The $20B Redbull story

Hey, it's Guy & Farzan.

Writing this from Port Douglas in Queensland, Australia. Winter here means 25 degrees.

Yesterday we took a boat out to the reef. Snorkeling the Barrier Reef is like swimming inside a 5K nature documentary.

On the way back, a humpback whale decided to investigate our little boat. Twenty minutes of pure magic. This massive creature just checking us out, nudging the hull like we were the curiosity.

Back to business. Let's dive in.

Reading time: 9.25 mins

In the mail today. 3 founder stories, 1 founder note, 1 founder tip

 Founder story 1 

See how two unlikely partners built Red Bull from a rejected Thai syrup into a $20B+ global empire."

How a Reclusive Thai Duck Farmer and an Austrian Toothpaste Salesman turned focus group failures into a $20B+ global empire and created an entire category out of thin air.

The Journey

Chaleo Yoovidhya (Thailand):
- Grew up in Phichit province helping immigrant parents sell fruit and raise ducks
- Worked random jobs in Bangkok: driving buses, selling cosmetics
- Started TC Pharma, selling antibiotics and importing cosmetics
- Created "Krating Daeng" (Red Bull in Thai) in 1976 after dozens of recipe tweaks

Dietrich Mateschitz (Austria):
- International marketing executive selling shampoo and toothpaste across Europe and Asia
- Discovered Krating Daeng during a 1982 business trip to Thailand while battling jet lag
- Quit his job, returned to Thailand, and partnered with Chaleo in 1984
- Each invested $500,000 forming Red Bull GmbH with 49-49 partnership

The Evolution of Vision
- 1976: "What if energy drinks actually tasted good instead of bitter medicine?”
- 1982: "Energy drinks aren't just medicine, they could be culture"
- 1987: "This isn't just a drink, it's an identity for thrill-seekers"
- 1990s: "Don't compete with soda, create your own category entirely"
- 2000s: "From product to media company to lifestyle movement"

Overcoming obstacles
- Initial Thai energy drinks were medicinal, bitter syrups in glass bottles
- Focus groups declared Red Bull awful and predicted market failure
- Market research said the product would flop completely
- Spent three years refining the original formula for Western palates
- Faced skepticism about strange taste and confusing brand name
- Had to ignore conventional wisdom and trust instinct over data

Today's impact
- Best-selling energy drink in the world
- Nearly 8 billion cans sold annually in 170+ countries
- Owns sports teams and runs media empire
- Chaleo's estate worth $5B+ at time of death (2012)
- Dietrich became Austria's richest man with $27B fortune (died 2022)

Growth strategies that worked
- Cultural investment over advertising: Poured profits into extreme sports, skydiving, Formula One rather than TV ads
- Event creation: Didn't just sponsor events - created Flugtag, Crashed Ice, Stratos space jump
- Premium positioning: Priced 4x higher than colas to feel premium, not medicinal
- Subculture targeting: Focused on extreme sports, underground scenes, adrenaline events
- Limited distribution: Started with free samples at clubs, college parties, sports events
- Media Empire: Built Red Bull Media House producing documentaries, live events, athlete content

Key milestones
- 1976: Chaleo creates Krating Daeng, becomes #1 energy drink in Thailand
- 1982: Dietrich discovers the drink during Thailand business trip
- 1984: Partnership formed, Red Bull GmbH established
- 1987: Red Bull launched in Austria
- 1988: Sold 1.2 million cans in second year
- 1990s: Global expansion and extreme sports sponsorships
- 2000s: Became media and entertainment empire

The philosophy
- Dietrich on market research: "The only thing that matters is what the consumer decides at the point of sale."
- On premium positioning: "If we'd only had a 15% price premium, we'd merely be a premium brand... not a different category altogether."
- On brand building: "Red Bull doesn't just advertise. It produces its own media. All content revolves around the brand's real-life energy narrative."
- Core insight: "This wasn't about building a better product. It was about framing it differently. The success came from strange taste, sideways bets, and trusting a feeling most people dismissed."

Founder story 2

See how Lloyd accidently built a $450K/year banana pudding business

Lloyd Ortuoste's yellow Subaru "Ella" got hit in a parking lot. The $1,500 repair bill seemed impossible for broke college students. A friend suggested selling homemade banana pudding to raise funds. That suggestion built a $450K business.

The Journey: 
→ Started making banana pudding at home (cheaper than Magnolia Bakery trips)
→ Won $15,000 grant in Jersey City business plan competition
→ Took $150,000 loan to build first scoop shop
→ Expanded to 3 stores, hit $750K revenue
→ Crashed back to 1 store after chasing vanity metrics
→ Rebuilt focusing on profit over top-line growth

Key insight
"It's not about how much you make as a company. It's about how much you can actually take home."

The numbers
- $450K annual revenue (2024)
- 15-18% profit margins consistently
- 30% cost of goods sold
- 12 team members across US and international
- Hand-crafted approach: no shortcuts, everything hand-layered

The lesson
Lloyd learned the hard way that sustainable growth beats flashy expansion. Going from "being posted by Bella Hadid" back to "just a scoop shop in Jersey City" was an existential crisis that taught him to focus on profit margins over gross revenue.

Cultural touch
Celebrates Filipino heritage with specialties like ube mousse (family recipe) in America's most diverse city.

