Competition sees Red Bull’s profits slump

Red Bull’s UK and Irish profits fell by a massive 44.2 per cent to £8.8 million in 2010, according to the company’s annual results published recently. Turnover was also down by 0.6 per cent to £232 million due to the “economic and competitive environment” with Irish turnover - which dropped by nearly 14 per cent - being hit particularly hard.

Nevertheless, Red Bull’s UK Sales Director Jamie Rake described it as a “strong performance” when the huge increase in competition in the energy drinks market is taken into account.

“It is a highly competitive market and it’s important to get our share of space,” he said, “That’s the big challenge. It feels like the marketplace is more driven by promotion than ever before.”

AC Nielsen figures indicate a 5.2 per cent increase in sales to £200.4 million for Red Bull to 19th March this year but other brands such as Monster and Rockster are proving significant competition for the brand internationally.