---
title: "Red Bull China Faces 'Life-or-Death Crisis'"
description: "After 20 years of partnership, the producer of Red Bull in China, Huabin Group, and its early partner, the Xu family, are locked in a trademark and operational dispute. The latest conflict centers on the company's business term, with Red Bull China claiming it is 50 years while its shareholders insist it has expired and the company should be liquidated."
author: "郑娜"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-10-06"
language: "en"
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# Red Bull China Faces 'Life-or-Death Crisis'

> After 20 years of partnership, the producer of Red Bull in China, Huabin Group, and its early partner, the Xu family, are locked in a trademark and operational dispute. The latest conflict centers on the company's business term, with Red Bull China claiming it is 50 years while its shareholders insist it has expired and the company should be liquidated.

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**Reasonable allocation of rights and obligations should be the foundation of cooperation in any field, especially in the business world. Huabin Group, which has produced and operated Red Bull in the domestic beverage market for 20 years, has in recent years turned against its early close partner over profit issues, engaging in a protracted trademark battle. Now, a dispute over the business term has opened a new chapter in the battle.**
The "Red Bull" battle enters its second season.
According to information from the National Enterprise Credit Information Publicity System, Red Bull Vitamin Beverage Co., Ltd. (hereinafter referred to as "Red Bull China") was registered in Beijing on September 30, 1998, with its business term expiring on September 29, 2018.
As soon as the news came out, speculation quickly spread that Red Bull China might not be able to continue operations.
On September 29, Red Bull China issued a statement on its official website in response.
Red Bull China stated that the current business term registered with the industry and commerce authorities is 20 years, which was to meet the special requirements for the registration period of foreign-invested enterprises at the time of establishment, and **does not mean that the business term is only 20 years**.
Red Bull China claimed that according to the binding legal documents already formed by the joint venture parties, its **business term is 50 years**, and within that period, Red Bull China is the only company authorized to produce and sell Red Bull beverage products in China. At the same time, Red Bull China stated that it has submitted an application for extension of the business term to the relevant authorities in accordance with the law, and **the extension is currently being processed**.
Soon, Red Bull Vitamin Beverage (Thailand) Co., Ltd. (hereinafter referred to as "Red Bull Thailand") and Inter Biopharmaceutical Holdings Co., Ltd., which together hold 95% of the shares of Red Bull China's "joint venture parties," issued a joint statement saying that **Red Bull China's business term has already expired**, that the shareholders have never reached any agreement to extend the business term of Red Bull China, and that **Red Bull China should be liquidated immediately and cease all business activities unrelated to liquidation**.
However, on September 30, **Huabin Group, the operator of Red Bull China, responded to Red Bull Thailand's "liquidation" claim, saying that Thai Tiansi's statement about liquidating Red Bull had not been approved by the shareholders' meeting of Red Bull Thailand and could not unilaterally represent the will of Red Bull Thailand.**
The back-and-forth and diametrically opposed statements have once again cast a question mark over the fate of Red Bull in the Chinese market.
**From Collaboration to Confrontation**
Every story of falling out has a warm beginning.
The "Red Bull" product was invented in 1975 by Xu Shubiao, a Thai-Chinese native of Hainan, and quickly became popular for its refreshing effects. In 1984, Xu Shubiao co-founded the Red Bull Group with Austrian Mateschitz and pushed Red Bull to the world.
China occupied an important position in the Xu family's territory. As early as **1993, the Xu family established Hainan Red Bull Beverage Co., Ltd. in Hainan**, hoping to enter China. However, due to limited understanding of the market, Red Bull encountered various problems in China, such as policy and channels, and its expansion was unfortunately hindered.
In 1995, Yan Bin, who had been working in Thailand for many years, met Xu Shubiao and was soon chosen as Red Bull's partner in the Chinese market. In December of that year, Red Bull China was registered, with the Xu family and Yan Bin holding shares of 54.24% and 45.76%, respectively.
On September 30, 1998, Red Bull China was re-registered in Beijing.
