Red Bull’s Max Verstappen commemorates after winning the Brazilian Grand Prix onNov 5, 2023.
Amanda Perobelli|Reuters
Red Bull Racing’s supremacy in Formula 1 this year is equating straight to greater sales of its name energy beverage, the group’s principal and CEO, Christian Horner, informed CNBC.
“There’s an old adage of, ‘Win on Sunday and sell on Monday.’ Well, what we do for the Red Bull brand, for the energy drink in advertising the product globally for 23 race weekends a year, we’re the biggest marketing impact that the beverage company has,” Horner informed CNBC’s Sara Eisen in the documentary “The Inside Track: The Business of Formula 1,” debuting Thursday at 8 p.m. ET.
The Red Bull group, which likewise counts tech giant Oracle as a title sponsor, has actually trounced the grid this season, winning 19 of the 20 Grand Prix weekends up until now. Its world champ motorist, Max Verstappen, has actually taken the checkered flag on 17 of those wins, with his colleague Sergio Perez gathering wins in Saudi Arabia and Azerbaijan.
Verstappen currently clinched the 2023 motorists title– his 3rd world champion– in early October throughout the 17 th Grand Prix weekend of the season, inQatar The Red Bull group protected the fitters champion the weekend prior, in Japan.
The motorists will require to the track once again on Sunday in Las Vegas before the season covers at the end of this month in Abu Dhabi.
Red Bull decreased to share particular sales metrics, however a business representative repeated the F1 “uplift” and stated it’s especially visible in corresponding race markets.
“They see it, they can measure it. It’s incredible the amount of consumption of Red Bull that is happening,” Horner informed CNBC.
Red Bull is the second-most popular energy beverage brand name worldwide, with 13% market share, according to Euromonitor International information. It routes just Monster Beverage‘s name brand name, which holds 16.4% of the international market share.
But the marketplace for energy beverages has actually grown more congested, putting pressure on RedBull The business’s market share has actually slipped from 13.5% in 2021 to 13% this year as more recent gamers, such as Pepsi Co, get in the classification.
In current years, drink giants Coca-Cola and Pepsi have both set their sights on the fast-growing energy beverage classification– with differing degrees of success. Soda intake has actually reduced over the last 20 years, however sweet energy beverages have actually bucked the pattern since of their caffeine material and associated impacts.
Coke introduced its own energy beverage in the United Kingdom in2019 But Coke Energy stopped working to acquire a grip with U.S. customers; the business ceased the beverage in North America in 2021, approximately a year after it introduced.
Coke competitor Pepsi has actually discovered more success through deal-making. It purchased Rockstar Energy for $3.85 billion in 2020, getting ownership of both the business’s name energy beverage and fast-growing Sting Energy.
Last year, Pepsi took a $550 million stake in Celsius, which markets itself as a much healthier energy beverage that improves exercises. Those offers are on top of efforts such as moving Mountain Dew into the energy beverage classification and including caffeine to Gatorade.
Tune in to CNBC onNov 16 at 8 p.m. ET for the best of “The Inside Track: The Business of Formula 1.”
