Red Bull – Royalty Relief Valuation

Executive Summary

Estimated brand-related value using a royalty relief methodology to assess the economic contribution of intangible assets within a consumer brand context.

Objective

To isolate and value the economic contribution of the Red Bull brand using a royalty relief approach.

Approach

• —Identified appropriate royalty rate benchmarks for beverage brands
• —Projected revenue attributable to the brand
• —Calculated hypothetical royalty payments
• —Discounted future royalty savings to present value

Key Outputs

• —Royalty relief valuation model
• —Royalty rate benchmarking
• —Brand value estimate
• —Sensitivity to key assumptions

Tools & Methods