DOES RED BULL REALLY

GIVE YOU WINGS?

 Red Bull GmbH is an Austrian private company known for its range of energy drinks.

INTRODUCTION
It is also known for its sponsorship of a range of sporting events and teams. In 2019, a total of 7.5 billion cans of
Red Bull were sold worldwide in over 171 countries.

The headquarters of Red Bull GmbH are located in Fuschl am See, Austria.
• Red Bull gives you wings” has been the energy drink’s
slogan for nearly two decades. The famous energy drink
slogan has been found to be false after a US lawsuit and
the company has agreed to compensate customers who
bought it in America between 2002 and 2014.

• The false ad lawsuit all started in 2013 by a US

consumer, Benjamin Careathers, who believed the
company's slogan "Red Bull gives you wings" is
OVERVIEW
dishonest.

• He argued the slogan clearly doesn't mean the drink will

give you wings but it is generally understood the drink
should give a higher energy boost than an average cup of
coffee.
• Red Bull says in its marketing that the drink can improve concentration and reaction speeds,
but the plaintiff in the case said these claims were false and lacked scientific support. While
the suit did not allege that plaintiffs were disappointed that they didn't suddenly sprout
wings, it does say that Red Bull relies a lot on terms like "wings" and "boost" to give
consumers the impression that the drink gives people some sort of physical lift or
enhancement.
• The settlement says Red Bull will reimburse customers disappointed the energy drink hasn’t
lived up to their expectations with either a check for $10 or a voucher for $15 worth of Red
Bull products. This could prove costly, as the class action suit covers the millions of people
who have bought at least one can of Red Bull over the past 10 years.
 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
IMPACT truthful and accurate, and denies any and all
wrongdoing or liability.

While Red Bull denies wrongdoing, the company has

voluntarily withdrawn and revised the marketing claims
challenged in court.
 ACTIONS TAKEN BY THE
ORGANIZATION
• Red Bull has agreed to settle the lawsuit at a cost of US$13 million,
but not because it has falsely advertised its product. Rather, it has
merely “settled the lawsuit to avoid the cost and distraction of
litigation”.
• A Red Bull representative stated that the company “maintains that its
marketing and labelling have always been truthful and accurate, and
denies any and all wrongdoing or liability”.
• This seems to be an attempt by Red Bull to prevent further damage
to its brand. The allegations will possibly prove damaging, at least in
the short term
 • To continue to build upon this success, it is recommended that Red
Bull consider a new strategy. First, there is considerable equity in the
brand and the beverage that can be leveraged significantly in a brand
extension of a product such as an ‘energy bar’. 
• Develop hybrid products such as combine energy-giving properties
with other drink categories, such as tea, fruit or vegetable juice and
RECOMMENDATIONS other bottled water is innovative for Red Bull to develop. One trend
is hybrid drinks with functional and sensory benefits such as thirst
quenching ability with daily dosage of vitamins or other nutrients.
• Red Bull should move away from the successful cartoon-type
advertisements and focus on the “next thing” for a fickle consumer
mass. This advertising should be of an experiential nature that
focuses on situation in which Red Bull [products] can be utilized for
a key benefit while each advertisement “closes” with a central brand
reinforcing image such as the Red Bull logo.
 CONCLUSION
• Red Bull did not lose in the ‘wings’ case, but it
did not win either; rather, it settled the lawsuit
and learned a valuable lesson. This lesson was
that consumers sometimes sue a company if a
company does not use terms that are 100 percent
justifiable.
• It seems however, that for now the company is
remaining a leader in the sustainable market,
providing consumers with a traditional energy
drink. Because of this, Red Bull may continue
to sell a worthwhile product for many years to
come.