Kansas: KANSAS LEGISLATURE CONSIDERS POSSIBLE ALCOHOL TAX INCREASE
Kansas: KANSAS LEGISLATURE CONSIDERS POSSIBLE ALCOHOL TAX INCREASE Source: Gardner News Madison Coker Jun 7, 2017 As Kansas lawmakers continue to struggle with balancing the budget, a tax increase for alcohol might still be in play. Facing a projected budget shortfalls of nearly $900 million through June 2018, Gov. Sam Brownback proposed […]
Red Bull owner locks horns over drink’s future in China Source: FT June 9, 2017 Energy drink Red Bull is at the centre of a dispute between its Thai owners and a China-born business tycoon whose investments include London landmarks and Wentworth golf course in the UK. The Bangkok-based Yoovidhya family is battling Chanchai Ruayrungruang, also known as Yan Bin, over the rights to make and distribute Red Bull in China as tensions emerged following the expiry last year of a 20-year licensing agreement. At stake are annual sales of 5bn cans of the caffeine-charged drink in its biggest single market. It also pits two prominent Asian business empires against each other, in a case further complicated by Mr Chanchai’s friendship with Red Bull’s late founder. Mr Chanchai controls a range of commercial ventures, including a number of golf clubs, through his privately held Reignwood Group and counts among his friends Donald Trump, US president. Speaking to the Financial Times in a rare interview, Mr Chanchai recalls being surprised to find Mr Trump’s handicap was zero. “I told him ‘Oh, you are much stronger than me. Normally in China I only play those people I can win; I don’t play with those that I will lose to.'” That resolve is being tested in the negotiations over a business that is core to his conglomerate. Mr Chanchai acquired the right to manufacture and distribute Red Bull across China through a mid-1990s joint venture with members of the Yoovidhya family, who control Thailand’s TC Pharmaceuticals. The company was founded by Chaleo Yoovidhya, who invented Kratingdaeng – Thai for Red Bull – in 1975. But the two sides have been wrangling over terms of an extended contract including trademark rights, people familiar with the talks say. Mr Chanchai did not give details of the negotiations, but he says he is the rightful owner of the Red Bull business in China, which has formed the basis of his multibillion-dollar fortune. He also owns a 25 per cent stake in Vita Coco, the coconut water brand that is now on the market for as much as $1bn, and a controlling share in Norway’s Voss Water. “I am myself quite confident and relaxed about this,” he says. “I personally invested all the money in advertising and factories. That’s what I care about the most, and that’s why everyone in China says that Red Bull belongs to Yan Bin.” TC Pharma, now controlled by Mr Chaleo’s descendants, says it is the indisputable owner of the Red Bull trademarks in China, meaning there is no legal basis to Mr. Chanchai’s claim. “He has no rights, including ownership rights, to Red Bull’s wide array of intellectual property rights including all trademarks in China or in any other country,” the company says. It adds: “Having first introduced Red Bull to China more than two decades ago, we remain fully committed to maintaining our brand’s strong and vibrant presence in the Chinese market.” One point of contention is whether sales of the drink should be higher in the world’s largest beverage market, people familiar with the matter say. While Red Bull is a premium energy drink internationally, in China it is still sold haphazardly in cheap roadside shops. “They’ve been a slow mover in the market,” says Shaun Rein, founder of China consultancy Market Research Group. “Recently they’ve been trying to capture the youth market but the problem is these caffeine-laden drinks really haven’t become that popular here.” Reignwood has cut revenue forecasts for Red Bull in China this year, Chinese state media have reported, from Rmb23bn ($3.4bn) in 2015. Annual sales growth has slowed steadily from a peak of 29.5 per cent in 2013 to 10 per cent last year, according to Euromonitor. The carbonated version of the drink familiar to western consumers was created through a joint venture between TC Pharma and an Austrian partner in 1987. About 6.1bn cans of it are sold each year worldwide generating revenues of ?6bn, according to Red Bull in Austria. The fizzy version of the drink was launched in China in 2014, competing with both Chinese-produced Red Bull, which is uncarbonated, and black market imports. The Red Bull spat is not the first high-profile dispute to have embroiled Mr Chanchai. Reignwood hit headlines in the UK last year when members of Wentworth golf club, which it bought for £135m in 2014, protested against proposals to overhaul membership and fee structures. It backed down on some of its plans, but has faced criticism over steeply increased annual rates. Other assets include Ten Trinity Square in London. Mr Chanchai acquired the Tower Hill landmark, formerly the Port Authority building, in 2010 for £107m. After an estimated £500m refurbishment, a Four Seasons hotel and a private members club have opened this year. Reignwood is in the process of selling 40 luxury flats at prices of up to £4,000 per square foot. Asked whether he would have done the Trinity Square deal had he realised the expense and the time it would take, Mr Chanchai said: “Probably not. I never expected it to be so hard.”
Red Bull owner locks horns over drink’s future in China Source: FT June 9, 2017 Energy drink Red Bull is at the centre of a dispute between its Thai owners and a China-born business tycoon whose investments include London landmarks and Wentworth golf course in the UK. The Bangkok-based Yoovidhya family is […]
Why Beer Taxes Are $1.29 in Tennessee but Just 2 Cents in Wyoming
Why Beer Taxes Are $1.29 in Tennessee but Just 2 Cents in Wyoming Source: Money Ian Salisbury Jun 07, 2017 Looking for some home-state bragging rights? Sure some states offer natural beauty, others high-paying jobs. But you might also want to consider just how far your beer money will go. Taxes are […]