Click to read the original article for details. There are no eternal friends, only eternal interests. This saying might be the most fitting description of Yan Bin and China Red Bull's experiences over the past two years. At the beginning of the year, Red Bull's Beijing production base officially rolled off the 10 billionth can of Red Bull, and the entire workshop was jubilant. On the other hand, over the past 20 years, Chinese people have consumed an average of 400,000 tons of this golden liquid annually, meaning that out of every 5 cans of energy drinks, 4 are Red Bull. However, as the undisputed leader in China's functional beverage market, Red Bull's current situation is not optimistic. A new force, including foreign capital and former management personnel, has quietly entered the scene, casting greedy eyes on it. We won't speculate on how the complex legal disputes will ultimately be resolved. As a leading industry entity that has developed domestically for decades, it affects the interests of industrial chain enterprises, domestic consumers, and employees. It is not uncommon for such disputes over equity and trademarks to lead to controversy and difficulties. Red Bull's century-long dispute is typical. In October 2016, TCP Group, the shareholder of Thai Red Bull, suddenly launched a lawsuit against Yan Bin and his China Red Bull, alleging "trademark infringement" and "unfair competition." Subsequently, TCP relentlessly sued Red Bull Vitamin's companies and distributors in Hubei, Jiangsu, Hangzhou, Guangdong, and Zhuhai. Facing the aggressive actions of his former close partner, Yan Bin, after multiple failed negotiations, ultimately chose to fight back head-on. A vigorous "China Red Bull Defense War" thus began. To date, there have been no fewer than twenty lawsuits between China Red Bull and the Thai shareholders, and the wrestling match between the "two Red Bulls" is far from over. As the battle intensifies, Yan Bin and his Red Bull remain brave, but the prolonged litigation inevitably has some impact on the company's daily operations. On one hand, due to the unresolved trademark dispute, Red Bull products may be halted at any time; on the other hand, some consumers have been influenced by competitors' attacks on Red Bull, and some distributors' attitudes have also shifted. China Red Bull, a pride of the functional beverage brand that grew with the reform and opening-up, has finally faced a truly significant challenge after 24 years of rapid development in China. For Yan Bin and Red Bull, deeply surrounded by opponents, perhaps more than anger, there is a sense of lament. After all, beyond the drawn swords, there is a poignant history between China Red Bull and Thailand's TCP. Red Bull's inventor was the late Xu Shubiao, who was also the founder and former chairman of TCP. In 1993, Xu Shubiao came to his hometown Hainan to open a factory, hoping to introduce Red Bull to China, but faced resistance from many sides. At that time, the domestic public opinion was generally conservative, and caffeinated drinks were seen as a symbol of luxury. More importantly, there was no category of caffeinated beverages in the Chinese market at that time. Xu's factory produced goods but couldn't get approval from market regulators, so not a single can of Red Bull could be sold. In desperation, in 1995, Xu Shubiao, on a trial basis, approached Yan Bin through Thai political leaders. At that time, Yan Bin had already made money in Thailand from scratch and established his own group. By investing in prime real estate in central Bangkok, Yan Bin's Hua Bin Group began to grow. Besides his keen business sense, Yan Bin had close personal ties with Thai high-ranking officials. As a well-known overseas Chinese businessman, he once served as a special economic advisor to the President of the Thai Senate and had frequent contacts with civil exchange organizations like the China Association of Enterprises with Foreign Investment, working for Sino-Thai economic exchanges. After finding Yan Bin, after detailed discussions, the two hit it off, and agreed that TCP would provide trademarks and raw materials like flavors and fragrances, while Yan Bin's Hua Bin Group would handle production and operations, officially selling Red Bull in the Chinese market. In March 1995, TCP and Hua Bin established "Thai Red Bull" in Thailand as the entity for setting up a joint venture in China. Initially, TCP and Hua Bin held 68% and 32% stakes respectively, but later reports said negotiations resulted in a 50-50 split. The same year, to obtain approval for Red Bull as a health beverage, Yan Bin invited two state-owned enterprises to jointly establish a joint