Pepsi acquires energy drink Rockstar Energy!
PepsiCo Inc. agreed to buy energy drink maker Rockstar for 3,45 billion euros, as the US soft drink and snack giant seeks to expand its range. Their share in traditional soft drinks became smaller and that is why this step was taken.
The agreement is one of the first strategic moves by PepsiCo Chief Executive Officer Ramon Laguarta since taking over from Indra Nooyi in 2018. Pepsi and Las Vegas-based Rockstar Energy have had a distribution agreement in North America since 2009.
Caffeine and sugar
Energy drinks, known for their high sugar and caffeine content, have been a relative weak spot for both Coke and Pepsi. Austria's Red Bull dominates the category with sales of around 7,5 billion cans per year. About 700 million of those are sold in the US, compared to just over 70 million cans of Rockstar.
Through sponsorship, the energy drink industry is closely linked to extreme sports such as motocross, which has been a boon for brands such as Monster Energy, Red Bull and Rockstar. Just last month, Monster Energy said full-year 2019 sales were up 10%. Rockstar Energy was founded in 2001 by entrepreneur Russell Weiner.
Photos: Juan Pablo Acevedo
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