SANTA MONICA, Calif. -- Red Bull North America announced a price increase in its products effective Jan. 1, 2015, noting that the company finds it necessary to raise prices to drive revenue for additional innovation.
"During the last 17 years, Red Bull North America has held prices relatively constant despite rising costs associated with raw materials, production and transportation, among others," the company said Friday. "In order to continue investing in the brand's development, Red Bull North America announced today that they are increasing prices on all Red Bull Energy Drink packages to its distributor partners, which will, in turn, lead to new retail prices for consumers. All channels, accounts and distributors will receive the same increases by package."
The new pricing structure will amount to a 5% increase, on average, according to the company.
When Red Bull first came to the convenience-store channel, it effectively increased the amount consumers are willing to pay for a single-serve beverage, charging over $2 for an 8-oz. beverage when 20-oz. carbonated soft drinks were selling for $1.19 each. As the space allowed by retailers for energy drinks has grown, so has the average market basket that includes beverages, a win for both retailers and manufacturers.
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