venture "Shenzhen Red Bull" in Shenzhen. Earlier, Yan Bin, on behalf of the joint venture, signed an "Agreement" with TCP and other parties, stipulating a 50-year brand authorization period as a prerequisite for the joint venture. With everything in place, Yan Bin began leading Red Bull to conquer the domestic market. His shared experience as a fellow Chinese descendant made him believe his older friend was reliable. Therefore, although the domestic trademark authorization agreement required filing every 10 years according to regulations, the signing of the "Agreement" temporarily eased his concerns. However, things change, and the later falling out with the heirs centered on the validity of this "Agreement." It should be said that Red Bull's journey across mountains and rivers to become a beverage giant in China owes much to Yan Bin and his Hua Bin Group's pioneering efforts and practical contributions. Without Yan Bin, Thai Red Bull couldn't even enter China. At that time, a company in Jinhua, Zhejiang, had registered a "Bullfighting" trademark very similar to Red Bull's logo, which delayed Red Bull's Chinese trademark application. Finally, after negotiations, Yan Bin paid over 300,000 yuan out of his own pocket to buy the trademark. At that time, 300,000 yuan was a huge sum and even sparked media attention. On the other hand, Yan Bin was also actively protecting the nascent China Red Bull brand. Whether it was counterfeit or imitation products, Yan Bin spent nearly 15 years and hundreds of millions of yuan on extensive brand maintenance and purification, including cooperating with regulatory authorities at the Yunnan border to crack down on smuggling of Thai or Vietnamese Red Bull, and the cancellation of a "Red Bull Vitamin Nutritional Drink" product trademark. After nurturing the local Red Bull, Yan Bin personally invested heavily in advertising and consumer cultivation. People who lived through that era recall: "At that time, Red Bull had no brand awareness. To let people try it, he sincerely gave cans of Red Bull to every passing taxi driver." In 1996, Red Bull spent a huge sum on Spring Festival Gala advertisements. With catchy slogans like "Cars need fuel, I need Red Bull," "Drink Red Bull when thirsty, and even more when sleepy or tired," and "Your energy exceeds your imagination," the Red Bull brand gradually became deeply rooted in people's hearts. Additionally, as a health beverage focused on refreshing, China Red Bull sponsored the national badminton team for 7 consecutive years, spending nearly 100 million yuan annually on the national amateur badminton competition "Red Bull Yulin Battle," attracting 40,000 participants. It also supported the development of Chinese extreme athletes and sports, filling several domestic gaps. Yan Bin's over 20 years of dedication resulted in China Red Bull's vast, mature sales network: 15,000 professional staff, over 2,000 distributor clients, and over 4 million retail terminals. Correspondingly, China Red Bull's sales climbed steadily. In 2012, sales exceeded 10 billion yuan; in 2014, over 20 billion; in 2015, reaching a peak of 23.07 billion yuan, with brand value exceeding 50 billion yuan. Behind this massive scale is Yan Bin's relentless hard work. As the founder of China's functional beverage market, Yan Bin constantly worries about Red Bull's development. In a 2012 interview, he joked that he slept standing up: "I get up at 5 a.m.; my mind is clearer early. I was born in the Year of the Horse, and horses sleep standing up." In the past year, he traveled on business for 195 days, flying 290,000 kilometers and 450 hours, equivalent to circling the earth 7 times. However, just as Yan Bin was leading China Red Bull to rapid success, an obituary from Thailand changed everything. In 2012, Xu Shubiao passed away, and TCP was taken over by the second-generation heirs, and relations between the two sides began to deteriorate. At its core, this process was driven by interests. As a world-renowned functional beverage brand, Red Bull has separate companies responsible for Southeast Asia, China, and Western markets. Besides TCP and Yan Bin's Hua Bin Group, there is also Dietrich Mateschitz's group in Austria. Data shows that from 2015 to 2017, Austrian Red Bull's sales were 5.903 billion euros, 6.029 billion euros, and 6.282 billion euros, roughly equivalent to 47 billion yuan. While the Chinese and Western markets were booming, the Xu family's business in Thailand, as the inventor of Red Bull, remained mediocre. In Thailand's functional beverage market, besides M-150 and Carabao, Red Bull ranked only third, with a market share of a mere 10%. In the past, when the Red Bull