Listen to this articleThe long-time third-party distributor for Red Bull has shuttered its operations on Long Island after losing its contract with the energy drink giant.
The Beverage Works NY, Inc., which has been a third-party distributor of Red Bull for the past 24 years, has laid off 44 workers here, part of 166 layoffs at its facilities in Brooklyn, Peekskill and on Long Island, according to the New York State Department of Labor. The company recently closed its 24,000-square-foot warehouse and distribution operations at 16 Dubon Court in East Farmingdale.
An executive of The Beverage Works has yet to respond to a request for comment.
In April, Beverage Works, headquartered in Wall, N.J., sued Red Bull North America Inc. in New Jersey federal court claiming that the company unfairly terminated its distribution contract for the New York and New Jersey area and violated the New Jersey Franchise Practices Act. The lawsuit argues that Red Bull required Beverage Works to make significant financial investments, including equipment, marketing events, mandated discounted pricing and advertising “that went well beyond the payment for Red Bull products that Beverage Works sold to retailers.”
Because Red Bull would not allow Beverage Works to distribute any other products, the company claims termination of its contract destroys its business and results in hundreds of employees losing their jobs across New York and New Jersey, according to the lawsuit, which is still pending. An attorney for the plaintiff declined comment and attorneys for Red Bull have yet to respond to a request for comment.
After terminating its third-party distributor, Red Bull has now taken over the territory and will be distributing the company’s products itself. Towards that end, a Red Bull affiliate has leased about 50,000 square feet of warehouse and distribution space at the newly built, 178,134-square-foot Bristol Logistics Center at 49 Mall Drive in Commack, according to real estate sources. Red Bull is currently advertising job opportunities on employment websites for warehouse workers and drivers at its new Commack facility.
Red Bull is owned by the Austrian company Red Bull GmbH. The company sold over 12 billion cans of its energy drinks last year with 2023 net sales of $10.9 billion, according to published reports.