Sugar tax harms Red Bull and not Pure Bio Energy Drink

29-Jan-2025

A possible sugar tax in Austria would harm Red Bull more than a drink like Pure Bio Energy Drink, because the two products differ completely in their sugar content and their target group.

Pure Bio Products

A possible sugar tax in Austria would harm Red Bull more than a drink like Pure Bio Energy Drink, because the two products are totally different in terms of their sugar content and their target group.

Sugar content as a tax base

The sugar tax would primarily affect drinks with a high sugar content. The classic version of Red Bull contains approx. 27 grams of sugar. However, if Pure Bio Energy Drink has a significantly lower sugar content or none at all (e.g. because it uses natural sweeteners or sugar-free alternatives), it would hardly be affected by the tax, if at all. This gives Pure Bio a price advantage over Red Bull.

Target group and positioning

Red Bull is an established brand with a global presence and appeals to a broad audience that may be less concerned with taxation. However, while Pure Bio positions itself as a healthier and organic alternative, a sugar tax could emphasize this difference and even give Pure Bio a marketing advantage.

Pricing and competition

A sugar tax could lead to an increase in the price of sugary drinks, particularly affecting premium brands such as Red Bull and Coca-Cola. Pure Bio Energy Drink could use this price difference to attract customers who are more price-conscious or specifically looking for "healthier" options.

Conclusion

A sugar tax in Austria would likely place a greater burden on companies like Red Bull that rely heavily on sugary products. Brands such as Pure Bio that focus on little or no sugar could benefit, both through lower costs and better perception among health-conscious consumers.

Note: This article has been translated using a computer system without human intervention. LUMITOS offers these automatic translations to present a wider range of current news. Since this article has been translated with automatic translation, it is possible that it contains errors in vocabulary, syntax or grammar. The original article in German can be found here.

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