PepsiCo Buys Energy Drink Brand Rockstar for $3.85B

March 11, 2020

4 Min Read
PepsiCo Buys Energy Drink Brand Rockstar for $3.85B

American food and beverage firm PepsiCo Inc. entered into an agreement to purchase energy drinks maker Rockstar Energy Beverages for $3.85 billion, the company announced in a release Wednesday. 

“As we work to be more consumer-centric and capitalize 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,” PepsiCo Chairman and Chief Executive Officer Ramon Laguarta, said in a statement. “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 was established in 2001 and is available in more than 30 flavors in over 30 countries. PepsiCo has distributed Rockstar products in North America since 2009. The drinks are primarily sold at convenience and grocery stores. 

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“We have had a strong relationship with PepsiCo over the last decade, and I’m happy to take that to the next level and join forces as one company,” Russ Weiner, the founder and creator of Rockstar, said in the release. “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 deal is expected to close in the first half of this year pending the completion of regulatory approval and other customary closing conditions.  

Last month, PepsiCo revealed plans to purchase the Chinese online snacks company Hangzhou Haomusi Food Co. Ltd., known as Be & Cheery, for $705 million from Haoxiangni Health Food Co. Ltd.

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