Paper Corporate Social Responsibility

Carlos E. López Yépez

Corporate Social Responsibility

May, 14, 2014

Red Bull’s Case Analysis

In 1987; specifically 21 years ago in Austria; it was launched that revolutionized the beverage industry. This new beverage was called Red Bull; which created a new soft drink category. It was the energy drink one. Based on its unique and mysterious style; the product encompass a fashion trend among its consumers; which because of the fact it is sold in bars or nightclubs; it represents an effective marketing tactic.

However; there is another side of the coin. Another perspective or opinion could be related to the product. It is the issue about its consumption and the health risks it could produce to the consumers. There has been much controversy surrounding its consumption which had resulted in its ban in many countries like Norway; Denmark or Uruguay. A can of Red Bull contains specific ingredients like water; sugar, caffeine and taurine. It cost is higher compared to the competitor’s products but it support it based on the marketing thought that it provides a concentrated experience.

Although the effective marketing strategy which has represented a total sales turnover of US$ 4.2 Billion; this edgy drink tonic has found itself in the midst of controversy and negative publicity. Many death has been related to the consumption of the energy drink. For instance; a death was linked to Red Bull in Hong Kong; where a British man mixed it with a pitcher of vodka and died. Similarly to this case; many others has been replied around the locations where the product is sold. Most of them; express the mixing of the product with alcohol.

Medical experts claims that alcohol is a depressant; which affect the nervous system while caffeine (Red Bull’s ingredient) is a stimulant. Thus; the combined effect can lead to heart failure which could be identified as the common characteristic of the deceases related to the beverage. It must be mention that the incidence number of death cases related to the drink is highly small compared to its market share and acceptance. Even public institutions support the product and encompass it within a food category. However; the dilemma is produced when the question that if the company really concerns about the health risk the product evolves in a short and long term.

The only response provided by the company because of the linking of the product with the mentioned deaths was that they don’t promote the mixing of the energy drink with alcohol. However; the company is quite indifferent about the possible consumers it could have. It is clear that one of the main consumer groups are teenagers and one of the main distributors are bar and nightclubs where the beverage is usually mixed with alcohol. Therefore the company if far away from executing a CSR

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