Posted On: 06/01/2016 9:10:28 AM
Post# of 75079
People don't realize how well they've trounced on Red Bull's first year production/sales. Most are addressing the topic with unrealistic expectations for first year start up performance. Roger's reply to this post answers this well. I would stress both the seasonal factor he referred to and the start up factor as well, but I believe the start up piece is the main factor. As we discuss the mid to long term prospects for this brand, far too many here are looking for short term "miracles". I believe the start up factor to be the primary cause for slower sales because their strategy has been mainly the use of "guerilla" marketing and "wagon jobber" distributing in order to build the brand from the ground or the "street" up and keep the borrowing/dilution down as much as possible. This is working great, but it's slower in the early stages of execution. It's picking up momentum though, and this summer should bring strong proof of that. Some came as they sold more product than expected early in the following (this) quarter and had to scramble to catch up. They're just over the one year mark for product sales, and using the growth strategies they're using, they're actually doing extremely well. Also, some ask questions like this even though they are well aware that sales were actually NOT poor given the other known facts. Hopefully that's not what your doing here, especially since it has little to no impact on that mid to long term upside potential which is what has us so excited. Actually, at this point the near term is looking really nice too. 
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