Vital Pharmaceuticals (VPX) brand Bang Energy has terminated its exclusive distribution partnership with PepsiCo, seven months after the agreement was made.
Following its termination, PepsiCo will no longer be the exclusive distributor of Bang or any other beverage brands recently launched by the brand, including Noo Fuzion, Meltdown, Redline and Bang Shots.
PepsiCo entered into the exclusive alliance with VPX earlier this year, which was set to significantly increase the distribution of Bang Energy beverages throughout the US.
Bang Energy said it gave PepsiCo notice of termination as its exclusive distributor on 23 October 2020, citing multiple issues and concerns regarding the beverage giant’s performance since the parties’ distribution partnership began.
“We sincerely expected PepsiCo to execute at an even higher level based on their enormous resources and promises. Unfortunately, we were wrong. PepsiCo, you’re fired,” said Jack Owoc, CEO of Bang Energy.
In a statement, PepsiCo said it was “disappointed” to receive the notice of termination from VPX “without cause, especially given the rapid success we’ve had in significantly expanding the presence and availability of Bang Energy drinks”.
However, Owoc added: “Bang Energy has had, and continues to have, a remarkable 11-year relationship with many of its prior distribution partners, including the independent Pepsi bottlers.”
PepsiCo said it remains the exclusive distributor of Bang Energy drinks across the US through October 2023 and that it will continue to fulfil its obligations under the agreement. “Serving our customers remains our top priority, while also defending and enforcing our exclusive rights granted in the agreement,” the company concluded.
© FoodBev Media Ltd 2020