This 30-Year-Old Inherited a Business Behemoth and Is One of the Richest People in the World
A son inherited more than just "wiiings" from his father Dietrich Mateschitz, the Austrian billionaire and creator of the Red Bull empire. After the passing of his father in October last year, Mark Mateschitz succeeded him and received a 49% stake in Red Bull.
The stake he inherited has now moved him up the charts and made him the youngest billionaire in the world with a fortune of $35 billion. The 31-year-old is also one of the 40 richest people on the planet. The Austrian billionaire being the only child inherited every bit of his father's share.
He had famously stepped down as Red Bull's Head of Organics in 2022 as he wanted to concentrate on his role as a shareholder. He told The Sun, "I do not believe one should be both an employee and a shareholder of the same company. I will concentrate on my role as a shareholder."
According to Forbes, he is now one of Europe's newest billionaires at $34.7 billion, and 37th richest in the wrold. He has also earned the title of Europe's richest millennial.
Who Is Mark Mateschitz?
Während viele Menschen in Österreich nicht mehr wissen, wie sie Miete & Lebensmittel bezahlen sollen, werden die Reichen immer reicher.— Tom de Belfore (@Tom_de_Belfore) May 10, 2023
Mark Mateschitz ist jetzt der reichste Österreicher. Das Vermögen des 31-jährigen Sohns von Dietrich Mateschitz liegt bei 32,6 Milliarden €. pic.twitter.com/zGm7Q29IFj
Mark Mateschitz studied business at the Salzburg University of Applied Sciences, Austria. According to Daily Mail, he is said to be "down-to-earth" and understands that the business is built on many years of passion and hard work.
Mark has inherited a number of luxury properties, including a Fijian island, Austrian castles and an estate in London's Knightsbridge.
Mark is single with no children. He was linked with Victoria Swarovski, heiress to the Swarovski crystal fortune, but there has been no confirmation. He is seen as one of Europe's most eligible bachelors.
According to @skysportformel1 Mark Mateschitz, son of founder Dietrich Mateschitz, is visiting the Sao Paulo paddock this weekend. Helmut Marko: "It's a good opportunity to have some talks". Wonder what changes he has in mind for Red Bull Racing & Alpha Tauri. pic.twitter.com/qEggHTgPWA— Tobi Grüner 🏁 (@tgruener) November 11, 2022
Who Was Mark's Father Dietrich Mateschitz?
Dietrich Mateschitz, also known as 'Didi', launched a whole new beverage category in 1984 in association with his Thai partner. He was exposed to energy drinks while traveling to Asia and decided to create Red Bull in partnership with Chaleo Yoovidhya. The partners took the intensely sweet syrupy drink and turned it into a carbonated drink for the Western market.
"When we first started, we said there is no existing market for Red Bull. But Red Bull will create it," Mateschitz told Forbes in 2005. "And this is what finally became true."
He was a man who applied many different strategies and even built up a sports, media, and real estate empire around his brand.
Behind Red Bull's Success
After co-founding Red Bull in 1984 and bringing the product to Austria three years later, Dietrich began to heavily invest in marketing and started sponsoring sports teams to raise brand power. This proved fruitful for the company in the coming years, making it the brand that it is today.
According to Economic Times, the company sold 10 billion servings in FY 2021, which is one for every person on Earth! Their revenue in the same year jumped 24% to €7.8 billion.
Diving a bit into the unit economics, Red Bull is known for their sky-high profit margins with a production cost lesser than 20 cents, and a selling price of approximately $3 per can. In 2020, Red Bull's operating return on sales was about 26%, as per the company's filing that year.
Another clever strategy the company applied was its premium pricing. Since the company's inception, the market has seen high volumes of beverage companies entering and selling double the quantity at the same price. However, this company kept its pricing position intact and this strategy made the product aspirational for an average person. It was soon noticed how people preferred keeping Red Bull on their shelves and like that Red Bull became a powerhouse in the beverage market, which is often known to be crowded and volatile.