Red Bull recently announced the groundbreaking of a new $1.7 billion facility in Concord, North Carolina, after facing a four-year delay. This new facility is a joint venture between Red Bull, packaging supplier Ball Corp., and Austrian beverage company Rauch Fruchtsäfte. It serves as the second manufacturing plant for the companies in the U.S. and aims to meet the local market demand for their products.
The 2.36 million-square-foot facility is expected to commence operations in 2028 and reach its full capacity by 2031. It has the capability to produce up to 3 billion cans annually and is estimated to create around 700 job opportunities. The project, initially announced in 2021, finally commenced construction on September 9, 2021. Although the reason for the delay was not specified by the spokesperson, the project is now back on track.
Red Bull, Ball, and Rauch Fruchtsäfte previously opened their first U.S. plant in Glendale, Arizona, in 2021. The new North Carolina site is intended to complement the Arizona location by manufacturing Red Bull Energy drinks specifically for the U.S. market. However, it also has the flexibility to cater to other markets if needed.
With a 50% tariff on aluminum imposed by the Trump Administration this year, there has been a push for more beverage packaging to be done within the U.S. This has led to the decision to build the North Carolina facility, enabling the companies to produce their products locally.
Founded in the 1980s, Red Bull has been a pioneer in the energy drink category. However, the global energy drink market is experiencing significant growth and is projected to reach $125 billion by 2030. With increased competition in the market, including new entrants and expansions from established beverage companies like Keurig Dr Pepper, PepsiCo, and Anheuser-Busch, Red Bull is strategically positioning itself to maintain its market share and stay competitive in the evolving energy drink industry.
