Red Bull is the undisputed champion of the energy drinks market, but, warns Euromonitor International, its proposed entry into the cola category could prove a costly mistake.
Brand heritage is crucial in the beverages industry and companies need to be very astute when they start messing with the wires that make it work.
In the case of Red Bull, its brand heritage – that part of Red Bull that consumers relate to and that gives it the competitive edge – is inextricably tied up with the dynamics of the energy drinks sector.
And Red Bull Simply Cola, the new natural 'non functional' cola that is set to roll out in the US, frontrunner of the world's energy drinks market, later this year.
Rob Walker from Euromonitor International says if Red Bull Simply Cola is going to be successful, it will first need to attract fans of its flagship energy drink brand and secondly, entice new consumers who are adverse to the energy drinks concept.
He says the difference is that if the brand had been called Simply Cola, rather than Red Bull Simply Cola, and packaged in a new-look metal can that is distinguishable from the famous Red Bull slimline can, it just might have given the product some value-added independence from its roots.
