USA: PepsiCo makes another entry into energy drinks

Just one month after PepsiCo announced to acquire energy drink maker Rockstar for USD 3.85 billion, the American multinational food, snack, and beverage corporation which is headquartered in Harrison, New York said today it has entered into an exclusive alliance Vital Pharmaceuticals Inc. (VPX), the manufacturer of Bang Energy drinks to distribute the portfolio of Bang Energy beverages in the United States.

The new alliance between PepsiCo and VPX is effective immediately and is set to significantly increase distribution of the Bang beverage lineup. Rockstar and Bang have different target markets, with Bang focused on the athletic sector and Rockstar concentrated on "those who lead active lifestyles from athletes to rock stars."

As soda consumption declines in the U.S. Coca Cola as well as PepsiCo have been pushing into energy drinks. Since 2015, Coca-Cola owns 16.7% of Monster Beverage Corporation which was purchased for USD 2.15 billion in 2015. Earlier this year Coca Cola also launched the first-ever energy drink under the Coke brand, a reformulated Coke Energy line. While Monster has experienced huge growth in the last few years, Red Bull continues to dominate as the energy drink leader.

Bang Energy was introduced in 2012 and is meant to give full taste with zero calories. The brand has risen to become the third-largest energy drink brand, and in 2019, was the single-largest contributor to overall growth in the liquid refreshment beverage market. It is carried in more than 200,000 outlets in the United States with products designed to provide functional benefits to the next generation of energy consumers.

"In the ultra-competitive energy category, Bang Energy has thrived, pioneering the performance energy segment and attracting the next-generation of energy consumers," said PepsiCo Beverages North America CEO, Kirk Tanner. "This alliance plays a central role in PepsiCo's overall energy-beverage strategy and enables us to significantly accelerate the distribution of Bang Energy to meet rising consumer demand."

Bang/VPX is orchestrated by one of the world's leading authorities, author, and developer of performance-enhancing supplementation and physique-altering nutrition—Founder and CEO, Jack Owoc. "The combined power of our two organizations will be a meteoric partnership – one for the beverage history books," said Jack Owoc. "Bang is committed to serving zero-calorie, highly effective innovation and exceeding our consumers' expectations. When it comes to the category, we have invented the future by reinventing the game."

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