San Diego Establishment in Contempt of Court for Deceiving Customers: Red Bull Continues...

San Diego Establishment in Contempt of Court for Deceiving Customers: Red Bull
Continues to Take Aim at 'Passing Off' Offenders

SANTA MONICA, Calif., July 31 /PRNewswire/ -- San Diego, Calif. based
nightclub Moondoggies has been held in contempt of court for continuing to
"pass off" generic energy drinks as Red Bull(R) to customers in violation of a
permanent injunction that Red Bull North America, Inc. ("Red Bull") obtained
four years ago. "Passing off" occurs when a customer orders Red Bull(R), but
receives a substitute beverage without being notified of the substitution or
given the opportunity to accept or reject the stand-in product. This is the
second time that Red Bull has caught the bar "passing off."
In 2003, Red Bull filed a lawsuit in federal court against Moondoggies for
"passing off" violations. Red Bull obtained the permanent injunction against
Moondoggies, and Moondoggies paid Red Bull$50,000 to settle the case. In May
2007 and July 2007, Red Bull investigators discovered that Moondoggies was
again "passing off." Red Bull immediately asked the court to hold Moondoggies
in contempt for violation of the permanent injunction. Red Bull and
Moondoggies eventually agreed to a judgment for contempt for an undisclosed
amount against Moondoggies.
Over the past year, Red Bull has settled similar "passing off" lawsuits
with Ft. Lauderdale-based Dicey Riley's for $75,000, Houston-based Tavern for
$150,000 and Orlando-based Roxy Night Club for a confidential amount. In
addition, Red Bull won a judgment against Chicago-based Wet nightclub in the
amount of $679,827.
"We've worked hard to build a brand that allows bar and restaurant owners
to sell Red Bull(R) at a premium price," says Chad Peffer, vice president of
sales, Red Bull North America. "We value our relationships with these
establishments. To me it is simple, give the customer what they've ordered and
charge accordingly. To do otherwise is deceiving their customers and our
consumers."
When customers 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(R) with their drink as proof that they are not being deceived. The best
way to distinguish Red Bull(R) from alternative products is the packaging. Red
Bull(R) is sold exclusively in its unique blue and silver can. It is never
shot out of a beverage dispenser gun.
"Red Bull(R) is really popular with our customers because it's a
high-quality product and they want that Red Bull(R) can in their hand," said
Joe Vaught, owner of San Diego based establishments including Tavern at the
Beach, Sandbar Sports Grill and Offshore Tavern and Grill. "There are so many
knock-off products trying to mimic Red Bull(R)'s success and approaching our
managers to switch by opening up their wallets or offering their product at a
lower cost," continued Vaught. "I'm sure many bar owners have been tempted to
pass off cheaper products as premium brands to reduce their costs, but no one
is ordering the other products by name. Our customers want Red Bull(R) and
that is what we give them."
If consumers see passing off taking place, they can visit
http://www.redbullusa.com and select the "contact us" button on the company
page, or send an email to consumer.information@us.redbull.com.
For more information about Red Bull visit http://www.RedBullUSA.com.
SOURCE Red Bull North America, Inc.

Kate Wilkinson of Publicis PR, +1-323-866-6025,
kate.wilkinson@publicis-pr.com, for Red Bull North America, Inc.