brand was still developing and market risks existed, the Xu family could sit back and enjoy dividends by providing only the brand and expensive flavors and fragrances. Now that the brand has matured, they can seek greater benefits. After careful consideration, the Xu family decided to take a risk and first openly challenged China Red Bull. This step was clearly meticulously planned. Before the third decade of the Red Bull trademark authorization, i.e., before 2016, Yan Bin and the Xu family negotiated. On one hand, Yan Bin had accelerated Red Bull's domestic development, establishing production bases in Hubei, Guangdong, Jiangsu, etc., starting in 2006. Initially, these were joint ventures between China Red Bull and Hua Bin, but later became wholly owned by Hua Bin due to TCP's opposition. After these bases were put into operation, TCP provided flavors and fragrances, and Thai technical personnel were all present. After the relationship broke down, TCP accused these production bases and sales companies of being "off-balance-sheet companies," evidence of Yan Bin "starting his own stove." Some voices suggest that Xu Shubiao allowed Yan Bin to operate freely during his lifetime but stopped investing, with joint venture surplus used to expand capital and market investment. During renegotiations in 2015, Yan Bin proposed that the prerequisite for dividend distribution and future cooperation talks was the confirmation of the equity structure, as the previously agreed 50-50 split in Thai Red Bull had been altered. To maximize market benefits through advanced investment and establish sales companies nationwide, Yan Bin believed these actions were reasonable. On the other hand, the Red Bull trademark authorization, originally filed every 10 years, became hesitant in the third decade after two filings. In October 2016, TCP announced it would not renew the trademark for China Red Bull. Before that, they had sent lawyer's letters to three factories in Hubei, Jiangsu, and Guangdong, accusing them of trademark infringement. Behind the aggressive attitude, the purpose was clear: with new management, you need to pay a "favor fee." Facing this unreasonable demand, Yan Bin and China Red Bull chose to actively respond to the lawsuit. Unwilling to return empty-handed, TCP chose to cut the ground from under their feet. They found a team led by a former senior executive of China Red Bull to use as a pawn to control Yan Bin. This move directly escalated the conflict. Additionally, they orchestrated, with an international business consultant with experience and background in international capital operations for the serving family, the purchase of Guangzhou Yaoneng Company and the "Yaonengliang" health food approval, launching a drink called "Red Bull Angeji." This new product also used a gold can packaging, with over 90% similarity to the original Red Bull. Because TCP's team knew that reapplying for a health food approval was extremely difficult, both in time and uncertainty, it was easier to acquire an existing one at a high price. The problem is that the approval and corresponding product formula cannot be changed. Strictly speaking, Angeji is Angeji, a "rebadged" product of Thailand's TCP, but in the market, consumers can buy it as Red Bull. While loudly listing Yan Bin's "crimes," they still covet the "territory" Yan Bin built. Behind the trick of substituting one thing for another, the essence of this battle for Red Bull's market dividends, driven by international capital and domestic forces, is exposed. On the other hand, when the snipe and the clam fight, the fisherman profits. This age-old Chinese wisdom is also reflected. With the battle between the two "Red Bulls," Yan Bin has no time to clean up market chaos, and counterfeit Red Bulls have sprung up like mushrooms. Beyond that, even the Red Bull group in Austria, seemingly prescient, began preparing to break into China's functional beverage market in 2014 under the name "Red Bull Brand Energy Drink" through imports. Amidst the chaos, the price and brand image that Yan Bin and China Red Bull maintained with over 20 years of effort and money are in jeopardy. However, in the eyes of the disruptors, the market's deterioration is not only irrelevant but also a new means to threaten Yan Bin. Under siege from all sides, Yan Bin and his China Red Bull are in a bitter struggle. To date, although the outcome of the "China Red Bull Defense War" remains unclear, one thing is certain. No matter who wins, the once peaceful market will no longer exist. What they will reap is only a scorched earth riddled with wounds and bullet holes. Source: Finance and Investment Without Taboos (ID: caijwj)