SOURCE: Red Bull

February 27, 2008 08:00 ET

No Substitute: Red Bull Wins One More Case to Protect Consumers and Its Brand

Florida Establishment Roxy Charged With "Passing Off"

SANTA MONICA, CA--(Marketwire - February 27, 2008) - Red Bull North America, Inc. has reached a negotiated settlement with Roxy, an Orlando, Fla.-based nightclub, that resolves "passing off" claims alleged in a lawsuit filed by Red Bull. The lawsuit, filed in federal court in Florida, alleged that customers who visited Roxy and requested a Red Bull routinely received a substitute beverage without being notified of the substitution. The Roxy customers were also not given the opportunity to accept or reject the stand-in product.

The terms of the settlement include a permanent injunction against Roxy and its employees that precludes them from "passing off" other beverages as Red Bull. In addition, Roxy has agreed to pay Red Bull an undisclosed amount.

"We are doing everything we can to ensure that customers are receiving the quality and taste that they have come to know and expect from Red Bull by taking action against bars and restaurants who continually 'pass off' other beverages as Red Bull," said Keith Riley, Director of National On Premise Accounts, Red Bull North America.

Red Bull has multiple objectives in pursuing these lawsuits, including: 1) protecting the integrity of the Red Bull brand trademark at retail and in the minds of consumers; 2) protecting the consumer in the marketplace; and 3) educating establishment owners and staff that passing off is illegal and Red Bull will pursue aggressive legal action.

"We believe in the power of brands. We have one of the most prominent brands in the nightclub industry and know the value a brand like Red Bull carries with our clientele," added John J. Surgent, co-owner of Pangaea and Gryphon at the Seminole Hardrock Hotel and Casino in Hollywood, Florida. "And partnering with Red Bull makes sense not only from an image perspective, but from a financial perspective, as well. We've been offered lots of money by other energy drink companies to carry their product, but when you crunch the numbers, the profitability of carrying Red Bull far outweighs those other knock-off energy drink products."

When consumers pay for a premium beverage, they have a right to expect that it be given to them. Consumers are encouraged to "demand the can" of Red Bull with their drink as proof that they are not being deceived. The best way to distinguish Red Bull from alternative products is the packaging. Red Bull is sold exclusively in its unique blue and silver can. It is never shot out of a beverage dispenser gun.

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