Red Bull is expected to be dropped as the official energy drink of summer festivals including Global Gathering and the O2 Wireless. It is understood rival Monster is poised to snatch the contract.
The loss comes just weeks after former Red Bull brand director Guy Carling left the company to join Monster, which is due to launch in the UK next year.
The deal will make Monster the exclusive energy drink for all of the summer festivals held by Live Nation, which also include Hyde Park Calling and Download. Events group Live Nation was previously known as Mean Fiddler.
A spokesperson for Live Nation says: “We are in negotiations with a number of big players in the energy drink market over next year’s events.
Red Bull has seen a string of departures since managing director Harry Drnec left in May after 13 years with the company. Neal Taylor, head of sports; Alan Clarke, director of on-trade sales; Linda Pelham, head of motor and air sports; and sales director Mike South also left the company over the summer (MW August 2).
After the company promoted off-trade sales director Nigel Trood to replace Drnec, he started a review of the UK business with a view to ironing out duplication of roles but ruled out job cuts (MW May 3).
Red Bull declined to comment on the Live Nation deal as Marketing Week went to press.