Asahi gets its wings in Australian distribution deal with Red Bull

Asahi is stepping into the fast-growth energy drink ­market after inking a deal to distribute market leader Red Bull in Australia.

The deal will see Asahi Lifestyle Beverages use its scale and customer relationships to drive growth and accelerate expansion for Red Bull Australia. Picture: Craig Greenhill

Asahi Lifestyle Beverages, part of the Japanese beverage giant that also owns brewer Carlton & United Breweries, is stepping into the fast-growth energy drink ­market after inking a deal to distribute market leader Red Bull in Australia.

The deal will see Asahi Lifestyle Beverages use its scale and customer relationships to drive growth and accelerate expansion for Red Bull Australia, particularly in sport and recreation facilities, leisure and entertainment centres, quick service restaurants and other venues that comprise the “on the go” channel.

It grows the already bulging consumer brands portfolio owned by Asahi, which includes the Schweppes drinks product range as well as all the beer labels sold under CUB — which the Japanese multinational bought last year for $16bn and which gave it the leading share of the brewing market in Australia.

Now Asahi is looking to make a splash in the energy drink market, with industry research from Euromonitor showing Australians will spend around $1.2bn on energy drinks this year, an increase of over 30 per cent in five years.

The deal marks Asahi Beverages’ re-entry into the energy drinks market after several years.

Asahi Beverages Group chief executive Robert Iervasi said the company hadn’t had a major energy drink in market for some time, and was thrilled to now be partnering with Red Bull Australia. “Red Bull’s passion for great-tasting, functional products and innovative marketing has made it an instantly recognisable energy drink,” he said.

“We’re confident that adding such a diverse brand to our portfolio will help Asahi Beverages’ customers grow their businesses.”

Red Bull managing director, Miles Wilson, said the partnership with Asahi will expand distribution into new outlets and channels. “We are excited to partner with a wonderful company like Asahi to bring that vision to life in a mutually beneficial way,” he said.

The energy drink market is a highly contested and competitive space within the beverages industry. It is led by the Austrian-based Red Bull with a market share of about 38 per cent, followed by V at 31 per cent. Coca-Cola Amatil’s Mother and Monster are ranked third and fourth, with shares of roughly 15 per cent and 8 per cent.