PepsiCo has agreed to acquire energy drink manufacturer Rockstar Energy Beverages (‘Rockstar’) for $3.85 billion, as it aims to 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.
© FoodBev Media Ltd 2020