Bull Gives You Wings “. It focuses on the idea that its product gives people the “wings” or the energy they need to do what they want.

This motto feeds their content as they create and record the most action-packed, high-flying games and activities the world has ever seen.

Need some help jumping off a plane in a flight suit? Let Red Bull give you the extra encouragement you need.

2. Maintain consistent visual branding

Visual branding created by Red Bull is the key to brand success.

Check out one of his most recent YouTube videos:

Content engages viewers in fast, high-intensity stunts that make them wonder if they can really pull it off.

That side of your seat, Shock Mindset is about the Red Bull brand. Instead, I can say, we gave people the energy (and courage) to try this crazy thing.

3. Build a solid foundation of content

The main content of RedBull can be summarized as follows:

They focus on extreme sports, music, art, dance, nightlife, and more. Due to this wide range, their content can attract the right audience.

Red Bull works with the main ingredients that put them in front of the pack.

Every piece of content they create matches the quality of their publications, such as Buzzfeed, Vice, ESPN, and other publications that can be read. That level of quality seems to come from a powerhouse dedicated to creating consumer media rather than energy drink brands.

4. Let values be your guide

Their values also play a role in their content. They focus on the basic phrase “giving wings to people and ideas”. Everything the Red Bull team communicates revolves around that motto and its values.

The ability to maintain a continuous conversation for the past 30 years has brought them success.

5. Restore the way they use traditional media

Content marketing is not the only thing that dominates Red Bull. The brand also invests a significant stake in traditional mass media channels.

Red Bull TV content works in two formats: videos they create for their online channels (YouTube, social media, etc.) and ads that collaborate with traditional TV channel content:

Its TV content was streamed live on his online hub, Red Bull TV. Their videos and shows are divided into event and movie formats, as well as channel topics such as cliff diving and culture:

It also entered the field of music. In addition to covering or sponsoring major concerts, Red Bull also has its own record label, recording studio, music academy, publishing group, and online radio station.

6. Being strong and proud of social media strategy

Another channel dominated by the Red Bull power is social media .

For example, his Facebook page is filled with visually appealing art videos, music created by his record label that thrills audiences, and sports and events that his audience enjoys.

Red Bull’s message is short and sweet because the first 3 seconds will surprise you with what happens. You have no choice but to go completely:

Their Twitter and Instagram channels instead focus on recognizable images to share and promote conversation with their fans.

Which film is unique to Red Bull? According to Link Human, these films capture motion, drama, and emotion:

Their ability to create dynamic social media posts that generated enough interest to stop fans from scrolling further hit him so hard on social media. Each media element feels like its content is in motion, reflecting the brand’s high-power aesthetic.

7. Expose the product to the public with sponsorships and events

Ultimately, Red Bull’s sponsorships and programs are the last part of their marketing strategy to sell their brand dominance. We divide their efforts into three categories:

Advertising stunt.
Events created by them.
Sponsorship.

Their advertising stunts are insane enough to make the world stop and look. Sure, they have a stratospheric jump, but there are many more.

Take the Red Bull Air Force team for example. This group is dedicated to showcasing some of the strangest aerial feats have ever seen:

There are shows like Red Bull Crashing Ice or Red Bull Queen of the Bay, which respectfully focus on specific sports such as ice cross or surfing. These events focus on sports fans and raise awareness about the Red Bull brand.

Finally, there are sponsorships. From the Electric Daisy Carnival in Las Vegas to Coachella, the Red Bull is involved in everything. This is a great move by the company because who is attending all those events? Their target audience.

Not only that, but those sponsorships allow the Red Bull brand to be exposed to new audiences as they are attended by a large number of people.

8. Creating content around what your audience likes

What do they have in common with each item they cover (and there are many)?

They focus on the activities that people participate in when they consume their products. They also post content that their audience can navigate.

They post large amounts of content on their website and, surprisingly, do not mention their product in any way:

They produce The Red Bulletin, a magazine that distributes 2.2 million copies a month:

In short, if their target audience is consuming content on a particular channel, you can count on Red Bull’s presence.

Finally, What Did We Learn from Red Bull Marketing Strategy?

Needless to say, Red Bull has come a long way in the 30 years since its inception. From a very humble beginning to a mega-brand publishing house, Red Bull is a success story in marketing.

Are you inspired by Red Bull’s marketing strategy?

Let their story serve as a reminder that your company should start somewhere. They did not go to a multinational company overnight from an idea in Thailand. It took time, luck, and some effort (and a lot of great marketing along the way).

Follow their leadership by starting small. Here are some ideas:
Create a short series of weekly videos on a topic that will interest your audience.
Curate social media content that meets your product purpose and the interests of your audience (without mentioning you directly).
Publish an email newsletter with interesting and useful material that your audience will love (and can slap your logo anywhere).

Here’s the key: To be successful in content marketing like Red Bull, you must put your audience’s interests first and create content publishers.

Instead of imitating other marketers, imitate magazines, TV shows, news websites, and anything else your audience reads and watches.

Want to know more about how to actually do this? Here are some additional reading tips to get you started:

Because Red Bull strategy works

Red Bull’s strategy works for three different reasons:

The first is his ability to tell a story that appeals to an audience. His focus on everything from extravagant sports to music festivals gives him a vast playing field, but that’s not all.
Second Red Bull ranks its product in providing content and value to its audience. Attention to the details provided by their marketing team is evident. People who care about what they write, record or create around them.
Ultimately , their commitment to the values and aesthetics that the brand created when it first launched will drive its marketing. Everything they make is associated with the idea of giving wings to people and ideas to fly.

That’s all if you find this content interesting. Don’t forget to share and leave comments. Thank you.

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4. Let values be your guide