Join Now | 
HomeAboutContact UsPrivacy & SecurityAdvertise
Soccer America DailySpecial EditionAround The NetSoccer Business InsiderCollege Soccer ReporterYouth Soccer ReporterSoccer on TVSoccer America Classifieds
Paul Gardner: SoccerTalkSoccer America ConfidentialYouth Soccer InsiderWorld Cup Watch
RSS FeedsArchivesManage SubscriptionsSubscribe
Order Current IssueSubscribeManage My SubscriptionRenew My SubscriptionGift Subscription
My AccountJoin Now
Tournament CalendarCamps & AcademiesSoccer GlossaryClassifieds
The number$ behind Red Bull Arena
Wall Street Journal, March 18th, 2010 4:16PM

MOST READ
TAGS:  mls, new york red bulls


Paid for without a loan, the new Red Bull Arena represents the biggest and most visible foreign investment ever made in professional soccer in the USA, writes Matthew Futterman. Red Bull, the Austrian "energy drink" maker, spent $220 million on the stadium that opens this weekend in Harrison, N.J. While Red Bull has had flat revenue and faces challenges from rivals like Monster Energy, distributed by Coca-Cola, and Rockstar, distributed by PepsiCo., it continues its strategy of popularizing its product with sports sponsorships.

"As soon as we decide to take part in a sport, we either do it properly or we don't do it at all," says Red Bull founder and Chief Executive Dietrich Mateschitz, who also owns soccer teams in Austria and Germany.

The venture is in keeping with the unorthodox marketing moves -- including a festival for homemade flying machines and a half-pipe built for Olympic snowboarder Shaun White -- Red Bull has become known for since its emergence in Europe in the late 1980s.

John Sicher, publisher of the trade publication Beverage Digest, says Red Bull's brand strength allowed it to outpace the industry last year in the USA, when the premium-priced energy-drink market was growing at just 0.1% and Red Bull sales were up 1.1%. Red Bull says it sold 3.9 billion cans of its product last year worldwide. It said its revenue was $3.27 billion ($4.51 billion) in 2009, compared with $3.32 billion in 2008. In the USA, Red Bull has a 33% share of the energy-drink market by dollars, ahead of Coke's Monster, which has a 27% share and holds second place. But Monster has been gaining with the help of its parent company, as has Pepsi's Rockstar.

Read the original story...


No comments yet.

Sign in to leave a comment. Don't have an account? Join Now




AUTHORS

ARCHIVES
FOLLOW SOCCERAMERICA

Recent Section 2 Around the Net
AC Milan Not for Sale, Owner Says     
AC Milan is not for sale, Finivest, the company controlled by Milan chairman Silvio Berlusconi, said ...
German Anger at Schalke for Considering Russia Invitation    
German politicians on Thursday criticized Bundesliga giant Schalke 04 for considering an invitation to Russia to ...
Report: Chelsea Backs Mourinho Anfield Decision    
Chelsea has given Jose Mourinho the green light to field a team at Liverpool on Sunday ...
PSG Eyes Second-Successive Ligue 1 Title     
Paris Saint-Germain could seal its second-successive Ligue 1 title without kicking a ball if second-place AS ...
Platini: No Clubs Banned From Europe Next Season    
In an interview, UEFA President Michel Platini said that no clubs found in breach of financial ...
Ancelotti: Real Can Beat Anyone     
Carlo Ancelotti proclaimed that Real Madrid has no one to fear following his team's 1-0 win ...
German Press Reacts to Bayern's UCL Loss    
Bayern Munich coach Pep Guardiola came in for some heavy criticism from the German media after ...
Reports: Messi Close to Barca Pay Raise    
According to reports in Spain, Lionel Messi is close to agreeing a contract extension with Barcelona ...
Scholes Named Man United Assistant Coach     
Paul Scholes on Wednesday was named as an assistant coach to interim Manchester United coach Ryan ...
FIFA Suspends Barca Transfer Sentence    
FIFA on Wednesday temporarily suspended the transfer ban handed to Barcelona for violating its rules regarding ...
>> Section 2 Around the Net Archives