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I'm reposting one of my favorite founder stories. If you listened to this first time I recommend listening again. If you missed this before, you're about to hear one of the wildest founder stories of ...
Dietrich Mateschitz built Red Bull from a $1M investment at age 41 into a $20-30B empire, taking $500-800M annually in dividends. He created an entirely new product category through unconventional marketing, owning sports teams and media properties instead of traditional advertising. Operating debt-free and self-funded, he maintained 49% ownership while building what he called a 'marketing conglomerate' - outsourcing production but controlling all marketing and brand activities. His philosophy prioritized independence, fun, and the journey over profit maximization, working on Red Bull for 40 years until his death.
Overview of Mateschitz's massive financial success ($500-800M annual dividends, $20-30B net worth) and his revolutionary marketing approach. Red Bull operates as a content provider owning sports teams, producing TV shows, and creating media assets rather than buying traditional advertising. The company generates over $667K revenue per employee through this efficient model.
Mateschitz discovered an uncarbonated Thai tonic in 1982 that cured his jet lag during business travel. After learning the tonic maker was Japan's top corporate taxpayer, he partnered with Thai businessman to create a carbonated Western version. Each invested $500K for 49% ownership, with remaining 2% going to partner's son.
Mateschitz maintained extreme privacy, refusing interviews and controlling all information flow. He bought a society magazine just to keep himself out of it, threatened a biographer, and ran a 'press prevention office.' His philosophy: since Red Bull is on the shelf, not him, all marketing should focus on the product. Employees were prohibited from discussing internal matters.
Mateschitz spent 20 semesters getting his marketing degree, then worked for Unilever as marketing director for Blendex toothpaste. After traveling 3-4 months yearly to Asia, he grew tired of 'gray planes, gray suits, gray faces' and desperately wanted independence. At 38, he decided he didn't want to be doing the same thing at 48.
After waiting over a year for German approval, Mateschitz launched in Austria in 1987 and stayed there exclusively for 5 years to perfect the product and marketing. He invested in product giveaways instead of advertising, similar to Estée Lauder's strategy. Hit breakeven in year three and has been profitable every year since.
Mateschitz hired college friend Kastner's ad agency but rejected 50 concepts over 18 months, paying with his own labor at the agency. Kastner finally called middle of night with 'Red Bull gives you wings' - immediately accepted. They wanted advertising to be 'self-ironic, nonconformist, smart and rebellious' reflecting their own personalities.
Red Bull was banned in Germany, creating a thriving black market where people smuggled it from Austria. Rumors spread that taurine came from bull testicles or that it contained amphetamines. Mateschitz deliberately fostered these rumors as free propaganda, understanding that 'the most dangerous thing for a branded product is low interest.'
Mateschitz targeted extreme sports athletes rather than mainstream sports, copying Gatorade's athlete sponsorship model but applying it to underserved niches. Today sponsors 500+ athletes in 97 sports. First meeting with windsurfer Robby Naish ended with Mateschitz forcing him to drive his Ferrari GTO back from mountains - unconventional relationship building.
Mateschitz surfed the wave of EU formation - approval in one country meant automatic approval in others. Got UK approval as 'detour' to enter Germany. By 1997, opening new country markets monthly. Tested US market with California-only launch before nationwide expansion. Maintained financial discipline despite rapid growth.
Mateschitz created intense performance culture - 'can make mistake once, not twice' - but paid above-market salaries and gave every employee a company car. Extremely loyal to those who helped him. Company served 'Luna Aqua' mineral water allegedly drawn only at full moon. Former employees universally positive, describing him as gentleman with great charisma.
Red Bull outsources all production, bottling, and distribution while keeping marketing and sales in-house - opposite of typical corporations. Main bottler relationship sealed with handshake in 1987, still active 40 years later. Asset-light approach frees capital for marketing. Tall can design intentionally different to stand out on shelves.
Despite constant offers to license Red Bull brand for gummy bears, underwear, perfume, Mateschitz refused everything. Early product 'Red Rooster' lemonade flopped. Learned to focus all energy on single product - selling Red Bull energy drink in cans. All marketing exists only to sell more cans.
Mateschitz refused bank debt beyond small initial loan, living on salary alone for 15 years with zero dividend payouts until 1999. All profits reinvested in expansion. Philosophy: 'spend money we've earned, not money we might earn someday.' Never wanted to endanger company existence 'not even for a second.' Son now receives $615M annual dividends.
Mateschitz doesn't sponsor sports - he owns teams and renames them 'Red Bulls' with logo on jerseys. Owns F1 teams, soccer teams, NASCAR team. Produces hundreds of hours of content yearly, then gives it free to 70+ TV stations worldwide. Philosophy: 'don't want to be Marlboro on Ferrari, want to be integrated into the sport.'
Mateschitz rejected business school teachings, saying primary goal isn't profit maximization. Motivated by freedom, independence, and joy in work - not money. Moved headquarters to 1,500-person village for 'pleasant working atmosphere.' Stayed incredibly fit for extreme sports. Never married, categorically refused to sell or go public. 'I'm having more fun than ever' when asked about retirement.
Red Bull's Billionaire Maniac Founder
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