Report: Huabin Secures 10-Year Red Bull Trademark Rights in China; Monster to Launch as 'Mozhua' in October

I recently learned from inside Huabin Group that it is rumored Huabin has once again obtained the rights to operate the Red Bull trademark in China for 10 years. No further details on the form or content of the authorization are available, but judging from Huabin's introduction of American plant-based protein drink Vita Coco, children's drink Capri-Sun, and the recent entry of VOSS into China, Huabin has made some preparations for the potential impact of Monster's entry on Red Bull.

According to earlier reports, Monster has already obtained product approval and a production license for its Shanghai factory. Beijing has also received product approval and is awaiting a production license, while approval for the Xiamen factory is in progress. I also contacted a person in charge at Coca-Cola's relevant department, because the Monster trademark has been maliciously registered by another party, so Monster's product name in China may be "Mozhua" (魔爪).

It is expected to launch in October, initially in the modern trade (MT) channels in Shanghai, Wuxi, Changshu, Suzhou, and Nantong in the Jiangsu-Zhejiang-Shanghai region.

The ultimate showdown between the two giants is about to begin!

Poll: In the ultimate showdown between the two functional beverage giants, which one do you favor?

Further Reading: A Quick Guide to the History of Red Bull and Monster

The Origin of Red Bull Red Bull founder Chaleo Yoovidhya was one of the richest people in Thailand. In his Thai-language autobiography, he wrote: "Red Bull brings me 11 million baht a day (about 2.25 million RMB)."

In 2012, with a net worth of $5 billion, Forbes ranked him 205th on the global rich list and 2nd in Thailand.

In his twenties, Chaleo worked as a pharmaceutical salesman. At 39, he founded a pharmaceutical factory called TC Pharmaceuticals in Bangkok's old town. At that time, Thailand was in a post-WWII economic recovery, and Chaleo heard about functional drinks that could relieve tension and restore energy. He keenly sensed it would sell well in Thailand. In 1966, his factory launched a "tonic drink," and Red Bull was born. Within two years of its launch, it became the best-selling functional drink in Thailand.

Of course, Red Bull's global success cannot be discussed without mentioning Dietrich Mateschitz.

In 1982, Mateschitz, then international marketing director for a German consumer goods company, came to Bangkok to develop the Thai market. The 38-year-old felt dizzy and fatigued from jet lag upon arrival, so he bought a can of Red Bull at a shop near the airport. After drinking it, he felt refreshed. With a keen market sense, Mateschitz approached Chaleo and proposed bringing the drink to the world. They hit it off immediately.

In 1984, Chaleo and Mateschitz each invested $500,000, each holding 49% of the company, to co-found the Red Bull Group (the remaining 2% was held by Chaleo's son, Chalerm). Mateschitz first proposed the slogan "Red Bull gives you wings" and suggested adding twice the caffeine of Coca-Cola to improve the formula.

In 1987, Red Bull began selling in Austria. The packaging was the classic slim silver-blue can from the start, selected by Mateschitz from over 50 designs. Since 1987, over 30 billion cans of imported Red Bull energy drink have been sold, reaching 168 countries, making it a true "beverage king" and creating an empire, an era, and a global brand.

On March 4, 2015, Mateschitz appeared on Forbes' latest list of the world's richest billionaires. According to the list released that day by Forbes China, Mateschitz ranked 116th with a net worth of $10.8 billion (about RMB 69.1 billion), primarily from Red Bull.

According to Austrian newspaper Die Presse, a study called "Austrian Brands 2014" showed that the top ten Austrian brands had a combined market value of €34.6 billion (about RMB 244.6 billion). Red Bull led by a wide margin with a market value of €15.46 billion (about RMB 109.3 billion), four times that of second-place Swarovski, which had a brand value of €3.473 billion (about RMB 24.5 billion).

The Father of Red Bull China: Yan Bin In 1954, Yan Bin was born into a poor family in Shandong. After graduating from junior high school in 1970, he was sent to the countryside in Linxian, Henan, and later chose to go to Thailand to make a living. There, he began a hard apprenticeship and found his life's direction. In 1984, he founded Huabin Group in Thailand, focusing on property, tourism, and international trade.

Through his connections in Thailand, Yan Bin formally introduced Red Bull to China via a licensing arrangement. Red Bull officially entered China in 1995, establishing Red Bull Vitamin Beverage Co., Ltd. in Shenzhen. With the slogan "Red Bull comes to China," it first appeared in a CCTV Spring Festival Gala advertisement, becoming familiar to more Chinese consumers.

