How the billionaire family behind Red Bull became Thailand’s richest

The Yoovidhyas, who topped Forbes’ Thailand 2024 rich list with US$36 billion in collective net worth, co-own Red Bull, the energy drink giant founded by their late patriarch Chaleo Yoovidhya.

The family and its current head, Chalerm Yoovidhya, 74, also led this year’s list in terms of wealth growth with a $2.6 billion boost to their net worth.

Chalerm Yoovidhya in Thailand, Dec. 20, 2012. Photo by Panoramic via Reuters

While Red Bull is often associated with high-energy excitement, its late founder Chaleo had a vastly different personality, as reported by the New York Post.

He was famously reclusive and, as one of his sons revealed, had not granted an interview in the 30 years prior to his passing. Hence, few details about his life were confirmed, but the known facts depict his success as a rags-to-riches story.

Chaleo was born to poor Chinese immigrants in the northern Thai province of Phichit and had worked various jobs, including as a bus conductor, fruit vendor, and duck farmer, according to the Washington Post.

Despite having little formal education, he founded TC Pharmaceutical Industries in 1962, a company specializing in antibiotics and cosmetics.

One of its products was an energy tonic called Krating Daeng, which means “red bull” in Thai.

The drink was originally sold in pharmacies as a stimulant and was popular among weary laborers and truckers, who drove the country’s economic boom in the 1970s and ’80s.

It caught the interest of an Austrian traveling toothpaste salesman named Dietrich Mateschitz in 1982, who was impressed by its ability to cure jet lag.

Mateschitz decided to partner with Chaleo to push the product to the international market. Each man invested $500,000 and secured a 49% ownership stake, while the remaining 2% went to Chaleo’s eldest son Chalerm.

After adjusting the recipe and redesigning the packaging, Red Bull was launched in 1987.

Instead of using traditional media like television, Red Bull focused on sponsoring student parties, sporting events and athletes, especially those in extreme sports like snowboarding and car racing.

Thai businessman Chalerm Yoovidhya and his wife Daranee Yoovidhya attend the Formula One Austrian Grand Prix at the Red Bull race track in Spielberg, Austria on July 2, 2023. Photo by AFP

Saravudh Yoovidhya, one of Chaleo’s sons, explained in an interview with the Thai newspaper The Nation that while leading companies focused on the capital, Red Bull made its mark in provincial markets by providing free samples to truck drivers.

“My father believed that if he wanted to launch a new product, it had to be distinct from the market leader,” he said, adding that Chaleo focused on brand building, which was an uncommon strategy at the time.

“His strategy has proved to be a key factor in the strength of the Red Bull brand. He was also the first to float the idea of Red Bull going international.”

This unconventional approach proved successful and the drink grew in popularity among office workers and college students.

By January 2011, the firm had sold 4.2 billion cans, generating $5.1 billion in revenue and capturing 70% of the energy drink market.

Chaleo died at a hospital in Bangkok on March 17, 2012, by which point he had been married twice and had 11 children. The Nation, a Thai newspaper, reported that he was 90, while several other news media outlets in Thailand said he was 88, according to The New York Times.

Saravudh spoke fondly of his father in an interview after his passing, describing him as someone who dedicated his life to work and never complained of being tired.

“I never heard words like ‘difficult’ or ‘impossible’ from my father. (…) He really enjoyed his work and sometimes carried on until 1 or 2 a.m. When he talked about his work, he was always very happy and active.”

He noted that Chaleo never saw Red Bull’s expansion into international markets as unfeasible, despite Thailand’s relative obscurity on the world stage at the time.

He also said that, despite having limited formal education, Chaleo was always eager to learn, particularly English and law, which he considered important for business.

Since the passing of its co-founder, Red Bull has continued to thrive, generating over $11 billion in revenue and selling more than 12 billion cans globally last year, as has the wealth of the Thai billionaire family.

However, the family has also faced its share of controversies. Vorayuth Yoovidhya, Chalerm’s youngest son, was allegedly involved in a hit-and-run case while driving his Ferrari in Bangkok that left a police officer dead in September 2012, Bloomberg reported.

The heir fled Thailand on a private jet in 2017 to avoid prosecution and has been living a life of luxury overseas. He and his family have denied the charges, which were eventually dropped by Thai authorities a few years ago.

This controversy triggered a nationwide boycott of Red Bull products and has drawn prolonged public attention in Thailand, symbolizing what critics describe as the unchecked privilege of the nation’s wealthy and influential elite.

Vorayuth “Boss” Yoovidhya, whose grandfather co-founded energy drink company Red Bull, walks to get in a car as he leaves a house in London, April 5, 2017. Photo by AP

It was also revealed in 2017 that the family used offshore companies to conceal purchases of jets and luxury properties, AP reported, citing the Panama Papers, a trove of 11 million confidential financial records that exposed how the wealthiest families around the world hide their assets.

There was no indication the Yoovidhya family’s accounts violated any laws, but the extremely confidential deals also can be used to evade taxes or launder money.

Nonetheless, Red Bull thrived with the return to normalcy post-Covid-19, and the Thai family behind its creation saw a $7.8 billion increase in their fortune in 2022, the largest gain of any Asian dynasty that year, according to the Bloomberg Billionaires Index.

“Red Bull are among the most successful lifestyle marketers in consumer goods,” Howard Telford, senior industry manager of soft drinks at consultancy Euromonitor International, said. That “allows Red Bull to maintain a strong, premium identity in a thriving category for functional beverages.”