According to information from Qichacha, as of now, Red Bull China has four shareholders: **Red Bull Vitamin Beverage (Thailand) Co., Ltd., Inter Biopharmaceutical Holdings Co., Ltd., Global Market Holdings Co., Ltd., and Beijing Huairou District Township Enterprise General Company, holding 88%, 7%, 4%, and 1% respectively.**
Among them, **Inter Biopharmaceutical is a wholly-owned company of the Xu family, and Global Market Holdings is a wholly-owned company of Yan Bin**; **Red Bull Thailand is jointly held by the Xu family and Yan Bin**. According to Caijing magazine, the Xu family and Yan Bin held 68% and 32% of Red Bull Thailand in the early days.
It is worth mentioning that **Thai Tiansi, controlled by the Xu family, owns the trademark rights to Red Bull.**
Thereafter, Xu Shubiao and Yan Bin, one providing brand authorization, production technology, product formulas, and other technical support, and the other responsible for production and sales. Soon, with Yan Bin's advertising攻势 and channel construction, Red Bull opened up the Chinese market and became a household name.
Data shows that over the past 20 years, **Red Bull has produced a cumulative output of over 8 million tons in China, with cumulative sales of 145.3 billion yuan, and total taxes paid of 21 billion yuan. In 2016, sales exceeded 20 billion yuan.**
In 2012, with the death of Xu Shubiao and the succession of his son Xu Xinxiong, the absolute trust the Xu family had given Yan Bin gradually disintegrated.
According to previous reports by Caijing magazine, Xu Xinxiong said that Red Bull China had never held a board meeting in the 20 years before 2015, and **the Xu family had never received any dividends**. Based on early support and trust in Yan Bin, the Xu family had never pursued this.
In 2014, Xu Xinxiong began to investigate Red Bull China and discovered that many Red Bull trademarks and appearance patents had already been registered by Yan Bin's side.
Therefore, at a meeting at the end of 2014, the two sides discussed and decided to transfer the Red Bull trademarks and appearance patents held by Yan Bin's side to Thai Tiansi. Shortly thereafter, **Yan Bin's equity stake in Red Bull Thailand also increased from 32% to 49%.**
At this point, **the shareholding ratios of the Xu family and Yan Bin in Red Bull China changed to 51.88% and 47.12%.**
In fact, besides the trademark issue, Yan Bin also established companies in Guangdong, Hubei, Jiangsu, and other places to handle the production and sales of Red Bull, and the newly built production and sales channels were all in Yan Bin's hands, with no profit relationship with Thai Tiansi. This also caused the joint venture company in which the Xu family participated to become "a very small processing base."
In 2016, the trademark authorization for Red Bull expired, but the two sides did not reach an agreement on renewal. However, Red Bull China ignored this and continued to produce and sell Red Bull. Thai Tiansi believed this behavior infringed on its trademark for Red Bull and sued Red Bull Vitamin Beverage Co., Ltd., Beijing Red Bull Beverage Co., Ltd., and many other subsidiaries.
Thus, the interest disputes hidden behind Red Bull came to the public's attention.
**"Overbearing President"**
A key factor causing these interest disputes may be Yan Bin's overbearing and strong personality, who has a rags-to-riches story often seen in Hong Kong movies.
After experiencing poverty in the 1970s, Yan Bin, born in 1954, felt the feeling of "being poor and afraid." He fled from China to Thailand. At that time, he was not yet 20 years old. When he first arrived in Thailand, he even sold blood to survive.
In the poor years in a foreign country, "only by enduring the hardest hardships can one become a master" is probably the easiest truth to verify.
According to Caijing magazine, while working in Bangkok's Chinatown, Yan Bin once used his hand as an ashtray for his boss. Even when a burning cigarette burned blisters on his hand, he did not complain; every morning at 5 o'clock, he would pay close attention to the boss's movements. Once he heard a cough, he would put the spittoon in front of the boss within one minute.