In 2015, China Red Bull's annual sales exceeded RMB 23.07 billion, capturing an 80% share of the functional beverage market. It now has five production bases in Beijing, Hubei, Jiangsu, Guangzhou, and Hainan, with over 30 branches and more than 10,000 employees nationwide. Red Bull has over 3 million sales outlets across China, building one of the most powerful commercial networks in the world.

1995 | Huabin Group established Red Bull Vitamin Beverage Co., Ltd. in China 1996 | Huabin Group obtained exclusive production rights; Red Bull's first factory in China began operations in Hainan 1997 | Red Bull's Beijing headquarters was completed; the company's first factory in Henan began operations 2006 | Red Bull's third production plant in China began operations in Xianning, Hubei 2013 | Red Bull's fifth production base in China was completed in Yixing, Jiangsu 2014 | Huabin Group partnered with American natural coconut water brand Vita Coco, announcing the introduction of Vita Coco natural coconut water to the Chinese market 2015 | Huabin Group held a launch event for Capri-Sun, announcing the entry of the German global leader in children's juice drinks, sold in over 110 countries and regions, into China 2016 | Huabin Group introduced Norwegian premium bottled water VOSS to China, officially entering the high-end water market

Monster Energy, often called "Monster Drink" or "Ghost Claw" by Chinese fans, is a high-energy sports drink launched by American company Hansen Natural. It contains guarana, taurine, and ginseng.

Functionally, Monster and Red Bull both provide a "refreshing" effect, with little difference. However, in terms of marketing strategy, Monster, as a newcomer, constantly emphasizes its differences from Red Bull. Monster focuses on the relatively niche extreme sports segment.

Compared to conventional sports, these extreme sports are more thrilling and wilder. Additionally, Monster concentrates its advertising on niche sports, which helps reduce costs. Notably, Monster signed a contract with Mike Metzger, a legendary figure in freestyle motocross, for just $600 per month—an unprecedented deal in business history. In fact, top stars in these niche sports have many passionate fans.

Monster Energy CEO: Rodney Sacks

Currently, Monster Energy is sold in over 50 countries and regions across North America, South America, Europe, and Asia, including Hong Kong, China.

Monster Energy comes in three versions: regular sugar (green claw logo), low sugar (blue claw logo), and sugar-free (silver claw logo). However, in China, the regular sugar version (green claw logo) will be launched first.

Although the brand was only founded in 2002, it has taken significant market share from Red Bull in just a few years.

In 2002, before Monster Energy launched in the U.S., Red Bull had nearly 70% market share. Although Monster was not the pioneer, in the U.S. market, Monster's market share gradually grew to 35.2% in 2015, while Red Bull's share decreased to 35.1% in the same year.

Coca-Cola's Stake in Monster In August 2014, Coca-Cola acquired a 16.7% stake in Monster Beverage Corporation for $2.15 billion. The partnership with Coca-Cola is expected to expand Monster's distribution to over 200 countries and regions.

According to company financial reports, Monster Beverage's total sales for Q1 2016 were $777.5 million (about RMB 5 billion), up 9.5% from $710.2 million in the same period last year. Excluding the acceleration of deferred revenue, total sales increased 16.0% in Q1 2016. Net sales for Q1 2016 were $680.2 million, up 8.5% from $626.8 million in the same period last year. Excluding the acceleration of deferred revenue, net sales increased 15.9% in Q1 2016.

For 2015, total sales were $3.11 billion (about RMB 20.2 billion). Excluding the acceleration of deferred revenue, total sales for 2015 were $3.04 billion, up 8.4% year-over-year. Net sales for 2015 were $2.72 billion; excluding the acceleration of deferred revenue, net sales were $2.68 billion.

Huabin's accelerated expansion of its product lines in the FMCG sector over the past two years can be seen as preparation for Monster's entry into China. Once Monster is introduced to China by Coca-Cola, Huabin is well aware that Red Bull's market share will decline rapidly, as evidenced by the U.S. market share data above.

According to the latest statistics, in the U.S. market, Monster holds 35.2% share, while Red Bull holds 35.1%; in Canada, Monster holds 27.8%, Red Bull 37.3%; in Mexico, Monster holds 25%, Red Bull 15.7%.

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