All Asia Dynasties Are Dwarfed By The $8 Billion Wealth Boom Of The Red Bull Family

It is worth mentioning that we have seen some big winners emerge from the recovery process after the Covid incident, such as the world's most popular energy drink and the family that brought it to the world.

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Various scenes throughout the world show how Red Bull is enjoying popularity, from revelers gulping the beverage at Singapore's ZoukOut music festival for the first time in four years to commuters choosing it over coffee on London's packed morning trains. In the past year, Red Bull GmbH has recorded record revenues, selling over 11 billion cans and being able to dominate the market.

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According to the Trade Algo, the Yoovidhyas, the Thai family who invented it, have increased their fortune by $7.8 billion since January 2022, the biggest gain among Asian dynasties. According to their wealth statement as of March 14, they were worth more than $27 billion, a majority of which came from their shareholding in the privately held Red Bull. The market volatility in recent years has resulted in many of the world's richest families losing money.

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In a recent report, Simon Chadwick, professor of sport and geopolitical economy at Skema Business School in Paris, remarked that energy drinks are synonymous with an active lifestyle. People who exercise again as well as those who return to the workplace and work longer hours "will require energy drinks," he stressed.

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As the scion of the family, Chaleo Yoovidhya, who was selling medications in Thailand at the time, came up with this highly caffeinated drink to introduce into the Thai market. He called it Krating Daeng, or red bull in Thai, and decided to expand into consumer goods.

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When Austrian marketer Dietrich Mateschitz visited Asia, he was helped by this drink to ease his jet lag. As a result of their partnership in 1984, the company became a global brand that now has soccer and auto racing teams, as well as sponsors in extreme sports like mountain biking and cliff diving, and it is now sold in more bars and restaurants than its competitors. An analyst at Trade Algo, Kenneth Shea, says the company has benefited from the pandemic by being sold more in bars than its competitors.

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According to Howard Telford, senior industry manager of soft drinks at Euromonitor International, Red Bull is one of the best lifestyle brands when it comes to consumer goods. In a booming market for functional beverages, Red Bull maintains a strong, premium identity as well as a strong, premium positioning in a thriving industry.

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Red Bull is currently controlled by 51% by the Yoovidhyas, while 49% is owned by Mateschitz’s son, who became one of Europe’s richest millennials following the death of Dietrich last year. While the company is based in Austria, a majority shareholding of the company has been held by the minority shareholder. The Thai family is also in control of the TCP Group, a large supplier of energy drinks in Thailand and elsewhere in Asia.

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As a consequence, the Chaleo family has been at the center of controversy. In 2012, the grandson of the Chaleo family, Vorayuth, was involved in a hit-and-run accident that resulted in the death of a police officer in Bangkok. In 2017, the heir, whose nickname is Boss, fled Thailand on a private jet to avoid prosecution. The charges against him and his family have been dropped three years ago by Thai authorities.

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There followed a boycott of Red Bull products in the country. That prompted the prime minister to order an investigation into the case, leading prosecutors to indict Vorayuth on two new charges. It is clear that Vorayuth has already run out of the statute of limitations on one of the charges — drug use — and the remaining charge, reckless driving causing death — is set to expire in 2027. It is not clear where he is.

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According to Yupana Wiwattanakantang, associate professor at the National University of Singapore's Business School, "We know that in this case, the Yoovidhyas will be able to escape," She said the family is expecting people to forget, or in the best case scenario, shut up about it completely.

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In response to requests for comment, the Thai Attorney General’s Office and the TCP Group declined to respond to questions about the family’s assets and the investigation.

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In addition, the clans of the Chearavanonts, the founders of Charoen Pokphand Group, and the Chirathivats, the founders of Central Group – are becoming increasingly well known in the country for their wealth, which exceeds $69 billion combined, or 14% of the country’s Gross Domestic Product for 2021, when combined. As of that year, Thailand's per-capita income was less than $7,100.

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Nevertheless, it remains unclear who will lead the company. TCP Group is currently headed by a 53-year-old Saravoot, Chaleo's son with his second wife, and all its directors are members of the Chaleo family. It is noteworthy that the clan holds the majority stake in the business, but none of the third generation members, who inherited the fortune, are involved in running it. Yupana explains that they might have to turn the management of the group over to external professionals.

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When Dietrich Mateschitz died, his son Mark stepped down from running Red Bull's organics unit, removing himself from the daily operations of the company when his father passed away. This allowed the company to remain focused on its core activities. For the purpose of leading the company, he decided to hire a new management committee.

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In addition to growing competition and concerns about abuse of market power in Europe, the next generation will also have to deal with a longstanding trademark dispute in China.

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Chadwick, however, is optimistic about the future of the company for now, and he explains why.

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During his presentation, he noted that Red Bull has redefined what it means for an energy drink to be. It seems that they have created a image where these drinks don't just have the appearance of something you drink while you are sick, but something you drink primarily for energy. In my opinion, this post-pandemic era will see an explosion in exercise, health, and fitness.