Such perseverance and tenacity quickly earned Yan Bin appreciation. And this is probably one of the key factors that allowed him to **found Huabin Group in Thailand in 1984, when he was 30 years old.**
It is probably such experiences that shaped Yan Bin's overbearing and strong personality. He scolds subordinates at will and has even thrown documents in their faces. Even Guo Jie, the president of Huabin Group, was very cautious when describing Yan Bin's experiences.
Such execution and strong personality also contributed to Red Bull's success in China. Yan Bin once disclosed that **at its best, Red Bull sold 6 billion cans a year and had 50 factories.**
Data shows that Red Bull's annual sales in 2017 were approximately 19.6 billion yuan, with a market share of nearly 60%. In fact, the listed company **Orygen** is the producer of Red Bull China's packaging cans, with a market value of over 12 billion yuan. **In 2017, Red Bull brought over 4 billion yuan in sales to the listed company.**
Facing such a cash cow, Yan Bin, who had achieved such success through hard work, would naturally not easily let go. Therefore, outside the joint venture company, Yan Bin created another production and sales system, whose scale has exceeded that of the joint venture company.
According to disclosures, in 2005, 2009, and 2012, Yan Bin successively established Red Bull Vitamin Beverage (Hubei) Co., Ltd., Guangdong Red Bull Vitamin Beverage Co., Ltd., and Red Bull Vitamin Beverage (Jiangsu) Co., Ltd.; in 2006, he also established Beijing Red Bull Beverage Sales Co., Ltd.
Holding the core assets of Red Bull in China is probably also the key reason why Yan Bin "ignored" the Xu family and Thai Tiansi.
In September 2016, Red Bull Thailand removed Yan Bin from his position as chairman of Red Bull China in accordance with the articles of association. But in the end, because the company's official seal and business license were in Yan Bin's hands, and he refused to hand over control, the removal did not take effect.
At the end of 2016, the trademark authorization for Red Bull China expired, and no agreement was reached on renewal, leading to the trademark war over "Red Bull."
In August 2017, Thai Tiansi issued a statement saying it had tried to resolve the dispute amicably with Yan Bin, but **Yan Bin had always ignored it.** Therefore, Thai Tiansi filed **lawsuits** against Yan Bin and several companies he owned or controlled, on grounds including trademark infringement, unfair competition, and other behaviors related to the unauthorized production and sale of Red Bull products.
Yan Bin naturally refused to accept this accusation. Huabin Group subsequently issued a statement saying that over the past 20 years, Huabin Group and Yan Bin had invested much effort in building brand promotion channels, advertising, and anti-counterfeiting rights protection, and **ignoring the labor achievements created by Huabin Group and Yan Bin through honest and legal operations seriously deviates from history and facts and is not objective.** Huabin said it would actively respond to the lawsuit.
The struggle between the two sides once reached a fever pitch. Public information shows that since 2016, the Xu family and Thai Tiansi have repeatedly taken Red Bull China to court on various matters, and Yan Bin's side has also responded, launching a "litigation war." Incomplete statistics show that **there are as many as 21 related lawsuits between the two sides in mainland China alone.**
Now, with the outbreak of the "business term" incident, Yan Bin and the Xu family continue to go back and forth, with no sign of compromise.
In fact, both sides have long prepared their own backup plans. The Xu family applied for a new Red Bull trademark, intending to launch "Red Bull Anaji Beverage"; Yan Bin, not to be outdone, launched "War Horse," also a functional beverage.
However, the launch of Red Bull Anaji has been repeatedly delayed, and there are even rumors that the team has disbanded; while "War Horse," which has been cultivated for about two years, has still failed to open the market, with a market share of only about 2%.
From this perspective, the deep impression Red Bull has left in the minds of Chinese consumers may be exhausted in the long-running struggle between the two sides in the future...
Source: Global Tiger Finance (ID: laohucaijing01)
**On October 23-24, during the Autumn Sugar and Wine Fair, the "2018 FMCG City Distribution Logistics Conference" hosted by New Distribution will be held.** At that time, we will invite industry bigwigs, FMCG warehousing and distribution experts, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution, hoping to bring you different inspiration and thinking! The specific meeting topics are as follows:
**List of Participating Companies**
In no particular order
Hunan Zonglan Dian Dan Network Technology Co., Ltd.
