Sector News

PepsiCo agrees $3.85 billion acquisition of Rockstar

March 12, 2020
Food & Drink

PepsiCo has agreed to acquire energy drink manufacturer Rockstar Energy Beverages (‘Rockstar’) for $3.85 billion, as it aims strengthen its position in the category.

Through the acquisition, PepsiCo will expand its existing energy drinks portfolio, which currently includes Mountain Dew’s Kickstart, GameFuel and AMP.

PepsiCo chairman and CEO Ramon Laguarta said: “As we work to be more consumer-centric and capitalise on rising demand in the functional beverage space, this highly strategic acquisition will enable us to leverage PepsiCo’s capabilities to both accelerate Rockstar’s performance and unlock our ability to expand in the category with existing brands such as Mountain Dew.

“Over time, we expect to capture our fair share of this fast-growing, highly profitable category and create meaningful new partnerships in the energy space.”

Rockstar’s products, which are designed for those who lead active lifestyles such as athletes and rock stars, are currently distributed in over 30 countries and are available in over 30 flavours. The brand’s portfolio includes Rockstar Twister, which launched at the beginning of 2019.

Commenting on the news, Rockstar’s founder Russ Weiner said: “We have had a strong partnership with PepsiCo for the last decade, and I’m happy to take that to the next level and join forces as one company.

“PepsiCo shares our competitive spirit and will invest in growing our brand even further. I’m proud of what we built and how we’ve changed the game in the energy space.”

The transaction, subject to customary closing conditions, is expected to close in the first half of 2020.

Earlier this year, PepsiCo announced that it will buy Chinese online snack company Be & Cheery from Haoxiangni Health Food Co for $705 million.

By Antonia Garrett Peel

Source: FoodBev

Related News

October 24, 2020

Cargill to construct a $150m biodiesel plant in Belgium

Food & Drink

Cargill is investing $150 million in a new plant that produces advanced biofuels from waste and residues, in an effort to further promote circular economy.

October 24, 2020

European Parliament votes against ‘veggie burger ban’

Food & Drink

The European Parliament has voted to reject the ban on plant-based products using names typically associated with meat products, but has voted in favour of a plant-based dairy ban.

October 24, 2020

Chili-shaped portable smartphone device easily identifies pepper’s heat level

Food & Drink

Researchers have developed a portable device that detects how much capsaicin a pepper contains with the help of a smartphone.

Send this to a friend