Recently, news of Anergy's launch has resurfaced. According to disclosed information and leaked photos of Anergy shipments, industry insiders reveal that the first batch has arrived at distributors' warehouses in Jiangsu and Zhejiang, with market distribution preparations underway.

Leaked Photo of Red Bull® Anergy Arrival

"I feel like I'll be worrying about this product for the next few months," said Mr. Zhang, a veteran distributor who has represented Red Bull for over a decade, to New Distribution. Since the tug-of-war over brand authorization between China Red Bull and Thai Tencel began in 2016, China Red Bull distributors have been treading on thin ice. On one hand, they must stay vigilant, watching for any developments in the Red Bull lawsuit; on the other, they need to prepare backup plans. As time passes, especially with the exposure of Anergy's launch, the already anxious hearts of China Red Bull distributors are now in their throats. "Anxiety is definitely there, " sighed Lao Zhang, who has been in the Red Bull business for over a decade. "After all, I've been in this business for more than ten years; there's certainly emotional attachment, but I need to make a living and support my team. It's impossible not to prepare a fallback." Red Bull Distributors' Choices According to New Distribution, it's rumored that Thai Tencel recruited former Red Bull CEO Wang Rui to manage the Anergy project. By 2018, the Anergy team structure was largely in place, with 20%-30% of the marketing team being former Red Bull staff, with the highest concentration in South China. Lao Zhang was one of the targets Anergy tried to poach. "Anergy contacted me early on. I saw the samples; they look exactly like Red Bull, and consumers wouldn't be able to tell the difference. If Red Bull really goes under, I can't just wait to die, so I signed without much thought to leave myself a way out," Lao Zhang told New Distribution. Distributors like Lao Zhang are not uncommon. New Distribution has learned that many Red Bull distributors now hold two contracts, mostly in South China, Jiangsu, and Zhejiang. "Some signed as early as 2017, others recently. To avoid complications, many distributors signed using two different company entities," Lao Zhang revealed. Recently, the Anergy team has been very active, expanding recruitment, with non-Red Bull distributors in Hunan and Hubei also receiving invitations. "After all, distributors are profit-driven. Some may not like hearing this, but as a distributor, unless I quit this business, I have no other choice," said Xiao Yan, another Red Bull distributor who is younger and more resolute, sharing his true feelings with New Distribution. "If Anergy approaches me, I'd consider taking it on, but I've already prepared a backup since I heard about the authorization issues in 2016." This young man has exceptional foresight. "I'm still young, and I have capital and market resources to negotiate. I've already found another brand (a leading domestic water beverage brand) to represent. If Red Bull can no longer bring me the profits it used to, I'll definitely invest more resources in the new brand, and Red Bull will be marginalized or even abandoned." New Distribution understands that Red Bull distributors currently face only two choices: either passively accept Anergy or actively seek other brand alternatives. Some larger Red Bull distributors have told New Distribution that they already hold a strong product line and don't rely solely on Red Bull. They're staying put, observing, and waiting for legal judgments or official rulings before making a move. However, this time won't last long. During the legal vacuum, distributors may have only about six months to decide. Even if you've signed with both Red Bull and Anergy, within six months, before the next annual contract signing, you'll have to choose one. Don't even think about having both. During this legal vacuum, industry insiders predict it's highly likely both products will appear on the market simultaneously. A fierce battle is imminent. The Battle Looms Anergy's emergence is like a sword piercing the hearts of Red Bull distributors. It's hard to pull out, and if it goes deeper, half their lives are lost. If two homogeneous products appear on the market at the same time, it would be a disaster for current Red Bull distributors. Red Bull, which once held up to 80% of the Chinese market share, was the pride of Red Bull distributors during their capital accumulation. Although the functional beverage market has become fiercely competitive in recent years, and Red Bull's market has been eroded by rivals due to brand disputes, its position as the leader in China's functional beverages remains unshaken. In 2018, Red Bull held over 60% market share with sales exceeding 20 billion yuan. Red Bull distributors have been accustomed to exclusive monopoly. They enjoy fixed policies, fixed tasks, and decent profits. Once Anergy rises and they compete on the same stage, it will immediately erode Red Bull's existing market. If erosion is deep, distributors will fail to meet sales targets, lose rebates, and face high inventory. If a price war breaks out, the situation worsens. Price drops will devalue existing inventory, meaning distributors may not recoup their investments in Red Bull this year and could face losses. Especially those heavily dependent on Red Bull may not withstand the pressure. "Anergy is exploiting this, boldly poaching people from the Red Bull system," Ming, a Red Bull distributor, told New Distribution. Now that Anergy products are out, they're poaching even more aggressively, not just distributors but also sales staff. Currently, Ming is still waiting, partly because Anergy hasn't approached him yet, and partly because he has other products to support him. His company's business has already been affected to some extent. "I'm very worried now. Anergy has poached many Red Bull salespeople. I used to trust my sales team with my channels, but now I dare not assign new channels to them because they might be delivering for me today and working for Anergy tomorrow. These changes trouble me. As the boss, I have to reconsider every detail of operations, and every change costs money," Ming told New Distribution helplessly. How Will Red Bull Company Respond? We don't yet know what strategy Red Bull Company will adopt next. But based on current changes, the impact on Red Bull Company is undoubtedly huge. Whether it's the poached staff or the hesitant distributors, Red Bull must adjust quickly. Once the two sides clash, they will surely use all resources to block each other's paths. For Red Bull distributors, company policies will likely loosen, requirements for new products will be relaxed, and all efforts will focus on encircling Anergy. It's hard to say who will win. If Anergy wants to defeat Red Bull, 1-2 years might be enough. But if Anergy's team isn't that strong after launch, the chance of defeating Red Bull is very slim. After all, China Red Bull's 20-plus years of market channels aren't for nothing, and Hua Bin Group's influence in China can't be ignored. From interviews with Red Bull distributors, the author senses that China Red Bull Company has a good reputation. The interviewed distributors unanimously stated that although they are profit-driven, if the old employer can resolve their concerns and protect their interests, they would definitely stand with the old employer. If you were a Red Bull distributor, what would you do? Feel free to interact with us in the comments below. Tips will be paid 400-2000 yuan if adopted. China FMCG + Internet Professional New Media Dedicated to FMCG Manufacturers' Transformation and Channel Digitalization Solutions