Jingbang (Wuhan) International Freight Forwarding Co., Ltd.
Mengniu Dairy
Qinghai Hanxiang E-commerce Co., Ltd.
Unilever Service (Hefei) Co., Ltd. Shanghai Branch
Huicong
Hunan Xuanang Food Co., Ltd.
Guangzhou Tongdaoren Information Technology Co., Ltd.
Qingdao 888 Trading Co., Ltd.
Uni-President Enterprises (China) Investment Co., Ltd.
Hunan Province Zhongxiang Gongpei Logistics Co., Ltd.
Shenglong Ingredients
COSCO Shipping Logistics Warehousing and Distribution Co., Ltd.
Guangxi Yongpai Liquor Industry Co., Ltd.
Shangqiu Kangrong Trading Co., Ltd.
Jinan Dingzhong Trading Co., Ltd.
Liaoning Bimai Agricultural Technology Co., Ltd.
Kunming Xiongjia Trading Co., Ltd.
Shaanxi Houheng Trading Co., Ltd.
Guangzhou Dingwo Enterprise Information Consulting Co., Ltd.
Shaodong Jiajiale Commercial Firm
Boda Trading
Industrial Bank Changsha Branch
Wuhan Muchen Convenience Store Chain Co., Ltd.
Fujian Fuxing Yuncang Logistics Co., Ltd.
Guizhou Yilimi E-commerce Co., Ltd.
Jiangxi Xiao Laoer E-commerce Co., Ltd.
Jinshan Koufu
Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd.
Shanxi Dezhun Supply Chain Management Co., Ltd.
Shaoyang Tongdeli Trading (Xiangbang Logistics)
Huanfu
Tongda Express City Distribution
Beijing Xinjingxiang Food Co., Ltd.
Wuhan Huizhong Tianhong Liquor Co., Ltd.
Changsha Paide Biotechnology Co., Ltd.
Chaoan Tuqiang
Guizhou Yihe Bopin Supply Chain Management Co., Ltd.
Jiangxi Kang'en Industrial Development Co., Ltd.
Xiangtan County Yisuhe Town Yuhua Paper Store
Luoyang Yuanlang Trading Co., Ltd.
Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd.
Hunan Yongfu Jiujiu Trading Co., Ltd.
Zhejiang Chengchengtong Logistics Co., Ltd.
Chongqing Kaiguo Materials Trading Co., Ltd.
Beijing Xianmaixianmai Data Technology Co., Ltd.
Hanchuan Qixing Trading Co., Ltd.
Tongxin Jiuzhi Trading Co., Ltd.
Guizhou Meiguo Guoguo Network Technology Co., Ltd.
......
**Distributor Transformation Representatives (Proposed)**
In no particular order
Jiangsu Huashang City Distribution Network Co., Ltd. Chairman, Rong Jun
Hubei Yijiaren Logistics Co., Ltd. Chairman, Wang Bo
Sichuan Chengdu Xingrenxing Trading Co., Ltd. General Manager, Jiang Shuming
Shandong Yunbang Warehousing and Logistics Co., Ltd. Chairman, Liu Jichen
Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd. Chairman, Tu Mingyu
Guangzhou Zhongshan Wanrong Marketing Co., Ltd. Chairman, Yang Su
Sichuan Bajie Supply Chain Management Co., Ltd. Chairman, Yuan Xia
Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd. Co-founder, Li Qiangyun
Henan Xuchang Jiulegou E-commerce Co., Ltd. Chairman, Zhang Jianyong
Hebei Changyi Logistics Co., Ltd. Founder, Ma Haichao
Hebei (Chengde) Wulian Yuncang Co., Ltd. General Manager, Meng Yucun
Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd. Chairman, Zhang Xun
Jilin Sansheng Lianguo Chairman, Zhang Hailing
Hebei Dunjie Supply Chain Management Co., Ltd. Founder, Qiang Huitao
Hunan Damei Supply Chain Management Co., Ltd. General Manager, Liao Lei
......
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