MONSTER TO DEVOUR RED BULL IN US ENERGY DRINKS ?

Red Bull celebrates its 20th anniversary this year. It has been an outstanding example of brand development and market leadership, creating a new premium opportunity and generating astonishing growth. With 2006 sales of 2,600 million euros, its value could easily be over 10,000 million euros. It has achieved this despite the challenge of very little real competition except in a limited number of countries. Until now. A Californian brand called Monster could seize the retail crown in Red Bull's largest market this year. Monster has learned from Red Bull's successes such as edgy imagery and extreme sports sponsorship, but has also gone well beyond - most notably in double size cans at better value prices, but also with flavour and ingredient innovation. The 2006 US retail volume figures show Red Bull charging ahead by 27%, but down 7 share points to a 30% share, against Hansen's Monster and other brands roaring up by a fiery 88% and gaining 5 share points to a 27% share. Hansen looks set to boost its overall business sales to well over US $1,000 million this year and has every chance of overtaking Red Bull. Red Bull, meanwhile, has tightened its strategy, restructured its distribution and strengthened its team. So there will certainly be a locking of horns. But nothing ever stands still in consumer marketing. As Red Bull defends its US stronghold, Monster has declared plans to expand internationally. Stimulating times.