Click the image for details After ORG Packaging, someone else is being sued over Red Bull!

The trademark dispute between Thai Red Bull and Chinese Red Bull has reached a fever pitch. T.C. Pharma (Thailand) Co., Ltd. (hereinafter "Thai T.C.") has filed multiple lawsuits in quick succession, targeting not only Chinese Red Bull but also, in early August, its production and sales entities. The battle over the trademark is spreading further!

Another lawsuit! Both Chinese Red Bull's producer and seller are sued On August 3, 2017, Thai T.C. filed a lawsuit against Guangdong Red Bull, Guangzhou Red Bull, Zhuhai Red Bull, and Aeon Supermarket, alleging that they produced and sold products infringing on its trademark rights. This is the first time Thai T.C. has sued a Red Bull distributor. To date, all parties involved in the supply chain—can suppliers, producers, and sellers—have been dragged into the legal quagmire between Chinese and Thai Red Bull. It is understood that Guangdong Red Bull, Guangzhou Red Bull, and Zhuhai Red Bull are all directly or indirectly held by Reignwood Group, the operator of Chinese Red Bull. After being sued by Thai T.C. for "infringing on products with exclusive trademark rights," these three Red Bull companies all lost their first-instance rulings and had their appeals rejected. The other defendant, Guangdong Aeon Tianhe City Commercial Co., Ltd. (hereinafter "Aeon Supermarket"), is the first distributor to be caught up in the Thai-Chinese Red Bull trademark war. Thai T.C.'s reason for the lawsuit is "infringing goods 'RedBull' beverages," but Aeon Supermarket has not yet responded. (Pictured: Aeon Supermarket logo) Red Bull event review: Ongoing fallout affecting multiple parties The latest lawsuits against Guangdong Red Bull, Guangzhou Red Bull, Zhuhai Red Bull, and Aeon Supermarket add more pressure on Chinese Red Bull. Let's review how the trademark dispute over Chinese Red Bull has escalated step by step, expanding its scope to its current state. End of 2016: Chinese Red Bull embroiled in trademark dispute. The trademark license held by Chinese Red Bull expired at the end of 2016. Red Bull Thailand filed a lawsuit on the grounds of "dispute over request for change of company registration," asking the Red Bull company to immediately handle the filing of director changes with the Beijing Administration for Industry and Commerce. July 2017: Dispute spreads to can supplier. Thai T.C. sued Chinese packaging company ORG Packaging, alleging it counterfeited Red Bull packaging and demanding over 30 million yuan in compensation. ORG Packaging is the main packaging supplier for Reignwood Group, the licensee of Chinese Red Bull, and has a solid, close relationship with Chinese Red Bull. According to the 2016 annual report, Red Bull canning business contributed as much as 65.47% of ORG Packaging's revenue. The trademark dispute has clearly affected ORG Packaging's business. However, ORG Packaging stated that it would continue to can for Chinese Red Bull as usual until the dispute is finally resolved or a judgment is made. August 2017: Producers and sellers caught in the crossfire. In early August, a lawsuit against Guangdong Red Bull, Guangzhou Red Bull, Zhuhai Red Bull, and Aeon Supermarket brought the producers and sellers of Chinese Red Bull into the dispute, bringing Thai T.C. one step closer to an all-out "declaration of war" against Chinese Red Bull. Thai side makes high-profile moves Announces largest expansion plan in history While the conflict between the two sides is escalating and Chinese Red Bull faces a series of lawsuits, Thai Red Bull's parent company, Thai TCP Group (which owns Thai T.C. and other companies), has announced a five-year expansion plan, rolling out the following actions and plans. (1) Launch a new corporate image. (2) Build a "family of influential brands." (3) Triple sales to $3 billion within five years. (4) Start a five-year investment plan of $300 million. (5) Plan to build a new factory or office in a new country each year for the next five years. In addition, regarding the Chinese market, TCP Group CEO Somphote Ahunai stated, "We are committed to China's growth potential, where we have production operations." He also said they are renovating existing plants in China while still reviewing their business model in China to adapt to the investment and market environment. Currently, Thai TCP Group has two beverage factories in Thailand and one each in Indonesia, Vietnam, and China, with an annual production capacity exceeding 1 billion liters. Products made in Thailand are sold to over 170 countries worldwide, with global beverage sales exceeding 10 billion cans. Industry insiders estimate that by December 31, 2017, TCP Group's annual consolidated sales are expected to reach $900 million, with exports accounting for about $600 million. "Morale" unstable Where should distributors go? After the successive lawsuits, what is Reignwood Group's next move? According to a former employee of Reignwood Group, currently, Reignwood Group's distributors rely more on Red Bull's profits for support. Other Reignwood products are not selling well due to poor positioning or narrow audiences, and some employees have even resigned because they were required to sell some products internally. Since last year, rumors about the expiration of the Red Bull trademark license have been rife, but Reignwood Group has remained silent to outside voices. For years, Reignwood Group has insisted on doing only the Red Bull brand in its beverage business. Through meticulous cultivation, Red Bull has become a leader in its category. Last year, when Thai Red Bull's brand license to Reignwood Group expired, rumors about whether it could be renewed have plagued the group. Previously, a Reignwood Group spokesperson told reporters, "We will not respond to standard answers for Red Bull media communication. Under this unavoidable major issue, Reignwood Group can only do what it should do; the rest will be explained by time." Some analysts believe that reassuring distributors is the work Reignwood Group needs to do now. "Previously, after ORG Packaging was sued, it said it would continue production, indicating that ORG Packaging is willing to stand with Reignwood Group to face difficulties. But distributors are not certain; except for some larger distributors, other distributors are not very stable. What needs to be done now is to stabilize these distributors." Earlier, Reignwood Group launched a six-month promotional campaign with total prizes up to 198.7 million yuan. Such a long promotion and large-scale investment have led some industry insiders to speculate that Reignwood Group has secured the Red Bull trademark license. However, others say that Reignwood Group's big move is simply to trade profits for sales volume, not to announce the success of the trademark renewal. The launch of this summer promotion is, for Reignwood Group, a way to soothe distributors' emotions and give them a "reassurance pill." Some distributors also say they are powerless regarding the trademark issue and can only hope Reignwood Group resolves it quickly. For now, they can only continue to stock and sell, but they are uncertain how long they can sell. If Reignwood Group cannot resolve the Red Bull lawsuit, it will be difficult for other brands under Reignwood Group to find distributors in the future. Source: Compiled by New Distribution from Food Business and Beijing Business Today