THAILAND – TCP Group, the inventors and owners of the Red Bull brand has unveiled a series of investments totaling more than US$150 million to expand Red Bull operations in China over the next three years.
The investments will further expand TCP’s presence in the Chinese market by supporting its local partnerships, establishing a new representative office, in-country team, and manufacturing centers.
The company said that it will also be supporting the launch of new Red Bull products and other innovative products from TCP’s global portfolio in that market.
As part of the investments, TCP noted that it has carried out a series of feasibility studies aimed at exploring the possibility of opening new manufacturing centers in China. TCP plans to further invest in the Huairou District by opening a new manufacturing center.
To enable the Group establish a more permanent presence in China, TCP revealed that it has set up a local company to help it to better enhance its marketing and R&D capabilities by better understanding Chinese market.
TCP said that the new in-country capacity will ensure the demand from its Chinese customers is met through constant innovation and the introduction of new products in the very near future.
The beverage firm has also been establishing new partnerships and a new business model to ensure the long-term development of Red Bull in China.
To this end, the company has partnered with, Guangzhou Yao Energy and Pusheng Food Sales to launch two new products locally produced Red Bull An Nai Ji Drink and Red Bull Vitamin Flavor Drink in China.
Since the launch, the company claims that it has achieved geographical coverage across 227 cities in 24 provinces nationwide, as well as over US$150 million in sales revenue for nearly half a year in 2019.
TCP’s new investments are expected to drive major increases in the production and sale of Red Bull products.
“TCP is proud to unveil our planned investments of more than USD 150 million over the next three years in the Chinese market,” Mr. Saravoot Yoovidhya, Chief Executive Officer of TCP Group, said.
“We will further strengthen our strategic partnership and work closely with our local partners to ensure that our business continues to play a small but important role in supporting the development of the entire Chinese beverage industry.”
Looking to the future, Saravoot Yoovidhya said, “Due to the COVID-19 pandemic, 2020 is one of the most challenging years the world has faced in decades. However, TCP remains unwavering in our determination to continue contributing to the development of China’s economy and society during these difficult times.”