© 2024 Connecticut Public

FCC Public Inspection Files:
WPKT · WRLI-FM · WEDW-FM · Public Files Contact
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

PepsiCo Seeks Boost In Energy Drink Market With Purchase Of Rockstar

PepsiCo is seeking to expand its market share in the energy drink category by acquiring Rockstar Energy Beverages.
Jewel Samad
AFP via Getty Images
PepsiCo is seeking to expand its market share in the energy drink category by acquiring Rockstar Energy Beverages.

Beverage giant PepsiCo, Inc. has agreed to purchase energy drink maker Rockstar Energy Beverages for $3.85 billion dollars, the company announced Wednesday. It's a move PepsiCo said will help it become "more consumer-centric and capitalize on rising demand."

Energy drinks have been a relatively weak area for PepsiCo and its rival Coca-Cola, but both companies have trying to bolster their presence in the fast-expanding beverage category.

The move also reflects the shifting tastes as consumers have steadily weaned themselves from soda to other offerings that also include coffee and tea-flavored beverages and low-calorie drinks.

Though sometimes confused with or lumped into the beverage category that includes sports beverages, energy drinks are considered a different product.

"They are marketed to increase alertness and energy levels, containing significant amounts of caffeine and as much or more sugar as in soda. Many energy drinks pack about 200 mg of caffeine, the amount in two cups of brewed coffee," according to Harvard's The Nutrition Source website.

As the market for energy drinks grows, companies like PepsiCo, which already had a distribution deal with Rockstar in North America, are seeking capitalize on that demand.

"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," PepsiCo Chairman and CEO Ramon Laguarta said in a statement.

Russ Weiner, Rockstar's founder, added that he was excited to take the PepsiCo-Rockstar relationship "to the next level."

"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," Weiner said.

PepsiCo's portfolio of energy drinks already includes Mountain Dew's AMP and Game Fuel. Another drink listed under juice beverages includes Mountain Dew Kickstart.

Coca-Cola's portfolio includes a stake in energy giant Monster as well as Coca-Cola Energy, which it began selling in the U.S. this year, according to a company press release.

As the Wall Street Journal points out, the PepsiCo-Rockstar deal has not yet closed, but if it does, it will be the first big acquisition Pepsi has made since 2018 when it acquired the seltzer-maker SodaStream.

It also represents the first major deal under Laguarta, who took over as PepsiCo's top executive after his predecessor, Indra Nooyi, stepped down in 2018. She led the company for 12 years.

Copyright 2021 NPR. To see more, visit https://www.npr.org.

Brakkton Booker is a National Desk reporter based in Washington, DC.

Stand up for civility

This news story is funded in large part by Connecticut Public’s Members — listeners, viewers, and readers like you who value fact-based journalism and trustworthy information.

We hope their support inspires you to donate so that we can continue telling stories that inform, educate, and inspire you and your neighbors. As a community-supported public media service, Connecticut Public has relied on donor support for more than 50 years.

Your donation today will allow us to continue this work on your behalf. Give today at any amount and join the 50,000 members who are building a better—and more civil—Connecticut to live, work, and play.

Related Content