Sometimes your biggest crisis creates your biggest opportunity. And peace of mind beats vanity metrics every time.

Founder story 3

Arianna Huffington: $315M exit and hard‑won lessons

From Greek Immigrant to Media Mogul: How Arianna Huffington built a $315M media empire, then pivoted to create a $700M wellness tech company after literally hitting the floor.

The Journey
- Born in Athens in 1950, sailed alone to England at age 16 for Cambridge University
- Made history as first foreign-born president of Cambridge Union in 1970
- Started as conservative Republican commentator, then underwent political transformation
- Co-founded The Huffington Post in 2005 with revolutionary group blog format
- Sold HuffPost to AOL for $315M in 2011, netting $21M from her 14% stake
- Collapsed from exhaustion in 2007, breaking her cheekbone, the pivotal wake-up call
- Founded Thrive Global in 2016 to combat stress and burnout epidemic

The evolution of vision
- 1970: "Master English and prove myself at Cambridge as a foreign student"
- 2005: "Create a liberal news platform that democratizes publishing"
- 2011: "Build the ultimate group blog that gives everyone a voice"
- 2016: "End the stress and burnout epidemic through science-based solutions"
- 2023: "Use AI to create personalized health coaching for millions"

Overcoming obstacles
- Navigated cultural barriers as a shy Greek immigrant in England
- Convinced thousands of contributors to write for free, facing $105M lawsuit
- Literally collapsed from exhaustion in 2007, breaking her cheekbone
- Left her namesake publication to start over in wellness tech at age 66
- Built corporate wellness business competing with established players

Today's impact
- The Huffington Post: Sold for $315M, reached 26M monthly visitors, revolutionized digital journalism
- Thrive Global: Valued at $700M, raised $80M from top investors, enterprise clients include Uber and JPMorgan
- Current Innovation: Launched Thrive AI Health in 2023 with OpenAI for personalized wellness coaching

Growth strategies that worked
- Free Labor Model: Convinced thousands to contribute content for exposure instead of payment
- SEO Mastery: Built massive organic traffic through search optimization
- Celebrity Network: Leveraged high-profile connections for credibility
- Corporate Pivot: Shifted from consumer media to B2B wellness solutions
- Enterprise Focus: Targeted multi-year corporate contracts for predictable revenue

Key milestones
- (1970) Co-founded HuffPost with revolutionary group blog format
- (2005) Collapsed from exhaustion, the big wake-up call
- (2007) Sold HuffPost to AOL for $315M
- (2011) Founded Thrive Global, reached $700M valuation
- (2016-2021) Launched Thrive AI Health with OpenAI (2023)

The philosophy
- On redefining success: "It's time to move from a two-legged stool - money and power to a three-legged stool that includes well-being, wisdom, wonder, and giving."
- On sleep and performance: "It's time to sleep your way to the top. We need to stop wearing our exhaustion as a badge of honor."
- On sustainable building: "Successful people see opportunities in every failure. Normal people see failure in every opportunity. But the real winners build sustainably - they don't burn out chasing success."
- On AI and wellness: "Generative AI can make behaviour change much more powerful and sustainable by offering ultra-custom nudges to improve sleep, reduce stress, and enhance overall well-being."

Founder note from Tim Denning

How to build a $6M business from $0 at 38

If I had to begin from $0 and make $6M online again at 38, here's what I'd do:

Build a business with real customers, not some fake passive income machine.

Jump on as many sales calls as possible to figure out whether my offer was a nice-to-have fantasy or a genuine need.

Start with high ticket first, then add low ticket later (if at all).

Only post on one social media app every day and obsess over getting to 5000 followers, even if it meant commenting like crazy.

Invest every cent of my business's profit after I pay myself a salary into Bitcoin to store wealth.

Get rid of the part-time mindset. The side hustle attitude ruins dreams because it forces you to never go all in & waste time.

Start by selling a service. Then productize my service once I had a full-time income. Pay attention to successful creators like Dan Koe, Justin Welsh, Dickie Bush & Nicolas Cole. Not Medium writers, "I made $5 on Gumroad" posts, or growth gurus.

Choose a business idea and business model before building an audience.

Build a daddy-first business for my daughter instead of a Lambo-first business.

Not waste time reading business books.

Forget about creating a plan and just start selling stuff on day one.

Ignore opinions from the public & pay attention to what paying customers say. Money talks.

Make sure I had a strong why first – like working 4 hours a day, uncapped income, no one telling me what to do, personal freedom. Unless you know why to do it, you won't do it.

Stop overthinking and wasting time waiting to feel ready.

Make a mockery of my imposter syndrome because literally everyone is making it up as they go and has no idea what they're doing.

Film videos for social media much later in the journey and use my best posts as scripts.

Pay to get help so I didn't waste 5 years making $0.

Never try to make my business idea secret because ideas without execution are worthless.

Master the art of DMs and get used to sending them daily.

 A founder tip we loved

All done. This evening we’re off to the local Aussie pub to watch some cane toad racing.

Quick reminder - If you like our newsletter, please do “add to address book” or reply. These are “positive signals” that help our newsletter land in your inbox. If you hate it, please unsubscribe (the unsubscribe link is in the footer).

See you next week.

Guy + Farzan
Founderoo