Complaint Review: Red Bull North America - Creative Concepts Of America - Santa Monica California

I can honestly say that I was one of the first to contact Creative Concepts of America, Inc. (CCA) back in July 05. I was very interested in what they had to offer but it was going to be my very first business venture and wanted to be very cautious in my decision making. They sent me their informative package and it impressed me. I began to deal with Andrew Kennedy. Andrew basically promised me the moon on a silver platter. He literally told me everything I wanted to hear. He (key word) quoted me the pricing I wanted on the brands I wanted (more than just Red Bull), offered exclusive distribution rights in San Diego County between myself and 2 others who were pretty distant from me, interest free expansion programs, warranty programs, insurance, even conversion kits so I could vend 16oz cans out of the machines I was purchasing. Negotiations quickly came to a stand still when he passed me on to Jeffrey Youngbauer. The guy had absolutely no idea what Andrew had promised me. He even tried to sell me his business cards.. literally! He wanted me to buy business cards with his name on it! After I spent 2 weeks asking every possible question, while holding off their payment ultimatums for as long as possible. I received all the information I needed to write a business plan and obtain a loan. I asked them for a few more days so I could get the loan, but I let them know that I was in based on the prior conversations. They emailed me the contract along with the purchase order and I faxed them my purchase order for 5 machines without locating services on August 7, 2005 for a total payment by credit card of $13, 695.00. The idiots lost my purchase order and I had to resend it again on August 12th. And the only reason I knew that was because I called.

3 weeks passed as they said it would, no machines. 6 weeks...no machines, no returned phone calls. Then randomly one day I received a call from Andrew Kennedy telling me "It was my lucky day. They had just signed a contract with Red Bull North America (RBNA) and I am going to get brand new state of the art, custom signed Red Bull Vending machines." They wouldn't be able to give me any better pricing than the already negotiated $1.22 a can but "I would be getting the 'Rolls Royce' of vending machines instead of the 'Peugeot' I had paid for!!! But I had to pay them another $3,000!" They knew I had already obtained a loan based on the quoted "national average of 27 cans sold per day" and now I had to come up with another 3k!?!?! After a good amount of firm talking I was able to get the new machines for the price of the old ones. Not only that, but I was no longer able to purchase any energy drink from CCA, except for Red Bull. I had already told Andrew in our first weeks of talking that I would not limit myself to just Red Bull energy drinks and if that was the case I would take my money elsewhere.

I even consulted a lawyer myself but was told that I did not have sufficient funds to take a company to court over something so small. I still loved the idea and was not going to let this hold me back. So I took what they gave me. They initial offer. Minus any other brands and conversion kits. I'm luckier than most, because I actually got my machines, but it wasn't until November 10, 2005 that I accepted my 5 machines from the shipping company.

While I was waiting for my machines I started looking for new distributors. I came across Crest Beverage. Mostly a beer distributor, they are also the only rep for Red Bull in San Diego County. They had no idea about the vending program and when I asked if they could match my pricing so I could make my purchasing easier and start our relationship quicker, they would not do it. Something seemed strange so I asked for a contact for someone who would know what was going on. I was directed to Brian Keen. Director of Non-Traditional Sales and Marketing for Red Bull. Southwest Business Unit. I called him numerous times on his cell phone and never received a response. About 5 months had passed and I was coming to my month to expand and I receive a letter from RBNA stating that they had severed ties with CCA and would have information on obtaining new machines by May 15, 2006. I never heard anything else. I wanted to expand but my expansion plan was no longer offered. I called Crest again for more information, Which created a large problem since I had calculated and saved money for new machines and loan repayments based on this expansion program. And of course who was I directed to??? Bryan Keen. The only thing they did (not even Mr. Keen, another Crest rep) was send me an email of people who wanted to sell their used machines. But they were unable to tell me if the warranties transferred or answer any other questions about what was going on. I also need to update the insurance on my machines, but they couldn't point me in the right direction. The biggest problem was coming up with adequate funds throughout this process to pay back my loans. And now I also need more machines, preferably new ones. But RBNA and its distributors don't seem to have a clue or even care about the hundreds of people who were committed to their vision

****I did not use any locating services or have any references.****

Jeff

Rancho Santa Margarita, California

U.S.A.