Shalom Life | July 01, 2014

No (Red) Bull – Energy Drink’s Popularity Crashing in Israel

Austria Company Downsizing in the Jewish State

By: Leonard Carl

Published: January 4th, 2013 in News » Israel

Despite the commercials, apparently Austrian energy drink Red Bull doesn’t give everybody wings.

In fact, the drink will no longer be marketed in Israel after its market share decreased rapidly from a healthy 80 percent to a woeful 6 percent, resulting in the termination of 15 of its employees in Israel, leaving only the CEO and sales director employed, while its advertising budget has also been cut.

With such a weak market share of energy beverages in the Jewish State, it no longer made economic sense to spend millions of dollars every year to promote Red Bull there anymore.

Fifteen of the company’s employees in Israel have been fired, leaving just the CEO and sales director. In addition, Red Bull’s advertising budget has been canceled, as well as its agreement with the Binyamina Winery, Red Bull’s distributor in Israel for the past few years.

From now on, the only way for wholesalers to get their hands on the beverage will have to order it themselves, directly from its home in Austria.

“Following the launch of cheap local brands, Red Bull realized that the Israeli consumer is unwilling to pay a premium for an international brand,” a senior source in the beverage industry told Yedioth Ahronoth.

“Israelis see no difference between the local brands and Red Bull, and it’s the money that talks: While a can of Red Bull is sold in Israeli supermarkets for an average price of NIS 6 ($1.60), the other brands are sold for just NIS 4 ($1.10).”

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