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Red Bull sells 8 billion cars a year but manufactures none of them

Geoff Riley

24th December 2021

Red Bull sells eight billion cans of their energy drinks each year but it doesn't manufacture any drinks at all!

It outsources 100% of their manufacturing and in essence is purely a marketing company. Production is outsourced to Rauch, an Austrian bottler. Red Bull is the market leader in what is a $50 billion energy drink market.

This thread from Trung Phan is remarkable and provides some superb insights into the nature of the business. Please do have a look!

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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