Red Bull

Red Bull

Internationally known, the beverage company’s energy drink, which is reported to combat mental or physical exhaustion, has grown quickly, capturing about 80% of the worldwide energy drink market. Combined from two natural substances along with stimulating caffeine, vitamins and carbohydrates, their product makes them the leaders in the energy drinks category. Founded in 1987, more than 4.6 billion cans were sold in over 160 countries in 2011.

The Challenge
Experiencing tremendous growth, this international beverage producer was in need of a supply chain network re-design. We were hired to conduct a network optimization study in order to increase transportation efficiencies across different facilities and expedite time to market.

Our Strategy
By consolidating into five facilities, primarily port locations, the study revealed millions of dollars in savings in the first year alone. The strategy included four port locations and a central US distribution center. The last of these facilities to be opened was a northeast regional import facility. With East Coast markets tightening, the focus shifted to the inland ports.

Results
By taking advantage of rail transportation and minimizing drayage exposure, our site selection team identified a site in Winchester, Virginia, located on the Interstate 81 corridor and connected by rail to the Virginia Inland Port (VIP). We then partnered with First Industrial Realty Trust to develop the 300,000 square foot building.

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