Back to the archive

The encyclopedia · Product & Design · Strategic decision · 1976

Red Bull was a Thai energy drink for workers — and became a global billion-dollar brand

Krating Daeng was created in 1976 for Thai workers. Mateschitz adapted it for Western markets. The drink became a global phenomenon worth billions.

Red Bull GmbH · TC Pharmaceutical · 1976

What happened

In 1976, Chaleo Yoovidhya created a drink called Krating Daeng (Thai for 'red bull') in Bangkok. The drink was a sweet, caffeinated tonic designed for Thai workers, truck drivers, and laborers who needed energy for long shifts. It was sold in small brown bottles from pharmacy shelves. The taste was medicinal and the packaging was simple. It was a local product for a local market — nothing about it suggested global potential.

In 1982, Austrian entrepreneur Dietrich Mateschitz was traveling in Thailand. He discovered Krating Daeng and found that it cured his jet lag. He saw potential beyond the Thai market. Mateschitz partnered with Yoovidhya and adapted the formula for Western tastes — carbonated it, changed the ratio of ingredients, and repackaged it in a sleek silver-and-blue can. The taste was terrible by conventional standards. The first focus group said the drink tasted like cough syrup.

Mateschitz launched Red Bull in Austria in 1987. The drink was not an immediate success. The taste was divisive. The price was high. The concept of an energy drink did not exist in Western markets. Mateschitz created a new marketing approach: college campus sampling, branded cars with a giant can on top, and sponsorship of extreme sports events. The product found its audience slowly, through word of mouth.

Red Bull became a global phenomenon. By 2024, the company had sold over 12 billion cans annually in 177 countries. The brand was worth over $30 billion. A drink originally created for Thai truck drivers became the most popular energy drink in the world. The market was not the one the original creator intended — it was a much bigger one.

Why it happened

  • Krating Daeng was created in 1976 for Thai workers and truck drivers — a local energy tonic with no global ambitions, sold in small brown bottles from pharmacy shelves
  • Dietrich Mateschitz discovered it in 1982, adapted for Western markets, launched Red Bull in Austria — the taste was divisive, focus groups said it was like cough syrup, but the concept was new
  • Red Bull sold over 12 billion cans annually in 177 countries by 2024 — a drink made for Thai workers became the world's most popular energy drink
What it costA Thai energy drink that nobody in the West wantedlucky mistake

The lesson

Red Bull was a Thai energy drink for workers. Mateschitz adapted it for the West. The taste was terrible. The drink became a global hit. The worst product can be the best — for the right audience.

Sources

spotted an error? The club wants to know.

Comments · 0

    Sign in to join the comments.

    More like this

    Somewhere, someone solved the problem this company failed at. 2nd Opinion →