Red Bull is known for its energy drinks and extreme sports sponsorships. The company has been particularly adept at marketing due to its allegiance to alternative and extreme sports and marketing slogans like "Red Bull gives you wings."
The company got its start in energy drinks but now produces a wide range of beverages, including sports drinks and organic sodas.
Is Red Bull publicly traded?
Red Bull is not publicly traded on the stock market. This means you cannot directly buy shares of Red Bull as you could with a publicly traded company like Coca-Cola (KO -1.78%) or PepsiCo (PEP -0.60%). Red Bull operates as a private company. It's owned by its founders and private investors rather than public shareholders. This allows Red Bull to focus on long-term brand building and reinvestment without the pressure of quarterly earnings reports.
Although Red Bull isn't publicly traded, there are several ways investors can gain indirect exposure to its success, including:
- Investing in companies with a similar profile to Red Bull.
- Investing in companies that provide related services to Red Bull.
- Investing in the beverage industry via exchange-traded funds (ETFs).
When will Red Bull IPO?
As of now, Red Bull has not announced any plans to go public. An initial public offering (IPO) would involve Red Bull selling shares to the public and being listed on a stock exchange, but there has been no indication from the company that it intends to pursue this path in the near future. Red Bull's business model thrives on its private structure, which supports its unique marketing and business strategies, and an IPO doesn't appear to be of paramount importance.
IPO
Alternatives to Red Bull
Here are three companies that have ties to Red Bull, providing indirect exposure to the company:
1. Monster Beverage
Since you can't buy Red Bull stock, the simplest alternative would be to invest in one of Red Bull's main competitors, like Monster Beverage (MNST -1.63%). As one of the largest publicly traded beverage companies, Monster Beverage has an incredibly diverse portfolio of energy drinks and a strong financial track record. You could also gain exposure to Monster Beverage through mutual funds and ETFs.
2. Celsius Holdings
Celsius Holdings (CELH -4.20%) is a leading provider of health-focused energy drinks. Its products, which include fitness and performance drinks, are designed to help consumers boost energy and improve physical performance.
Red Bull and many other major energy drink companies compete with Celsius Holdings' growing market presence, which is inserting more of a health focus into the energy drink space. Celsius would be a smart play for someone who wants to take advantage of health-conscious consumers, particularly in an industry (energy drinks) that has been dealing with health controversy.
3. PepsiCo
PepsiCo is a global behemoth of beverage and snack food companies that offers exposure to the energy drink market through its brands like Rockstar Energy. Investing in PepsiCo can provide diversified exposure to the broader beverage industry, including the fast-growing energy drink segment.
How to buy stocks similar to Red Bull
While you can't buy Red Bull stock directly, just follow these steps, and you can be an owner in other companies that are similar in nature or have ties to Red Bull.
- Open your brokerage account: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
ETFs with exposure to companies similar to Red Bull
ETF Ticker | Name | Exposure to Beverage Companies | Assets Under Management | Expense Ratio |
|---|---|---|---|---|
Consumer Staples Select Sector SPDR Fund | Includes major beverage companies like Coca-Cola and PepsiCo. | $15.4 billion | 0.08% | |
Invesco Dynamic Food & Beverage ETF | Focuses on the food and beverage industry, including companies like
Coca-Cola. | $0.097 billion | 0.61% | |
First Trust Nasdaq Food & Beverage ETF | Targets the food and beverage industry, including major beverage brands. | $0.017 billion | 0.60% | |
iShares Global Consumer Staples ETF | Global exposure to consumer staples, including major beverage companies. | $0.860 billion | 0.39% | |
SPDR S&P Global Dividend ETF | Includes global dividend-paying companies, including major beverage
companies. | $0.225 billion | 0.40% |
Should you invest in Red Bull-related stocks?
Only you can decide if investing in companies related to Red Bull is right for you. Here are a few reasons you might consider doing so:
- You believe in the resilience of the beverage industry: If you expect steady demand for energy drinks and beverages, companies like Monster Beverage and PepsiCo can be solid long-term investments. The beverage industry is known for its stability and capacity to generate consistent returns, even in uncertain economic times when volatility is omnipresent.
- You believe that innovative marketing will drive growth: Red Bull's marketing strategies and decisions to align themselves with the growing alternative and extreme sports market have set it apart. If you believe that the energy industry will make the necessary pivots in the future, such as embracing e-gaming as it did with skateboarding, then you might want to consider investing.
- You think health and wellness trends will boost energy drink sales: Many consumers are turning to energy drinks for a quick boost in their active lifestyles. Companies like Celsius Holdings that focus on health-conscious energy drinks are well-positioned to benefit from this trend.
Conversely, here are some reasons that you might want to pass on such an investment:
- You aren't interested in stocks with limited growth potential: Traditional beverage companies like Red Bull often exhibit slower growth compared to other industries. While they provide stability and steady returns, they may not offer the high growth potential that some investors seek. This can be less appealing to those looking for significant capital appreciation over a shorter period.
- You want something that's insulated from health regulation risks: The energy drink market is subject to regulatory scrutiny regarding health effects and has come under pressure in recent years with the rise of multiple brands. Changes in regulations or negative health studies can affect company performance and stock prices. For example, tighter regulations on sugar content in beverages have led some companies to reformulate their products. That can affect consumer demand and, consequently, stock prices.
- You feel there will be a reason for high operational costs: Increased costs for ingredients or production can significantly affect a beverage company's financial health and reduce its profit margins, making its stocks less attractive to investors seeking stable returns. If you feel there is a reason this could happen, you might want to avoid investing in the beverage industry.
The bottom line
You can't invest in Red Bull directly because it's a privately owned company. But if your thirst for energy drinks is driving you to invest, you can still get involved in the energy drink market by investing in companies like Monster Beverage, Celsius Holdings, or PepsiCo. These companies are strong players in the industry and offer a way to benefit from the popularity and growth of energy drinks, even without owning Red Bull stock directly.
