Red Bull lowers its price

The price of leading energy drink Red Bull has been lowered to bring it in line with European levels.

Red Bull UK has taken the decision because of the strength of the pound against the euro, which has resulted in price differences as high as 20 per cent between Britain and Europe.

The result is that the price of Red Bull will be dropped by about 15 per cent for both the on and the off-trade. Although the price charged in pubs varies greatly, the price paid by consumers in the off-trade will fall from an average £1.09 to 93p.

Red Bull UK managing director Harry Drnec said: "We have closely tracked the pricing issue generated by the weakness of the euro. "For the last year, due to the strength of the pound, we have watched the flood-gates open to grey imports from mainland Europe."We are now tackling this issue head on, and through close negotiations with the trade via our distributors we are reducing the UK case price."

It remains to be seen whether the price cut will be passed on to drinkers - Red Bull recommends that it is, but cannot oblige pubs to cut prices.

Red Bull, especially mixed with vodka, is a profitable line for pubs and bars, with some outlets even offering free vodka with every Red Bull.

A Red Bull spokeswoman denied that the price cut was prompted by the increasing number of rival products, most available at lower prices.

"We've never been frightened of having competitors and we never will be," she said.

Red Bull grew by 680 per cent during 1999, with sales in November and December exceeding the entire 1998 figure.